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NEWS RELEASE

Earnings Guidance Impact on Stock Price Found in
New Study by IntelliBusiness and Sharon Merrill Associates

 Companies that Provided Earnings Guidance and Pre-Announced Earnings Surprises
During the First Quarter of 2009 Realized Superior Stock Price Returns

 BOSTON, Mass., June 8, 2009 IntelliBusiness, Inc. and Sharon Merrill Associates, Inc. today announced at the National Investor Relations Institute (NIRI) 2009 Annual Conference the availability of a study that provides new insights into the benefits of greater transparency.   The results of the study are now available in a white paper, "Hit or Miss - Transparency is Key:  Companies that Provide Earnings Guidance and Pre-Announce Their Earnings Surprises Realize Superior Stock Price Returns."  The study was based on an analysis of the financial guidance practices and actual results reported by more than 1,000 publicly traded companies during the first quarter of 2009 using the IntelliBusiness eventVestor analytics platform.

 The white paper is now available through IntelliBusiness' eventVestor website and Sharon Merrill Associates' investor relations website.

 The study found that:

• Companies that did not provide guidance were punished far more severely for missing the analyst consensus estimate than companies that did provide guidance.
• Pre-announcing a guidance surprise, whether positive or negative, resulted in stronger stock price returns versus not pre-announcing.
• It was consistently beneficial to accompany a quarterly guidance miss with a decrease in full-year guidance.  Companies that maintained their full-year guidance when reporting disappointing quarterly earnings experienced inferior stock price returns relative to the market.

"In light of the roles that both Corporate America and Wall Street played in precipitating the current global recession, few would argue against the notion that greater transparency in financial reporting is a good thing," said IntelliBusiness Founder and CEO Anju Marempudi.  "In the investor relations field, the real-world value of transparency is rarely examined quantitatively.  We decided to fill this void using the IntelliBusiness eventVestor analytics platform and the findings were compelling." 

 "Investor relations professionals have long argued that greater transparency strengthens corporate credibility and stimulates shareholder value creation, and our study supports this contention," said Sharon Merrill Associates President Maureen Wolff-Reid.  "Providing earnings guidance led to measurable near-term stock price benefits, as did pre-announcing guidance surprises and lowering full-year guidance when announcing a quarterly miss.  Although 'one size fits all' does not apply to guidance decisions, these findings have provocative implications for the practice of investor relations." 

 The white paper outlines the results of a scenario analysis of market reaction to various guidance practices using the IntelliBusiness/eventVestor^® analytics platform.  The analysis measured "abnormal stock price return" for S&P 500^® and Russell 1000 companies during the first quarter of 2009, based on their guidance practices and their financial results versus the consensus of analyst estimates.  

 About eventVestor

eventVestor is the most comprehensive web-based research platform that uniquely combines company and market key developments data with sophisticated tools for event analysis, event screening, and benchmarking stock price reaction to key events.  Providing a unique combination of events data, analytics, and state-of-the-art web-based tools, eventVestor is designed to help clients minimize the time and effort required to analyze the financial impact of corporate and peer group key development events for better business decisions and investment ideas.  eventVestor is the flagship product of IntelliBusiness, Inc.  Website:  www.eventVestor.com.

 About Sharon Merrill Associates, Inc.

Sharon Merrill Associates, Inc. has been developing results-based investor relations and corporate communications campaigns for private and public companies for nearly 25 years.  All of our engagements, from investor outreach and perception audits to corporate communications and media visibility campaigns, are implemented from a strategic plan to achieve clients' goals.  The Sharon Merrill Associates senior team has significant experience in the capital markets, and we are known for our ability to become experts in our clients' businesses.  Our creative thought process and unparalleled responsive service provide clients with cutting-edge communications programs, executed by proactive, industry thought leaders.  Website:  www.investorrelations.com. 

S&P 500^® is a trademark of The McGraw-Hill Companies, Inc.

Russell is a trademark of the Frank Russell Company. 

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