Marvel’s Iron Man pushes MVL up

Marvel Entertainment’s (NYSE: MVL) Iron Man generated box office receipts of $100.75 million in its opening weekend, the 10th best opening weekend ever. The performance is even more impressive when one considers that this was the first movie the company produced internally. (Friends are telling me that it’s really good.)

Although shares of MVL jumped after last weekend’s box office numbers were announced, what might be going unnoticed is the fact that the company also raised its full-year earnings guidance by a nickel on Monday to between $1.35 and $1.55 per share. Notably, the new forecast excludes the impressive performance by Iron Man.

Brokerage analysts had mostly been keeping their 2008 earnings estimates unchanged over the past 30 days, leaving the consensus forecast even at $1.51 per share. Interested investors should keep an eye on Marvel’s earnings estimates (http://at.zacks.com/?id=4572) to see if Iron Man causes brokerage analysts to reassess the company’s prospects.

Northwest Airlines Reports Full Year 2007 Results

EAGAN, Minn.–(BUSINESS WIRE)–Northwest Airlines Corporation (NYSE: NWA) today reported a 2007 pre-tax profit of $764 million before reorganization items, a 154 percent improvement over its 2006 pre-tax income of $301 million before reorganization items.

For the fourth quarter 2007, Northwest reported a net loss of $8 million, or $0.03 cents per diluted share. Results for the fourth quarter include a $14 million pre-tax loss associated with the sale of its remaining equity interest in Pinnacle Airlines. Excluding this item, Northwest’s results were break-even for the fourth quarter of 2007. In the fourth quarter of 2006, Northwest reported a $267 million net loss, or $3.06 per diluted share.

Doug Steenland, Northwest Airlines’ president and chief executive officer, said, “This marks our second consecutive year of profitability and the third highest pre-tax profit in Company history. Excluding reorganization items, Northwest’s 2007 results improved by $463 million over 2006 and over $2.1 billion when compared to 2005. Our 2007 pre-tax margin of 6.1 percent is also the highest among the network carriers. I want to recognize the hard work of our employees and management team for delivering these industry-leading results.”

Steenland added, “Our front-line employees and flight crews deserve great credit for running a very reliable airline during the peak travel periods in November and December, despite the significant winter weather challenges. As a result of our employees’ efforts and commitment over the course of the year, the Company will have paid out to them $125 million in profit sharing, performance incentives and reliability payments. This will be the highest employee incentives payout in Company history, nearly a 175 percent improvement over 2006.”

REVENUE IMPROVEMENTS

Northwest’s operating revenues for the fourth quarter rose to $3.1 billion, up 3.9 percent from last year.

Consolidated passenger revenue per available seat mile (RASM) increased by 4.8 percent versus the fourth quarter of 2006. Excluding the impact of fresh-start accounting, consolidated RASM increased 5.9 percent on a 1.5 percent decrease in available seat miles (ASMs). The RASM performance was driven by a 5.1 percent improvement in yield on a 0.6 percentage point improvement in load factor during the quarter.

“We saw unit revenue accelerate throughout the year as we continued to make disciplined capacity decisions. We are confident that we can build on this solid performance in 2008. In fact, our bookings remain strong across the system and we have seen no evidence of slowing demand,” said Tim Griffin, Northwest’s executive vice president marketing and distribution.

COST DRIVERS

Fourth quarter operating expenses were up $123 million, or 4.3 percent, year-over-year to $3.0 billion. Excluding fuel costs, operating expenses were down by $6 million year-over-year. Also, excluding fuel costs and unusual items, Northwest’s fourth quarter unit costs per available seat mile (CASM) increased 5.1 percent versus the fourth quarter of 2006 primarily due to significantly reduced capacity, as well as higher profit sharing, employee incentive programs and certain non-cash emergence-related items.

For the full year 2007, CASM excluding fuel costs and unusual items decreased 2 percent versus 2006.

Northwest’s single largest expense continues to be fuel. For the quarter, Northwest paid $2.35 per gallon of jet fuel, excluding taxes and before out of period hedge gains. This was nearly 42 cents, or 21.7 percent, higher than fourth quarter of 2006.

Northwest had previously hedged approximately 50 percent of its fuel exposure for the quarter using a combination of collars and swaps.

Northwest ended the quarter with $3.0 billion in unrestricted cash and $725 million in restricted cash. This restricted cash balance includes $213 million placed in escrow to fund the pending acquisition of a minority position in Midwest Airlines. Northwest’s 2006 year-end unrestricted cash was $2.1 billion.

Dave Davis, executive vice president and chief financial officer said, “The fact that Northwest delivered full-year pre-tax income of $764 million, and ended the year with $3.0 billion in unrestricted cash despite the highest fuel prices in history, illustrates the earnings power of the Northwest Airlines franchise.”

NORTHWEST HIGHLIGHTS

In discussing the airline’s achievements for the fourth quarter, Steenland noted, “Northwest continues to establish itself as an industry leader with investments in our employees, our fleet and the communities we serve. All of these initiatives contribute to making Northwest a world-class airline.”

A. Employee Investments

• Northwest accrued $22 million in profit sharing payments to employees for the fourth quarter and nearly $80 million for the full year.
• Northwest also accrued $4 million in performance incentive plan payouts during the quarter and $19 million for the full year.
• Northwest will pay out $14 million as part of its fourth quarter holiday reliability plan, of which $12 million was accrued in the fourth quarter. Northwest had previously paid out $12 million as part of the summer reliability initiative.
• Northwest made $127 million in employee pension and retirement plan payments in 2007.

B. Operational Excellence

• In November, Northwest announced its “20 Point Holiday Travel Reliability Plan” as part of the airline’s commitment to provide the best possible service to our customers. For example, during the peak five day Thanksgiving travel period, the plan helped Northwest achieve three 100 percent completion factor days with only three flight cancellations.

C. New Routes

• Northwest and its joint venture partner KLM Royal Dutch Airlines will inaugurate six new routes to Europe in the spring of 2008:

• Portland, Ore. - Amsterdam beginning March 29
• Minneapolis/St. Paul - London Heathrow beginning March 29
• Dallas/Fort Worth - Amsterdam beginning March 30
• Minneapolis/St. Paul - Paris beginning April 8
• Detroit - London Heathrow beginning May 1
• Seattle - London Heathrow beginning June 1

D. Anniversary of Northwest/KLM Joint Venture

• Northwest and its joint venture partner, KLM Royal Dutch Airlines, celebrated the 10^th Anniversary of the joint venture in the fourth quarter – marking a major milestone for one of the most successful partnerships in the history of the airline industry.

E. Fleet renewal

• As part of its $6 billion re-fleeting program, in the fourth quarter, Northwest took delivery of its 32^nd A330 aircraft. Northwest now operates the world’s largest A330 fleet, the youngest international fleet and youngest transatlantic fleet of any U.S. carrier.
• Northwest’s regional jet fleet also grew in the fourth quarter with the delivery of six Bombardier CRJ-900s and five Embraer EMB-175s, bringing the airline’s year-end total to 13 CRJ-900s and nine EMB-175s.
• In the first quarter 2008, Northwest plans to take delivery of six additional CRJ-900s and eight more EMB-175s.
• By the end of 2008, Northwest’s scheduled deliveries will bring its regional jet fleet to 36 EMB-175s and 36 CRJ-900s.
• Northwest’s 2008 flying plan includes a reduction of its DC9 fleet over the course of the year, with the largest reduction coming after the peak summer travel months. By the end of 2008, Northwest intends to operate a fleet of 68 DC9 aircraft, including 34 DC9-50s, 12 DC9-40s and 22 DC9-30s.

F. New Environmental Initiatives

• In December 2007, Northwest launched its EarthCares environmental program with a $1 million gift on behalf of the airline’s employees and customers to its founding partner, The Nature Conservancy.
• Later this year, Northwest customers will have the option of contributing to wildlife and land conservation projects around Northwest’s hubs in Minneapolis/St. Paul, Detroit, and Memphis as well as China’s First National Park. Customers will also be able to purchase carbon offset credits when they book their travel online.
• Northwest has reduced its own carbon emissions by 25 percent since the year 2000 through its transition to newer, more fuel-efficient aircraft.

FORWARD-LOOKING STATEMENTS

Statements in this news release that are not purely historical facts, including statements regarding our beliefs, expectations, intentions or strategies for the future, may be “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. All forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Such risks and uncertainties include, among others, the ability of the company to operate pursuant to the terms of its financing facilities (particularly the related financial covenants), the ability of the company to attract, motivate and/or retain key executives and associates, the future level of air travel demand, the company’s future passenger traffic and yields, the airline industry pricing environment, increased costs for security, the cost and availability of aviation insurance coverage and war risk coverage, the general economic condition of the U.S. and other regions of the world, the price and availability of jet fuel, the war in Iraq, the possibility of additional terrorist attacks or the fear of such attacks, concerns about Severe Acute Respiratory Syndrome (SARS) and other influenza or contagious illnesses, labor strikes, work disruptions, labor negotiations both at other carriers and the company, low cost carrier expansion, capacity decisions of other carriers, actions of the U.S. and foreign governments, foreign currency exchange rate fluctuations and inflation. Additional information with respect to the factors and events that could cause differences between forward-looking statements and future actual results is contained in the company’s Securities and Exchange Commission filings, including the company’s Annual Report on Form 10-K for the year ended December 31, 2006 and subsequent quarterly reports on Form 10-Q and current reports on Form 8-K. We undertake no obligation to update any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

Northwest Airlines is one of the world’s largest airlines with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world’s most extensive global networks. Northwest and its travel partners serve more than 1,000 cities in excess of 160 countries on six continents.

NORTHWEST AIRLINES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions except per share amounts)
		Successor (a)				Predecessor
		Three Months				Three Months
		Ended				Ended				%
		December 31,				December 31,				Incr
		2007				2006				(Decr)
OPERATING REVENUES
Passenger		$	2,222			$	2,202			0.9
Regional carrier revenues			370				306			20.9
Cargo			241				242			(0.4	)
Other			263				230			14.3
Total operating revenues			3,096				2,980			3.9
OPERATING EXPENSES
Aircraft fuel and taxes (b)			937				808			16.0
Salaries, wages and benefits			676				610			10.8
Aircraft maintenance materials and repairs			234				254			(7.9	)
Selling and marketing			186				176			5.7
Other rentals and landing fees			116				126			(7.9	)
Depreciation and amortization			128				129			(0.8	)
Aircraft rentals			94				52			80.8
Regional carrier expenses			193				318			(39.3	)
Other unusual items (c)			-				23			(100.0	)
Other			445				390			14.1
Total operating expenses			3,009				2,886			4.3
OPERATING INCOME (LOSS)			87				94			(7.4	)
Operating margin			2.8	%			3.2	%		(0.4	)	pts.
OTHER INCOME (EXPENSE)
Interest expense, net			(126	)			(142	)		(11.3	)
Investment income			36				36			0.0
Foreign currency gain (loss)			(4	)			(3	)		33.3
Other unusual items (d)			(14	)			-			n/m
Other			7				8			(12.5	)
Total other income (expense)			(101	)			(101	)		0.0
INCOME (LOSS) BEFORE REORGANIZATION ITEMS AND INCOME TAXES			(14	)			(7	)
Reorganization items, net (e)			-				(295	)
INCOME (LOSS) BEFORE INCOME TAXES			(14	)			(302	)
Income tax expense (benefit)			(6	)			(35	)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS		$	(8	)		$	(267	)
Earnings (Loss) per common share: (f)
Basic		$	(0.03	)		$	(3.06	)
Diluted		$	(0.03	)		$	(3.06	)
Average shares used in computation:
Basic			262				87
Diluted			262				87
See accompanying consolidated notes.

NORTHWEST AIRLINES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions except per share amounts)
		Successor				Predecessor				Combined (a)				Predecessor
		Period From				Period From				Twelve Months				Twelve Months
		June 1 to				January 1 to				Ended				Ended				%
		December 31,				May 31,				December 31,				December 31,				Incr
		2007				2007				2007				2006				(Decr)
OPERATING REVENUES
Passenger		$	5,660			$	3,768			$	9,428			$	9,230			2.1
Regional carrier revenues			884				521				1,405				1,399			0.4
Cargo			522				318				840				946			(11.2	)
Other			538				317				855				993			(13.9	)
Total operating revenues			7,604				4,924				12,528				12,568			(0.3	)
OPERATING EXPENSES
Aircraft fuel and taxes (b)			2,089				1,289				3,378				3,386			(0.2	)
Salaries, wages and benefits			1,541				1,027				2,568				2,639			(2.7	)
Aircraft maintenance materials and repairs			508				303				811				796			1.9
Selling and marketing			436				315				751				759			(1.1	)
Other rentals and landing fees			304				235				539				562			(4.1	)
Depreciation and amortization			289				206				495				519			(4.6	)
Aircraft rentals			218				160				378				226			67.3
Regional carrier expenses			434				342				776				1,406			(44.8	)
Other unusual items (c)			-				-				-				23			(100.0	)
Other			1,044				684				1,728				1,512			14.3
Total operating expenses			6,863				4,561				11,424				11,828			(3.4	)
OPERATING INCOME (LOSS)			741				363				1,104				740			49.2
Operating margin			9.7	%			7.4	%			8.8	%			5.9	%		2.9		pts.
OTHER INCOME (EXPENSE)
Interest expense, net			(273	)			(219	)			(492	)			(555	)		(11.4	)
Investment income			105				56				161				109			47.7
Foreign currency gain (loss)			(5	)			-				(5	)			(7	)		(28.6	)
Other unusual items (d)			(14	)			-				(14	)			-			n/m
Other			12				(2	)			10				14			(28.6	)
Total other income (expense)			(175	)			(165	)			(340	)			(439	)		(22.6	)
INCOME (LOSS) BEFORE REORGANIZATION ITEMS AND INCOME TAXES			566				198				764				301
Reorganization items, net (e)			-				1,551				1,551				(3,165	)
INCOME (LOSS) BEFORE INCOME TAXES			566				1,749				2,315				(2,864	)
Income tax expense (benefit)			224				(2	)			222				(29	)
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS		$	342			$	1,751			$	2,093			$	(2,835	)
Earnings (Loss) per common share: (f)
Basic		$	1.30			$	20.03							$	(32.48	)
Diluted		$	1.30			$	14.28							$	(32.48	)
Average shares used in computation:
Basic			262				87								87
Diluted			262				113								87
See accompanying consolidated notes.

NORTHWEST AIRLINES CORPORATION
CONSOLIDATED NOTES
(Unaudited)
(a)		Northwest Airlines Corporation (”NWA Corp.” or the “Company”) is a holding company whose operating subsidiary is Northwest Airlines, Inc. (”Northwest”). In September 2005, NWA Corp. and Northwest, along with certain direct and indirect subsidiaries filed Chapter 11 petitions for relief in the U.S. Bankruptcy Court for the Southern District of New York. On May 31, 2007, the Company emerged from Chapter 11.
		In connection with its emergence from Chapter 11, the Company adopted fresh-start reporting in accordance with American Institute of Certified Public Accountants’ Statement of Position 90-7, Financial Reporting by Entities in Reorganization under the Bankruptcy Code (”SOP 90-7″). References to “Successor” refer to NWA Corp. on or after June 1, 2007, after giving effect to the application of fresh-start reporting. References to “Predecessor” refer to NWA Corp. prior to June 1, 2007. Thus, the consolidated financial statements prior to June 1, 2007 reflect results based upon the historical cost basis of the Company while the post-emergence consolidated financial statements reflect the new basis of accounting incorporating the fair value adjustments made in recording the effects of fresh-start reporting. Therefore, the post-emergence periods are not comparable to the pre-emergence periods. However, for discussions on the results of operations, the Company has compared the Successor Company’s results for the three months ended December 31, 2007 to the Predecessor Company’s results for the three months ended December 31, 2006, as well as combined the results for the five months ended May 31, 2007 and the seven months ended December 31, 2007 to compare with the Predecessor Company’s results for the twelve months ended December 31, 2006.
		In addition to the fair value adjustments required for fresh-start reporting, the Company changed its presentation of certain regional carrier related revenue and expense items, acquired Mesaba Aviation, Inc. and changed its policies pertaining to the accounting for frequent flyer obligations and breakage of passenger tickets. See the table of year-over-year variance reconciliations for further details.
(b)		During both the three and twelve months ended December 31, 2007, the Company recorded $20.4 million in mark-to-market gains related to fuel derivative contracts that will settle in future periods. During both the three and twelve months ended December 31, 2006, the Company recorded $2.7 million in mark-to-market losses related to fuel derivative contracts that settled in 2007.
(c)		During the quarter ended December 31, 2006, the Company recorded $23 million in severance charges related to its November 6, 2006 ratified contract agreement with the Aircraft Mechanics Fraternal Association (”AMFA”).
(d)		During the quarter ended December 31, 2007, the Company sold its entire interest in Pinnacle Airlines Corp. common stock for $32.9 million, resulting in a loss of $14.2 million.
(e)		In connection with its bankruptcy proceedings and adoption of fresh-start reporting, the Company recorded largely non-cash reorganization income (expense) and, in accordance with GAAP, these items are separately classified in the Condensed Consolidated Statements of Operations.
(f)		Successor EPS. The Plan contemplated the issuance of approximately 277 million shares of new common stock by the Successor Company (out of the 400 million shares of new common stock authorized under its amended and restated certificate of incorporation). The new common stock was listed on the New York Stock Exchange (“NYSE”) and began trading under the symbol “NWA” on May 31, 2007. The distributions of the Successor Company’s common stock, subject to certain holdbacks as described in the Plan, were generally made as follows:
		— 234.4 million shares of common stock were issuable to holders of certain general unsecured claims and holders of guaranty claims;
		— 27.8 million shares of common stock were issued in the Rights Offering and Equity Commitment Agreement; and
		— 15.2 million shares of common stock are subject to awards under a management equity plan.
		In accordance with Statement of Financial Accounting Standards No. 128, Earnings per Share (”SFAS No. 128″), basic and diluted earnings per share were computed by dividing net income by the weighted-average number of shares of common stock outstanding for the applicable reporting period presented. SFAS No. 128 requires that the entire 234.4 million shares to be issued to holders of unsecured and guaranty claims be considered outstanding for purposes of calculating earnings per share as these shares will ultimately be issued to unsecured creditors once the allocation of disputed unsecured claims is completed. The 15.2 million shares subject to awards under the management equity plan were excluded from the computation of diluted earnings per share because the effect of including the shares would have been anti-dilutive.
		Predecessor EPS. Predecessor basic earnings per share was computed based on the Predecessor’s final weighted average shares outstanding. Dilutive earnings per share included approximately 25.3 million dilutive securities related to the Company’s Series C Preferred Stock and convertible debt.

NORTHWEST AIRLINES CORPORATION
RECONCILIATION OF YEAR-OVER-YEAR VARIANCES
(Unaudited, in millions)
As a result of the adoption of fresh-start reporting, the Company’s financial statements on or after June 1, 2007 are not comparable with its pre-emergence financial statements because they are, in effect, those of a new entity. In addition to the fair value adjustments required for fresh-start reporting, the Company changed its policies pertaining to the accounting for frequent flyer obligations and breakage of passenger tickets. The effects of fresh-start reporting, the policy changes and the impact of exit-related stock compensation expense on the Company’s Condensed Consolidated Statement of Operations are itemized below in column (A).
On April 24, 2007, Mesaba Aviation, Inc. was acquired by the Company and became a wholly-owned consolidated subsidiary. The impact on the Company’s year-over-year variance as a result of this consolidation is itemized in column (B).
In conjunction with the Amended Airline Services Agreement with Pinnacle Airlines, Inc. and the Stock Purchase and Reorganization Agreement with Mesaba Aviation, Inc., the Company changed its presentation of certain regional carrier related revenue and expense items effective January 1, 2007. This change in presentation had no impact on the Company’s operating income for the three months and twelve months ended December 31, 2007 and is itemized in column (C).
During the quarter ended December 31, 2006, the Company recorded $23 million in severance charges related to its November 6, 2006 ratified contract agreement with the AMFA. See column (D).
Excluding the items listed above, the comparable year-over-year operating performance variances are itemized in column (E). System passenger revenue increased 4.4 percent due primarily to a 5.9 percent improvement on unit revenue. Other revenue increased primarily due to favorable partner and charter revenues.
		Successor				Predecessor									(A)				(B)				(C)				(D)				(E)
															Increase (Decrease) Due To:
		Three Months Ended December 31, 2007				Three Months Ended December 31, 2006				Total Incr (Decr)					Fresh-Start/ Exit-Related Stk Comp. Exp.				Mesaba Net of Elim				Rgnl Carrier Reclass				AMFA Severance				Operations				Total Incr (Decr)
OPERATING REVENUES
Passenger		$	2,222			$	2,202			$	20				$	(30	)		$	-			$	-			$	-			$	50			$	20
Regional carrier revenues			370				306				64					3				-				-				-				61				64
Cargo			241				242				(1	)				-				-				-				-				(1	)			(1	)
Other			263				230				33					23				5				(50	)			-				55				33
Total operating revenues			3,096				2,980				116					(4	)			5				(50	)			-				165				116
OPERATING EXPENSES
Aircraft fuel and taxes			937				808				129					-				4				-				-				125				129
Salaries, wages and benefits			676				610				66					11				32				-				-				23				66
Aircraft maintenance materials and repairs			234				254				(20	)				-				8				-				-				(28	)			(20	)
Selling and marketing			186				176				10					(4	)			-				-				-				14				10
Other rentals and landing fees			116				126				(10	)				-				4				-				-				(14	)			(10	)
Depreciation and amortization			128				129				(1	)				(2	)			3				-				-				(2	)			(1	)
Aircraft rentals			94				52				42					-				-				46				-				(4	)			42
Regional carrier expenses			193				318				(125	)				-				(53	)			(96	)			-				24				(125	)
Other unusual items			-				23				(23	)				-				-				-				(23	)			-				(23	)
Other			445				390				55					-				13				-				-				42				55
Total operating expenses			3,009				2,886				123					5				11				(50	)			(23	)			180				123
OPERATING INCOME (LOSS)			87				94				(7	)				(9	)			(6	)			-				23				(15	)			(7	)
Operating margin			2.8	%			3.2	%			(0.4	)	pts.

NORTHWEST AIRLINES CORPORATION
EBITDAR CALCULATION
(Unaudited, in millions)
		Successor				Combined
		Three Months				Twelve Months
		Ended				Ended
		December 31,				December 31,
		2007				2007
Operating income (loss)		$	87			$	1,104
Depreciation and amortization			128				495
Aircraft rentals			94				378
EBITDAR (1)			309				1,977
EBITDAR margin			10.0	%			15.8	%
(1) EBITDAR is defined as operating income excluding depreciation, amortization and aircraft rents. The Company believes that EBITDAR is a useful financial measure when comparing the Company’s financial results to those of the industry.

NORTHWEST AIRLINES CORPORATION
PASSENGER AND REGIONAL CARRIER REVENUES AND STATISTICAL RESULTS
(Unaudited)
		Three Months Ended										Percent					Twelve Months Ended										Percent
		December 31,										Change					December 31,										Change
		2007					2006										2007					2006
Scheduled Service - Consolidated: (1)
Available seat miles (ASM) (millions)			22,890					23,231					(1.5	)				93,328					92,944				0.4
Revenue passenger miles (RPM) (millions)			18,866					18,992					(0.7	)				78,320					78,044				0.4
Passenger load factor			82.4		%			81.8		%			0.6		pts.			83.9		%			84.0		%		(0.1	)	pts.
Revenue passengers (millions)			16.1					16.6					(3.0	)				66.4					67.6				(1.8	)
Passenger revenue per RPM (yield)			13.74		¢			13.21		¢			4.0					13.83		¢			13.62		¢		1.5
Passenger revenue per RPM (yield) excluding fresh-start			13.88		¢			13.21		¢			5.1					13.95		¢			13.62		¢		2.4
Passenger revenue per ASM (RASM)			11.32		¢			10.80		¢			4.8					11.61		¢			11.44		¢		1.5
Passenger revenue per ASM (RASM) excluding fresh-start			11.44		¢			10.80		¢			5.9					11.71		¢			11.44		¢		2.4
Scheduled Service - Mainline: (2)
Available seat miles (ASM) (millions)			20,964					21,505					(2.5	)				86,142					85,603				0.6
Revenue passenger miles (RPM) (millions)			17,406					17,735					(1.9	)				72,924					72,606				0.4
Passenger load factor			83.0		%			82.5		%			0.5		pts.			84.7		%			84.8		%		(0.1	)	pts.
Revenue passengers (millions)			12.7					13.6					(6.6	)				53.7					54.8				(2.0	)
Passenger revenue per RPM (yield)			12.77		¢			12.42		¢			2.8					12.93		¢			12.71		¢		1.7
Passenger revenue per RPM (yield) excluding fresh-start			12.94		¢			12.42		¢			4.2					13.07		¢			12.71		¢		2.8
Passenger revenue per ASM (RASM)			10.60		¢			10.24		¢			3.5					10.94		¢			10.78		¢		1.5
Passenger revenue per ASM (RASM) excluding fresh-start			10.74		¢			10.24		¢			4.9					11.06		¢			10.78		¢		2.6
PASSENGER AND REGIONAL CARRIER REVENUES
(Unaudited)
		Domestic					Pacific					Atlantic					Mainline					Consolidated
As reported:
Fourth Quarter 2007
Passenger revenues (in millions)		$	1,373				$	520				$	329				$	2,222				$	2,592
Increase (Decrease) from 2006:
Passenger revenues			(2.6	)	%			3.2		%			14.2		%			0.9		%			3.4		%
Scheduled service ASMs (capacity)			(6.3	)	%			(4.2	)	%			16.8		%			(2.5	)	%			(1.5	)	%
Scheduled service RPMs (traffic)			(4.6	)	%			(3.3	)	%			11.7		%			(1.9	)	%			(0.7	)	%
Passenger load factor			1.5		pts.			0.8		pts.			(3.8	)	pts.			0.5		pts.			0.6		pts.
Yield			2.0		%			6.8		%			2.2		%			2.8		%			4.0		%
Passenger RASM			3.9		%			7.8		%			(2.3	)	%			3.5		%			4.8		%
Excluding fresh-start:
Fourth Quarter 2007
Passenger revenues (in millions)		$	1,392				$	532				$	328				$	2,252				$	2,619
Increase (Decrease) from 2006:
Passenger revenues			(1.3	)	%			5.6		%			13.9		%			2.3		%			4.4		%
Yield			3.4		%			9.2		%			2.2		%			4.2		%			5.1		%
Passenger RASM			5.3		%			10.2		%			(2.3	)	%			4.9		%			5.9		%
(1) Consolidated statistics include Northwest Airlink regional carriers.
(2) Mainline statistics exclude Northwest Airlink regional carriers, which is consistent with how the Company reports statistics to the Department of Transportation (“DOT”).

NORTHWEST AIRLINES CORPORATION
MAINLINE OPERATING STATISTICAL RESULTS (1)
(Unaudited)
			Three Months Ended										Percent			Twelve Months Ended										Percent
			December 31,										Change			December 31,										Change
			2007					2006								2007					2006
Total operating ASM (millions)				21,062					21,551				(2.3	)			86,310					85,738				0.7
Passenger service operating expense per total ASM (2) (3)				11.47		¢			10.66		¢		7.6				10.75		¢			10.95		¢		(1.8	)
Unusual items per total ASM (4)				-		¢			0.11		¢		n/m				-		¢			0.03		¢		n/m
Mainline fuel expense per total ASM				3.81		¢			3.26		¢		16.9				3.41		¢			3.43		¢		(0.6	)
Mainline fuel expense per total ASM excluding mark-to-market adjustments related to fuel derivative contracts that settle in future periods				3.88		¢			3.25		¢		19.4				3.43		¢			3.43		¢		0.0
Cargo ton miles (CTM) (millions)				577					566				1.9				2,067					2,269				(8.9	)
Cargo revenue per ton mile				41.92		¢			42.77		¢		(2.0	)			40.65		¢			41.71		¢		(2.5	)
Fuel gallons consumed (millions)				378					397				(4.8	)			1,545					1,593				(3.0	)
Average fuel cost per gallon, excluding fuel taxes				230.29		¢			193.92		¢		18.8				205.41		¢			202.47		¢		1.5
Average fuel cost per gallon, excluding fuel taxes and mark-to-market adjustments related to fuel derivative contracts that settle in future periods				235.10		¢			193.25		¢		21.7				206.59		¢			202.30		¢		2.1
Number of operating aircraft at end of period																	356					371				(4.0	)
Full-time equivalent employees at end of period																	30,306					30,484				(0.6	)
(1) Mainline statistics exclude Northwest Airlink regional carriers, which is consistent with how the Company reports statistics to the Department of Transportation (“DOT”).
(2) This financial measure excludes non-passenger service expenses. The Company believes that providing financial measures directly related to passenger service operations allows investors to evaluate and compare the Company’s core operating results to those of the industry.
(3) Passenger service operating expense excludes the following items unrelated to passenger service operations:
			Three Months Ended													Twelve Months Ended
			December 31,													December 31,
(In millions)			2007					2006								2007					2006
Regional carrier expenses			$	360				$	318							$	1,259				$	1,406
Freighter operations				194					222								654					804
MLT Inc. - net of intercompany eliminations				31					36								177					193
Other				8					14								56					43
(4) During the quarter ended December 31, 2006, the Company recorded $23 million in severance charges related to its November 6, 2006 ratified contract agreement with the AMFA.

NORTHWEST AIRLINES CORPORATION
SELECTED BALANCE SHEET DATA
(Unaudited, in millions)
		Successor						Predecessor
		December 31,						December 31,
		2007						2006
Cash and cash equivalents		$	2,939					$	1,461
Unrestricted short-term investments			95						597
Restricted cash, cash equivalents and short-term investments			725						424
Total assets			24,517						13,215
Total debt and capital leases, including current maturities			7,088						8,899			(1	)
Total liabilities			17,140						20,929
Total common stockholders’ equity (deficit)			7,377						(7,991)
(1) Includes certain debt and capital lease obligations classified as subject to compromise as of December 31, 2006.
FIRST QUARTER 2008 AND 2008 FULL YEAR GUIDANCE
		1Q 2008 Forecast						2008 Forecast
		(year-over-year change)						(year-over-year change)
Scheduled service ASMs (capacity)
Domestic (1)		(4%) - (5%)						(5.5%) - (6.5%)
International		3% - 4%						8% - 9%
Mainline (1)		(1%) - (2%)						(0.5%) - 0.5%
Regional		35% - 40%						50% - 55%
Consolidated (2)		1% - 2%						3% - 4%
Passenger service operating expense per total ASM excluding fuel (1)		3.5% - 4.5%						1% - 2%
		1Q 2008 Forecast						2008 Forecast
Average fuel cost per gallon, excluding fuel taxes (1)		$2.63						$2.57
Fuel gallons consumed (millions)		371						1,533
(1) Mainline statistics exclude Northwest Airlink regional carriers, which is consistent with how the Company reports statistics to the DOT.
(2) Consolidated statistics include Northwest Airlink regional carriers.
ESTIMATED FRESH-START AND EXIT-RELATED STOCK COMPENSATION EXPENSE
(In millions)
		Inc (Decr)
		1Q 2008
		Estimate
OPERATING REVENUES
Passenger and regional carrier revenues		$	(30	)
Other			23
Total operating revenues			(7	)
OPERATING EXPENSES
Salaries, wages and benefits			9
Selling and marketing			-
Depreciation and amortization			(2	)
Total operating expenses			7
OPERATING INCOME (LOSS)		$	(14	)

Encore Energy Partners LP Declares Quarterly Distribution

FORT WORTH, Texas–(BUSINESS WIRE)–Encore Energy Partners LP (NYSE: ENP) announced today that the board of directors of its general partner has declared a cash distribution of $0.3875 per unit with respect to the quarter ended December 31, 2007. The distribution will be payable on February 14, 2008 to unitholders of record at the close of business on February 6, 2008.

Fresh Del Monte Produce Chief Financial Officer to Retire

CORAL GABLES, Fla.–(BUSINESS WIRE)–Fresh Del Monte Produce Inc. (NYSE:FDP), today announced that John F. Inserra, Executive Vice President and Chief Financial Officer, will retire after a distinguished career of nearly 32 years with the Company. For the past 13 years, Mr. Inserra served as Fresh Del Monte’s Executive Vice President and Chief Financial Officer, and he will continue in that role until the leadership transition to a qualified successor is completed.

Mohammad Abu-Ghazaleh, Fresh Del Monte’s Chairman and Chief Executive Officer, said, “John has been an integral part of the success of Fresh Del Monte over these past many years due in large part to his dedication, integrity and leadership qualities in guiding the Company’s financial functions. We will ensure that his successor brings the same qualities to the position after a seamless and smooth transition is complete.”

Fresh Del Monte Produce Inc. is one of the world’s leading vertically integrated producers, marketers and distributors of high quality fresh and fresh-cut fruit and vegetables, as well as a leading producer and distributor of prepared food in Europe, Africa and the Middle East. Fresh Del Monte markets its products worldwide under the Del Monte® brand, a symbol of product innovation, quality, freshness and reliability for over 100 years.

Best Buy’s December Revenue Rises 11% to $7.3 Billion

MINNEAPOLIS–(BUSINESS WIRE)–Best Buy Co., Inc. (NYSE:BBY):

Monthly Revenue Summary – Fiscal December (U.S. dollars in billions)
		Fiscal December 2008						Fiscal			Fiscal
		Revenue			Revenue Gain1			December 2008 Comparable Store Sales Gain2			December 2007 Comparable Store Sales Gain2
Total Company		$	7.3		11	%		1.5	%		7.0	%
Domestic Segment		$	6.0		8	%		0.3	%		6.1	%
International Segment		$	1.3		30	%		7.6	%		12.9	%

¹ The effect of fluctuations in foreign currency exchange rates accounted for approximately one-half of the international segment’s revenue gain for the fiscal month. Consistent with prior presentations, results from operations in China are reported on a two-month lag basis.

² Comprised of revenue at stores, Web sites and call centers operating for at least 14 full months, as well as remodeled and expanded locations. Relocated stores are excluded from the comparable store sales calculation until at least 14 full months after reopening. Acquired stores are included in the comparable store sales calculation beginning with the first full quarter following the first anniversary of the date of the acquisition. The calculation of the comparable store sales percentage change excludes the effect of fluctuations in foreign currency exchange rates. The method of calculating comparable store sales varies across the retail industry. As a result, Best Buy’s method of calculating comparable store sales may not be the same as other retailers’ methods.

Best Buy Co., Inc. (NYSE:BBY) today reported that revenue for the fiscal month ended Jan. 5, 2008, rose 11 percent to $7.3 billion, which was in line with company expectations. The revenue for the five-week period compared with $6.6 billion in revenue for the fiscal month ended Dec. 30, 2006.

The net addition of 127 new stores in the past 12 months and a comparable store sales gain of 1.5 percent drove the year-over-year revenue increase. The comparable store sales gain, which was driven by an increase in the average transaction amount, came on top of a 7.0-percent gain in the prior year’s period. As discussed in the company’s third-quarter earnings release, the calendar shift moved a post-Thanksgiving shopping week from fiscal December to fiscal November. That shift increased the third-quarter comparable stores sales and decreased the fiscal December figure. The company estimated that the comparable store sales gain was 3.0 percent in fiscal December after adjusting for the calendar shift.

Brad Anderson, vice chairman and chief executive officer, stated, “We’re proud of our employees’ consistent execution, which is leading to future growth opportunities. Our employees also are driving continued gains in market share and customer loyalty, and employee retention is moving up. These strategic indicators fuel our confidence in our ability to generate profitable growth, as we prepare to conclude a strong fiscal year.”

December Highlights

• The company’s domestic segment generated $6.0 billion in revenue for fiscal December, an increase of 8 percent. The revenue gain reflected the net addition of 96 new stores in the past 12 months and a comparable store sales gain of 0.3 percent. On a calendar-adjusted basis, comparable store sales increased 2.1 percent in the domestic segment.
• The company’s international segment—which includes Future Shop and Best Buy stores in Canada as well as Five Star stores and a Best Buy store in China—increased its fiscal December revenue by 30 percent to $1.3 billion. The increase was driven by a favorable foreign currency exchange rate, a comparable store sales gain of 7.6 percent and the net addition of 31 new stores in the past 12 months.
• Consumer interest continued to be strongest in video gaming, flat-panel TVs, notebook computers and GPS devices.

Brian Dunn, president and chief operating officer of Best Buy, said, “I applaud our employees and thank them for the extraordinary efforts and sacrifices that they made on behalf of our customers during this critical time of the year.”

Video Gaming, Flat Panel TVs and Notebooks Lead Revenue Growth

		Revenue Mix Summary				Comparable Store Sales
		Fiscal Month Ended				Fiscal Month Ended
Revenue Category		Jan. 5, 2008		Dec. 30, 2006		Jan. 5, 2008		Dec. 30, 2006
Consumer Electronics		46%		48%		(3.1%)		10.8%
Home Office		22%		21%		4.7%		(2.5%)
Entertainment Software		25%		23%		8.2%		7.9%
Appliances		4%		4%		1.8%		(2.2%)
Services1		4%		4%		1.1%		9.2%
Other2		<1%		<1%		n.a.		n.a.
Total		100%		100%		1.5%		7.0%

¹Services consists primarily of commissions from the sale of extended service contracts; revenue from computer-related services; product repair revenue; and delivery and installation revenue derived from home theater, mobile audio and appliances.

²Other includes revenue, such as fees received from cardholder account activations, that is recognized over time, resulting in revenue recognition that is not indicative of sales activity in the current period. Other also includes gift card breakage. These revenue types are excluded from our comparable store sales calculation. Finally, Other includes revenue from the sale of products that are not related to our core offerings. For these reasons, a comparable store sales metric for this revenue category is not provided.

The entertainment software revenue category had the strongest growth, posting a comparable store sales gain of 8.2 percent for fiscal December. The growth of this revenue category was driven by solid double-digit comparable store sales growth in video gaming hardware and software, which was due to the increased availability of hardware and wider assortments of games and accessories. Partially offsetting the growth in video gaming were declines in CDs and DVDs.

The home office revenue category posted a 4.7-percent comparable store sales gain, fueled by a solid double-digit comparable store sales gain in notebook computers. The gain in the home office category from notebook computers was partially offset by comparable store sales declines for printers and monitors.

The appliances revenue category rose by 1.8 percent on a comparable store sales basis, as a decline in the domestic segment was more than offset by a gain in the international segment.

The comparable store sales gain of 1.1 percent in the services revenue category reflected a solid double-digit comparable store sales increase for repair revenue and a high single-digit comparable store sales gain in computing services. Partially offsetting these gains were comparable store sales declines in home theater installation and commissions from the sales of extended service contracts.

The consumer electronics revenue category posted a 3.1-percent comparable store sales decline as a low double-digit comparable store sales gain in flat-panel TVs and a triple-digit comparable store sales gain in GPS devices were more than offset by declines in projection and tube TVs as well as MP3 devices. Comparable store sales declined slightly for the total television category.

For the first 10 months of fiscal 2008, the company reported revenue of $33.9 billion, an increase of 14 percent compared to the same period last year, reflecting the addition of new stores and a 3.9-percent comparable store sales gain. The comparable store sales gain for the 10-month period reflected a gain of 2.7 percent for the domestic segment and a gain of 11.2 percent for the international segment.

Company Continues to Expect Fiscal 2008 EPS of $3.10 to $3.20, Up 13 Percent From 2007

Jim Muehlbauer, enterprise CFO (interim), said, “Our fiscal December revenue results finished in line with our expectations due to solid execution and focus on customer needs. We expect to deliver another strong year including annual revenue of approximately $40 billion and annual diluted earnings per share within our previously announced guidance range of $3.10 to $3.20. That range represents an average annual earnings growth rate of approximately 13 percent. Once again, we’re pleased that our employees’ dedication is delivering another year of strong top-line results and double-digit EPS growth, especially in light of macro-economic impacts on consumers.”

On April 2, 2008, the company expects to report fourth-quarter earnings and provide its initial earnings guidance for fiscal 2009.

Best Buy’s financial results and other news releases can be found on the Internet at the company’s Web site, www.BestBuy.com by clicking on the “For Our Investors” link, or accessed via Business Wire’s Web site at www.businesswire.com.

Forward-Looking and Cautionary Statements:

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that reflect management’s current views and estimates regarding future market conditions, company performance and financial results, business prospects, new strategies, the competitive environment and other events. You can identify these statements by the fact that they use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “project,” “plan,” “outlook,” and other words and terms of similar meaning. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. Among the factors that could cause actual results and outcomes to differ materially from those contained in such forward-looking statements are the following: general economic conditions, acquisitions and development of new businesses, divestitures, product availability, sales volumes, pricing actions and promotional activities of competitors, profit margins, weather, changes in law or regulations, foreign currency fluctuation, availability of suitable real estate locations, the company’s ability to react to a disaster recovery situation, and the impact of labor markets and new product introductions on overall profitability. A further list and description of these risks, uncertainties and other matters can be found in the company’s annual report and other reports filed from time to time with the Securities and Exchange Commission, including, but not limited to, Best Buy’s Annual Report on Form 10-K filed with the SEC on May 2, 2007. Best Buy cautions that the foregoing list of important factors is not complete and assumes no obligation to update any forward-looking statement that it may make.

About Best Buy Co., Inc.

Best Buy Co., Inc. (NYSE:BBY) operates a global portfolio of brands with a commitment to growth and innovation. Our employees strive to provide customers around the world with superior experiences by responding to their unique needs and aspirations. We sell consumer electronics, home-office products, entertainment software, appliances and related services through nearly 1,300 retail stores across the United States, throughout Canada and in China. Our multi-channel operations include: Best Buy (BestBuy.com, BestBuy.ca and BestBuy.com.cn), Future Shop (FutureShop.ca), Geek Squad (GeekSquad.com and GeekSquad.ca), Pacific Sales Kitchen and Bath Centers (PacificSales.com), Magnolia Audio Video (Magnoliaav.com), Jiangsu Five Star Appliance Co. (Five-Star.cn) and Speakeasy (Speakeasy.net). Best Buy supports the communities in which its employees work and live through volunteerism and grants that benefit children and education.

GameStop Reports Record Holiday Sales

GRAPEVINE, Texas–(BUSINESS WIRE)–GameStop Corp. (NYSE: GME), the world’s largest video game and entertainment software retailer, today reported sales results for the nine-week holiday period ending January 5, 2008.

Total sales for the 2007 holiday period were $2,334.4 million, a 34.7% increase from the prior year holiday period of $1,732.8 million. Comparable store sales for the holiday period increased 20.0%.

R. Richard Fontaine, Chairman and Chief Executive Officer, commented, “Driven by robust domestic and international sales, GameStop achieved the most successful holiday season results ever. Video game software sales grew by 45%, while the next generation installed base is now triple last year’s base and a very positive leading indicator for future sales growth.”

The top five video games sold during the holiday period were Activision’s GUITAR HERO III and CALL OF DUTY 4: MODERN WARFARE, ASSASSIN’S CREED by Ubisoft, Electronic Art’s ROCK BAND and Nintendo’s SUPER MARIO GALAXY.

Fontaine also stated that he “was particularly pleased with record holiday handheld sell-outs of the Nintendo DS and the Sony PSP. The Nintendo Wii, even in the face of on-going seasonal shortages, Microsoft’s Xbox 360 and Sony’s PlayStation 3, proved to be on many holiday wishlists as new console sales were very strong.

“Video gaming is redefining itself and attracting more players than ever as demonstrated by the growing number of Wii parties and Guitar Hero fests held not only at home, but also on college campuses, cruise ships and any place people are having fun.”

Updated Guidance

Based on sales trends to date, GameStop is increasing its fourth quarter 2007 comparable store sales guidance from a range of 7.0% to 9.0%, to be in a range of 15.5% to 16.5%. Full year comparable store sales are now expected to be in a range of 23.5% to 24.5%.

In addition, GameStop is also increasing its fourth quarter diluted earnings per share guidance to be in a range of $1.09 to $1.10. Full year earnings per diluted share guidance is now forecast to be in a range of $1.75 to $1.76, which is $0.13 per share higher than guidance issued on November 20, 2007.

Note that guidance does not include debt retirement costs.

Full year 2007 sales and earnings results and fiscal 2008 earnings guidance are expected to be released in mid-March 2008.

Sam’s Notes

GameStop did very well this holiday season, one has to wonder if their exclusive deal with Nintendo on rainchecks for Wiis may have had an effect (that will not be repeated) on their sales figures. Speaking of which, 17.6% of their sales were in the used video game product area ($411.4M) with 26% in new hardware ($607.2M) and 43.2% in new video game software ($1,008.6M).

The breakdown (percentages) is inline with their sales from previous years but the totals are much higher.

Eaton To Announce Fourth Quarter And Full Year 2007 Earnings On January 22; Live Webcast Scheduled For 10 A.M.

CLEVELAND–(BUSINESS WIRE)–Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) will announce fourth quarter and full-year 2007 earnings on Tuesday, January 22, before the opening of the New York Stock Exchange. The company will host a conference call at 10 a.m. Eastern time that day to discuss fourth quarter and 2007 earnings results with securities analysts and institutional investors.

The call will be available to interested listeners through a live audio webcast that can be accessed by clicking on the microphone on the right side of Eaton’s home page at the www.eaton.com Web site. The call replay will be available at the same site. The earnings news release will also be accessible on Eaton’s Web site.

Eaton Corporation is a diversified industrial manufacturer with 2006 sales of $12.4 billion. Eaton is a global leader in electrical systems and components for power quality, distribution and control; fluid power systems and services for industrial, mobile and aircraft equipment; intelligent truck drivetrain systems for safety and fuel economy; and automotive engine air management systems, powertrain solutions and specialty controls for performance, fuel economy and safety. Eaton has 63,000 employees and sells products to customers in more than 140 countries.

Rowan Announces New Drilling Commitments

HOUSTON–(BUSINESS WIRE)–Rowan Companies, Inc. (NYSE:RDC) announced today that it has signed a drilling contract for one of its Gorilla class rigs for approximately six months of work offshore eastern Canada that should begin in mid 2009.

The Company has committed either the Rowan Gorilla II or Rowan Gorilla III to this assignment, depending on first availability, and expects total revenues, including mobilization and modification fees, of approximately $56 million.

As previously reported, Rowan has also recently obtained additional North Sea drilling commitments for its Super Gorilla class rig, Rowan Gorilla VI, as follows:

* A six-month commitment for CNR expected to commence by the third quarter of 2009 and generate $55 million of drilling revenues
* A subsequent six-month extension for BG expected to occur in 2010 and generate $55 million of drilling revenues

Danny McNease, Rowan Chairman and Chief Executive Officer, commented, “Demand for high specification drilling equipment remains strong throughout the world, and Rowan’s quality fleet continues to benefit. These commitments enhance our future earnings visibility and are further testament to our long-held strategy of building and maintaining a diverse fleet of highly-capable jack-up rigs.”

Rowan Companies, Inc. is a major provider of international and domestic contract drilling services. The Company also owns and operates a manufacturing division that produces equipment for the drilling, mining and timber industries. The Company’s stock is traded on the New York Stock Exchange. Common Stock trading symbol: RDC.

Tyler Technologies Signs $15.1 Million Property Tax Software Agreement with the State of Tennessee

DALLAS–(BUSINESS WIRE)–Tyler Technologies, Inc. (NYSE: TYL) announced today that it has signed a contract to provide its iasWorld property tax software to the State of Tennessee. The contract, valued at approximately $15.1 million, is the largest single software contract in Tyler’s history, and includes software licenses, implementation services and support.

Currently, 88 of the 95 counties in Tennessee utilize State systems for their property assessment, appraisal and taxation. This collection of applications was originally developed to satisfy individual county needs—business needs that have expanded over the years through statute requirements and higher levels of services provided by the State.

To meet this growing demand for functionality and efficiency, the State sought to implement an integrated system that would consolidate databases and procedures currently performed in multiple systems.

After a thorough evaluation process, the State selected Tyler Technologies to provide its integrated, Web-based solutions, including Assessment Administration; Computer Assisted Mass Appraisal (CAMA); Personal Property; Inquiry and Appeals Tracking; and Tax Extension applications, as well as the ability to exchange data with other advanced applications such as GIS and document management systems.

Approximately 880 state, county and local government employees in Tennessee will interface in some capacity with the new system.

According to Andrew D. Teed, president of Tyler’s CLT Appraisal & Tax Solutions, the new system will allow the State to manage the database and software from one location, and counties to manage their own work using the single installation. “Our partnership with the State will provide centralized technology, a single point of contact for ongoing support, and the ability to extend the life of the software through continued enhancements.”

“We are extremely pleased to be awarded this contract,” commented Teed. “We look forward to working with the State of Tennessee to enhance its level of service to its counties, and through this, to its citizens.”

Talbots Announces Plans to Close Kids and Mens Concepts

HINGHAM, Mass.–(BUSINESS WIRE)–The Talbots, Inc. (NYSE: TLB) today announced that after a thorough evaluation of its business, it will exit its Talbots Kids and Talbots Mens concepts by September 2008. The decision is part of Talbots strategic business review that was announced on October 9, 2007, which is expected to be completed in the first quarter of 2008.

The strategic review revealed that these concepts did not demonstrate the potential to deliver acceptable long-term return on investment. The executive management team, with the full support of the Company’s Board of Directors, determined that discontinuing these businesses will enable The Talbots, Inc. to redirect resources and capital towards its core businesses, including Talbots Misses, Petites, Womans, Collection, Accessories & Shoes and J. Jill Missy, Petites and Womans.

Trudy F. Sullivan, The Talbots, Inc. president and Chief Executive Officer, commented, “This is a very important strategic move that will greatly contribute to our ability to focus and reinvigorate our core brands and provide sustainable long-term shareholder value. By exiting these concepts, we can focus exclusively on our company’s core strength – the age 35 plus female market, where we believe there is significant opportunity for profitable growth in both our Talbots and J. Jill brands.”

“I would like to sincerely thank everyone, who over the years invested considerable time and effort in developing Talbots Kids and Mens. Regrettably we must make these difficult decisions that will help grow and improve our core business.”

The Talbots, Inc. will close approximately 78 stores throughout the U.S. as a result of this decision, including 66 Talbots Kids and 12 Talbots Mens stores. The closures will impact approximately 800 full- and part-time positions, or approximately 5% of The Talbots Inc. total workforce. The Company is considering ways to offer the affected associates other opportunities, where feasible.

As a result of these actions, the Company currently anticipates total revenue to be impacted by approximately $100 million on an annualized basis. The Talbots, Inc. currently expects that the ongoing operational benefit resulting from these closings would be approximately $13 to $15 million, or $0.15 to $0.18 per diluted share, on an annualized basis.

The Talbots, Inc. anticipates pre-tax expenses associated with the closings of approximately $5 million, or $0.06 per diluted share in the fourth quarter 2007. Virtually all of this charge is related to the non-cash impairment of store level assets. In addition, the Company expects to incur pre-tax expenses of approximately $34 to $42 million, or $0.40 to $0.49 per diluted share in fiscal 2008. The majority of this charge is attributable to lease liabilities and non-cash impairment of store level assets.

Fourth Quarter Update

Separately, The Talbots, Inc. also announced today that its quarter-to-date sales for both its Talbots and J. Jill brands are trending below its expectations. With the important month of January still ahead, the Company will provide further information regarding its outlook for fourth quarter earnings per share when it reports its fourth quarter sales results on February 7, 2008.

The Company continues to evaluate store growth, productivity and distribution channels as part of its strategic business review and will provide additional information regarding its 2008 operating plan on March 12, 2008, when it reports fourth quarter and full year fiscal 2007 operating results.

The Talbots, Inc. is a leading international specialty retailer and direct marketer of women’s apparel, shoes and accessories. The Company currently operates a total of 1,428 stores in 47 states, the District of Columbia, Canada and the U.K., with 1,157 stores under the Talbots brand name and 271 stores under the J. Jill brand name. Both brands target the age 35 plus customer population. Talbots brand on-line shopping site is located at www.talbots.com and the J. Jill brand on-line shopping site is located at www.jjill.com.

Sam’s Notes
I can’t say I am surprised by this. Talbots (and J. Jill) have long been seen as a woman’s brand. Unlike Gap/Old Navy, which appeals to the whole family, Talbots is seen as being targeted at the 35 - 45 year old female market. Men and kids do not want to be a part of that market and far prefer the trendier outlets (Gap/Old Navy). Even young girls prefer Limited 2 for their clothing.

I’m glad Talbots is facing reality and closing these stores that cater outside their market. I see a few months of rough saling before this one picks back up again.