William Blair & Company Initiates Coverage of Monotype Imaging Holdings Inc. With Outperform Rating

Business Wire, Sept 4, 2007

CHICAGO -- William Blair & Company initiated research coverage of Monotype Imaging Holdings Inc. (Nasdaq:TYPE) ($12.21), a leading global provider of text imaging technologies and fonts, with an Outperform rating and an Aggressive Growth company profile.

Analyst Ralph Schackart estimated that the company, which provides solutions that enable the printing and display of high-quality digital text on a variety of consumer electronic devices, would earn $0.54 per share in 2007 and $0.76 per share in 2008.

"An investment in Monotype is, in our opinion, a bet on the proliferation of rich digital media devices," Schackart said. "As consumers continue to spend more on digital devices each year ($1,200 today, versus $600 in 1990) and now purchase 25 devices each year (roughly twice the amount from 1990), we believe Monotype's high-margin business model and accelerating earnings growth potential (from balance sheet deleveraging) make it a concentrated way to invest in these strong secular trends without being tied to one end-market or specific device manufacturer."

Schackart continued, "Because Monotype has been the laser printer industry de facto standard for 15 years, it has a sustainable and predictable business model with consistent 'annuity stream' cash flows. We are confident in Monotype's growth prospects and its experienced management team's ability to leverage its core intellectual property into new markets."

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

William Blair & Company, L.L.C. (www.williamblair.com) is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients.

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