aQuantive Reports Second Quarter 2007 Results

Business Wire,  August 8, 2007  

Tags: aQuantive Inc.

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SEATTLE -- aQuantive, Inc. (NASDAQ:AQNT), a global digital marketing company, today reported financial results for the second quarter ended June 30, 2007. Removing the impact of expenses associated with the pending acquisition of aQuantive, Inc. by Microsoft Corporation, aQuantive results for revenue, net income and adjusted EBITDA all exceeded the guidance given by the company.

2007 second quarter results, which include contributions from acquisitions made during 2006 and 2007, were:

* Revenue of $156.0 million, an increase of 48 percent over the second quarter of 2006.

* Net income1 of $9.6 million, or $0.11 per diluted share, a decrease of 22 percent from the second quarter of 2006.

* Adjusted EBITDA1,2 of $26.1 million, or $0.29 per diluted share, a decrease of 9 percent over the second quarter of 2006.

2007 six-month results, which include contributions from all acquisitions made during 2006 and 2007, were:

* Revenue of $298.6 million, an increase of 51 percent over the first half of 2006.

* Net income1 of $23.9 million, an increase of 20 percent over the first half of 2006.

* Adjusted EBITDA1 of $58.8 million, or $0.65 per diluted share, an increase of 17 percent over the first half of 2006.

1 Net income and Adjusted EBITDA include $10.9 million ($6.2 million after taxes) related to expenses incurred in connection with the pending acquisition of aQuantive, Inc. by Microsoft Corporation.

2 Adjusted EBITDA (i.e. earnings before interest expense, net interest and other income, income tax, depreciation, amortization and stock-based compensation) is a non-GAAP financial measure. See the supplemental schedule attached to this press release for more information.

"aQuantive's growth continues to be tremendous. We benefited from each business unit's strong market position, our focus on serving clients, anticipating market demand and effective recruiting initiatives," said Brian McAndrews, president and CEO of aQuantive. "In the second quarter, organic growth was an impressive 33 percent."

aQuantive operates three business segments. Unallocated corporate expenses, including amounts recorded for stock-based compensation expense, are centrally managed at the corporate level and are not included in the segment operating results. Expenses related to the pending acquisition of aQuantive, Inc. by Microsoft Corporation were included within unallocated corporate expenses. Segment performance was as follows:

Digital Marketing Services

aQuantive's digital marketing services (DMS) segment had revenue of $94.2 million in the second quarter of 2007, compared to revenue of $64.1 million in the second quarter of 2006. Operating income was $13.0 million in the second quarter of 2007, compared to $11.3 million in the second quarter of 2006.

Digital Marketing Technologies

aQuantive's digital marketing technologies (DMT) segment had revenue of $40.2 million in the second quarter of 2007, compared to revenue of $29.7 million in the second quarter of 2006. Operating income was $15.6 million for the second quarter of 2007, compared to $12.1 million in the second quarter of 2006.

Digital Performance Media

aQuantive's digital performance media (DPM) segment had revenue of $21.6 million in the second quarter of 2007, compared to revenue of $11.9 million in the second quarter of 2006. Operating income was $3.1 million for the second quarter of 2007, compared to $2.4 million in the second quarter of 2006.

The Company will not provide guidance for revenue, net income, andadjusted EBITDA.

About aQuantive, Inc.

aQuantive, Inc., is a global digital marketing company, founded in 1997 to help marketers acquire, retain and grow customers across all digital media. It is the parent company of Avenue A | Razorfish, the largest interactive agency in the U.S., and five international agencies, Avenue A | Razorfish U.K., Amnesia, NEUE DIGITALE, e-Crusade and Duke; Atlas, provider of integrated digital marketing technologies and expertise; and DRIVEpm and Franchise Gator, performance media and behavioral targeting businesses. Through its business units, aQuantive is positioned to bring value to any interaction in the digital marketplace. Its stock (ticker symbol: AQNT) is listed on the NASDAQ exchange. aQuantive's website address is www.aquantive.com.

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