Granahan McCourt Acquisition Corporation and Pro Brand International, Inc. Announce Pro Brand International, Inc.'s First Quarter 2008 Results

Business Wire, June 26, 2008

Highlights

* Q1 2008 revenue increased 28% year-over-year to $41.8 million

* Q1 2008 EBITDA increased 36% year-over-year to $4.2 million

* Reiterates 2008 revenue, EBITDA and net income guidance of $160.0 million, $18.0 million and $11.0 million, respectively

NEW YORK & MARIETTA, Ga. -- Granahan McCourt Acquisition Corp. (AMEX: GHN, GHN.U, GHN.WS) ("Granahan McCourt") and Pro Brand International, Inc. ("PBI") today announced PBI's financial results for the first quarter ended March 31, 2008. PBI is a leading designer and developer of advanced antenna and radio frequency systems for the satellite industry, primarily serving Direct Broadcast Satellite ("DBS") operators.

On April 30, 2008, PBI announced that it had signed a definitive agreement for a transaction whereby it will become a wholly-owned subsidiary of Granahan McCourt. Upon consummation of the acquisition, PBI's current management team, including its Chief Executive Officer, Mr. Philip Shou, will remain in place to run the business. Mr. David McCourt will remain Chairman of the Board of Granahan McCourt. It is anticipated that, upon consummation of the acquisition, Granahan McCourt will change its name to "Pro Brand International Group, Inc."

Revenue for the first quarter of 2008 was $41.8 million, an increase of 27.9% compared to $32.6 million for the first quarter of 2007. The increase in revenue was primarily due to an increase in sales volumes of PBI's more sophisticated and higher-priced SlimLine[R] products and related accessories.

Gross profit for the first quarter of 2008 was $6.2 million, an increase of 32.6% from $4.7 million in the first quarter of 2007. Gross profit margin increased 50 basis points to 14.9% in the first quarter of 2008, compared to 14.4% for the first quarter of 2007, driven by fewer inventory write downs, partially offset by an increase in material costs related to devaluation of the U.S. dollar.

Selling, general and administrative expenses were $2.2 million in the first quarter of fiscal 2008, a 24.7% increase from $1.8 million in the first quarter of 2007. The increase in SG&A expenses was primarily due to increased research and development expenses related to the launch of new products, an increase in outside warehouse rent expense in order to meet the logistics needs of a key customer, an increase in personnel expenses from the hiring of several key new employees to support future growth, as well as an increase in professional services fees directly associated with the proposed merger with Granahan McCourt. PBI's professional services fees increased 168% from $0.06 million in the first quarter of 2007 to $0.2 million in the first quarter of 2008. Excluding professional services fees, SG&A was $2.0 million, or 4.9% of revenues in the first quarter of 2008 compared to 5.2% of revenues in the first quarter of 2007.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") totaled $4.2 million in the first quarter of 2008, a 35.6% increase from $3.1 million in the first quarter of 2007. EBITDA margins were 10.2% in the first quarter of 2008, a 60 basis point increase from 9.6% in the first quarter of 2007.

Net income was $2.4 million in the first quarter of 2008, an increase of 30.3% from $1.8 million for the first quarter of 2007.

2008 Outlook

Based on current business trends, PBI continues to expect total revenues in 2008 to be approximately $160.0 million, EBITDA to be approximately $18.0 million and net income to be approximately $11.0 million. 2008 revenue, EBITDA and net income guidance does not include any potential acquisitions or other significant events.

"PBI reported a strong first quarter, as we continued to benefit from solid fundamentals in the DBS satellite sector and demonstrate our ability to leverage our industry leading design and engineering capabilities," stated Mr. Philip Shou, Chief Executive Officer of Pro Brand. "This continued to translate into solid double-digit sales and EBITDA growth. Sales momentum remained robust in the quarter, as revenues increased 18.5% from the fourth quarter of 2007. Looking ahead, while our second quarter is historically our seasonally slowest quarter due to a lower rate of new DBS subscription adds following the holidays as well as the playoff and Super Bowl season, we remain confident in our previously issued guidance for the full year 2008, as business trends remain healthy, particularly with the strong trends in the HDTV-related upgrade market."

"We also remain focused on differentiating our products through advancements in our R&D capabilities and investing in our business to support our long-term growth plans," continued Mr. Shou. "We look forward to partnering with Granahan McCourt to provide the operational and M&A expertise to take PBI's business to the next level."

"We believe PBI is in a solid position to serve as the necessary platform to pursue a multi-pronged growth strategy, including focusing on international expansion, leveraging their design capabilities into adjacent verticals, rolling out additional products, and pursuing attractive acquisition opportunities," added David C. McCourt, Granahan McCourt's CEO and post-closing Chairman. "We believe that the consumer and enterprise sectors of satellite antenna design and manufacturing are ripe for further consolidation similar to what has taken place in the defense-oriented satellite equipment industry. We remain confident that PBI represents an ideal platform to lead this consolidation due to their long history of solid growth, expertise in sophisticated multi-satellite antenna systems and experienced management team."