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Global Traffic Network, Inc. Reports Fiscal Third Quarter 2010 Operating Results Achieves Record Fiscal Third Quarter Revenue and Net Income

NEW YORK, May 10, 2010 (BUSINESS WIRE) -- --Quarterly Revenue Increases $11.6 million and Adjusted Operating Income Increases $3.6 million Global Traffic Network, Inc. (Nasdaq: GNET), a leading provider of custom traffic and news reports to radio and television stations outside the U.S., today announced its results for fiscal third quarter ended March 31, 2010.

The Company's revenue for the quarter ended March 31, 2010 was $24.1 million, an increase of 93% from $12.5 million reported in the third quarter of fiscal 2009.

Approximately $4.5 million of the increase in fiscal 2010 quarterly revenue was achieved from the Company's United Kingdom radio traffic and entertainment news operations, which were acquired effective March 1, 2009 and were included for only one month in the prior year results. Revenue from the Company's Australian and Canadian operations were up 61% and 145%, respectively, from the fiscal third quarter of 2009. While both Canada and Australia were aided by favorable currency exchange rate fluctuations due to a weaker U.S. dollar compared with the local currencies in the year ago quarter, results were also very strong in the respective local currencies, as quarterly Australian revenue increased 19% and Canadian revenue increased 108%, respectively, compared to the prior year quarter.

Adjusted Operating Income was $2.7 million for the fiscal third quarter ended March 31, 2010 compared to Adjusted Operating Loss of ($0.9) million for the fiscal third quarter ended March 31, 2009. This represents the highest increase in quarterly Adjusted Operating Income achieved in the history of the Company.

The Company defines Adjusted Operating Income (Loss) as net operating income (loss) plus depreciation and amortization expense.

Net income for the third quarter of fiscal 2010 was $0.5 million compared to net loss of $1.8 million for the same quarter a year ago. Included in the results for the third quarter of fiscal 2010 were $0.7 million of non-cash amortization expense and $0.1 million of non-cash income tax expense related to the amortization of the intangible assets and utilization of net operating losses of the U.K. acquisition.

The Company's revenue for the nine months ended March 31, 2010 was $70.1 million, an increase of 65% from $42.4 million reported in the nine month period ended March 31, 2009. A significant portion of the increase in fiscal 2010 revenue was achieved due to an increase of $16.5 million in revenue from the Company's United Kingdom radio traffic and entertainment news operations, which were acquired effective March 1, 2009 and only included for one month in the prior year period. Revenue from the Company's Australian operations was up 30% while revenue from the Company's Canadian operations was up 27%, respectively, from the nine month period ended March 31, 2009. Both Canada and Australia were impacted by favorable currency exchange rate fluctuations due to a weaker U.S.

dollar compared with the local currencies in the year ago period. When measured in their local currencies, year to date Australian revenue increased 8% and Canadian revenue increased 17% compared to the year ago period.

Adjusted Operating Income doubled from $3.3 million for the nine months ended March 31, 2009 to $6.6 million for the nine month period ended March 31, 2010.

Adjusted Operating Income has significantly increased during the latest two fiscal quarters after being down during the fiscal first quarter 2010.

Net income for the nine months ended March 31, 2010 was $0.3 million compared to a net loss of $38,000 for the same period a year ago. Included in the results for the nine month period ended March 31, 2010 were $2.0 million of non-cash amortization expense and $0.1 million of non-cash income tax benefit related to the amortization of the intangible assets and utilization of net operating losses of the U.K. acquisition.

Commenting on the results, William L. Yde III, Chairman, Chief Executive Officer and President of Global Traffic Network, said, "This is our second consecutive quarter of strong operating results after the challenging business conditions related to the global economic environment. Both Australia and Canada sales were significantly higher than the year ago quarter and both markets posted their largest gains of the year in local currencies during fiscal third quarter, with Australian revenue increasing 19% and Canadian revenue more than doubling, increasing 108%. After several difficult quarters in Canada we believe we now have strong momentum and expect to continue to show significant improvement in Canada's financial results. Our U.K. acquisition had another strong quarter enabling us to achieve positive Adjusted Operating Income for our consolidated UK operations. In addition, currency exchange rates had a positive impact on our current quarter results and appear poised to be a significant benefit in the fiscal fourth quarter as well based on the exchange rates to date." Mr. Yde continued, "Our strong revenue growth resulted in record Adjusted Operating Income growth for the quarter. Adjusted Operating Income increased from an Adjusted Operating Loss of $0.9 million for the quarter ended March 31, 2009 to $2.7 million Adjusted Operating Income for the quarter ended March 31, 2010, an increase of $3.6 million. This performance is more impressive given the third fiscal quarter is historically a seasonally weak quarter. For the current quarter our revenue to date is pacing well ahead of last year's fiscal fourth quarter and we anticipate a significant increase in Adjusted Operating Income for this quarter as well." Mr. Yde concluded, "We believe that the substantial investments we made in the long term success of our Company during the economic downturn, which included adding additional radio affiliates to our network, are now starting to pay off.

We were able to take advantage of these opportunities because of our strong balance sheet that has no debt and over $20 million in cash. We continue to be well positioned in the advertising arena, with no significant direct competitors, an extremely effective product and a seasoned, experienced sales staff." Fourth Fiscal Quarter 2010 Outlook To date for the Company's fiscal fourth quarter ending June 30, 2010, revenue reflected in the Company's internal sales reports is up compared to the fiscal fourth quarter ended June 30, 2009. The Company's operating, sales and general and administrative expenses were significantly higher in the third fiscal quarter of 2010 compared to the third fiscal quarter of 2009 when measured in local currencies. These expenses are higher due to the operations of the U.K.

acquisition and increased station compensation costs in Australia and Canada, among other things. These increased costs are expected to be reflected in the fiscal fourth quarter 2010 results as well. With the exception of sales commissions and certain U.K. operating expenses, the vast majority of the Company's costs are fixed and not readily reduced in the short or intermediate term. The U.S. dollar has been significantly weaker to date during the fiscal fourth quarter when compared to the Australia and Canadian dollar in the prior year fiscal fourth quarter. The impact of a weaker U.S. dollar, all other things being equal, is to increase the reported profit in those markets that are profitable in local currency and increase the loss in those markets that are not. Should foreign exchange rates and revenues from the Company's consolidated operations end fiscal fourth quarter 2010 consistent with the exchange rates to date and current sales pacings, the Company anticipates revenues, Adjusted Operating Income and net income will exceed the fiscal fourth quarter ended June 30, 2009.

Conference Call Global Traffic Network, Inc. will host a conference call at 8:30 a.m. EDT on Monday, May 10, 2010, to discuss its fiscal third quarter 2010 results, as well as other relevant matters. To listen to the call, dial (877) 303-9131 (domestic), or (408) 337-0141 (international), and enter the pass code 73104050.

The call will also be available live on the Internet at www.globaltrafficnetwork.com. A replay of the call will be available from May 10, 2010 through May 20, 2010. To access the replay, please call (800) 642-1687 (domestic) or (706) 645-9291 (international) and enter the pass code 73104050.

About Global Traffic Network Global Traffic Network, Inc. (Nasdaq: GNET) is a leading provider of custom traffic and news reports to radio and television stations outside the U.S. The Company operates the largest traffic and news network in Australia, operates traffic networks in eight Canadian markets and the largest national radio traffic network across the United Kingdom. In exchange for providing custom traffic and news reports, television and radio stations provide Global Traffic Network with commercial airtime inventory that the Company sells to advertisers.

As a result, radio and television stations incur no out-of-pocket costs when contracting to use Global Traffic Network's services. For more information, visit the Company's website at www.globaltrafficnetwork.com.

This press release contains statements that constitute forward-looking statements. These statements reflect the Company's current views with respect to future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, including those discussed under the heading "Risk Factors" and elsewhere in the Company's annual report 10-K, which may cause the actual results, performance or achievements to be materially different from any future results, performances or achievements anticipated or implied by these forward-looking statements. These statements can be recognized by the use of words such as "may," "will," "intend," " should," "could," "can," "would," "expect," "believe," "estimate," " predict," "potential," "plan," "is designed to," "target" or the negative of these terms, and similar expressions. The Company does not undertake to revise or update any forward-looking statements to reflect future events or circumstances.

Currency Exchange Rates for Income Statement Information -------------------------------------------------------------------- Three Months Ending Three Months Ending D March 31, 2010 March 31, 2009 ifference ------------------- ------------------- --------- Australia 0.9039 0.6645 +36.0% -------------- ------------------- ------------------- --------- Canada 0.9606 0.8037 +19.5% -------------- ------------------- ------------------- --------- United Kingdom 1.5614 1.4369 +8.7% -------------- ------------------- ------------------- --------- SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION Global Traffic Network, Inc. defines Adjusted Operating Income (Loss) as net operating income (loss) adjusted to exclude depreciation and amortization expense. The Company uses Adjusted Operating Income (Loss), among other things, to evaluate its operating performance. The Company believes the presentation of this measure is relevant and useful for investors because it helps improve their ability to understand the Company's operating performance and makes it easier to compare the Company's results with other companies that have different financing and capital structures or tax rates. In addition, the Company believes this measure is among the measures used by investors, analysts and peers in the media industry for purposes of evaluation and comparing its operating performance to other companies.

Adjusted Operating Income (Loss) is not a measure of performance calculated in accordance with generally accepted accounting principles ("GAAP") and it should not be considered in isolation of, or as a substitute for, net operating income (loss) as an indicator of operating performance. Because Adjusted Operating Income (Loss) excludes certain financial information compared with net operating income (loss), the most directly comparable GAAP financial measure, users of this financial information should consider the types of events and transactions which are excluded. In addition, Adjusted Operating Income (Loss) may not be comparable to measures of adjusted operating income, earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA, operating cash flow or similarly titled measures employed by other companies. Adjusted Operating Income (Loss) is not necessarily a measure of the Company's ability to fund its cash needs.

The following presents the reconciliation of net operating income (loss) to Adjusted Operating Income (Loss) for the three and nine month periods ended March 31, 2010 and 2009.

T N hree Months ine Months Ended Ended ---------------------------- ---------------------------- M M M M arch 31, arch 31, arch 31, arch 31, 2010 2009 2010 2009 -------------- -------------- -------------- -------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) (In thousands) (In thousands) (In thousands) (In thousands) Net operating income (loss) $ 1,365 $ (1 ,465) $ 2,686 $ 1,861 Add back: Depreciation and amortization expense $ 1,353 $ 602 $ 3,910 $ 1,443 -------------- -------------- -------------- -------------- Adjusted Operating Income (Loss) $ 2,718 $ (863) $ 6,596 $ 3,304 ============== ============== ============== ============== G lobal Traffic Network, Inc. Income Statement Detail (Unaudited) (In thousands) Three Months Ended March 31, 2010 2010 2010 2010 2010 2010 --------------- ------------- ---------- ----------- ------------- ----------- Australia Canada UK Mobile Corporate Total --------------- ------------- ---------- ----------- ------------- ----------- Revenues $ 14,210 $ 2,678 $ 7,225 $ - $ - $ 24,113 ------------------------------ --- ------ -- ------ - ----- -- ---- --- ---- - ------ Operating expenses ------------------------------ Traffic 5,223 2,437 5,337 99 - 13,096 ------------------------------ ------ ------ ----- ---- ---- ------ News 2,262 - 404 - - 2,666 ------------------------------ ------ ------ ----- ---- ---- ------ TV 236 - - - - 236 ------------------------------ ------ ------ ----- ---- ---- ------ Selling, G&A 2,525 870 766 9 - 4,170 ------------------------------ ------ ------ ----- ---- ---- ------ Corporate overhead 405 - - - 506 911 ------------------------------ ------ ------ ----- ---- ---- ------ Non-cash compensation - - - - 316 316 ------------------------------ ------ ------ ----- ---- ---- ------ Depreciation/amortization 251 370 707 25 - 1,353 ------------------------------ ------ ------ ----- ---- ---- ------ Net operating income (loss) 3,308 (999 ) 11 (133 ) (822 ) 1,365 ------------------------------ ------ ------ -- ----- ---- -- ---- --- ------ Interest expense - - - - - - ------------------------------ ------ ------ ----- ---- ---- ------ Other (income) (200 ) - (47 ) - 1 (246 ) ------------------------------ ------ --- ------ ----- - ---- ---- ------ - Other expense - 2 - - - 2 ------------------------------ ------ ------ ----- ---- ---- ------ Net income (loss) before taxes 3,508 (1,001 ) 58 (133 ) (823 ) 1,609 ------------------------------ ------ ------ -- ----- ---- -- ---- --- ------ Income tax expense 1,050 - 61 - 15 1,126 ------------------------------ ------ ------ ----- ---- ---- ------ Net income (loss) $ 2,458 $ (1,001 ) $ (3 ) $ (133 ) $ (838 ) $ 483 ------------------------------ --- ------ -- ------ -- - ----- - -- ---- -- --- ---- --- - ------ 2009 2009 2009 2009 2009 2009 -------------- ------------- ---------- ----------- ------------- ----------- Australia Canada UK Mobile Corporate Total -------------- ------------- ---------- ----------- ------------- ----------- Revenues $ 8,803 $ 1,079 $ 2,580 $ - $ - $ 12,462 ------------------------------ --- ----- -- ------ - ----- -- ---- --- ---- - ------ Operating expenses ------------------------------ Traffic 3,375 1,832 2,431 266 - 7,904 ------------------------------ ----- ------ ----- ---- ---- ------ News 1,511 - 90 - - 1,601 ------------------------------ ----- ------ ----- ---- ---- ------ TV 165 - - - - 165 ------------------------------ ----- ------ ----- ---- ---- ------ Selling, G&A 1,534 466 264 202 - 2,466 ------------------------------ ----- ------ ----- ---- ---- ------ Corporate overhead 289 - - - 602 891 ------------------------------ ----- ------ ----- ---- ---- ------ Non-cash compensation - - - - 298 298 ------------------------------ ----- ------ ----- ---- ---- ------ Depreciation/amortization 170 176 240 16 - 602 ------------------------------ ----- ------ ----- ---- ---- ------ Net operating income (loss) 1,759 (1,395 ) (445 ) (484 ) (900 ) (1,465 ) ------------------------------ ----- ------ -- ----- - ---- -- ---- --- ------ - Interest expense 7 - - - - 7 ------------------------------ ----- ------ ----- ---- ---- ------ Other (income) (119 ) (24 ) (13 ) - (34 ) (190 ) ------------------------------ ----- --- ------ -- ----- - ---- ---- --- ------ - Other expense - - - - - - ------------------------------ ----- ------ ----- ---- ---- ------ Net income (loss) before taxes 1,871 (1,371 ) (432 ) (484 ) (866 ) (1,282 ) ------------------------------ ----- ------ -- ----- - ---- -- ---- --- ------ - Income tax expense 555 - (60 ) - 7 502 ------------------------------ ----- ------ ----- - ---- ---- ------ Net income (loss) $ 1,316 $ (1,371 ) $ (372 ) $ (484 ) $ (873 ) $ (1,784 ) ------------------------------ --- ----- -- ------ -- - ----- - -- ---- -- --- ---- --- - ------ - G lobal Traffic Network, Inc. Income Statement Detail (Unaudited) (In thousands) Nine Months Ended March 31, 2010 2010 2010 2010 2010 2010 --------------- ------------- ----------- ----------- --------------- ----------- Australia Canada UK Mobile Corporate Total --------------- ------------- ----------- ----------- --------------- ----------- Revenues $ 42,227 $ 6,487 $ 21,349 $ 31 $ - $ 70,094 ------------------------------ --- ------ -- ------ - ------ -- ---- --- ------ - ------ Operating expenses ------------------------------ Traffic 14,858 7,114 16,466 401 - 38,839 ------------------------------ ------ ------ ------ ---- ------ ------ News 6,777 - 1,369 - - 8,146 ------------------------------ ------ ------ ------ ---- ------ ------ TV 700 - - - - 700 ------------------------------ ------ ------ ------ ---- ------ ------ Selling, G&A 7,516 2,018 2,613 142 - 12,289 ------------------------------ ------ ------ ------ ---- ------ ------ Corporate overhead 1,196 - - - 1,379 2,575 ------------------------------ ------ ------ ------ ---- ------ ------ Non-cash compensation - - - - 949 949 ------------------------------ ------ ------ ------ ---- ------ ------ Depreciation/amortization 750 903 2,179 78 - 3,910 ------------------------------ ------ ------ ------ ---- ------ ------ Net operating income (loss) 10,430 (3,548 ) (1,278 ) (590 ) (2,328 ) 2,686 ------------------------------ ------ ------ -- ------ - ---- -- ------ --- ------ Interest expense 15 - - - - 15 ------------------------------ ------ ------ ------ ---- ------ ------ Other (income) (513 ) (9 ) (131 ) - (101 ) (754 ) ------------------------------ ------ --- ------ -- ------ - ---- ------ --- ------ - Other expense - 6 - 26 - 32 ------------------------------ ------ ------ ------ ---- ------ ------ Net income (loss) before taxes 10,928 (3,545 ) (1,147 ) (616 ) (2,227 ) 3,393 ------------------------------ ------ ------ -- ------ - ---- -- ------ --- ------ Income tax expense (benefit) 3,291 - (184 ) - 15 3,122 ------------------------------ ------ ------ ------ - ---- ------ ------ Net income (loss) $ 7,637 $ (3,545 ) $ (963 ) $ (616 ) $ (2,242 ) $ 271 ------------------------------ --- ------ -- ------ -- - ------ - -- ---- -- --- ------ --- - ------ 2009 2009 2009 2009 2009 2009 --------------- ------------- ----------- ------------- --------------- ----------- Australia Canada UK Mobile Corporate Total --------------- ------------- ----------- ------------- --------------- ----------- Revenues $ 32,516 $ 5,076 $ 4,774 $ - $ - $ 42,366 ------------------------------ --- ------ -- ------ - ------ -- ------ --- ------ - ------ Operating expenses ------------------------------ Traffic 10,874 5,179 4,991 537 - 21,581 ------------------------------ ------ ------ ------ ------ ------ ------ News 5,071 - 90 - - 5,161 ------------------------------ ------ ------ ------ ------ ------ ------ TV 560 - - - - 560 ------------------------------ ------ ------ ------ ------ ------ ------ Selling, G&A 5,680 1,542 536 643 - 8,401 ------------------------------ ------ ------ ------ ------ ------ ------ Corporate overhead 988 - - - 1,495 2,483 ------------------------------ ------ ------ ------ ------ ------ ------ Non-cash compensation - - - - 876 876 ------------------------------ ------ ------ ------ ------ ------ ------ Depreciation/amortization 548 546 324 25 - 1,443 ------------------------------ ------ ------ ------ ------ ------ ------ Net operating income (loss) 8,795 (2,191 ) (1,167 ) (1,205 ) (2,371 ) 1,861 ------------------------------ ------ ------ -- ------ - ------ -- ------ --- ------ Interest expense 32 - - - - 32 ------------------------------ ------ ------ ------ ------ ------ ------ Other (income) (566 ) (30 ) (21 ) - (294 ) (911 ) ------------------------------ ------ --- ------ -- ------ - ------ ------ --- ------ - Other expense 41 - - - - 41 ------------------------------ ------ ------ ------ ------ ------ ------ Net income (loss) before taxes 9,288 (2,161 ) (1,146 ) (1,205 ) (2,077 ) 2,699 ------------------------------ ------ ------ -- ------ - ------ -- ------ --- ------ Income tax expense 2,786 - (60 ) - 11 2,737 ------------------------------ ------ ------ ------ - ------ ------ ------ Net income (loss) $ 6,502 $ (2,161 ) $ (1,086 ) $ (1.205 ) $ (2,088 ) $ (38 ) ------------------------------ --- ------ -- ------ -- - ------ - -- ------ -- --- ------ --- - ------ - G LOBAL TRAFFIC NETWORK, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share amounts) Three Months Ended Nine Months Ended March 31 March 31 --------------------------------------- -------------------------------------- 2010 2009 2010 2009 ----------------- ----------------- ----------------- ----------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues $ 24,113 $ 12,462 $ 70,094 $ 42,366 ----- ---------- ----- ---------- ----- ---------- ----- ---------- Operating expenses (exclusive of depreciation and amortization shown 15,998 9,670 47,685 27,302 separately below) Selling, general and administrative expenses 5,397 3,655 15,813 11,760 Depreciation and amortization expense 1,353 602 3,910 1,443 ---------- ---------- ---------- ---------- Net operating income (loss) 1,365 (1,465 ) 2,686 1,861 Interest expense -- 7 15 32 Other (income) (including interest income of $200 and $167 for the (246 ) (190 ) (754 ) (911 ) three months ended March 31, 2010 and 2009 and interest income of $513 and $878 for the nine months ended March 31, 2010 and 2009) Other expense 2 -- 32 41 ---------- ---------- ---------- ---------- Net income (loss) before income taxes 1,609 (1,282 ) 3,393 2,699 Income tax expense 1,126 502 3,122 2,737 ---------- ---------- ---------- ---------- Net income (loss) $ 483 $ (1,784 ) $ 271 $ (38 ) ===== ========== ===== ========== ===== ========== ===== ========== Income (loss) per common share: Basic $ 0.03 $ (0.10 ) $ 0.01 $ 0.00 Diluted $ 0.03 $ (0.10 ) $ 0.01 $ 0.00 Weighted average common shares outstanding: Basic 18,118,170 18,068,909 18,100,262 18,057,092 Diluted 18,139,989 18,068,909 18,109,126 18,057,092 G LOBAL TRAFFIC NETWORK, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except share data) March 31, June 30, 2010 2009 ------------- ------------------ (Unaudited) (Unaudited) ASSETS: Current Assets: Cash and cash equivalents $ 21,374 $ 21,419 Accounts receivable net of allowance for doubtful accounts of $96 18,651 15,986 and $150 at March 31, 2010 and June 30, 2009 Prepaids and other current assets 1,527 1,421 Deferred tax assets 262 208 ------ ------ Total current assets 41,814 39,034 Property and equipment, net 7,882 7,569 Intangibles 13,900 17,200 Goodwill 4,325 4,688 Deferred tax assets 138 115 Other assets 494 564 ------ ------ Total assets $ 68,553 $ 69,170 ===== ====== ================= LIABILITIES AND SHAREHOLDERS' EQUITY: Current Liabilities: Accounts payable and accrued expenses $ 12,890 $ 14,649 Deferred revenue 776 1,198 Income taxes payable 1,352 1,908 Current portion of long term debt -- 326 ------ ------ Total current liabilities 15,018 18,081 Long term debt, less current portion -- 57 Deferred tax liabilities 2,977 3,410 Other liabilities 376 318 ------ ------ Total liabilities 18,371 21,866 ------ ------ Common stock, $.001 par value; 100,000,000 shares authorized; 18 18 18,409,834 shares issued and outstanding as of March 31, 2010 and 18,264,834 shares issued and outstanding as of June 30, 2009 Preferred stock, $.001 par value; 10,000,000 authorized; 0 issued -- -- and outstanding as of March 31, 2010 and June 30, 2009 Additional paid in capital 51,095 50,146 Accumulated other comprehensive income 3,056 1,398 Accumulated deficit (3,987 ) (4,258 ) ------ ------ Total shareholders' equity 50,182 47,304 ------ ------ Total liabilities and shareholders' equity $ 68,553 $ 69,170 ===== ====== ================= G LOBAL TRAFFIC NETWORK, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) N ine Months Ended March 31, --------------------------------- 2010 2009 ------------- -------------- (Unaudited) (Unaudited) Cash flows from operating activities: Net income (loss) $ 271 $ (38 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 3,910 1,443 Allowance for doubtful accounts (54 ) (110 ) Non-cash compensation expense 949 876 Change in deferred taxes (211 ) (76 ) Foreign currency transaction income (101 ) -- Loss on disposal of assets 26 41 Changes in assets and liabilities (net of effects from purchase of controlled entity): Accounts receivable (1,371 ) 659 Prepaid and other current assets and other assets 14 (709 ) Accounts payable and accrued expenses and other liabilities 1,031 310 Deferred revenue (474 ) (208 ) Income taxes payable (782 ) (582 ) ------ ---- ------- ---- Net cash provided by operating activities 3,208 1,606 ------ ------- Cash flows from investing activities: Purchase of property and equipment (1,204 ) (1,550 ) Acquisition of business (3,488 ) (13,019 ) ------ ---- ------- ---- Net cash used in investing activities (4,692 ) (14,569 ) ------ ---- ------- ---- Cash flows from financing activities: Repayment of long term debt (414 ) (303 ) ------ ---- ------- ---- Net cash used in financing activities (414 ) (303 ) ------ ---- ------- ---- Effect of exchange rate changes on cash and cash equivalents 1,853 (4,699 ) ------ ------- ---- Net decrease in cash and cash equivalents (45 ) (17,965 ) Cash and cash equivalents at beginning of fiscal period 21,419 37,541 Cash and cash equivalents at end of fiscal period $ 21,374 $ 19,576 ===== ====== ===== ======= Supplemental disclosures of cash flow information: Cash paid during the fiscal period for: Interest $ 15 $ 32 ===== ====== ===== ======= Income taxes $ 4,142 $ 3,158 ===== ====== ===== ======= SOURCE: Global Traffic Network, Inc.

CONTACT: At KCSA Strategic Communications Todd Fromer/Marybeth Csaby 212-896-1215/1236 tfromer@kcsa.com/mcsaby@kcsa.com or At Global Traffic Network, Inc. Scott Cody, 212-896-1255 Chief Financial Officer & Chief Operating Officer scott.cody@globaltrafficnet.com Copyright Business Wire 2010 -0- KEYWORD: United States

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New York INDUSTRY KEYWORD: Entertainment

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Conference Call

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