comScore, Inc., a leader in measuring the digital world, today released its report on the top ranked and fastest growing Internet properties in France for September, based on data from the comScore World Metrix audience measurement service.

Top 10 Properties for September

Google was the most visited property in France, with 18.9 million unique visitors, reaching 69 percent of the total French Internet audience. It was followed by Microsoft Sites, which grew 3.2 percent to reach 17.3 million unique visitors in September, a reach of 63 percent.

Wikipedia was the fastest growing property in the top ten, increasing 24 percent by attracting its highest ever French audience of 9.3 million unique visitors. The online encyclopedia site showed a similar increase a year ago, when it grew by 29 percent to 6.6 million unique visitors between August and September 2006, reflecting the impact of students returning to their studies in September.

Two other sites in the top 10 that showed growth in September come from the e-commerce and retail sectors. Online marketplace, eBay, enjoyed a 6 percent traffic increase to reach 11.6 million unique visitors, while the Groupe PPR property, which controls a number of online retail channels such as Fnac.com and Laredoute.Fr, enjoyed a 5 percent growth to reach 8.8 million unique visitors.

Delphine Gatignol, comScore’s Business Development Manager for France, observed: “Seasonal trends had a significant impact on French Internet use in September. The start of the school year drove traffic to online retail sites, and as happened this time last year, Wikipedia enjoyed substantial growth as a result of students getting back to their studies and using the site as a supplementary research tool.”

* Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs.

Top Gaining Properties for September

The fastest growing site in France was online translation service Lexilogos.com, which grew 61 percent to reach 1.6 million unique visitors. There was also notable growth for Government owned online gambling site, Francaise des Jeux, which increased 49 percent to reach 1.9 million unique visitors. Traffic to the site was boosted by two huge Euromillions Lottery jackpots in September.

Vente-Privee.com, a member’s only specialist shopping site that provides consumers with limited edition discounts and promotions from their favorite retailers, grew 58 percent to reach 1.9 million unique visitors. It was joined by Groupe Casino, the corporation behind a number of online retail channels including CDiscount.com, which grew 27 percent to reach 4.5 million unique visitors.

The French-hosted 2007 Rugby World Cup, which began in Paris on September 7, drove traffic to a number of sites. Media property, Groupe Amaury, grew 36.4 percent to reach 3.3 million unique visitors for the month. This growth can be attributed to its sports site, L’equipe.fr, which increased total traffic by 36 percent, from 2.3 to 3.1 million unique visitors. Traffic to L’equipe.fr’s rugby pages was clearly the driving force, increasing from 442,000 to 1.8 million unique visitors in September – a 304 percent increase. Newsweb, a sports focused site targeted at a male audience, also benefited, with traffic up 33 percent to reach just under 2 million unique visitors.

* Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs.

Top Gaining Categories for September

Political sites constituted the fastest growing category on the web in September.  Traffic to the politics category was up 58 percent in September, reaching 1.6 million unique visitors.  There was renewed interest in the political sphere throughout September as the French Internet audience clamored to read about the President’s separation from his wife of 11 years.  Ironically, despite President Sarkozy’s refusal to comment on the issue, saying: “I was elected by the French to find solutions to their problems, not to comment on my private life”, it was this private life that ultimately drove France’s newfound interest in the politics category, which attracted its largest audience since the French Presidential elections in June.

The career resources category also enjoyed a significant increase in traffic in September, growing 35 percent to 2.4 million unique visitors. This is part of a seasonal increase in September career site traffic that comScore has observed in previous years.

* Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs.

About comScore

comScore, Inc. (NASDAQ: SCOR) is a global leader in measuring the digital world. This capability is based on a massive, global cross-section of more than 2 million consumers who have given comScore permission to confidentially capture their browsing and transaction behavior, including online and offline purchasing. comScore panelists also participate in survey research that captures and integrates their attitudes and intentions. Through its proprietary technology, comScore measures what matters across a broad spectrum of behavior and attitudes.  comScore analysts apply this deep knowledge of customers and competitors to help clients design powerful marketing strategies and tactics that deliver superior ROI.  comScore services are used by more than 700 clients, including global leaders such as AOL, Microsoft, Yahoo!, BBC, Carat, Cyworld, Deutsche Bank, France Telecom, Best Buy, The Newspaper Association of America, Financial Times, ESPN, Fox Sports, Nestlé, Starcom, Universal McCann, the United States Postal Service, Verizon, ViaMichelin, Merck and Expedia.

Microsoft Corp. today announced the retail availability of new accessories for its innovative digital media player, Zune. The new first- and third-party accessories will usher in the next generation of Zune digital media players, which will be on shelves Nov. 13.

“Zune is committed to providing customers with choice,” said Scott Erickson, senior director of product management for Zune. “In addition to offering choice among Zune media players, we have also enhanced our accessories program to ensure that Zune users can choose from a robust line of high-quality accessories. By working only with licensed partners, we ensure that consumers have everything they need to enjoy a seamless, end-to-end Zune experience — Microsoft is one of the few companies that can offer this depth of support.”

Zune also announced an expanded third-party accessory partners program, teaming up with leading manufacturers to offer a wide selection of products created exclusively for Zune. Microsoft is collaborating directly with 23 accessory partners to ensure customers have a number of accessory options, complementing and enhancing their Zune experience.

Licensed Zune accessory partners are Agent 18, Altec Lansing Technologies Inc., Belkin International Inc., Case-mate, Digital Lifestyle Outfitters (DLO), Directed Electronics Inc. (Polk Audio), Dual Electronics Corp., GPX, Griffin Technology Inc., Golla, iHome, Incipio Technologies, Integrated Mobile Electronics Corp., , Kicker, mStation Corp., Memorex Electronics, Monster Cable Products Inc., Skinit, Speck, Targus Group International Inc., VAF Research, Vaja Corp., and zLive (DPI, Inc.).

With these new partners, the Zune accessory family now includes more than 60 new products. The accessories will be available for purchase at a variety of online retailers and major retail store locations beginning this week. New Zune accessories include the following:

• Speaker docks from Altec Lansing, iHome and Kicker

• Cases from Belkin, Case-mate, DLO, Incipio and Speck

• Cables, FM transmitters and car kits from Belkin, DLO, Monster and Kicker

Microsoft Accessories for Zune

In addition to the robust selection of accessories from partners, Microsoft will offer a new line of first-party accessories to help consumers get the most from their Zune content wherever they are — at home, in the car or on the go. To make it easy and affordable for existing Zune customers, many original Zune accessories will work on new Zune devices, and many new accessories will also work with the Zune 30GB device. The following eight new Zune accessories from Microsoft are available this fall:

• Zune Home A/V Pack. Power your home stereo with your Zune. Pack includes Home Dock with three faceplates to accommodate each Zune device, a wireless remote, an AC adapter and composite audio-video output cable. (ERP $99.99)

• Zune Dock Pack. Give your Zune a convenient home when it is connected to your computer or charging. Home Dock with three faceplates to accommodate each Zune device and AC adapter. (ERP $49.99)

• Zune Car Pack. Take your music with you on the road. Redesigned FM transmitter/charger and dashboard grip pad. (ERP $79.99)

• Zune Cable Pack. Get connected to your computer, your stereo or your TV. Sync cable, composite AV output cable and audio cable. (ERP $39.99)

• Zune Premium Headphones. Take your listening experience up a notch with these high-quality headphones. Included with the Zune 80GB device. (ERP $39.99)

• Zune Leather Case. Dress for success and protect your Zune in the process. (ERP $39.99 and $49.99)

• Zune Sync Cable (ERP $19.99)

• Zune AC Adapter (ERP $29.99)

Microsoft unveiled the next generation of Zune portable media players and software; an online store; and Zune Social, a beta online community Web site, earlier this month. The three new models of Zune portable media players feature a touch-sensitive Zune Pad for navigation, as well as wireless sync, a feature that allows Zune to connect automatically over the user’s home wireless network. With this expansion of features and products, Zune is positioned as a clear end-to-end alternative for customers looking to buy a digital music player.

More information about Zune, the latest accessories from Microsoft and the list of recognized partners can be found at http://www.zune.net/accessories.

About Zune
Zune is Microsoft’s music and entertainment brand that provides an integrated digital entertainment experience. The Zune platform includes a line of portable digital media players, the Zune Marketplace online store, and Zune Social, created to help people discover music. Zune is part of Microsoft’s Entertainment and Devices Division and supports the company’s software-based services vision to help drive innovation in the digital entertainment space.

About MicrosoftFounded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Apple today announced that it sold (or delivered in the case of maintenance agreements) over two million copies of Mac OS X Leopard since its release on Friday, far outpacing the first-weekend sales of Mac OS X Tiger, which was previously the most successful OS release in Apple’s history. Sales included copies sold at Apple’s retail stores, Apple Authorized Resellers, the online Apple Store, under maintenance agreements and bundled with new Mac computers. Leopard is the sixth major release of Mac OS X and is packed with more than 300 new features.

“Early indications are that Leopard will be a huge hit with customers,” said Steve Jobs, Apple’s CEO. “Leopard’s innovative features are getting great reviews and making more people than ever think about switching to the Mac.”

Leopard introduces Time Machine, an effortless way to automatically back up everything on a Mac*; a redesigned Finder that lets users quickly browse and share files between multiple Macs; Quick Look, a new way to instantly see files without opening an application; Spaces, an intuitive new feature used to create groups of applications and instantly switch between them; a brand new desktop with Stacks, a new way to easily access files from the Dock; and major enhancements to Mail and iChat.

Pricing & Availability Mac OS X version 10.5 Leopard is available through the Apple Store (www.apple.com), at Apple’s retail stores and through Apple Authorized Resellers for a suggested retail price of $129 (US) for a single user license. The Mac OS X Leopard Family Pack is a single-household, five-user license for a suggested retail price of $199 (US). Volume and maintenance pricing is available from Apple. Leopard requires a minimum of 512MB of RAM and is designed to run on any Macintosh computer with an Intel, PowerPC G5 or G4 (867 MHz or faster) processor. Full system requirements can be found at www.apple.com/macosx/techspecs.

* Requires an additional hard drive sold separately.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

The upcoming revamp of Court TV into truTV will feature a new tagline and a growing list of original series that are designed to target an audience of viewers who want first-person access to exciting, real-life stories.

“Not Reality. Actuality.” will serve as truTV’s tagline when the network’s new name debuts Jan. 1. In a television world increasingly cluttered by reality shows with manufactured and manipulated situations, the tagline - unveiled today - will serve as a promise to viewers: truTV will be a destination for programming with real situations, real stakes and real people. The channel also will continue to air trial coverage every weekday.

“We’re preparing to make this already solid network even stronger,” said Marc Juris, general manager of Court TV. “Renaming is just part of the process of building truTV into a powerful brand.”

The Jan. 1 launch of truTV will be followed by a continuous evolution in programming as the network adds to a strong lineup that already includes original series such as Forensic Files. The network today announced plans for two additional series:

• Sky Racers - When working in the most crowded airspace in the country, being a news helicopter pilot in Los Angeles means rushing to a story the moment it breaks. These pilots assist police during high-speed pursuits, all while using aerial acrobatics to jockey for position. This new series puts viewers inside the cockpit with Desiree Horton, a rare female news pilot and one of the best in the business.

• One False Move - This gripping series will follow people whose jobs and adventures take them to the brink of disaster - like rescue crews that blast two miles below the Earth’s surface or perform daring rope maneuvers hundreds of feet above ground. As this show will prove, a single mistake can be deadly.

These series join a previously announced slate in production or development. That lineup includes:

• The Real Hustle - Premiering Thursday, Jan. 22, at 10 p.m. (ET/PT), this series from Objective Productions/Crook Productions shows how an elite team of experts can steal a person’s money, possessions and even identity. It features Apollo Robbins, an expert pick-pocket and personal security consultant; Ryan Oakes, a sleight-of-hand and psychology specialist; and Dani Marco, a professionally trained actress skilled in distraction techniques. Taking on savvy New Yorkers, this trio will offer insider knowledge into the mechanics and psychology of how a con is executed.

• Neighbors 911 - From Granada America and executive producer Curt Northrup (Nanny 911) comes this new series in which former Green Beret Myke Hawke goes into the homes of people whose feuding has escalated into all-out conflict. Hawke is the judge and jury as he uses video evidence to force neighbors to confront each other and resolve their differences.

• Ski Patrol (working title) - This exciting series from Bunim/Murray Productions (The Real World) gets viewers up-close and personal with the men and women who work in some of the most extreme environments in the country. They do everything from dynamiting snowdrifts to daring, out-of-bounds rescues to busting unruly snowboarders looking to party on the slopes.

• Black Gold (working title) - Few jobs have higher stakes than those of “wildcatters” in Texas, where oil prospectors race one another to tap into the last remaining U.S. reserves. From Original Productions’ Thom Beers, an executive producer of the hit series Deadliest Catch, this show will follow several of these wildcatters and their crew of roughnecks as they risk lives, limbs and hundreds of thousands of dollars attempting to strike oil.

The programming day on the former Court TV will begin, as it does now, with trial coverage at 9 a.m. (ET). This portion of the day will continue through 3 p.m. (ET) and will not be rated by Nielsen Media Research. At 3 p.m., programming will shift from trials to truTV’s Star Jones. During the afternoon and primetime hours, truTV will feature engaging, real-life original series, the success of which will be measured through Nielsen ratings.

The changes will broaden the appeal of the entire channel. Popular series like Forensic Files, Haunting Evidence and Psychic Detectives will continue. Over time, truTV’s lineup will grow to include an even broader schedule of original offerings. Trial coverage will continue to serve a core audience that loves court action.

The tagline - “Not Reality. Actuality.” - will be a key element in bringing more viewers to truTV. “Over time, the meaning of the term ‘reality TV’ has changed and now includes shows that have very little to do with anything real,” Juris said. “truTV is aiming for an audience that wants real-life excitement and situations.”

Court TV is part of Turner Entertainment Networks, a unit of Atlanta-based Turner Broadcasting System. Turner Entertainment Networks has a great track record in successfully rebranding and repositioning networks. Steve Koonin took leadership of TNT in 2000 and was the architect of the network’s “We Know Drama” branding. He was later given oversight of sister network TBS and led the creation of the highly successful “Very Funny” branding.

“In today’s fractured media world, it is critical to build strong brands,” said Koonin, president of Turner Entertainment Networks. “We’re preparing for a solid future by rebranding Court TV as truTV.”

truTV will be television’s destination for real-life stories told from an exciting and dramatic first-person perspective. Currently seen in 91 million U.S. households as Court TV and enjoying more than a year of solid and consistent ratings growth, the soon-to-be rebranded network will feature high-stakes, action-packed originals that give viewers access to places and situations they can’t normally experience. Among truTV’s primetime fan favorites are the original series Forensic Files, Ocean Force, Haunting Evidence, Psychic Detectives and Dominick Dunne’s Power, Privilege and Justice. During the daytime, the channel will feature expert trial coverage.

About Turner Broadcasting System
Turner Broadcasting System, Inc., a Time Warner company, creates and programs branded news, entertainment, animation and young adult media environments on television and other platforms for consumers around the world

Microsoft Corp. announced on Oct, 25 revenue of $13.76 billion for the quarter ended September 30, 2007, a 27% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $5.92 billion, $4.29 billion and $0.45, respectively.

“This fiscal year is off to an outstanding start with the fastest revenue growth of any first quarter since 1999,” said Chris Liddell, chief financial officer at Microsoft. “Operating income growth of over 30% also reflects our ability to translate revenue into profits while making strategic investments for the future.”

Microsoft’s businesses of Client, Microsoft Business Division, and Server and Tools grew combined revenue in excess of 20%, and experienced robust demand for Windows Vista, the 2007 Microsoft Office system, Windows Server, and SQL Server.

“Customer demand for Windows Vista this quarter continued to build with double-digit growth in multi-year agreements by businesses and with the vast majority of consumers purchasing premium editions,” said Kevin Johnson, president of the Platform and Services Division at Microsoft.

During the quarter, Microsoft’s two consumer focused divisions passed milestones with the successful close of the company’s largest ever acquisition, aQuantive, and Halo 3 achieving the biggest entertainment launch day in history.

“Backed by an amazing product line-up, our sales force, marketing teams, and partners delivered another excellent quarter,” said Kevin Turner, chief operating officer at Microsoft.

Business Outlook

Microsoft management offers the following guidance for the quarter ending December 31, 2007:

• Revenue is expected to be in the range of $15.6 billion to $16.1 billion.

• Operating income is expected to be in the range of $5.9 billion to $6.1 billion.

• Diluted earnings per share are expected to be in the range of $0.44 to $0.46.

Management offers the following guidance for the full fiscal year ending June 30, 2008:

• Revenue is expected to be in the range of $58.8 billion to $59.7 billion.

• Operating income is expected to be in the range of $23.3 billion to $23.7 billion.

• Diluted earnings per share are expected to be in the range of $1.78 to $1.81.

The foregoing full fiscal year guidance includes approximately $85 million of estimated integration costs and in-process research and development expenses, or a $0.01 impact to diluted earnings per share, due to the acquisition of aQuantive.

Webcast Details

Microsoft will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today with Chris Liddell, senior vice president and chief financial officer, Frank Brod, corporate vice president and chief accounting officer, and Colleen Healy, general manager of Investor Relations, to discuss details of the company’s performance for the quarter and certain forward-looking information. The session may be accessed at http://www.microsoft.com/msft. The webcast will be available for replay through the close of business on October 25, 2008.

About Microsoft
Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Facebook and Microsoft Corp. today announced that the two companies would expand their advertising partnership and that Microsoft will take a $240 million equity stake in Facebook’s next round of financing at a $15 billion valuation. Under the expanded strategic alliance, Microsoft will be the exclusive third-party advertising platform partner for Facebook, and will begin to sell advertising for Facebook internationally in addition to the United States.

“We are pleased to take our Microsoft partnership to the next level,” said Owen Van Natta, Chief Revenue Officer, Facebook. “We think this expanded relationship will allow Facebook to continue to innovate and grow as a technology leader and major player in social computing, as well as bring relevant advertising to nearly 50 million active users of Facebook.”

“Making this investment and expanding this partnership will position Microsoft and Facebook to better take advantage of advertising opportunities around the world, and is a great win for not only for our two companies, but also our collective users and advertisers,” said Kevin Johnson, president of the Platforms & Services Division at Microsoft. “We have partnered well over the past year and look forward to doing some exciting things together in the future. The opportunity to further collaborate as advertising partners is a big reason we have decided to take an equity stake, and is a strong statement of our confidence in the long-term economics of this partnership.”

Facebook continues to experience strong growth both in the U.S. and international markets; almost 60 percent of Facebook’s users are outside the U.S. With an average of 200,000 new users registering each day, Facebook continues to be one of the most-trafficked sites on the Internet.

On Aug. 22, 2006, the companies announced a U.S.-only strategic alliance that named Microsoft the exclusive provider of standard banner advertising on Facebook using Microsoft’s digital advertising solutions and the Microsoft adCenter platform. In early 2007, the terms were extended to 2011.

About Facebook

Founded in February 2004, Facebook is a social utility that helps people communicate more efficiently with their friends, family and coworkers. The company develops technologies that facilitate the sharing of information through the social graph, the digital mapping of people’s real-world social connections. Anyone can sign up for Facebook and interact with the people they know in a trusted environment. Facebook is a part of millions of people’s lives and half of the users return daily. Facebook is a privately-held company and is headquartered in Palo Alto, Calif.

About MicrosoftFounded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

The Nielsen Company and Google announced today that the companies have established a multi-year, strategic relationship. As a first step, the relationship leverages Nielsen’s experience in television audience measurement to bring demographic data to the Google TV Ads™ advertising platform. By combining Nielsen demographic data with aggregated set-top box data, Google can provide advertisers and agencies with comprehensive information to help them create better ads for viewers and maximize the return on their advertising spending.Google TV Ads is an online platform for buying, selling, measuring and delivering television ads. The platform, which has been operational since May, includes advertising inventory across hundreds of channels and all dayparts. A key benefit of Google TV Ads is the ability to report second-by-second set-top box data so advertisers can evaluate the reach of an ad and only pay for actual set-top box impressions. Advertisers can better understand exactly how their ad is performing and make near real time changes to their TV advertising campaigns to deliver better ads to viewers. Data derived from Nielsen’s representative television ratings panels will provide Google TV Ads advertisers with the demographic composition of the audience.

This is the first time that advertisers and agencies will have this level of detailed measurement available in a single place and at such a large scale. This information is available through the existing Google AdWords™ report center

Moving forward, Google and Nielsen will explore a number of other opportunities to work together to measure online and other media. Additional details of the agreement were not disclosed.

“This is an important, strategic relationship for both companies and a great fit,” said David Calhoun, Chairman and CEO of The Nielsen Company. “We are pleased that Google looked to Nielsen to provide the demographic data that is so critical to the clients of its TV advertising platform. The relationship with Google – which we expect will expand significantly in the months ahead – is a prime example of the ways Nielsen is embracing new technologies, platforms and relationships worldwide to serve clients more completely, to provide companies with its insights and to help expand the base of potential advertisers everywhere.”

“As we continue to expand our TV advertising program, it is important that we provide advertisers and agencies with data that will help them reach their target demographic with the right ad,” said Eric Schmidt, chief executive officer at Google. “Working closely with Nielsen, the industry leader, improves our measurement capabilities by adding a demographic layer on top of existing set-top box data. We’re pleased that Nielsen is working with us in this endeavor.”

About The Nielsen Company
The Nielsen Company is a global information and media company with leading market positions and recognized brands in marketing information (ACNielsen), media information (Nielsen Media Research), online intelligence (Nielsen Online), mobile media (Nielsen Mobile), trade shows and business publications ( Billboard, The Hollywood Reporter, Adweek). The privately held company is active in more than 100 countries, with headquarters in Haarlem, the Netherlands, and New York, USA. For more information, please visit, www.nielsen.com.

About Google Inc.
Google’s innovative search technologies connect millions of people around the world with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and Sergey Brin, Google today is a top web property in all major global markets. Google’s targeted advertising program provides businesses of all sizes with measurable results, while enhancing the overall web experience for users. Google is headquartered in Silicon Valley with offices throughout the Americas, Europe and Asia. For more information, visit www.google.com.

About Google TV Ads
Google TV Ads™ makes it easy to create, launch, track and manage national television ad campaigns. Using the AdWords online interface, advertisers can specify their budget, upload ads, target millions of viewers across the United States, and run campaigns, paying only for impressions that are actually delivered. Within 24-hours, Google TV Ads provides second-by-second viewership data, allowing advertisers to measure success and easily make adjustments to optimize each campaign.

Apple today announced financial results for its fiscal 2007 fourth quarter ended September 29, 2007. The Company posted revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share. These results compare to revenue of $4.84 billion and net quarterly profit of $542 million, or $.62 per diluted share, in the year-ago quarter. Gross margin was 33.6 percent, up from 29.2 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.

Apple shipped 2,164,000 Macintosh computers, representing 34 percent growth over the year-ago quarter and exceeding the previous quarterly record for Mac shipments by 400,000. The Company sold 10,200,000 iPods during the quarter, representing 17 percent growth over the year-ago quarter. Quarterly iPhone™ sales were 1,119,000, bringing cumulative fiscal 2007 sales to 1,389,000.

“We are very pleased to have generated over $24 billion in revenue and $3.5 billion in net income in fiscal 2007,” said Steve Jobs, Apple’s CEO. “We’re looking forward to a strong December quarter as we enter the holiday season with Apple’s best products ever.”

“Apple ended the fiscal year with $15.4 billion in cash and no debt,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the first quarter of fiscal 2008, we expect revenue of about $9.2 billion and earnings per diluted share of about $1.42.”

Google Inc. today announced on October 18th financial results for the quarter ended September 30, 2007.

“We are very pleased with the impressive growth we experienced across our business,” said Eric Schmidt, CEO of Google. “Our core search advertising business experienced continued momentum driven by growth in monetization and traffic, and we are creating a wider and deeper ads system through our focus on innovation, bringing more ad formats to our advertisers. Our efforts to offer more products and services in international markets as well as effectively grow our technology infrastructure and add to our deep talent base during the quarter helped to deliver growth by enabling Google to reach more users around the world.”

Q3 Financial Summary

Google reported revenues of $4.23 billion for the quarter ended September 30, 2007, an increase of 57% compared to the third quarter of 2006 and an increase of 9% compared to the second quarter of 2007. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. In the third quarter of 2007, TAC totaled $1.22 billion, or 29% of advertising revenues.Google reports operating income, net income, and earnings per share (EPS) on a GAAP and non-GAAP basis. The non-GAAP measures, as well as free cash flow, an alternative non-GAAP measure of liquidity, are described below and are reconciled to the corresponding GAAP measures in the accompanying financial tables.

• GAAP operating income for the third quarter of 2007 was $1.32 billion, or 31% of revenues. This compares to GAAP operating income of $1.10 billion, or 29% of revenues, in the second quarter of 2007. Non-GAAP operating income in the third quarter of 2007 was $1.52 billion, or 36% of revenues. This compares to non-GAAP operating income of $1.35 billion, or 35% of revenues, in the second quarter of 2007.

• GAAP net income for the third quarter of 2007 was $1.07 billion as compared to $925 million in the second quarter of 2007. Non-GAAP net income in the third quarter of 2007 was $1.24 billion, compared to $1.12 billion in the second quarter of 2007.

• GAAP EPS for the third quarter of 2007 was $3.38 on 317 million diluted shares outstanding, compared to $2.93 for the second quarter of 2007 on 315 million diluted shares outstanding. Non-GAAP EPS in the third quarter of 2007 was $3.91, compared to $3.56 in the second quarter of 2007.

• Non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, and non-GAAP EPS are computed net of stock-based compensation (SBC). In the third quarter of 2007, the charge related to SBC was $198 million as compared to $242 million in the second quarter of 2007. Tax benefits related to SBC have also been excluded from these non-GAAP measures. The tax benefit related to SBC was $31 million in the third quarter of 2007 and $43 million in the second quarter of 2007. Reconciliations of non-GAAP measures to GAAP operating income, operating margin, net income, and EPS are included at the end of this release.

Q3 Financial Highlights

Revenues - Google reported revenues of $4.23 billion for the quarter ended September 30, 2007, representing a 57% increase over third quarter 2006 revenues of $2.69 billion and a 9% increase over second quarter 2007 revenues of $3.87 billion. Google reports its revenues, consistent with GAAP, on a gross basis without deducting TAC.

Google Sites Revenues - Google-owned sites generated revenues of $2.73 billion, or 65% of total revenues, in the third quarter of 2007. This represents a 68% increase over third quarter 2006 revenues of $1.63 billion and a 10% increase over second quarter 2007 revenues of $2.49 billion.

Google Network Revenues - Google’s partner sites generated revenues, through AdSense programs, of $1.45 billion, or 34% of total revenues, in the third quarter of 2007. This represents a 40% increase over network revenues of $1.04 billion generated in the third quarter of 2006 and an 8% increase over second quarter 2007 revenues of $1.35 billion.

International Revenues - Revenues from outside of the United States totaled $2.03 billion, representing 48% of total revenues in the third quarter of 2007, compared to 44% in the third quarter of 2006 and 48% in the second quarter of 2007. Had foreign exchange rates remained constant from the second quarter of 2007 through the third quarter of 2007, our revenues in the third quarter of 2007 would have been $24 million lower. Had foreign exchange rates remained constant from the third quarter of 2006 through the third quarter of 2007, our revenues in the third quarter of 2007 would have been $121 million lower.Revenues from the United Kingdom totaled $661 million, representing 16% of revenue in the third quarter of 2007, compared to 16% in the third quarter of 2006 and 15% in the second quarter of 2007.

Paid Clicks - Aggregate paid clicks, which include clicks related to ads served on Google sites and the sites of our AdSense partners, increased approximately 45% over the third quarter of 2006 and approximately 5% over the second quarter of 2007.

TAC - Traffic Acquisition Costs, the portion of revenues shared with Google’s partners, increased to $1.22 billion in the third quarter of 2007. This compares to TAC of $1.15 billion in the second quarter of 2007. TAC as a percentage of advertising revenues was 29% in the third quarter, compared to 30% in the second quarter of 2007.

The majority of TAC expense is related to amounts ultimately paid to our AdSense partners, which totaled $1.12 billion in the third quarter of 2007. TAC is also related to amounts ultimately paid to certain distribution partners and others who direct traffic to our website, which totaled $105 million in the third quarter of 2007.

Other Cost of Revenues - Other cost of revenues, which is comprised primarily of data center operational expenses, credit card processing charges as well as content acquisition costs, increased to $441 million, or 10% of revenues, in the third quarter of 2007, compared to $412 million, or 11% of revenues, in the second quarter of 2007.

Operating Expenses - Operating expenses, other than cost of revenues, were $1.25 billion in the third quarter of 2007, or 30% of revenues, compared to $1.21 billion in the second quarter of 2007, or 31% of revenues. The operating expenses in the third quarter of 2007 included $659 million in payroll-related and facilities expenses, compared to $625 million in the second quarter of 2007.

Stock-Based Compensation (SBC) - In the third quarter of 2007, the total charge related to SBC was $198 million as compared to $242 million in the second quarter of 2007. In the second quarter of 2007, we launched our employee transferable stock option (TSO) program and, in connection with this launch, incurred an SBC modification charge of $62 million.

We currently estimate stock-based compensation charges for grants to employees prior to October 1, 2007 to be approximately $801 million for 2007. This does not include expenses to be recognized related to employee stock awards that are granted after October 1, 2007 or non-employee stock awards that have been or may be granted. We currently anticipate that dilution related to all equity grants to employees will be at or below 2% this year.

Operating Income - GAAP operating income in the third quarter of 2007 was $1.32 billion, or 31% of revenues. This compares to GAAP operating income of $1.10 billion, or 29% of revenues, in the second quarter of 2007. Non-GAAP operating income in the third quarter of 2007 was $1.52 billion, or 36% of revenues. This compares to non-GAAP operating income of $1.35 billion, or 35% of revenues, in the second quarter of 2007.

Net Income - GAAP net income for the third quarter of 2007 was $1.07 billion as compared to $925 million in the second quarter of 2007. Non-GAAP net income was $1.24 billion in the third quarter of 2007, compared to $1.12 billion in the second quarter of 2007. GAAP EPS for the third quarter of 2007 was $3.38 on 317 million diluted shares outstanding, compared to $2.93 for the second quarter of 2007, on 315 million diluted shares outstanding. Non-GAAP EPS for the third quarter of 2007 was $3.91, compared to $3.56 in the second quarter of 2007.

Income Taxes - Our effective tax rate was 27.3% for the third quarter of 2007 compared to 25.5% in the second quarter of 2007.

Cash Flow and Capital Expenditures - Net cash provided by operating activities for the third quarter of 2007 totaled $1.63 billion as compared to $1.23 billion for the second quarter of 2007. In the third quarter of 2007, capital expenditures were $553 million, the majority of which was related to IT infrastructure investments, including data centers, servers, and networking equipment. Free cash flow, an alternative non-GAAP measure of liquidity, is defined as net cash provided by operating activities less capital expenditures. In the third quarter of 2007, free cash flow was $1.08 billion.

We expect to continue to make significant capital expenditures.

A reconciliation of free cash flow to net cash provided by operating activities, the GAAP measure of liquidity, is included at the end of this release.

Cash - As of September 30, 2007, cash, cash equivalents, and marketable securities were $13.1 billion.

On a worldwide basis, Google employed 15,916 full-time employees as of September 30, 2007, up from 13,786 full time employees as of June 30, 2007. 
 

Google Inc.
Condensed Consolidated Balance Sheets
(in thousands)

Google Inc.
Consolidated Statements of Income
(in thousands, except per share amounts)

		Three Months Ended September 30,				Nine Months Ended September 30,
		(unaudited)
Revenues		$         2,689,673		$    4,231,351		$         7,399,419		$    11,767,307
Costs and expenses:
Cost of revenues (including stock-based compensation expense of $2,149, $4,031, $6,754, $16,080)		1,048,728		1,662,579		2,941,879		4,693,261
Research and development (including stock-based compensation expense of $61,714, $130,655, $205,364, $408,425)		312,632		548,712		841,783		1,489,202
Sales and marketing (including stock-based compensation expense of $14,673, $29,918, $44,887, $93,553)		206,972		380,820		594,312		1,038,976
General and administrative (including stock-based compensation expense of $21,324, $33,352, $66,668, $105,288)		190,010		321,398		532,043		902,202
Total costs and expenses		1,758,342		2,913,509		4,910,017		8,123,641
Income from operations		931,331		1,317,842		2,489,402		3,643,666
Interest income and other, net		108,180		154,428		336,904		422,287
Income before income taxes		1,039,511		1,472,270		2,826,306		4,065,953
Provision for income taxes		306,150		402,281		779,577		1,068,682
Net income		$        733,361		$      1,069,989		$        2,046,729		$      2,997,271
Net income per share - basic		$           2.42		$           3.44		$            6.83		$           9.66
Net income per share - diluted		$           2.36		$           3.38		$           6.64		$           9.50
Shares used in per share calculation - basic		303,400		311,221		299,569		310,324
Shares used in per share calculation - diluted		310,574		316,576		308,245		315,638

Google Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)

		Nine Months Ended September 30,
		2006		2007
		(unaudited)
Operating activities
Net income		$        2,046,729		$    2,997,271
Adjustments:
Depreciation of property and equipment		335,629		565,841
Amortization of intangibles and warrants		47,060		111,881
Stock-based compensation		323,673		623,346
Excess tax benefits from stock-based award activity		(329,068)		(238,577)
Other		10,800		(7,215)
Changes in assets and liabilities, net of effects of acquisitions:
Accounts receivable		(343,356)		(559,425)
Income taxes, net		528,493		431,048
Prepaid revenue share, expenses and other assets		(267,759)		(237,262)
Accounts payable		91,198		20,155
Accrued expenses and other liabilities		124,640		206,522
Accrued revenue share		90,856		136,446
Deferred revenue		10,819		32,131
Net cash provided by operating activities		2,669,714		4,082,162
Investing activities
Purchases of property and equipment		(1,536,160)		(1,724,631)
Purchases of marketable securities		(23,151,347)		(11,756,147)
Maturities and sales of marketable securities		19,888,930		11,519,001
Investments in non-marketable equity securities		(1,014,222)		(21,288)
Acquisitions, net of cash acquired, and purchases of intangible and other assets		(257,812)		(823,092)
Net cash used in investing activities		(6,070,611)		(2,806,157)
Financing activities
Net proceeds from stock-based award activity		155,551		19,073
Net proceeds from a public stock offering		2,063,751		-
Excess tax benefits from stock-based award activity		329,068		238,577
Net cash provided by financing activities		2,548,370		257,650
Effect of exchange rate changes on cash and cash equivalents		13,694		28,078
Net (decrease) increase in cash and cash equivalents		(838,833)		1,561,733
Cash and cash equivalents at beginning of year		3,877,174		3,544,671
Cash and cash equivalents at end of period		$      3,038,341		$      5,106,404

Reconciliations of non-GAAP results of operations measures to the nearest comparable GAAP measures

The following table presents certain non-GAAP results before certain material items (in thousands, except per share amounts, unaudited):

		Three months ended June 30, 2007										Three months ended September 30, 2007
		GAAP Actual		As a % of revenues		Adjustments		Non-GAAP Results		As a % of revenues		GAAP Actual		As a % of revenues		Adjustments		Non-GAAP Results		As a % of revenues
						241,524	(a)									197,956	(b)
Income from operations		$   1,104,615		28.5%		$    241,524		$    1,346,139		34.8%		$  1,317,842		31.1%		$   197,956		$    1,515,798		35.8%
						241,524	(a)									197,956	(b)
						(42,997)	(c)									(31,011)	(c)
Net income		$    925,120				$  198,527		$   1,123,647				$  1,069,989				$   166,945		$   1,236,934
Net income per share - diluted		$   2.93						$   3.56				$   3.38						$   3.91
Shares used in per share calculation - diluted		315,469						315,469				316,576						316,576

(a) To eliminate $241.5 million of stock-based compensation charges recorded in the second quarter of 2007.
(b) To eliminate $198.0 million of stock-based compensation charges recorded in the third quarter of 2007.
(c) To eliminate income tax effects related to charges noted in (a) and (b).

Reconciliation from net cash provided by operating activities to free cash flow (in thousands, unaudited):

		Three months ended September 30, 2007
Net cash provided by operating activities		$   1,632,643
Less purchases of property and equipment		(552,640)
Free cash flow		$  1,080,003

The following table presents our revenues, by revenue source, for the periods presented (in thousands, unaudited):

		Three Months Ended September 30,				Nine Months Ended September 30,
Advertising revenues:
Google web sites		$1,625,977		$2,734,756		$4,355,754		$7,503,167
Google Network web sites		1,037,022		1,454,721		2,961,965		4,152,102
Total advertising revenues		2,662,999		4,189,477		7,317,719		11,655,269
Licensing and other revenues		26,674		41,874		81,700		112,038
Revenues		$     2,689,673		$     4,231,351		$    7,399,419		$    11,767,307

The following table presents our revenues, by revenue source, as a percentage of total revenues for the periods presented (unaudited):

		Three Months Ended September 30,				Nine Months Ended September 30,
Advertising revenues:
Google web sites		60%		65%		59%		64%
Google Network web sites		39%		34%		40%		35%
Total advertising revenues		99%		99%		99%		99%
Licensing and other revenues		1%		1%		1%		1%
Revenues		100%		100%		100%		100%

MySpace, the country’s most trafficked website, and MTV, the leading global youth brand, today announced that U.S. Senator Barack Obama (D-Illinois; www.myspace.com/barackobama) will be the next participant in their groundbreaking Presidential Dialogue series. The Dialogue with Sen. Obama will take place October 29 at 1:30 pm ET/10:30 am PT on the campus of Coe College in Cedar Rapids, IA, be streamed live on MySpace (www.myspace.com/election2008), MTV’s www.ChooseOrLose.com and MTV Mobile, and exclusively premiere on air on MTV at 7 pm ET/PT that night. MTV News Correspondents Gideon Yago and Sway Calloway, as well as WashingtonPost.com political reporter Chris Cillizza, will serve as moderators. Industry-leading pollsters John McLaughlin and Geoffrey Garin will return to oversee the real-time polling data and questions submitted via MySpaceIM and Think.MTV.com.

The inaugural MySpace / MTV Presidential Dialogue, with former Senator John Edwards, reached a wide audience on-air, online and on mobile phones. Held September 27 at the University of New Hampshire, the event was broadcast live on MySpace and www.ChooseorLose.com, and since its online premiere, has been streamed approximately 350,000 times. The on-air broadcast (7-8 pm ET) was the #1 program for viewers aged 18-24 across all of cable for the time period, and was seen by a total of nearly two million viewers overall (all ages). Nearly 2,300 questions were submitted for Senator Edwards by online viewers during the course of the one hour Dialogue. Adding to its historical significance, the Dialogue with John Edwards was the first-ever Presidential forum to be broadcast live on mobile phones, via MTV Mobile.

The MySpace and MTV Dialogue series is the first in history to allow a national at home audience the opportunity to respond to candidate’s answers instantaneously - with that feedback piped back into the discussion and used to shape its direction - as well as the ability to pose questions in real-time, via MySpaceIM and ChooseOrLose.com. Throughout the event, online viewers can immediately register their approval or disapproval of a candidate’s responses via a revolutionary online polling tool, powered by Flektor (www.flektor.com), as they watch the Dialogue live. Instant results are displayed on the screen and viewers can compare their opinions to those of the entire community through a “popular vote” function. Poll results are available online live during each event and archived for future viewing.

“MySpace and MTV Present: A Presidential Dialogue with Barack Obama” will be webcast live and archived for future viewing on both MySpace (www.myspace.com/election2008) and www.chooseorlose.com, and broadcast live on mobile phones through MTV Mobile. The event will also be translated live into Spanish and available via ImpreMedia’s LaVibra (www.lavibra.com/candidatos) and simulcast in English on MTV Radio. In addition to the MTV on-air premiere at 7 pm ET, highlights from the event will also be broadcast throughout the day on mtvU, MTV’s 24-hour college network.

The Presidential Dialogue series is a key component of the MySpace Impact Channel (http://impact.myspace.com) and MTV’s “Choose or Lose” (www.ChooseorLose.com). “Choose or Lose” is MTV’s Emmy-Award winning campaign to engage, inform and empower young voters on the political issues that matter to them most. First launched in 1992, the campaign has helped fuel several of the largest youth voter turnouts in US history, including in 2004, when it helped inspire nearly 22 million 18-30 year olds to register and vote. The Impact channel is MySpace’s new hub for social and civic engagement, designed to empower MySpace users to make a difference in the world and to allow politicians, non-profits, and civic organizations to connect with MySpace’s global audience. The Impact Channel houses the official MySpace pages for all of the major party Presidential candidates, as well as tools to enable voter registration, fundraising, and volunteering.

Each an hour in length and held on college campuses nationwide, the Presidential Dialogue series will feature frontrunner candidates from both the Republican and Democratic parties. The event at Coe College with Senator Obama will feature an audience comprised entirely of the university’s students, who will have the opportunity to question the Senator on issues that concern them most.

About MySpace
MySpace, a unit of Fox Interactive Media Inc., is the premier lifestyle portal for connecting with friends, discovering popular culture, and making a positive impact on the world. By integrating web profiles, blogs, instant messaging, e-mail, music streaming, music videos, photo galleries, classified listings, events, groups, college communities, and member forums, MySpace has created a connected community. As the first ranked web domain in terms of page views(a), MySpace is the most widely-used and highly regarded site of its kind and is committed to providing the highest quality member experience. MySpace will continue to innovate with new features that allow its members to express their creativity and share their lives, both online and off. MySpace’s international network includes localized community sites in the United States, France, Germany, Australia, Ireland, Spain, Italy, Mexico, Switzerland, Austria, Canada, Netherlands, New Zealand, Japan, Sweden, Latin America, Denmark, Norway, Finland and the United Kingdom.

About MTV Networks
MTV Networks, a unit of Viacom, is one of the world’s leading creators of programming and content across all media platforms. MTV Networks, with more than 130 channels worldwide, owns and operates the following television programming services - MTV: MUSIC TELEVISION, MTV2, VH1, mtvU, NICKELODEON, NICK at NITE, COMEDY CENTRAL, TV LAND, SPIKE TV, CMT, NOGGIN, VH1 CLASSIC, LOGO, MTVN INTERNATIONAL and THE DIGITAL SUITE FROM MTV NETWORKS, a package of 13 digital services, all of which are trademarks of MTV Networks. MTV Networks connects with its audiences through its robust consumer products businesses and its more than 200 interactive properties worldwide, including online, broadband, wireless and interactive television services. The network also has licensing agreements, joint ventures, and syndication deals whereby all of its programming services can be seen worldwide.