UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549

FORM 10-Q/A(Amendment No. 1)

||X| | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2008.
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OR

||_| | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.
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For the transition period from
___________________
to
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COMMISSION FILE NUMBER: 001-13577PREMIERE GLOBAL SERVICES, INC.(Exact name of registrant as specified in its charter)GEORGIA(State or other jurisdiction of incorporation or organization)

59-3074176(I.R.S. Employer Identification No.)

3280 PEACHTREE ROAD NWTHE TERMINUS BUILDING, SUITE 1000ATLANTA, GEORGIA 30305(Address of principal executive offices, including zip code)(404) 262-8400(Registrants telephone number including area code)N/A(Former name, former address and former fiscal year,if changed since last report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes |X| No  |_|

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act (Check one):

|Large accelerated filer |X| | Accelerated filer |_| | Non-accelerated filer |_| | Smaller reporting company |_|
|--------------------------- | --------------------- | ------------------------- | -----------------------------

(Do not check if a smaller reporting company)

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes |_|  No |X|

Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the latest practicable date.

|Class                         | Outstanding at August 5, 2008
|----------------------------- | -----------------------------
|Common Stock, $0.01 par value | 61,559,102 Shares            

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Explanatory Note

Overview

Premiere Global Services, Inc. is filing this Amendment No. 1 on Form 10-Q/A to our quarterly report on Form 10-Q for the quarter ended June 30, 2008, originally filed on August 8, 2008, to amend and restate our condensed consolidated financial statements for the quarter ended June 30, 2008 to correct the accounting for interest rate swaps entered into in August 2007 associated with our credit facility.

Restatement

In August 2007, we entered into two $100.0 million two-year interest rate swaps at a fixed
rate of approximately 4.99%. In December 2007, we amended the life of one of these swaps to three years and reduced its fixed rate
to approximately 4.75%. The termination dates of these swaps are currently August 2009 and August 2010. Although we entered into
these swaps with the intention of hedging the cash flow risk of variable 30-day LIBOR interest rate changes on the interest payments
associated with our credit facility, we did not at their inception elect to designate them as hedges under Statement of Financial
Accounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and Hedging Activities, as amended (SFAS No. 133).
It is not permissible to retroactively designate these swaps as hedges. Therefore, we were required to record the fair value of the swaps
in our condensed consolidated balance sheets and any changes in the fair value of
these swaps in our condensed consolidated statements of operations under the line item Unrealized gain (loss) on change in fair value
of interest rate swaps as a component of Other (expense) income.

Subsequent to the issuance of our interim financial statements for the quarter ended June 30,
2008 and in connection with our efforts to update documentation surrounding our critical accounting policies, we identified that the
accounting for these interest rate swaps was incorrect. While these swaps have been disclosed in our annual and quarterly reports
since their inception as derivatives not designated as hedges, their fair value and changes in fair value were not properly recorded
in our consolidated balance sheets and statements of operations, respectively. The effect on net income of the restatement for these
interest rate swaps is a $2.7 million gain and a ($0.2) million loss for the three and six months ended June 30, 2008, respectively. The error did
not affect the underlying risk management characteristics of the swaps and had no effect on our net revenues, net cash flows or operating
income. The restatement is more fully described in Note 3 to our condensed
consolidated financial statements.

The following sections of this Form 10-Q/A have been amended to reflect the restatement:

- Part I  Item 1. Condensed Consolidated Financial Statements;
- Part I  Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations;
- Part I  Item 4. Controls and Procedures; and
- Part II  Item 6. Exhibits.

For the convenience of the reader, this amendment includes, in their entirety, those items in our original filing not being amended and restated. Except to the extent relating to the restatement of our financial statements and other financial information described above, this amendment continues to describe conditions as of our original filing, and does not update disclosures contained herein to reflect events that occurred at a later date. Accordingly, this amendment should be read in conjunction with our filings made with the Securities and Exchange Commission subsequent to the original filing of our Form 10-Q for the quarter ended June 30, 2008.

New certifications of our principal executive officer and principal financial officer are included as exhibits to this amendment.

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In addition, we are filing amendments to our annual report on Form 10-K for the year ended December 31, 2007 and our quarterly report on Form 10-Q for the quarter ended March 31, 2008 to amend and restate our
consolidated financial statements and certain other financial information for the fiscal year ended December 31, 2007 and for the first quarter of 2008 to correct the accounting for our interest rate swaps described above.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES

INDEX TO FORM 10-Q

|              |                                                                                                                              | Page
|------------- | ---------------------------------------------------------------------------------------------------------------------------- | ----
|PART I        | FINANCIAL INFORMATION                                                                                                        |     
|              |                                                                                                                              |     
|Item 1        | Condensed Consolidated Financial Statements                                                                                  |     
|              |                                                                                                                              |     
|              | Condensed Consolidated Balance Sheets  as of June 30, 2008 (restated) and  December 31, 2007 (restated)                      | 1   
|              |                                                                                                                              |     
|              | Condensed Consolidated Statements of Operations  for the Three Months and Six Months Ended June 30, 2008 (restated) and 2007 | 2   
|              |                                                                                                                              |     
|              | Condensed Consolidated Statements of Cash Flows  for the Six Months Ended June 30, 2008 (restated) and 2007 (restated)       | 3   
|              |                                                                                                                              |     
|              | Notes to Condensed Consolidated Financial Statements                                                                         | 4   
|              |                                                                                                                              |     
|Item 2        | Managements Discussion and Analysis of Financial Condition  and Results of Operations                                       | 21  
|              |                                                                                                                              |     
|Item 3        | Quantitative and Qualitative Disclosures About Market Risk                                                                   | 38  
|              |                                                                                                                              |     
|Item 4        | Controls and Procedures                                                                                                      | 38  
|              |                                                                                                                              |     
|PART II       | OTHER INFORMATION                                                                                                            |     
|              |                                                                                                                              |     
|Item 1        | Legal Proceedings                                                                                                            | 40  
|              |                                                                                                                              |     
|Item 1A.      | Risk Factors                                                                                                                 | 40  
|              |                                                                                                                              |     
|Item 2        | Unregistered Sales of Equity Securities and Use of Proceeds                                                                  | 41  
|              |                                                                                                                              |     
|Item 3        | Defaults Upon Senior Securities                                                                                              | 41  
|              |                                                                                                                              |     
|Item 4        | Submission of Matters to a Vote of Security Holders                                                                          | 41  
|              |                                                                                                                              |     
|Item 5        | Other Information                                                                                                            | 42  
|              |                                                                                                                              |     
|Item 6        | Exhibits                                                                                                                     | 42  
|              |                                                                                                                             
|SIGNATURES    | 43                                                                                                                          
|              |                                                                                                                             
|EXHIBIT INDEX | 44                                                                                                                          

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(in thousands, except share data)

|                                                                            | June 30,2008(As restated) | December 31,2007(As restated)
|--------------------------------------------------------------------------- | ------------------------- | -----------------------------
|                                                                            | (Unaudited)              
|ASSETS                                                                      |                           |                              
|CURRENT ASSETS                                                              |                           |                              
|Cash and equivalents                                                        | $    24,824               |                              
|Accounts receivable (less allowances of $3,284 and $4,526, respectively)    | 105,845                   |                              
|Prepaid expenses and other current assets                                   | 11,294                    |                              
|Deferred income taxes, net                                                  | 8,838                     |                              
|                                                                            |                           |                              
|Total current assets                                                        | 150,801                   |                              
|                                                                            |                           |                              
|PROPERTY AND EQUIPMENT, NET                                                 | 126,839                   |                              
|                                                                           
|OTHER ASSETS                                                                |                           |                              
|Goodwill                                                                    | 344,406                   |                              
|Intangibles, net of amortization                                            | 37,398                    |                              
|Deferred income taxes, net                                                  | 2,083                     |                              
|Other assets                                                                | 8,988                     |                              
|                                                                            |                           |                              
|                                                                            | $670,515                  |                              
|                                                                            |                           |                              
|LIABILITIES AND SHAREHOLDERS' EQUITY                                        |                           |                              
|                                                                           
|CURRENT LIABILITIES                                                         |                           |                              
|Accounts payable                                                            | $   56,293                |                              
|Income taxes payable                                                        | 5,272                     |                              
|Accrued taxes, other than income taxes                                      | 7,931                     |                              
|Accrued expenses                                                            | 35,958                    |                              
|Current maturities of long-term debt and capital lease obligations          | 2,691                     |                              
|Accrued restructuring costs                                                 | 3,279                     |                              
|                                                                            |                           |                              
|Total current liabilities                                                   | 111,424                   |                              
|                                                                            |                           |                              
|LONG-TERM LIABILITIES                                                       |                           |                              
|Long-term debt and capital lease obligations                                | 278,978                   |                              
|Accrued restructuring costs                                                 | 1,195                     |                              
|Accrued expenses                                                            | 16,213                    |                              
|                                                                            |                           |                              
|Total long-term liabilities                                                 | 296,386                   |                              
|                                                                            |                           |                              
|COMMITMENTS AND CONTINGENCIES (Note 9)                                      |                           |                              
|                                                                           
|SHAREHOLDERS' EQUITY                                                        |                           |                              
|Common stock, $.01 par value; 150,000,000 shares authorized, 61,556,412 and |                           |                              
|61,755,728 shares issued and outstanding in 2008 and 2007, respectively     | 616                       |                              
|Additional paid-in capital                                                  | 549,057                   |                              
|Notes receivable, shareholder                                               | (1,752                    | )                            
|Cumulative translation adjustment                                           | 15,775                    |                              
|Accumulated deficit                                                         | (300,991                  | )                            
|                                                                            |                           |                              
|Total shareholders' equity                                                  | 262,705                   |                              
|                                                                            |                           |                              
|                                                                            | $ 670,515                 |                              
|                                                                            |                           |                              

Accompanying notes are integral to these condensed consolidated financial statements.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(in thousands, except per share data)

|                                                                      | Three Months EndedJune 30, | Six Months EndedJune 30,
|--------------------------------------------------------------------- | -------------------------- | ------------------------
|                                                                      | 2008(As restated)          | 2007                    
|                                                                      |                            |                         
|                                                                      |                            |                         
|                                                                      | (Unaudited)                | (Unaudited)             
|                                                                     
|Net revenues                                                          | $ 161,565                  |                         
|                                                                     
|Operating expenses:                                                   |                            |                         
|Cost of revenues (exclusive of depreciation and amortization shown    |                            |                         
|separately below)                                                     | 66,202                     |                         
|Selling and marketing                                                 | 40,211                     |                         
|General and administrative                                            | 16,738                     |                         
|Research and development                                              | 4,163                      |                         
|Excise tax expense                                                    | 2,890                      |                         
|Depreciation                                                          | 8,600                      |                         
|Amortization                                                          | 3,914                      |                         
|Restructuring costs                                                   | 3,339                      |                         
|Net legal settlements and related expenses                            | 1,608                      |                         
|                                                                      |                            |                         
|Total operating expenses                                              | 147,665                    |                         
|                                                                      |                            |                         
|Operating income                                                      | 13,900                     |                         
|                                                                      |                            |                         
|Other (expense) income:                                               |                            |                         
|Interest expense                                                      | (5,532                     | )                       
|Unrealized gain (loss) on change in fair value of interest rate swaps | 4,223                      |                         
|Interest income                                                       | 138                        |                         
|Other, net                                                            | (21                        | )                       
|                                                                      |                            |                         
|Total other (expense) income                                          | (1,192                     | )                       
|                                                                      |                            |                         
|Income before income taxes                                            | 12,708                     |                         
|Income tax expense                                                    | 4,170                      |                         
|                                                                      |                            |                         
|Net income                                                            | $   8,538                  |                         
|                                                                      |                            |                         
|                                                                     
|BASIC WEIGHTED-AVERAGE SHARES OUTSTANDING                             | 59,419                     |                         
|                                                                      |                            |                         
|Basic earnings per share from net income                              | $     0.14                 |                         
|                                                                      |                            |                         
|DILUTED WEIGHTED-AVERAGE SHARES OUTSTANDING                           | 60,603                     |                         
|                                                                      |                            |                         
|Diluted earnings per share from net income                            | $     0.14                 |                         
|                                                                      |                            |                         

Accompanying notes are integral to these condensed consolidated financial statements.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)

|                                                                              | Six Months EndedJune 30,
|----------------------------------------------------------------------------- | ------------------------
|                                                                              | 2008(As restated)       
|                                                                              | (Unaudited)             
|CASH FLOWS FROM OPERATING ACTIVITIES                                          |                         
|Net income                                                                    | $   17,573              
|Adjustments to reconcile net income to cash provided by operating activities: |                         
|Depreciation                                                                  | 15,847                  
|Amortization                                                                  | 8,157                   
|Amortization of deferred financing costs                                      | 282                     
|Net legal settlements and related expenses                                    | 1,608                   
|Deferred income taxes, net of effect of acquisitions                          | (1,173                  
|Restructuring costs                                                           | 3,339                   
|Payments for restructuring costs                                              | (1,638                  
|Payments for discontinued operations                                          |                        
|Equity-based compensation                                                     | 6,463                   
|Excess tax benefits from share-based payment arrangements                     | (832                    
|Unrealized loss on change in fair value of interest rate swaps                | 369                     
|(Gain) loss on disposal of assets                                             | (7                      
|Changes in assets and liabilities, net of effect of acquisitions:             |                         
|Accounts receivable, net                                                      | (14,261                 
|Prepaid expenses and other assets                                             | (1,144                  
|Accounts payable and accrued expenses                                         | 5,031                   
|                                                                              |                         
|Total adjustments                                                             | 22,041                  
|                                                                              |                         
|Net cash provided by operating activities                                     | 39,614                  
|                                                                              |                         
|CASH FLOWS FROM INVESTING ACTIVITIES                                          |                         
|Capital expenditures                                                          | (26,791                 
|Business acquisitions, net of cash acquired                                   | (8,443                  
|                                                                              |                         
|Net cash used in investing activities                                         | (35,234                 
|                                                                              |                         
|CASH FLOWS FROM FINANCING ACTIVITIES                                          |                         
|Principal payments under borrowing arrangements                               | (297,912                
|Proceeds from borrowing arrangements                                          | 306,272                 
|Payments of debt issuance costs                                               | (8                      
|Excess tax benefits from share-based payment arrangements                     | 832                     
|Purchase of treasury stock, at cost                                           | (9,164                  
|Exercise of stock options                                                     | 2,210                   
|                                                                              |                         
|Net cash provided by (used in) financing activities                           | 2,230                   
|                                                                              |                         
|Effect of exchange rate changes on cash and equivalents                       | (45                     
|                                                                              |                         
|NET INCREASE IN CASH AND EQUIVALENTS                                          | 6,565                   
|                                                                              |                         
|CASH AND EQUIVALENTS, beginning of period                                     | 18,259                  
|                                                                              |                         
|CASH AND EQUIVALENTS, end of period                                           | $   24,824              
|                                                                              |                         
|Supplemental Disclosure of Cash Flow Information:                             |                         
|Cash paid during the period for:                                              |                         
|Interest                                                                      | $    8,281              
|                                                                              |                         
|Income taxes                                                                  | $    7,353              
|Non-cash investing and financing activities:                                  |                         
|Capital lease additions                                                       | $    3,024              
|                                                                              |                         
|Capital expenditures in Total current liabilities                             | $    3,597              
|                                                                              |                         

Accompanying notes are integral to these condensed consolidated financial statements.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

1. THE COMPANY AND ITS BUSINESS

We are a global provider of on-demand, communication technologies-based business process improvement solutions.
Our Premiere Global Communications Operating System (PGiSMCOS) supports business applications within the following solution
sets  Conferencing & Collaboration, Desktop Document Solutions, Enterprise Document Solutions, Notifications & Reminders
and eMarketing  within our three segments in North America, Europe and Asia Pacific. The unaudited condensed consolidated balance
sheets as of June 30, 2008 and December 31, 2007, the unaudited condensed consolidated statements of operations for the three and six
months ended June 30, 2008 and 2007, the unaudited condensed consolidated statements of cash flows for the six months ended June 30,
2008 and 2007 and related footnotes have been prepared in accordance with accounting principles generally accepted in the United
States (GAAP) for interim financial information and Rule
10-01 of Securities and Exchange Commissions (SEC) Regulation S-X. Accordingly, they do not include all of the information and
footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. The results of operations
for the three and six months ended June 30, 2008 are not indicative of the results that may be expected for the full fiscal year of 2008
or for any other interim period. The financial information presented herein should be read in conjunction with our annual report on Form
10-K/A for the year ended December 31, 2007, which includes information and disclosures not included herein. All significant intercompany
accounts and transactions have been eliminated in consolidation.

2. SIGNIFICANT ACCOUNTING POLICIESAccounts Receivable

Included in accounts receivable at June 30, 2008 and December 31, 2007 was earned but unbilled revenue of approximately $8.2 million and $5.3 million, respectively, which results from non-calendar month billing cycles and the one-month lag time in billing related to certain of our services. Earned but unbilled revenue is billed within 30 days.

Development Costs

Pursuant to Statement of Financial Accounting Standards (SFAS) No. 86, Accounting
for the Costs of Computer Software to be Sold, Leased or Otherwise Marketed (SFAS No. 86), costs incurred to develop significant
enhancements to software features to be sold as part of our service offerings are being capitalized as part of Property and
Equipment, Net on our condensed consolidated balance sheets. For the three months ended June 30, 2008 and 2007, we capitalized
approximately $4.4 million and $2.8 million, respectively, in North America related to these projects. For the six months ended
June 30, 2008 and 2007, we capitalized approximately $8.1 million and $5.0 million, respectively, in North America related to these
projects. These capitalized costs are being amortized on a straight-line basis over the estimated life of the related software, not
to exceed five years. Depreciation expense recorded for developed software for the three
months ended June 30, 2008 and 2007 was approximately $1.1 million and $0.8 million, respectively. Depreciation expense recorded for
developed software for the six months ended June 30, 2008 and 2007 was approximately $2.2 million and $1.5 million, respectively.

Revenue Recognition

We recognize revenues when persuasive evidence of an arrangement exists, services have been rendered, the price to the buyer is fixed or determinable and collectability is reasonably assured. Revenues consist primarily of usage fees generally based on per minute, per fax page or per transaction methods. To a lesser extent, we charge subscription fees and fixed period minimum revenue commitments. Unbilled revenue consists of earned but unbilled revenue which results from non-calendar month billing cycles and the one-month lag time in billing related to certain of our services. Deferred revenue consists of payments made by customers in advance of the time services are rendered. Our revenue recognition policies are consistent with the guidance in Staff Accounting Bulletin (SAB) No. 101, Revenue Recognition in Financial Statements, as amended by SAB 101A, 101B and SAB 104.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

State Sales Tax and Excise Tax

We have reserves for certain state sales tax contingencies based on the likelihood of obligation in accordance with SFAS No. 5, Accounting for Contingencies (SFAS No. 5). Historically, we have collected and remitted sales tax from our non-Conferencing & Collaboration Solutions customers in applicable states, but have not collected and remitted state sales tax from our Conferencing & Collaboration Solutions customers in all applicable jurisdictions.

We were audited by the Commonwealth of Massachusetts Department of Revenue claiming that our Conferencing & Collaboration Solutions are subject to sales tax in Massachusetts. In March 2006, we began assessing sales tax to our customers in Massachusetts as a result of this audit. In July 2006, we paid an initial payment of approximately $1.2 million to the Commonwealth of Massachusetts Department of Revenue for taxable years prior to 2005. We made an additional payment of $0.5 million in January 2008 associated with taxable years prior to 2005. In April 2008, we filed returns for January 2005 to February 2006 and made another payment of $0.3 million.

In March 2007, we were notified by the State of Illinois regarding the taxability of our Conferencing & Collaboration Solutions, and we began assessing sales tax to our Conferencing & Collaboration customers in Illinois in April 2007. In April 2007, we filed returns and paid approximately $0.6 million to the Illinois Department of Revenue for taxable periods prior to March 2007. Additional amounts may be due as these returns are audited.

During the first quarter of 2008, an outstanding audit with the State of New York related to our former operating segment, Voicecom, which was discontinued in 2001, was completed and payment in the amount of $1.7 million was made for outstanding telecommunications excise taxes.

During the second quarter of 2008, we were made aware that certain of our Conferencing & Collaboration Solutions may be subject to a certain states telecommunications excise tax statutes. We are currently working with this states department of revenue to bring to resolution this matter which spans tax years 20012007. Accordingly, we have accrued approximately $4.0 million of excise tax and interest for the applicable time period as of June 30, 2008. We recorded approximately $2.9 million in Operating expenses and $1.1 million in Interest expense in our condensed consolidated statements of operations.

At June 30, 2008 and December 31, 2007, we had reserved approximately $5.7 million and $5.2 million, respectively, for certain state sales and excise tax contingencies. These amounts are included in Accrued taxes, other than income taxes in our condensed consolidated balance sheets. We believe we have appropriately accrued for these contingencies. In the event that actual results differ from these reserves, we may need to make adjustments which could materially impact our financial condition and results of operations. In addition, it is possible states may disagree with our method of assessing and remitting such taxes or additional states may subject us to inquiries regarding such taxes.

Income Taxes

Income tax expense, income taxes payable and deferred tax assets and liabilities are
determined in accordance with SFAS No. 109, Accounting for Income Taxes (SFAS No. 109). Under SFAS No. 109, the
deferred tax liabilities and assets are determined based on temporary differences between the basis of certain assets and
liabilities for income tax and financial reporting purposes, in addition to net operating loss carryforwards which will more
likely than not be utilized. These differences are primarily attributable to differences in the recognition of depreciation
and amortization of property, equipment and intangible assets, allowances for doubtful accounts and certain employee benefit
accruals. Deferred tax assets and liabilities are measured by applying enacted statutory tax rates applicable to future years in
which the deferred tax assets or liabilities are expected to be settled or realized. Valuation allowances are established when
necessary
to reduce deferred tax assets to the amount expected to be realized. Permanent differences are primarily attributable to non-deductible
employee compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

The effective income tax rate was 33% and 27% for the three and six months ended June 30, 2008, respectively.
The effective income tax rate varied from statutory rates during the three and six months ended June 30, 2008 primarily as a result
of non-deductible executive compensation expenses and the realization of net operating losses related to tax planning strategies
associated with our United Kingdom subsidiary. The change in the effective income tax rate for the three and six months ended June
30, 2008 is primarily related to a change in income mix between international tax jurisdictions. The effective income tax rate was
35% and 33% for the three and six months ended June 30, 2007, respectively. The effective income tax rate varied from statutory rates
during the three and six months ended June 30, 2007 primarily as a result of non-deductible executive compensation expenses and the
impact of the release of a net operating loss usage limitation related to
a prior years acquisition. The change in the effective income tax rate for the three and six months ended June 30, 2007 is
primarily related to a change in income mix between international tax jurisdictions, favorable changes to tax rates in certain
foreign jurisdictions and changes in valuation allowance accounts, which are estimates where adjustments are required when facts
and circumstances indicate that realization of tax benefits or the actual amount of taxes expected to be paid has changed. The
decline in tax rates in 2008 from 2007 is primarily attributable to continued favorable changes to tax rates in certain foreign
jurisdictions.

In the normal course of business, we are subject to inquiries from U.S. and non-U.S. tax authorities regarding the amount of taxes due. These inquiries may result in adjustments of the timing or amount of taxable income or deductions or the allocation of income among tax jurisdictions. Furthermore, during the ordinary course of business, other changing facts and circumstances may impact our ability to utilize income tax benefits as well as the estimated taxes to be paid in future periods. We believe we have appropriately accrued for income taxes. In the event that actual results differ from these estimates, we may need to adjust Income taxes payable which could materially impact our financial condition and results of operations.

We adopted the provisions of the Financial Accounting Standards Board (FASB) Interpretation No. 48, Accounting for Uncertainty in Income Taxes  An Interpretation of FASB Statement No. 109 (FIN No. 48) on January 1, 2007. We recorded provisions for certain asserted international and state income tax uncertain tax positions based on the recognition and measurement standards of FIN No. 48. We file federal income tax returns and income tax returns in various states and international jurisdictions. In major tax jurisdictions, tax years from 2000 to 2007 remain subject to income tax examinations by tax authorities.

At June 30, 2008, we had $4.1 million of unrecognized tax benefits, including $1.0 million
of unrecognized tax benefits that if recognized would affect our annual effective tax rate. The unrecognized tax benefits at June 30,
2008 are included in Other assets, Income taxes payable and Accrued expenses under Long-Term
Liabilities in our accompanying condensed consolidated balance sheets. We do not expect our unrecognized tax benefit to change
significantly over the next 12 months. As permitted with the adoption of FIN No. 48, we have changed our classification of interest
and penalties related to uncertain tax positions and recognize them in Interest expense and Operating expenses,
respectively, in our condensed consolidated statements of operations. We had accrued interest and penalties of approximately $1.5
million and $1.3 million at June 30, 2008 and December 31, 2007, respectively,
related to uncertain tax positions.

|Balance at December 31, 2007      | $ 4,559 |  
|--------------------------------- | ------- | -
|Re-measurement of prior liability | (457    | )
|                                  |         |  
|Balance at June 30, 2008          | $ 4,102 |  
|                                  |         |  

In the ordinary course of business, we are subject to inquiries from U.S. and non-U.S. tax authorities regarding the amount of taxes due. These inquiries may result in adjustments to the timing or amount of taxable income or deductions or the allocation of income among tax jurisdictions. Further, during the ordinary course of business, other changing facts and circumstances may impact our ability to utilize income tax benefits as well as the estimated taxes to be paid in future periods. We believe we are appropriately accrued for income taxes. In the event that actual results differ from these estimates, we may need to adjust Income taxes payable which could materially impact our financial condition and results of operations.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Treasury Stock

All treasury stock transactions are recorded at cost. In the six months ended June 30, 2008 and 2007, we withheld approximately 181,000 and 150,000 shares, respectively, of our common stock to satisfy certain of our employees tax withholdings due upon the vesting of their restricted stock grants and remitted approximately $2.3 million and $1.0 million, respectively, to the Internal Revenue Service on our employees behalf. We also repurchased during the six months ended June 30, 2008, 500,000 shares of our common stock for approximately $6.9 million in the open market pursuant to our Board-approved stock repurchase program.

As part of our April 2007 settlement agreement with Crescendo Partners II, L.P., Series E and related parties, among other things, Crescendo Partners withdrew its proxy contest related to our 2007 annual meeting of shareholders, and we commenced a $150.0 million self-tender offer to acquire up to 11,857,707 shares of our common stock at a fixed price of $12.65 per share. During the six months ended June 30, 2007, as a result of this self-tender offer, we repurchased 9,687,847 shares of our common stock in the open market pursuant to our self-tender offer for approximately $122.5 million and incurred costs associated with the tender offer of approximately $0.9 million, including legal, printing and dealer-manager fees, that were included in Additional paid-in capital.

Comprehensive Income

Comprehensive income represents the change in equity of a business during a period, except for investments by, and distributions to, owners. For the three months ended June 30, 2008 and 2007, comprehensive income was approximately $8.4 million and $8.1 million, respectively. For the six months ended June 30, 2008 and 2007, comprehensive income was approximately $22.8 million and $18.0 million, respectively. For the three and six months ended June 30, 2008 and 2007, translation adjustments are the only component of other comprehensive income. Accumulated other comprehensive income is comprised solely of translation adjustments at June 30, 2008 and December 31, 2007.

Goodwill

We continue to account for goodwill under SFAS No. 142, Accounting for Goodwill and Other Intangible Assets (SFAS No. 142). Summarized below is the carrying value of goodwill, and any changes to the carrying value of goodwill, by reportable segment at June 30, 2008 and December 31, 2007 (in thousands):

|                                    | NorthAmerica | Europe  | AsiaPacific | Total   
|----------------------------------- | ------------ | ------- | ----------- | --------
|Goodwill:                           |              |         |             |         
|Carrying value at December 31, 2007 | $286,147     | $46,529 | $4,570      | $337,246
|Additions                           | 3,360        |        |            | 3,360   
|Adjustments                         |             | 3,383   | 417         | 3,800   
|                                    |              |         |             |         
|Carrying value at June 30, 2008     | $289,507     | $49,912 | $4,987      | $344,406
|                                    |              |         |             |         

Goodwill is not subject to amortization consistent with SFAS No. 142 but is subject to periodic reviews for impairment. Additions to the goodwill carrying value since December 31, 2007 are primarily due to the acquisition of certain assets of iLinc Communications, Inc. Adjustments to the goodwill carrying value since December 31, 2007 are primarily due to working capital adjustments related to prior period acquisitions and foreign currency fluctuations against the U.S. dollar.

7

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Other Intangible Assets

We continue to account for other intangible assets under SFAS No. 142. Summarized below are the carrying value and accumulated amortization, if applicable, by intangible asset class (in thousands):

|                         | June 30, 2008      | December 31, 2007      
|------------------------ | ------------------ | -----------------------
|                         | GrossCarryingValue | AccumulatedAmortization
|                        
|                        
|Other intangible assets: |                    |                        
|Customer lists           | $ 131,945          | $ (101,574             
|Non-compete agreements   | 5,776              | (3,033                 
|Developed technology     | 41,626             | (39,989                
|Other                    | 2,647              |                       
|                         |                    |                        
|Total other intangible   |                    |                        
|assets                   | $ 181,994          | $ (144,596             
|                         |                    |                        

Estimated amortization expense related to our other intangible assets for the full year 2008 and the next four years is as follows (in millions):

|Year | EstimatedAmortizationExpense
|---- | ----------------------------
|    
|2008 | $ 15.7                      
|2009 | 12.2                        
|2010 | 7.7                         
|2011 | 5.6                         
|2012 | 2.8                         

Derivative Instruments

We have entered into interest rate swaps that are classified as derivatives consistent with SFAS No. 133 with the intention of hedging the cash flow risk of variable 30-day LIBOR interest rate changes on the interest payments associated with our credit facility. We did not designate these swaps as hedges at inception. The principal objective of these swaps is to minimize the risks and/or costs associated with our variable rate debt. Gains and losses are recognized in our condensed consolidated statements of operations as Unrealized gain (loss) on change in fair value of interest rate swaps as a component of Other (expense) income throughout the contract period. The fair value of derivatives is recognized in our condensed consolidated balance sheets as Accrued expenses under Long-Term Liabilities.

New Accounting Pronouncements

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" (SFAS No. 157).
SFAS No. 157 provides a single definition of fair value and a hierarchical framework for measuring it, as well as establishing
additional disclosure requirements about the use of fair value to measure assets and liabilities. SFAS No. 157 is effective as of
the beginning of fiscal years beginning after November 15, 2007. In February 2008, the FASB released FASB Staff Position (FSP) SFAS
No. 157-2 (FSP FAS No. 157-2), which delayed the effective date of SFAS No. 157 for all non-financial assets and non-financial
liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at
least annually), to fiscal years beginning after November 15, 2008. The adoption of SFAS No. 157 for our financial assets and
liabilities did not have a material impact on our condensed consolidated financial statements. We do not believe
the adoption of SFAS No. 157 for our non-financial assets and liabilities, effective January 1, 2009, will have a material impact
on our condensed consolidated financial statements. See Note 10 for additional information and related disclosures regarding our fair value measurements.

8

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

In December 2007, the FASB issued SFAS No. 141(R), Business Combinations (SFAS No. 141(R)),
which replaces SFAS No. 141, Business Combinations (SFAS No. 141). SFAS No. 141(R) retains the underlying concepts of
SFAS No. 141 in that all business combinations are still required to be accounted for at fair value under the acquisition method of
accounting, but SFAS No. 141(R) changed the method of applying the acquisition method in a number of significant aspects. SFAS No.
141(R) is effective on a prospective basis for all business combinations for which the acquisition date is on or after the beginning
of the first annual period subsequent to December 15, 2008, with the exception of the accounting for valuation allowances on deferred
taxes and acquired tax contingencies under SFAS No. 109. SFAS No. 141(R) amends SFAS No. 109 such that adjustments made to valuation
allowances on deferred taxes and acquired tax contingencies associated with
acquisitions that closed prior to the effective date of SFAS No. 141(R) would also apply the provisions of SFAS No. 141(R).
Early adoption is not allowed. We are currently evaluating the impact this statement will have on our financial position and results
of operations.

On April 25, 2008, the FASB issued FSP SFAS No. 142-3, Determination of the Useful Life of Intangible Assets, (FSP FAS No. 142-3) which intends to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141(R) and other GAAP provisions, particularly in developing renewal or extension assumptions used in determining the useful life of a recognized intangible asset. FSP FAS No. 142-3 is effective prospectively for fiscal years beginning after December 15, 2008 and interim periods within those fiscal years, and early adoption is not allowed. We are currently evaluating the impact this statement will have on our financial position and results of operations.

In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 (SFAS No. 161). SFAS No. 161 requires enhanced disclosures about an entitys derivative and hedging activities and thereby improves the transparency of financial reporting. SFAS No. 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. We are currently evaluating the impact this statement will have on our financial position and results of operations.

3. RESTATEMENT

As previously described in the Explanatory Note to this amendment, in August 2007, we entered into two $100.0
million two-year interest rate swaps at a fixed rate of approximately 4.99%. In December 2007, we amended the life of one of these
swaps to three years and reduced its fixed rate to approximately 4.75%. The termination dates of these swaps are currently August
2009 and August 2010. Although we entered into these swaps with the intention of hedging the cash flow risk of variable 30-day
LIBOR interest rate changes on the interest payments associated with our credit facility, we did not at their inception elect to
designate them as hedges under SFAS No. 133. It is not permissible to retroactively designate these swaps as hedges. Therefore, we
were required to record the fair value of the swaps in our condensed consolidated balance sheets and any changes in the fair value
of these swaps in our condensed consolidated statements of operations
under the line item Unrealized gain (loss) on change in fair value of interest rate swaps as a component of Other
(expense) income.

Subsequent to the issuance of our interim financial statements for the quarter ended June 30, 2008 and in connection with our efforts to update documentation surrounding our critical accounting policies, we identified that the accounting for these interest rate swaps was incorrect. While these swaps have been disclosed in our annual and quarterly reports since their inception as derivatives not designated as hedges, their fair value and changes in fair value were not properly recorded in our condensed consolidated balance sheets and statements of operations, respectively. The error did not affect the underlying risk management characteristics of the swaps and had no effect on our net revenues, net cash flows or operating income.

9

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

As previously disclosed in our annual report on Form 10-K/A for the year ended December 31, 2007, during the 2007 year-end close process, we discovered an error in our reported second and third quarter 2007 condensed consolidated statements of cash flows due to an inadvertent transposition of amounts. The amount of Excess tax benefits from share-based payment arrangements was erroneously shown as an increase rather than a reduction in cash flows from operating activities and a reduction rather than an increase in cash flows from financing activities. The table below illustrates the effects of the correction of the error on the six months ended June 30, 2007. Further, the prior year amounts have been corrected in our accompanying condensed consolidated statements of cash flows for the six months ended June 30, 2007.

The following tables reflect the effects of the restatement by individual financial statement line item:

The table below illustrates the effects of the corrections on the condensed consolidated balance sheets for the periods ended June 30, 2008 and December 31, 2007.

|                                           | June 30, 2008  | December 31, 2007
|------------------------------------------ | -------------- | -----------------
|                                           | (As reported)  | (As restated)    
|                                           | (in thousands) | (in thousands)   
|                                          
|Deferred income taxes, net                 | $        385   |                  
|Total assets                               | $ 668,817      |                  
|                                          
|Accrued expenses                           | $   11,361     |                  
|Total long-term liabilities                | $ 291,534      |                  
|                                          
|Accumulated deficit                        | $(297,837      | )                
|Total shareholders equity                 | $ 265,859      |                  
|Total liabilities and shareholders equity | $ 668,817      |                  

The tables below illustrate the effects of the corrections on the condensed consolidated statements of operations for the three and six months ended June 30, 2008.

|                                                                        | Three Months Ended June 30, 2008     
|----------------------------------------------------------------------- | -------------------------------------
|                                                                        | (As reported)                        
|                                                                        | (in thousands, except per share data)
|Unrealized gain (loss) on
  change in fair value of interest rate swaps | $                                    
|Total other (expense) income                                            | $                                    
|Income before income taxes                                              | $                                    
|Income tax expense                                                      | $                                    
|Net income                                                              | $                                    
|Basic earnings per share from
  net income                              | $                                    
|Diluted earnings per share                                              | $                                    

|                                                                        | Six Months Ended June 30, 2008       
|----------------------------------------------------------------------- | -------------------------------------
|                                                                        | (As reported)                        
|                                                                        | (in thousands, except per share data)
|Unrealized gain (loss) on
  change in fair value of interest rate swaps | $                                    
|Total other (expense) income                                            | $                                    
|Income before income taxes                                              | $                                    
|Income tax expense                                                      | $                                    
|Net income                                                              | $                                    
|Basic earnings per share from
  net income                              | $                                    
|Diluted earnings per share                                              | $                                    

10

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The tables below illustrate the effects of the corrections on the condensed consolidated statements of cash flows for the six months ended June 30, 2008 and 2007.

|                                                                   | Six Months Ended June 30, 2008
|------------------------------------------------------------------ | ------------------------------
|                                                                   | (As reported)                 
|                                                                   | (in thousands)                
|                                                                  
|Net income                                                         | $                             
|Deferred income taxes, net of effect of acquisitions               | $                             
|Unrealized loss on change in fair value of interest rate swaps     | $                             
|Total adjustments (to reconcile net income to net cash provided by |                               
|operating activities)                                              | $                             

|                                                          | Six Months Ended June 30, 2007
|--------------------------------------------------------- | ------------------------------
|                                                          | (As reported)                 
|                                                          | (in thousands)                
|                                                         
|Excess tax benefits from share-based payment arrangements | $                             
|Net cash provided by operating activities                 | $                             
|Excess tax benefits from share-based payment arrangements | $                             
|Net cash provided by financing activities                 | $                             

In addition to the effects reflected in the above tables, this correction required that we add certain fair value measurement disclosures in accordance with SFAS No. 157, which are contained in Note 10. We also added supplemental non-cash information that was not previously disclosed in the statements of cash flows for the six months ended June 30, 2007.

4. RESTRUCTURING COSTS

Consolidated restructuring costs at June 30, 2008 and December 31, 2007 are as follows (in thousands):

|Consolidated                 | AccruedCosts atDecember 31,2007 | Charge toContinuingOperations | Equity-BasedCompensation | PaymentsMade | Accrued Costsat June 30,2008
|---------------------------- | ------------------------------- | ----------------------------- | ------------------------ | ------------ | ----------------------------
|                            
|Accrued restructuring costs: |                                 |                               |                          |              |                             
|Severance and exit costs     | $    926                        |                               | $ 3,339                  |              | $ (549                      
|Contractual obligations      | $ 2,366                         |                               | $                       |              | $                          
|                             |                                 |                               |                          |              |                             
|Total restructuring costs    | $ 3,292                         |                               | $ 3,339                  |              | $ (549                      
|                             |                                 |                               |                          |              |                             

Realignment of Workforce  2008

During the quarter ended June 30, 2008, we executed a restructuring
plan to consolidate the senior management of our technology development and network operations functions and to consolidate our
corporate communications function into our marketing department. As part of these consolidations, we eliminated 11 positions,
including entering into a separation agreement with our president, global operations. We incurred approximately $3.4 million in
severance costs associated with the elimination of these positions. On a segment basis, these restructuring costs were $2.0 million
in North America, $1.3 million in Europe and $0.1 million in Asia Pacific. During the three months ended June 30, 2008, we paid
approximately $0.5 million related to these severance and exit costs in cash and released $0.5 million in restricted stock awards.
Our reserve for the 2008 restructuring costs was approximately $2.4 million at June 30, 2008. We anticipate these remaining costs
will be paid over the next twelve months.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Realignment of Workforce  2007

In 2007, we executed a restructuring plan to consolidate our non-Conferencing &
Collaboration Solutions service delivery organizations. As part of this consolidation, we eliminated 84 positions.
We incurred approximately $4.1 million in severance costs associated with the elimination of these positions and $0.1
million of lease termination costs associated with our Paris, France office. On a segment basis, these restructuring
costs were $1.1 million in North America, $2.7 million in Europe and $0.4 million in Asia Pacific. During the three and
six months ended June 30, 2008, we paid approximately $0.1 million and $0.7 million, respectively, related to these severance
and exit costs. During the six months ended June 30, 2008, we adjusted our restructuring reserve by approximately $0.1 million
as a result of actual severance payments to certain individuals being less than originally estimated. Our reserve for the 2007
restructuring costs was approximately
$0.1 million at June 30, 2008. We anticipate the remaining costs will be paid during 2008.

Realignment of Workforce  2006

In 2006, we executed a restructuring plan to streamline the management of our business on
a geographic regional basis from our former Conferencing & Collaboration and Data Communications business segments. As part of
this streamlining, we eliminated approximately 100 positions within customer service, finance, operations and sales and marketing.
In the fourth quarter of 2006, we entered into a separation agreement with our former chief investment officer. We incurred
approximately $8.0 million in severance costs associated with these positions, which included the issuance of restricted stock
having a fair value of $0.6 million. Additionally, we incurred $0.6 million of lease termination costs associated with five
locations within North America. On a segment basis, these restructuring costs were $4.6 million in North America, $3.3 million
in Europe and $0.7 million in Asia Pacific. During the three and six months ended June 30, 2008, we paid approximately
$10,000 and $0.1 million related to these severance and exit costs, respectively. All restructuring obligations related to the
2006 reserve were paid as of June 30, 2008.

Amounts paid in the three and six months ended June 30, 2008 for restructuring costs incurred prior to 2006 totaled $0.2 million and $0.4 million, respectively. At June 30, 2008, our reserve for restructuring costs incurred prior to 2006 totaled $2.0 million and is associated with lease termination costs. We anticipate these remaining lease termination costs will be paid over the next eight years.

5. ACQUISITIONS AND DISPOSITIONS

We seek to acquire complementary companies that increase our market share and provide us with additional customers, technologies, applications and sales personnel. All revenues and related costs from these transactions have been included in our condensed consolidated financial statements as of the effective date of each acquisition.

North America

In May 2008, we acquired certain assets of the audio conferencing business of iLinc. We paid $3.9 million in cash at closing and $0.1 million in transaction fees and closing costs. We funded the purchase with cash and equivalents on hand. We followed SFAS No. 141, and approximately $0.6 million was allocated to acquired working capital, $0.8 million was allocated to other acquisition liabilities and $1.2 million was allocated to identifiable intangible assets which will be amortized over five years. We have not yet finalized the working capital component of the purchase price. The residual $3.0 million of the aggregate purchase price was allocated to goodwill, which is subject to a periodic impairment assessment in accordance with SFAS No. 142.

In July 2007, we acquired the assets and stock of Budget Conferencing, Inc., a Canadian-based provider of audio and web conferencing services. We paid $19.8 million in cash at closing and $0.6 million in transaction fees

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

and closing costs. In June 2008, we paid an additional $0.7 million in cash to finalize the working capital component of the purchase price. We funded the purchase through our credit facility. We followed SFAS No. 141, and approximately $0.2 million was allocated to acquired fixed assets, $0.1 million was allocated to other acquisition liabilities, $6.6 million was allocated to identifiable customer lists, $1.3 million was allocated to trademarks and $1.4 million was allocated to a non-compete agreement, with the identifiable customer lists and non-compete agreements amortized over five years. In addition, $2.6 million was allocated to long-term deferred tax liabilities to record the step-up in basis for the customer lists and developed technology purchased. The residual $14.3 million of the aggregate purchase price was allocated to goodwill, which is subject to a periodic impairment assessment in accordance with SFAS No. 142.

Europe

In November 2007, we acquired the stock of Meet24, a Nordic-based provider of conferencing and web collaboration services. We paid $26.3 million in cash at closing and $0.2 million in transaction fees and closing costs. We funded the purchase through our credit facility and cash and equivalents on hand.
We followed SFAS No. 141, and approximately $0.2 million was allocated to acquired fixed assets, $1.4 million was allocated to acquired
working capital, $0.9 million was allocated to acquired deferred tax assets, $3.8 million was allocated to other acquisition liabilities,
$8.8 million was allocated to identifiable customer lists and $0.7 million was allocated to a non-compete agreement, with the identifiable
customer lists and non-compete agreements amortized over five years. In addition, $2.7 million was allocated to long-term deferred tax
liabilities. We have not yet finalized the working capital component of the purchase price. The residual $21.0 million
of the aggregate purchase price was allocated to goodwill, which is subject to a periodic impairment assessment in accordance with SFAS
No. 142. The goodwill balance related to the Meet24 acquisition totaled $21.8 million at June 30, 2008, which was impacted by foreign
currency fluctuations of $1.3 million and working capital adjustments of $0.5 million for the six months ended June 30, 2008. In 2008,
we paid $2.8 million in cash to a third-party escrow account to satisfy a certain acquisition liability.

6. INDEBTEDNESS

We have a $375.0 million committed revolving credit facility (which consists of an original revolving credit facility of $300.0 million with a $100.0 million accordion feature, of which $75.0 million has been exercised to date). This accordion feature allows for additional credit commitments to increase the revolving credit facility up to a maximum of $400.0 million, subject to its terms and conditions.

During the six months ended June 30, 2008, we expanded the committed amounts under the accordion feature of our credit facility by $50.0 million from $325.0 million at December 31, 2007 to $375.0 million at June 30, 2008. We paid less than $0.1 million in financing costs for this expansion of our credit facility. Certain of our material domestic subsidiaries have guaranteed our obligations under the credit facility, which is secured by substantially all of our assets and the assets of our material domestic subsidiaries. In addition, we have pledged as collateral all of the issued and outstanding stock of our material domestic subsidiaries and 65.0% of our material foreign subsidiaries.

In April 2007, we entered into an amendment to our credit facility which inserted into the applicable margin pricing grid a new tier based on a total leverage ratio of 2.5 times or greater, increased the permitted covenant level of the consolidated total leverage ratio and amended certain other provisions to allow us to purchase, redeem or otherwise acquire up to an additional $150.0 million of our common stock during 2007, of which approximately $122.6 million was used to fund our self-tender offer in the second quarter of 2007.

At June 30, 2008, we were in compliance in all material respects with the covenants under our credit facility. Proceeds drawn under our credit agreement may be used for refinancing of existing debt, working capital, capital expenditures, acquisitions and other general corporate purposes. The annual interest rate applicable to borrowings under the credit facility, at our option, is the base rate (the greater of the federal funds rate plus 0.5% or the Bank of America prime rate) or LIBOR, plus, in each case, an applicable margin which will vary based upon our

13

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

leverage ratio at the end of each fiscal quarter. At June 30, 2008, the applicable margin with respect to base rate loans was 0.0%, and the applicable margin with respect to LIBOR loans was 1.50%. At June 30, 2008, our interest rate on 30-day LIBOR loans was 3.96% for our borrowings on which we did not have an interest rate swap agreement in place. At June 30, 2008, we had approximately $275.3 million of borrowings outstanding and approximately $1.6 million in letters of credit outstanding under our credit facility.

In February 2006, we entered into a three-year $50.0 million interest rate swap at a fixed rate of 4.99%, and in August 2006, we entered into two separate three-year $12.5 million interest rate swaps at 5.14% and 5.16%, respectively. We did not designate these interest rate swaps as hedges. During the second quarter of 2007, we terminated these interest rate swaps and recorded a gain of approximately $0.4 million in Interest expense in our condensed consolidated statements of operations. Monthly settlements with the bank resulted in a gain of $0.1 million for the six months ended June 30, 2007 and are recognized in earnings as Interest expense.

In August 2007, we entered into two $100.0 million two-year interest rate swaps at a fixed rate of
approximately 4.99%. In December 2007, we amended the life of one of the $100.0 million swaps to three years and reduced the fixed
rate to approximately 4.75%. We did not designate these interest rate swaps as hedges and, as such, we did not account for them under
hedge accounting in accordance with SFAS No. 133. Changes in fair value, which were approximately $4.2 million and ($0.4) million for
the three and six months ended June 30, 2008, respectively, are recognized as Unrealized gain (loss) on change in fair value of
interest rate swaps as a component of Other (expense) income in our condensed consolidated statements of operations.
The fair value of the interest rate swaps resulted in a liability of $4.9 million recognized in Accrued expenses under 
Long-Term Liabilities at June 30, 2008. Monthly settlements
with the bank resulted in a loss of approximately $1.1 million for the six months ended June 30, 2008 and are recognized in earnings
as Interest expense.

In September 2006, we entered into our Yen-denominated line of credit for ¥300.0
million with Sumitomo Mitsui Banking which has an interest rate of 1.82% through June 2008. At June 30, 2008, there were no outstanding
borrowings under this facility.

We have entered into various capital leases for the purchase of operating equipment. These capital leases have interest rates ranging from 3.1% to 10.3% and terms ranging from 36 months to 60 months. The capital lease obligations recorded on our condensed consolidated balance sheets for these leases was $6.3 million and $4.5 million at June 30, 2008 and December 31, 2007, respectively.

7. EQUITY-BASED COMPENSATION

We may issue restricted stock awards, stock options, stock appreciation rights, restricted stock units and other stock-based awards to employees, directors, non-employee consultants and advisors under the following equity-based compensation plans: our amended and restated 2004 long-term incentive plan and our amended and restated 2000 directors stock plan. Options issued under these plans, other than the directors stock plan, may be either incentive stock options, which permit income tax deferral upon exercise of options, or non-qualified options not entitled to such deferral. These stock plans are administered by the compensation committee of our board of directors.

In April 2008, our board of directors adopted and, in June 2008, our shareholders approved our amended and restated 2004-long term incentive plan. The amendment and restatement of our 2004 plan increased the total number of shares authorized for issuance by 2.0 million shares to 6.0 million shares. The maximum number of awards and the maximum fair market value of such awards that may be granted under our 2004 plan during any one calendar year to any one grantee are 1.0 million shares and $8.0 million, respectively. No more than 3,964,386 of awards may be granted in the form of full value awards, such as restricted stock, subject to anti-dilution adjustments under our 2004 plan.

In April 2008, our board of directors adopted and, in June 2008, our shareholders approved our amended and restated 2000 directors stock plan. Only non-employee directors can participate in our directors stock plan.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Under our directors stock plan, a total of 2.0 million shares of our common stock have been reserved in connection with awards. No more than 292,079 of awards may be granted in the form of restricted stock, subject to anti-dilution adjustments, and only non-qualified stock options may be granted under our directors stock plan.

We have issued two types of equity-based payment arrangements: non-qualified stock options and restricted stock awards. The expenses associated with these arrangements are recorded in Cost of revenues, Selling and marketing, General and administrative and Research and development in our condensed consolidated statements of operations.

Stock Options

The following table summarizes the stock options activity under our stock plans from December 31, 2007 to June 30, 2008:

|                                             | Options   | WeightedAverageExercise Price | AggregateIntrinsicValue
|-------------------------------------------- | --------- | ----------------------------- | -----------------------
|                                            
|Options outstanding at December 31, 2007:    | 1,108,689 |                               | $ 8.03                 
|Granted                                      |          |                               |                       
|Exercised                                    | (251,096  | )                             | 8.80                   
|Expired                                      | (8,931    | )                             | 6.98                   
|                                             |           |                               |                        
|Options outstanding at June 30, 2008         | 848,662   |                               | $ 7.82                 
|                                             |           |                               |                        
|Vested and expected to vest at June 30, 2008 | 848,575   |                               | $ 7.82                 
|                                             |           |                               |                        
|Options exercisable at June 30, 2008         | 841,662   |                               | $ 7.81                 
|                                             |           |                               |                        

For the three and six months ended June 30, 2008, we recognized equity-based compensation expense of approximately $33,000 and $0.2 million, respectively, related to the vesting of stock options. For the three and six months ended June 30, 2007, we recognized equity-based compensation expense of approximately $0.1 million and $0.6 million, respectively, related to the vesting of stock options. As of June 30, 2008, we had $0.1 million of unvested stock options, which we will record in our statements of operations over a weighted-average recognition period of less than one year. The intrinsic value of stock options exercised in the six months ended June 30, 2008 and 2007 was $1.4 million and $6.5 million, respectively.

Restricted Stock Awards

The following table summarizes the activity of restricted stock awards under our stock plans from December 31, 2007 to June 30, 2008:

|                                 | Shares    | Weighted-Average GrantDate FairValue
|-------------------------------- | --------- | ------------------------------------
|                                
|Outstanding at December 31, 2007 | 2,452,131 |                                     
|Granted                          | 456,437   |                                     
|Vested/released                  | (571,480  | )                                   
|Forfeited                        | (225,916  | )                                   
|                                 |           |                                     
|Outstanding at June 30, 2008     | 2,111,172 |                                     
|                                 |           |                                     

15

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

For the three and six months ended June 30, 2008, we recognized equity-based compensation expense of approximately $3.0 million and $6.3 million, respectively, related to the vesting of restricted stock. For the three and six months ended June 30, 2007, we recognized equity-based compensation expense of approximately $2.4 million and $4.8 million, respectively, related to the vesting of restricted stock. As of June 30, 2008, we had approximately $19.8 million of compensation costs related to unvested restricted stock which we will record in our statements of operations over a weighted-average recognition period of less than two years. The fair value of restricted stock vesting in the three and six months ended June 30, 2008 was $4.4 million and $8.3 million, respectively. The fair value of restricted stock vesting in the three and six months ended June 30, 2007 was $3.4 million and $5.7 million, respectively.

Equity-based compensation expense is measured at the grant date, based on the fair value of the award, and is recognized over the vesting periods. The following table presents total equity-based compensation expense for non-qualified stock options and restricted stock awards included in our accompanying condensed consolidated statements of operations (in thousands):

|                                          | Three Months EndedJune 30, | Six Months EndedJune 30,
|----------------------------------------- | -------------------------- | ------------------------
|                                          | 2008                       | 2007                    
|                                         
|Cost of revenues                          | $      32                  |                         
|Selling and marketing                     | 724                        |                         
|Research and development                  | 270                        |                         
|General and administrative                | 1,974                      |                         
|                                          |                            |                         
|Pre-tax equity-based compensation expense | 3,000                      |                         
|Income tax benefits                       | (1,020                     | )                       
|                                          |                            |                         
|Total equity-based compensation expense   | $ 1,980                    |                         
|                                          |                            |                         

8. EARNINGS PER SHARE

Basic and Diluted Earnings Per Share

Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. The weighted-average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at June 30, 2008 and June 30, 2007, are considered contingently returnable until the restrictions lapse and will not be included in the basic net income per share calculation until the shares are vested.

Diluted earnings per share gives the effect of all potentially dilutive securities on earnings per share. Our outstanding stock options, unvested restricted shares and warrants are potentially dilutive securities during the three and six months ended June 30, 2008 and 2007. The difference between basic and diluted weighted-average shares outstanding is the dilutive effect of stock options, unvested restricted shares and warrants.

Pursuant to disclosure requirements contained in SFAS No. 128, Earnings Per Share, the following table represents a reconciliation of the basic and diluted earnings per share (EPS) computations contained in our condensed consolidated financial statements (in thousands, except per share data):

16

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

|                               | Three Months Ended
      June 30, 2008 | Three Months Ended
      June 30, 2007
|------------------------------ | -------------------------------------- | --------------------------------------
|                               | NetIncome                              | Weighted-AverageShares                
|                               | (As restated)                          |                                       
|                              
|Basic EPS                      | $ 8,538                                |                                       
|Effect of dilutive securities: |                                        |                                       
|Stock options                  |                                       |                                       
|Unvested restricted shares     |                                       |                                       
|Warrants                       |                                       |                                       
|                               |                                        |                                       
|Diluted EPS                    | $ 8,538                                |                                       
|                               |                                        |                                       

|                               | Six Months Ended
      June 30, 2008 | Six Months Ended
      June 30, 2007
|------------------------------ | ------------------------------------ | ------------------------------------
|                               | NetIncome                            | Weighted-AverageShares              
|                               | (As restated)                        |                                     
|                              
|Basic EPS                      | $ 17,573                             |                                     
|Effect of dilutive securities: |                                      |                                     
|Stock options                  |                                     |                                     
|Unvested restricted shares     |                                     |                                     
|Warrants                       |                                     |                                     
|                               |                                      |                                     
|Diluted EPS                    | $ 17,573                             |                                     
|                               |                                      |                                     

The weighted-average diluted common shares outstanding for the six months ended June 30, 2008 excludes the effect of approximately 1,900 out-of-the-money stock options and restricted shares because their effect would be anti-dilutive. The weighted-average diluted common shares outstanding for the three and six months ended June 30, 2007 excludes the effect of approximately 885 and 0.4 million out-of-the-money stock options, restricted shares and warrants because their effect would be anti-dilutive.

9. COMMITMENTS AND CONTINGENCIES

Asset Retirement Obligation

Our recorded asset retirement obligation liability represents the estimated costs to bring
certain office buildings that we lease back to their original condition after the termination of the lease. While our domestic operating
leases generally do not contain make-whole provision clauses, in instances where we believed a landlord could subject us to remediation
costs, we established an asset retirement obligation liability with a corresponding increase to leasehold improvements consistent with
SFAS No. 143, Accounting for Asset Retirement Obligations (SFAS No. 143). Similarly, for our international operations, where
we had either make-whole provision clauses in our leases or believed a landlord could subject us to remediation costs, we established an
asset retirement obligation liability with a corresponding increase to leasehold improvements. These amounts are included in Accrued
expenses under Current Liabilities and
Long-Term Liabilities in our accompanying condensed consolidated balance sheets. For the six months ended June 30, 2008,
asset retirement obligation liabilities were increased by approximately $0.6 million for remediation costs and $0.1 million of asset
retirement obligations were satisfied. The current and long-term portion of the asset retirement obligation liability balance was $0.9
million and $0.4 million at June 30, 2008 and December 31, 2007, respectively.

17

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

Government Regulation

We have received, and certain companies that we acquired had received, letters from the
Investigations and Hearing Division of the Federal Communication Commissions (FCC) Enforcement Bureau regarding registration,
filing and regulatory surcharge remittance requirements applicable to traditional telephone companies. In each case, we have responded
to the FCCs inquiries. In addition, certain of our competitors have received such letters and/or are involved in investigations
before the FCC or the Universal Service Administrative Company (USAC) regarding registration, filing and surcharge remittance
requirements. As a result of one such investigation concerning InterCall, Inc., on June 30, 2008, the FCC issued an order ruling
that audio conferencing providers are providers of telecommunications who must contribute to the federal Universal
Service Fund (USF). Because it previously was unclear whether audio conferencing providers were
required to contribute to the USF, the FCC order requires prospective contributions only. On July 17, 2008, the FCC issued a
public notice stating that all audio conferencing providers must file a Form 499-Q by August 1, 2008, reporting estimated
revenues for the fourth quarter of 2008, and begin contributing to the USF in October 2008. Several providers of audio conferencing
services have filed petitions requesting reconsideration of all or portions of the FCCs order, which are currently pending.

Litigation and Claims

We have settled the litigation matters as described below.

On August 21, 2006, a lawsuit was filed in the U.S. District Court for the Eastern District of
Texas by Ronald A. Katz Technology Licensing, L.P. against three conferencing service providers, including us and our subsidiary,
American Teleconferencing Services, Ltd. (ATS), alleging that the defendants automated telephone conferencing systems that
enable [their] customers to perform multiple-party meetings and various other functions over the telephone infringe six of
plaintiffs patents. The complaint sought undisclosed monetary damages, together with pre- and post-judgment interest, treble
damages for what was alleged to be willful infringement, attorneys fees and costs and injunctive relief. On March 20, 2007, a
multidistrict litigation panel granted a motion to consolidate 25 pending infringement suits, including our suit, brought by Katz
against various defendants to the District Court in California. On June 16, 2008, the
parties entered into confidential settlement and license agreements that provided for, among other things,
dismissal of all claims and counterclaims with prejudice. On July 1, 2008, we made a payment to Katz for a nonexclusive,
fully-paid license and release pursuant to such agreements.

On May 18, 2007, Gibson & Co. Ins. Brokers, Inc. served an amended complaint upon us
and our subsidiary, Xpedite Systems, LLC, in a purported class action entitled, Gibson & Co. Ins. Brokers, Inc., et al. v. The
Quizno's Corporation, et al., pending in U.S. District Court for the Central District of California. The underlying complaint
alleges that Quizno's sent unsolicited fax advertisements on or about November 1, 2005 in violation of the federal Telephone Consumer
Protection Act of 1991, as amended, (TCPA) and seeks damages of $1,500 per fax for alleged willful conduct in sending of the faxes.
On June 26, 2007, we answered the plaintiffs amended complaint, including asserting cross-claims against the Quiznos
defendants. On June 29, 2007, the Quiznos defendants filed their answer and asserted cross-claims against us. On July 31, 2007,
the court entered an order in which it granted certain Quiznos defendants
motion to dismiss and denied the motion with respect to other Quiznos entities. On September 7, 2007, plaintiff proceeded to
file another amended complaint against the Quiznos defendants, Growth Partners (Quiznos consultant) and us. On September 21, 2007,
we filed our answer and affirmative defenses. Certain Quizno's defendants filed a Motion to Dismiss, which was denied by the Court on
December 7, 2007. Subsequently, we filed cross-claims against the other defendants, and the Quizno's defendants filed cross-claims
against us. On May 9, 2008, all parties finalized a confidential term sheet for the settlement. On July 28, 2008, the parties
entered into a settlement agreement and release and a motion for preliminary approval of class action settlement. The settlement
is subject to approval by the court, and the court has scheduled a hearing for August 18, 2008 during which it will consider the
motion to preliminarily approve the class settlement. We believe that our financial
contribution to the settlement will be well below the limits of our insurance policy.

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

We are also involved in various other legal proceedings which we do not believe will have a material adverse effect upon our business, financial condition or results of operations, although no assurance can be given as to the ultimate outcome of any such proceedings.

10. FAIR VALUE MEASUREMENTS

Effective January 1, 2008, we adopted SFAS No. 157 for our financial assets and liabilities. SFAS No. 157 is a technical standard which provides a single definition of fair value and a hierarchical framework for measuring it. SFAS No. 157 defines fair value as an exit price representing the amount that would be received to sell an asset or paid to transfer a liability at the measurement date in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. SFAS No. 157 establishes a three-tier fair value hierarchy as a basis for such assumptions which prioritizes the inputs used in measuring fair value as follows:

| | Level 1  | Quoted prices in active markets for identical assets or liabilities;                                                                      
| | --------- | ------------------------------------------------------------------------------------------------------------------------------------------
| |           |                                                                                                                                           
| | Level 2  | Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
| |           |                                                                                                                                           
| | Level 3  | Unobservable inputs for the asset or liability in which there is little or no market data.                                                

We have segregated all financial assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below (in millions):

|                    | June 30, 2008
|------------------- | -------------
|                    | Fair Value   
|                    |              
|Liabilities:        |              
|Interest rate swaps | $4.9         
|                    |              
|Total               | $4.9         
|                    |              

11. SEGMENT REPORTING

Information concerning the operations in our reportable segments is as follows (in millions):

|              | Three Months Ended
      June 30, | Six Months Ended
      June 30,
|------------- | --------------------------------- | -------------------------------
|              | 2008(As restated)                 | 2007                           
|Net Revenues: |                                   |                                
|North America | $  97.1                           |                                
|Europe        | 33.4                              |                                
|Asia Pacific  | 31.1                              |                                
|              |                                   |                                
|              | $161.6                            |                                
|              |                                   |                                
|Net Income:   |                                   |                                
|North America | $    4.1                          |                                
|Europe        | 2.4                               |                                
|Asia Pacific  | 2.0                               |                                
|              |                                   |                                
|              | $    8.5                          |                                
|              |                                   |                                

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PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIESNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(UNAUDITED)

|                     | June 30, 2008(As restated) | December 31, 2007(As restated)
|-------------------- | -------------------------- | ------------------------------
|Identifiable Assets: |                            |                               
|North America        | $501.7                     |                               
|Europe               | 116.3                      |                               
|Asia Pacific         | 52.5                       |                               
|                     |                            |                               
|                     | $670.5                     |                               
|                     |                            |                               

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESTATEMENT

As previously described in the Explanatory Note to this amendment, we have restated our condensed consolidated financial statements for the quarter ended June 30, 2008 to correct the accounting for interest rate swaps entered into in August 2007 associated with our credit facility. The restatement is more fully described in Note 3 to our condensed consolidated financial statements.

OVERVIEW

We are a global provider of on-demand, communication technologies-based business process improvement solutions. Our Premiere Global Communications Operating System (PGiCOS) supports business applications within the following solution sets  Conferencing & Collaboration, Desktop Document Solutions, Enterprise Document Solutions, Notifications & Reminders and eMarketing  within our three segments in North America, Europe and Asia Pacific.

Key highlights of our financial and strategic accomplishments during the second quarter of 2008 include:

- Grew consolidated net revenues by 17.1% in the second quarter of 2008 compared to the same period in 2007;
- Grew revenue from Conferencing & Collaboration Solutions, the largest solution set within PGiCOS, by 31.4% in the second quarter of 2008 compared to the same period in 2007; and
- Repurchased 500,000 shares of our common stock in the open market.

Our primary corporate objectives for 2008 are focused on continuing to enhance our customer and shareholder value and building on the positive momentum we have generated in our business.

Specifically, during the remainder of the year, our plan is to:

- Focus our sales efforts on cross-selling additional PGiCOS solutions and applications into our existing base of customers;
- Develop and launch new PGiCOS business applications that meet the specific needs of targeted industries and horizontal job functions;
- Offer new pricing options, such as subscription-based pricing, to our direct sales customers similar to what we did for our web sales customers in 2007; and
- Continue to enhance our web presence, including adding greater functionality to our web portal at
PGiConnect.com.

We also plan to improve our profitability by continuing to automate our internal processes, enhancing standard access to our platform and solutions via our web services application programming interfaces (APIs) and focusing our development efforts on more highly automated applications that have shorter sales cycles and implementation times.

We believe our success against these objectives will enable us to continue to increase our market share and grow shareholder value throughout the remainder of 2008.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and

21

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liabilities at the date of the financial statements and reported amounts of net revenues and expenses during the reporting period. Actual results could differ from the estimates. See the section in this quarterly report entitled Significant Accounting Policies. The following discussion and analysis provides information which we believe is relevant to an assessment and understanding of our consolidated results of operations and financial condition. This discussion should be read in conjunction with our annual report on Form 10-K/A for the year ended December 31, 2007.

The results of operations for the three and six months ended June 30, 2008 are not indicative of the results that may be expected for the full fiscal year of 2008 or for any other interim period. The financial information presented herein should be read in conjunction with our annual report on Form 10-K/A for the year ended December 31, 2007, which includes information and disclosures not included herein. All significant intercompany accounts and transactions have been eliminated in consolidation.

RESULTS OF OPERATIONS

The following table presents certain financial information about our segments for the periods presented (in millions, except percent amounts):

|                                  | Three Months Ended
      June 30, | Six Months Ended
      June 30,
|--------------------------------- | --------------------------------- | -------------------------------
|                                  | 2008(As restated)                 | 2007                           
|Net Revenues:                     |                                   |                                
|North America                     | $  97.1                           |                                
|Europe                            | 33.4                              |                                
|Asia Pacific                      | 31.1                              |                                
|                                  |                                   |                                
|Consolidated                      | $161.6                            |                                
|                                  |                                   |                                
|Net Income:                       |                                   |                                
|North America                     | $    4.1                          |                                
|Europe                            | 2.4                               |                                
|Asia Pacific                      | 2.0                               |                                
|                                  |                                   |                                
|Consolidated                      | $    8.5                          |                                
|                                  |                                   |                                
|Percent of Consolidated Revenues: |                                   |                                
|North America                     | 60.1                              | %                              
|Europe                            | 20.6                              | %                              
|Asia Pacific                      | 19.3                              | %                              
|                                  |                                   |                                
|Consolidated                      | 100.0                             | %                              
|                                  |                                   |                                

Consolidated net revenues increased 17.1% to $161.6 million for the three months ended June 30, 2008 compared with $138.0 million for the same period in 2007 and increased 14.9% to $314.4 million for the six months ended June 30, 2008 compared with $273.6 million for the same period in 2007. Net revenues increased in the three months ended June 30, 2008 from the same period in 2007 as a result of organic growth in our Conferencing & Collaboration Solutions net revenue, the strengthening of various currencies to the U.S. dollar and our acquisitions of Budget Conferencing, Meet24 and iLinc, offset in part by declines in broadcast fax revenue. Strengthening of various currencies to the U.S. dollar resulted in consolidated net revenues growth of approximately $7.0 million and $13.6 million for the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, North America operating segment net revenue was 60.1% and 63.8% of consolidated net revenues, respectively, and for the six months ended June 30, 2008 and 2007, North America net revenue was 61.1% and 64.3% of consolidated net revenues, respectively. North America

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operating segment net revenue increased 10.2% to $97.1 million for the three months ended June 30, 2008 compared with
$88.1 million for the same period in 2007 and increased 9.1% to $192.1 million for the six months ended June 30, 2008 compared
with $176.1 million for the same period in 2007. These increases in segment net revenue were attributable primarily to organic
growth in our Conferencing & Collaboration Solutions net revenue and our acquisitions of Budget Conferencing and iLinc, offset
in part by declines in our broadcast fax net revenue. Fluctuations in foreign exchange rates from our Canadian operations resulted in
segment net revenue growth of approximately $0.4 million and $1.2 million for the three and six months ended June 30, 2008, respectively,
as compared to the same periods in 2007. Our Conferencing & Collaboration Solutions net revenue in North America was approximately
$77.1 million and $65.6 million for the three months ended June 30, 2008 and 2007,
respectively, and $151.6 million and $131.4 million for the six months ended June 30, 2008 and 2007, respectively. Our broadcast fax net
revenue in North America was approximately $3.1 million and $4.7 million for the three months ended June 30, 2008 and 2007, respectively,
and $6.7 million and $9.4 million for the six months ended June 30, 2008 and 2007, respectively. Our North America net revenue, exclusive
of Conferencing & Collaboration Solutions net revenue and broadcast fax net revenue, was approximately $16.9 million and $17.7 million
for the three months ended June 30, 2008 and 2007, respectively, and $33.8 million and $35.2 million for the six months ended June 30, 2008
and 2007, respectively.

For the three months ended June 30, 2008 and 2007, Europe operating segment net revenue
was 20.6% and 18.4% of consolidated net revenues, respectively, and for the six months ended June 30, 2008 and 2007, Europe operating
segment net revenue was 20.1% and 18.4%, respectively. Europe operating segment net revenue increased 31.5% to $33.4 million for the
three months ended June 30, 2008 compared with $25.3 million for the same period in 2007 and increased 25.9% to $63.3 million for the
six months ended June 30, 2008 compared with $50.2 million for the same period in 2007. These increases in Europe segment net revenue
were attributable primarily to organic growth in our Conferencing & Collaboration Solutions net revenue, our acquisition of Meet24
and the strengthening of the Euro to the U.S. dollar, offset in part by declines in our broadcast fax net revenue. Fluctuations in
foreign exchange rates resulted in Europe operating segment net revenue growth of
approximately $3.5 million and $6.7 million for the three and six months ended June 30, 2008, respectively, as compared to the same
periods in 2007. Our Conferencing & Collaboration Solutions net revenue in Europe was approximately $21.3 million and $10.6 million
for the three months ended June 30, 2008 and 2007, respectively, and $39.1 million and $20.5 million for the six months ended June 30,
2008 and 2007, respectively. Our broadcast fax net revenue in Europe was approximately $3.9 million and $6.5 million for the three months
ended June 30, 2008 and 2007, respectively, and $7.9 million and $12.9 million for the six months ended June 30, 2008 and 2007,
respectively. Our Europe net revenue, exclusive of Conferencing & Collaboration Solutions net revenue and broadcast fax net revenue,
was approximately $8.1 million and $8.3 million for the three months ended June 30, 2008 and 2007, respectively, and $16.3 million and $16.8
million for the six months ended June 30, 2008 and 2007,
respectively.

For the three months ended June 30, 2008 and 2007, Asia Pacific operating segment net
revenue was 19.3% and 17.8% of consolidated net revenues, respectively, and for the six months ended June 30, 2008 and 2007,
Asia Pacific operating segment net revenue was 18.8% and 17.3% of consolidated net revenues, respectively. Asia Pacific operating
segment net revenue increased 26.6% to $31.1 million for the three months ended June 30, 2008 compared with $24.6 million for the
same period in 2007 and increased 24.7% to $59.0 million for the six months ended June 30, 2008 compared with $47.3 million for the
same period in 2007. These increases in segment net revenue were attributable primarily to organic growth in our Conferencing &
Collaboration Solutions net revenue and the strengthening of the Australian dollar and Japanese Yen to the U.S. dollar. Fluctuations
in foreign exchange rates resulted in segment net revenue growth of approximately $3.1 million and $5.6
million for the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007. Our Conferencing &
Collaboration Solutions net revenue in Asia Pacific was approximately $15.3 million and $10.3 million for the three months ended June 30,
2008 and 2007, respectively, and $28.2 million and $19.4 million for the six months ended June 30, 2008 and 2007, respectively. Our broadcast
fax net revenue in Asia Pacific was approximately $8.4 million and $8.2 million for the three months ended June 30, 2008 and 2007,
respectively, and $16.6 million and $16.1 million for the six months ended June 30, 2008 and 2007, respectively. Our Asia Pacific net
revenue, exclusive of Conferencing & Collaboration Solutions net revenue and broadcast fax net revenue, was approximately $7.4
million and $6.0 million for the three months ended June 30, 2008 and 2007, respectively, and $14.3 million and $11.8 million for the
six months ended June 30, 2008 and 2007, respectively.

23

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|Cost of Revenues |                            |        |                          |       
|---------------- | -------------------------- | ------ | ------------------------ | ------
|                 | Three Months EndedJune 30, | Change | Six Months EndedJune 30, | Change
|                 | 2008                       | 2007   | $                        | %     
|                
|North America    | $ 41.0                     |        | $ 35.2                   |       
|Europe           | 11.1                       |        | 9.2                      |       
|Asia Pacific     | 14.1                       |        | 12.4                     |       
|                 |                            |        |                          |       
|Consolidated     | $66.2                      |        | $ 56.8                   |       
|                 |                            |        |                          |       

|                                               | Three Months Ended
      June 30, | Six Months EndedJune 30,
|---------------------------------------------- | --------------------------------- | ------------------------
|                                               | 2008                              | 2007                    
|Cost of revenues as a percent of net revenues: |                                   |                         
|North America                                  | 42.2                              | %                       
|Europe                                         | 33.2                              | %                       
|Asia Pacific                                   | 45.4                              | %                       
|Consolidated                                   | 41.0                              | %                       

Consolidated cost of revenues as a percentage of consolidated net revenues was 41.0% and
41.1% for the three months ended June 30, 2008 and 2007, respectively, and 40.7% and 40.4% for the six months ended June 30, 2008
and 2007, respectively. Consolidated cost of revenues increased 16.6% to $66.2 million for the three months ended June 30, 2008
compared with $56.8 million for the same period in 2007 and increased 15.5% to $127.9 million for the six months ended June 30, 2008
compared with $110.7 million for the same period in 2007. Consolidated cost of revenues as a percentage of consolidated net revenues
remained relatively flat in the three and six months ended June 30, 2008 as compared to the same periods in 2007 primarily as a
result of growth in higher cost of net revenue large enterprise customers in Conferencing & Collaboration Solutions net revenue
in our North America operating segment, offset in part by cost reductions primarily from our North
America and Europe operating segment service delivery organization re-engineering efforts which began in the second quarter of 2007
and network upgrades to our fax delivery platform in our Asia Pacific and Europe operating segments during the second half of 2007.
Fluctuations in foreign exchange rates resulted in consolidated cost of revenues growth of approximately $2.9 million and $5.5 million
for the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, North America operating segment cost of revenue was 42.2% and 40.0% of operating segment net revenue, respectively,
and for the six months ended June 30, 2008 and 2007, North America operating segment cost of revenue was 41.6% and 39.2% of segment net
revenue, respectively. North America operating segment cost of revenue increased 16.5% to $41.0 million for the three months ended
June 30, 2008 compared with $35.2 million for the same period in 2007 and increased 15.7% to $80.0 million for the six months ended
June 30, 2008 compared with $69.1 million for the same period in 2007. North America operating segment cost of revenue increased as
a percentage of operating segment net revenue primarily as a result of growth in higher cost of net revenue large enterprise customers
in Conferencing & Collaborations Solutions net revenue offset by a decline in our lower cost of revenue broadcast fax net revenue.
Fluctuations in foreign exchange rates resulted in segment cost of revenue growth of approximately $0.1 million and $0.3 million for
the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, Europe operating
segment cost of revenue was 33.2% and 36.3% of operating segment net revenue, respectively, and for the six months ended June 30,
2008 and 2007, Europe operating segment cost of revenue was 33.2% and 35.4% of operating segment net revenue, respectively. Europe
operating segment cost of revenue increased 20.1% to $11.1 million for the three months ended June 30, 2008 compared with $9.2 million
for the same period in 2007 and increased 17.9% to $21.0 million for the six months ended June 30, 2008 compared with $17.8 million for
the same period in 2007. Europe operating segment cost of revenue decreased as a percentage of operating segment net revenues primarily
as a result of declines in higher cost of revenue broadcast fax net revenue, growth in lower cost of revenue from Conferencing &
Collaboration net revenue and cost savings associated with our Europe operating segment service
delivery

24

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organization re-engineering efforts which began in the second quarter of 2007 and network upgrades to our fax delivery platform in the first half of 2008. Fluctuations in foreign exchange rates resulted in segment cost of revenues growth of approximately $1.3 million and $2.4 million for the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, Asia Pacific operating segment cost of
revenue was 45.4% and 50.3% of operating segment net revenue, respectively, and for the six months ended June 30, 2008 and 2007,
Asia Pacific operating cost of revenue was 45.6% and 50.3% of operating segment net revenue, respectively. Asia Pacific operating
segment cost of revenue increased 14.2% to $14.1 million for the three months ended June 30, 2008 compared with $12.4 million for
the same period in 2007 and increased 13.3% to $26.9 million for the six months ended June 30, 2008 compared with $23.8 million for
the same period in 2007. Asia Pacific operating segment cost of revenue decreased as a percentage of operating segment net revenue
as a result of network cost savings related to upgrades in our fax delivery platform during the second half of 2007 and growth in
lower cost of revenue Conferencing & Collaboration Solutions net revenue. Fluctuations in
foreign exchange rates resulted in segment cost of revenue growth of approximately $1.5 million and $2.8 million for the three and
six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

Selling and Marketing Expenses

|              | Three Months EndedJune 30, | Change | Six Months EndedJune 30, | Change
|------------- | -------------------------- | ------ | ------------------------ | ------
|              | 2008                       | 2007   | $                        | %     
|North America | $23.7                      |        | $21.7                    |       
|Europe        | 9.9                        |        | 7.5                      |       
|Asia Pacific  | 6.6                        |        | 5.2                      |       
|              |                            |        |                          |       
|Consolidated  | $40.2                      |        | $34.4                    |       
|              |                            |        |                          |       

|                                                                   | Three Months EndedJune 30, | Six Months Ended
      June 30,
|------------------------------------------------------------------ | -------------------------- | -------------------------------
|                                                                   | 2008                       | 2007                           
|Selling and marketing expenses as a percent of net
      revenues: |                            |                                
|                                                                  
|North America                                                      | 24.4                       | %                              
|Europe                                                             | 29.8                       | %                              
|Asia Pacific                                                       | 21.3                       | %                              
|Consolidated                                                       | 24.9                       | %                              

Consolidated selling and marketing expenses as a percentage of consolidated net revenues
were 24.9% and 24.9% for the three months ended June 30, 2008 and 2007, respectively, and 25.5% and 25.9% for the six months ended
June 30, 2008 and 2007, respectively. Consolidated selling and marketing expenses increased 16.9% to $40.2 million for the three months
ended June 30, 2008 compared with $34.4 million for the same period in 2007 and increased 13.0% to $80.1 million for the six months
ended June 30, 2008 compared with $70.9 million for the same period in 2007. The increase in selling and marketing expenses resulted
primarily from our acquisitions of Budget Conferencing and Meet24, investment in selling and marketing resources in all operating
segments and the strengthening of various currencies to the US dollar. Fluctuations in foreign exchange rates resulted in selling
and marketing expenses growth of approximately $1.8 million and $3.5 million for the three
and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, North America operating segment selling and marketing expenses were 24.4% and 24.7% of operating segment net revenue, respectively, and for the six months ended June 30, 2008 and 2007, North America operating segment selling and marketing expenses were 24.5% and 25.7% of operating segment net revenue, respectively. North America operating segment selling and marketing expenses increased 8.7% to $23.7 million for the three months ended June 30, 2008 compared with $21.7 million for

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the same period in 2007 and increased 4.2% to $47.1 million for the six months ended June 30, 2008 compared with $45.2 million for the same period in 2007. North America operating segment selling and marketing expenses increased primarily as
a result of our acquisition of Budget Conferencing and the strengthening of the Canadian Dollar against the U.S. dollar offset in part by increased optimization of selling and marketing expense toward growth in our Conferencing & Collaboration
Solutions net revenue. Fluctuations in foreign exchange rates related primarily to the Canadian Dollar resulted in operating segment selling and marketing expenses growth of approximately $0.1 million and $0.2 million for the three and six
months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, Europe operating segment selling and marketing expenses were 29.8% and 29.4% of operating segment net revenue, respectively, and for the six months ended June 30, 2008
and 2007, Europe operating segment selling and marketing expenses were 31.7% and 30.3% of operating segment net revenue, respectively. Europe selling and marketing expense increased 33.2% to $9.9 million for the three months ended June 30, 2008
compared with $7.5 million for the same period in 2007 and increased 31.7% to $20.1 million for the six months ended June 30, 2008 compared with $15.3 million for the same period in 2007. Europe operating segment selling and marketing
expenses increased primarily as a result of our acquisition of Meet24, strengthening of the Euro against the U.S. dollar and investment in selling and marketing resources in our Conferencing & Collaboration Solutions. Fluctuations in foreign
exchange rates related primarily to the Euro resulted in operating segment selling and marketing expenses growth of approximately $1.0 million and $2.0 million for the three and six months ended June 30, 2008, respectively, as compared to
the same periods in 2007.

For the three months ended June 30, 2008 and 2007, Asia Pacific operating segment selling and marketing expenses were 21.3% and 21.1% of operating segment net revenue, respectively, and for the six months ended June 30,
2008 and 2007, Asia Pacific operating segment selling and marketing expenses were 21.8% and 22.0% of operating segment net revenue, respectively. Asia Pacific operating segment selling and marketing expenses increased 27.8% to $6.6 million for
the three months ended June 30, 2008 compared with $5.2 million for the same period in 2007 and increased 23.8% to $12.9 million for the six months ended June 30, 2008 compared with $10.4 million for the same period in 2007. Asia Pacific
operating segment selling and marketing expenses increased primarily as a result of the strengthening of the Australian Dollar and Japanese Yen against the U.S. dollar and investment in selling and marketing resources in our Conferencing &
Collaboration Solutions. Fluctuations in foreign exchange rates associated with the Australian Dollar and Japanese Yen resulted in operating segment selling and marketing expenses growth of approximately $0.6 million and $1.2 million for the
three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

Research and Development Expenses

Consolidated research and development expenses as a percentage of consolidated net revenues were 2.6% and 2.4% for the three months ended June 30, 2008 and 2007, respectively, and 2.6% and 2.5% for the six months ended
June 30, 2008 and 2007, respectively. Consolidated research and development expenses increased 24.3% to $4.2 million for the three months ended June 30, 2008 compared with $3.3 million for the same period in 2007 and increased 21.3% to
$8.2 million for the six months ended June 30, 2008 compared with $6.8 million for the same period in 2007. The increase in research and development expenses is primarily associated with additional resources invested in the maintenance and
support of our Conferencing & Collaboration Solutions, our Notifications & Reminders Solutions and the establishment of a new web development organization in North America. Costs associated with product development are capitalized as
internally developed software, as part of Property and Equipment, Net in our condensed consolidated balance sheets, whereas management overhead, facilities costs and maintenance activities are expensed as research and development. For
the three months ended June 30, 2008 and 2007, we capitalized software development costs of approximately $4.4 million and $2.8 million, respectively, and for the six months ended June 30, 2008 and 2007, we capitalized software development
costs of approximately $8.1 million and $5.0 million, respectively. The majority of research and development expenses were incurred in North America.

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General and Administrative Expenses

|              | Three Months EndedJune 30, | Change | Six Months EndedJune 30, | Change
|------------- | -------------------------- | ------ | ------------------------ | ------
|              | 2008                       | 2007   | $                        | %     
|North America | $10.7                      |        | $12.7                    |       
|Europe        | 3.4                        |        | 2.9                      |       
|Asia Pacific  | 2.6                        |        | 1.7                      |       
|              |                            |        |                          |       
|Consolidated  | $16.7                      |        | $17.3                    |       
|              |                            |        |                          |       

|                                                                        | Three Months EndedJune 30, | Six Months EndedJune 30,
|----------------------------------------------------------------------- | -------------------------- | ------------------------
|                                                                        | 2008                       | 2007                    
|General and administrative expenses as a percent of net
      revenues: |                            |                         
|                                                                       
|North America                                                           | 11.0                       | %                       
|Europe                                                                  | 10.4                       | %                       
|Asia Pacific                                                            | 8.4                        | %                       
|Consolidated                                                            | 10.4                       | %                       

Consolidated general and administrative expenses as a percentage of consolidated net
revenues were 10.4% and 12.5% for the three months ended June 30, 2008 and 2007, respectively, and 10.5% and 12.4% for the six
months ended June 30, 2008 and 2007, respectively. Consolidated general and administrative expenses decreased 3.2% to $16.7
million for the three months ended June 30, 2008 compared with $17.3 million for the same period in 2007 and decreased 2.7% to $33.0
million for the six months ended June 30, 2008 compared with $33.9 million for the same period in 2007. The decrease in general and
administrative expenses is primarily the result of not incurring proxy-related costs during the six months ended June 30, 2008 which
were incurred during the same period in 2007 related to our proxy contest settled in April 2007, offset in part by our acquisitions of
Budget Conferencing and Meet24 and the strengthening of the Euro, Australian dollar and Japanese Yen
against the US dollar. Fluctuations in foreign exchange rates resulted in general and administrative expenses growth of approximately
$0.6 million and $1.3 million for the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, North America operating segment
general and administrative expenses were 11.0% and 14.4% of operating segment net revenue, respectively, and for the six months
ended June 30, 2008 and 2007, North America general and administrative expenses were 11.4% and 13.8% of operating segment net
revenue, respectively. North America operating segment general and administrative expenses decreased 15.9% to $10.7 million for
the three months ended June 30, 2008 compared with $12.7 million for the same period in 2007 and decreased 10.2% to $21.8 million
for the six months ended June 30, 2008 compared with $24.3 million for the same period in 2007. North America operating segment
general and administrative expenses decreased primarily as a result of the cessation of proxy-related costs during the six months
ended June 30, 2007, offset in part by our acquisition of Budget Conferencing. Fluctuations in foreign exchange rates
resulted in segment general and administrative expenses growth of approximately $0.0 million and $0.1 million for the three and
six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, Europe operating segment general and administrative expenses were 10.4% and 11.5% of segment net revenue, respectively, and for the six months ended June 30, 2008 and 2007, Europe operating segment general and administrative expenses were 10.1% and 11.6% of segment net revenue, respectively. Europe operating segment general and administrative expenses increased 18.9% to $3.4 million for the three months ended June 30, 2008 compared with $2.9 million for the same period in 2007 and increased 10.2% to $6.4 million for the six months ended June 30, 2008 compared with $5.8 million for the same period in 2007. Europe operating segment general and administrative expenses increased primarily as a result of the strengthening of the Euro against the U.S. dollar and our acquisition of Meet24, offset in part by a reduction in

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finance and accounting costs from our centralization plan which began in the first quarter of 2007. Fluctuations in foreign exchange rates, primarily related to the Euro, resulted in segment general and administrative expenses growth of approximately $0.4 million and $0.8 million for the three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

For the three months ended June 30, 2008 and 2007, Asia Pacific operating segment general
and administrative expenses were 8.4% and 7.0% of operating segment net revenue, respectively, and for the six months ended
June 30, 2008 and 2007, Asia Pacific operating segment general and administrative expenses were 8.0% and 8.0% of operating
segment net revenue, respectively. Asia Pacific operating segment general and administrative expenses increased 53% to $2.6
million for the three months ended June 30, 2008 compared with $1.7 million for the same period in 2007 and increased 26.1%
to $4.8 million for the six months ended June 30, 2008 compared with $3.8 million for the same period in 2007. Asia Pacific
operating segment general and administrative expenses increased primarily as a result of the strengthening of the Australian
Dollar and Japanese Yen against the U.S. dollar. Fluctuations in foreign exchange rates, related to the Australian Dollar and
Japanese Yen
resulted in operating segment general and administrative expenses growth of approximately $0.2 million and $0.4 million for the
three and six months ended June 30, 2008, respectively, as compared to the same periods in 2007.

State Excise Tax Expense

During the second quarter of 2008, we were made aware that certain of our Conferencing & Collaboration Solutions may be subject to a certain states telecommunications excise tax statutes. We are currently working with this states department of revenue to bring to resolution this matter which spans tax years 20012007. Accordingly, we have accrued approximately $4.0 million of excise tax and interest for the applicable time period as of June 30, 2008. We recorded approximately $2.9 million in Operating expenses and $1.1 million in Interest expense in our condensed consolidated statements of operations.

Depreciation Expense

|              | Three Months EndedJune 30, | Change | Six Months EndedJune 30, | Change
|------------- | -------------------------- | ------ | ------------------------ | ------
|              | 2008                       | 2007   | $                        | %     
|North America | $6.8                       |        | $5.7                     |       
|Europe        | 0.9                        |        | 0.8                      |       
|Asia Pacific  | 0.9                        |        | 0.7                      |       
|              |                            |        |                          |       
|Consolidated  | $8.6                       |        | $7.2                     |       
|              |                            |        |                          |       

|                                                   | Three Months EndedJune 30, | Six Months Ended
      June 30,
|-------------------------------------------------- | -------------------------- | -------------------------------
|                                                   | 2008                       | 2007                           
|Depreciation expense as a percent of net revenues: |                            |                                
|                                                  
|North America                                      | 7.0                        | %                              
|Europe                                             | 2.8                        | %                              
|Asia Pacific                                       | 2.7                        | %                              
|Consolidated                                       | 5.3                        | %                              

Consolidated depreciation expense as a percentage of consolidated net revenues was 5.3% and 5.2% for the three months ended June 30, 2008 and 2007, respectively, and 5.0% and 5.2% for the six months ended June 30, 2008 and 2007, respectively. Consolidated depreciation expense increased 19.0% to $8.6 million for the three months ended June 30, 2008 compared with $7.2 million for the same period in 2007 and increased 10.7% to $15.8 million for the six months ended June 30, 2008 compared with $14.3 million for the same period in 2007. Consolidated depreciation expense for the three and six months ended June 30, 2008 increased compared to the same periods in the prior year primarily due to increases in our productive asset base, offset in part by a one-time adjustment during the three months ended March 31, 2008 of $0.7 million as a result of managements review of a

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specific group of assets that were not assigned an appropriate economic life. The resulting change in economic life for this group of assets will result in less than $0.7 million in annual depreciation expense reduction in future annual periods.

North America operating segment depreciation expense totaled $6.8 million and $5.7 million,
or 7.0% and 6.6% of operating segment net revenue, for the three months ended June 30, 2008 and 2007, respectively,
and $12.5 million and $11.3 million, or 6.5% and 6.4% of operating segment net revenue, for the six months ended June 30,
2008 and 2007, respectively. Europe operating segment depreciation expense totaled $0.9 million and $0.8 million, or 2.8% and 3.1%
of operating segment net revenue, for the three months ended June 30, 2008 and 2007, respectively, and $1.9 million and $1.6
million, or 3.0% and 3.2% of operating segment net revenue, for the six months ended June 30, 2008 and 2007, respectively.
Asia Pacific operating segment depreciation expense totaled $0.9 million and $0.7 million, or 2.7% and 2.7% of operating segment
net revenue, for the three months ended June 30, 2008 and 2007, respectively, and $1.4 million and $1.4 million, or 2.5% and 2.9% of
operating segment net revenue, for the six months ended June 30, 2008 and 2007, respectively.

Amortization Expense

|              | Three Months EndedJune 30, | Change | Six Months EndedJune 30, | Change
|------------- | -------------------------- | ------ | ------------------------ | ------
|              | 2008                       | 2007   | $                        | %     
|North America | $2.9                       |        | $3.1                     |       
|Europe        | 0.9                        |        | 0.4                      |       
|Asia Pacific  | 0.1                        |        | 0.1                      |       
|              |                            |        |                          |       
|Consolidated  | $3.9                       |        | $3.6                     |       
|              |                            |        |                          |       

|                                                   | Three Months Ended
      June 30, | Six Months Ended
      June 30,
|-------------------------------------------------- | --------------------------------- | -------------------------------
|                                                   | 2008                              | 2007                           
|Amortization expense as a percent of net revenues: |                                   |                                
|                                                  
|North America                                      | 3.0                               | %                              
|Europe                                             | 2.6                               | %                              
|Asia Pacific                                       | 0.4                               | %                              
|Consolidated                                       | 2.4                               | %                              

Consolidated amortization expense as a percentage of consolidated net revenues was 2.4% and 2.6% for the three months ended June 30, 2008 and 2007, respectively, and 2.6% and 2.6% for the six months ended June 30, 2008 and 2007, respectively. Consolidated amortization expense increased 8.9% to $3.9 million for the three months ended June 30, 2008 compared with $3.6 million for the same period in 2007 and increased 14.2% to $8.2 million for the six months ended June 30, 2008 compared with $7.1 million for the same period in 2007.

North America operating segment amortization expense totaled $2.9 million and $3.1 million,
or 3.0% and 3.6% of operating segment net revenue, for the three months ended June 30, 2008 and 2007, respectively, and $6.1 million
and $6.2 million, or 3.2% and 3.5% of operating segment net revenue, for the six months ended June 30, 2008 and 2007, respectively.
Europe operating segment amortization expense totaled $0.9 million and $0.4 million, or 2.6% and 1.4% of operating segment net
revenue, for the three months ended June 30, 2008 and 2007, respectively, and $1.9 million and $0.7 million, or 2.9% and 1.4% of
operating segment net revenue, for the six months ended June 30, 2008 and 2007, respectively. Asia Pacific operating segment
amortization expense totaled $0.1 million and $0.1 million, or 0.4% and 0.4% of operating segment net revenue, for the three months
ended June 30, 2008 and 2007, respectively, and $0.2 million and $0.2 million, or 0.4% and 0.5% of
operating segment net revenue, for the six months ended June 30, 2008 and 2007, respectively. The decrease in amortization expense
in North America operating segment is primarily associated with customer list intangible assets related to acquisitions made in 2003
that have become fully amortized, offset in part by our acquisitions of Budget Conferencing and iLinc. The increase in amortization expense in our Europe operating segment is primarily associated with our acquisition of Meet24.

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Restructuring Costs

Realignment of Workforce  2008

During the quarter ended June 30, 2008, we executed a restructuring plan to consolidate the senior management of our technology development and network operations functions and to consolidate our corporate
communications function into our marketing department. As part of these consolidations, we eliminated 11 positions, including entering into a separation agreement with our president, global operations. We incurred approximately $3.4 million in
severance costs associated with the elimination of these positions. On a segment basis, these restructuring costs were $2.0 million in North America, $1.3 million in Europe and $0.1 million in Asia Pacific. During the three months ended
June 30, 2008, we paid approximately $0.5 million related to these severance and exit costs in cash and released $0.5 million in restricted stock awards. Our reserve for the 2008 restructuring costs was approximately $2.4 million at June
30, 2008. We anticipate these remaining costs will be paid over the next twelve months.

Realignment of Workforce  2007

In 2007, we executed a restructuring plan to consolidate our non-Conferencing & Collaboration Solutions service delivery organizations. As part of this consolidation we eliminated 84 positions. We incurred
approximately $4.1 million in severance costs associated with the elimination of these positions and $0.1 million of lease termination costs associated with our Paris, France office. On a segment basis, these restructuring costs were
$1.1 million in North America, $2.7 million in Europe and $0.4 million in Asia Pacific. During the three and six months ended June 30, 2008, we paid approximately $0.1 million and $0.7 million, respectively, related to these
severance and exit costs. During the six months ended June 30, 2008, we adjusted our restructuring reserve by approximately $0.1 million as a result of actual severance payments to certain individuals being less than originally estimated. Our
reserve for the 2007 restructuring costs was approximately $0.1 million at June 30, 2008. We anticipate the remaining costs will be paid during 2008.

Realignment of Workforce  2006

In 2006, we executed a restructuring plan to streamline the management of our business on a geographic regional basis from our former Conferencing & Collaboration and Data Communications business segments. As part
of this streamlining, we eliminated approximately 100 positions within customer service, finance, operations and sales and marketing. In the fourth quarter of 2006, we entered into a separation agreement with our former chief investment officer. We
incurred approximately $8.0 million in severance costs associated with these positions, which included the issuance of restricted stock having a fair value of $0.6 million. Additionally, we incurred $0.6 million of lease termination
costs associated with five locations within North America. On a segment basis, these restructuring costs were $4.6 million in North America, $3.3 million in Europe and $0.7 million in Asia Pacific. During the three and six months ended
June 30, 2008, we paid approximately $10,000 and $0.1 million related to these severance and exit costs, respectively. All restructuring obligations related to the 2006 reserve were paid as of June 30, 2008.

Amounts paid in the three and six months ended June 30, 2008 for restructuring costs incurred prior to 2006 totaled $0.2 million and $0.4 million, respectively. At June 30, 2008, our reserve for restructuring
costs incurred prior to 2006 totaled $2.0 million and is associated with lease termination costs. We anticipate these remaining lease termination costs will be paid over the next eight years.

Net Legal Settlements and Related Expenses

During the quarter ended June 30, 2008 we settled several litigation matters, including certain matters described in Note 9. Commitments and Contingencies and Part II, Item 1. Legal Proceedings,
resulting in net legal settlements and related expenses of approximately $1.6 million.

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Interest Expense, Net

Interest expense, net increased to $5.4 million from $2.5 million for the three months ended June 30, 2008 and 2007, respectively, and increased to $9.8 million from $4.7 million for the six months ended
June 20, 2008 and 2007, respectively. Interest expense, net increased primarily as a result of increased interest expense related to the increased average outstanding balance on our credit facility along with a $1.1 million non-recurring charge
for interest related to the excise tax matter discussed above. The average outstanding balance on our credit facility was $284.6 million and $184.9 million for the three months ended June 30, 2008 and 2007, respectively. The average
outstanding balance on our credit facility was $283.7 million and $162.9 million for the six months ended June 30, 2008 and 2007, respectively. This increase in borrowings is attributable to funding our $122.6 million self-tender offer
and our acquisitions of Budget Conferencing and Meet24.

Unrealized Gain (Loss) on Change In Fair Value of Interest Rate Swaps

In August 2007, we entered into two $100.0 million two-year interest rate swaps at a fixed rate of approximately 4.99%. In December 2007, we amended the life of one of the $100.0 million swaps to three years
and reduced the fixed rate to approximately 4.75%. We did not designate these interest rate swaps as hedges and, as such, we did not account for them under hedge accounting in accordance with SFAS No. 133. Changes in fair value, which were
approximately $4.2 million and ($0.4) million for the three and six months ended June 30, 2008, respectively, are recognized as Unrealized gain (loss) on change in fair value of interest rate swaps as a component of Other
(expense) income in our condensed consolidated statements of operations. The fair value of the interest rate swaps resulted in a liability of $4.9 million recognized in Accrued expenses under Long-Term Liabilities
at June 30, 2008.

Other, Net

Other, net decreased to $0.0 million from $0.2 million for the three months ended June 30, 2008 and 2007, respectively, and increased to $0.8 million from $0.7 million for the six months ended June 30,
2008 and 2007, respectively. Other, net was comprised primarily of foreign exchange gains related to cash settlements of intercompany transactions and the revaluation of foreign currency denominated intercompany payables and receivables with the
U.S. during the three and six months ended June 30, 2008.

Acquisitions

We seek to acquire complementary companies that increase our market share and provide us with additional customers, technologies, applications and sales personnel. All revenues and related costs from these transactions
have been included in our condensed consolidated financial statements as of the effective date of each acquisition.

North America

In May 2008, we acquired certain assets of the audio conferencing business of iLinc. We paid $3.9 million in cash at closing and $0.1 million in transaction fees and closing costs. We funded the purchase with
cash and equivalents on hand. We followed SFAS No. 141, and approximately $0.6 million was allocated to acquired working capital, $0.8 million was allocated to other acquisition liabilities and $1.2 million was allocated to identifiable
intangible assets which will be amortized over five years. We have not yet finalized the working capital component of the purchase price. The residual $3.0 million of the aggregate purchase price was allocated to goodwill, which is subject to a
periodic impairment assessment in accordance with SFAS No. 142.

In July 2007, we acquired the assets and stock of Budget Conferencing. We paid $19.8 million in cash at closing and $0.6 million in transaction fees and closing costs. In June 2008, we paid an additional
$0.7 million in cash to finalize the working capital component of the purchase price. We funded the purchase through our credit facility. We followed SFAS No. 141, and approximately $0.2 million was allocated to acquired fixed assets,
$0.1 million was allocated to other acquisition liabilities, $6.6 million was allocated to identifiable customer lists, $1.3 million was allocated to trademarks and $1.4 million was allocated to a non-compete agreement, with the
identifiable customer lists and non-compete agreements amortized over five years. In addition, $2.6 million was

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allocated to long-term deferred tax liabilities to record the step-up in basis for the customer lists and developed technology purchased. The residual $14.3 million of the aggregate purchase price was allocated to goodwill, which is subject to a
periodic impairment assessment in accordance with SFAS No. 142.

Europe

In November 2007, we acquired the stock of Meet24. We paid $26.3 million in cash at closing and $0.2 million in transaction fees and closing costs. We funded the purchase through our credit facility and cash and
equivalents on hand. We followed SFAS No. 141, and approximately $0.2 million was allocated to acquired fixed assets, $1.4 million was allocated to acquired working capital, $0.9 million was allocated to acquired deferred tax assets,
$3.8 million was allocated to other acquisition liabilities, $8.8 million was allocated to identifiable customer lists and $0.7 million was allocated to a non-compete agreement, with the identifiable customer lists and non-compete
agreements amortized over five years. In addition, $2.7 million was allocated to long-term deferred tax liabilities. We have not yet finalized the working capital component of the purchase price. The residual $21.0 million of the aggregate
purchase price was allocated to goodwill, which is subject to a periodic impairment assessment in accordance with SFAS No. 142. The goodwill balance related to the Meet24 acquisition totaled $21.8 million at June 30, 2008, which was impacted by
foreign currency fluctuations of $1.3 million and working capital adjustments of $0.5 million for the six months ended June 30, 2008. In 2008, we paid $2.8 million in cash to a third-party escrow account to satisfy a certain acquisition
liability.

Liquidity and Capital Resources

At June 30, 2008, we had $24.8 million in cash and equivalents compared to $18.3 million at December 31, 2007. Cash balances residing outside of the U.S. at June 30, 2008 were $23.8 million compared to
$19.4 million at December 31, 2007. We repatriate cash for repayment of royalties and management fees charged to international locations from the U.S. Therefore, foreign exchange gains and losses resulting from these transactions are recorded in
Other, net in our condensed consolidated statements of operations. Intercompany loans with foreign subsidiaries are generally considered to be permanently invested for the foreseeable future. Therefore, foreign exchange fluctuations
resulting from these transactions are recorded in the cumulative translation adjustment account on the face of our condensed consolidated balance sheets. Based on our potential cash position and potential conditions in the capital markets, we could
require repayment of these loans despite the long-term intention to hold them as permanent investments. At June 30, 2008, we had approximately $98.1 million of availability under our existing $375.0 million credit facility, without regard to
the uncommitted $25.0 million of the accordion feature. For a discussion of our credit facility, see Capital resources.

Cash provided by operating activities

Net cash provided by operating activities totaled $39.6 million for the six months ended June 30, 2008 compared to $37.0 million for the same period in 2007. The increase in net cash provided by operating
activities is primarily due to the timing of income tax and state sales tax payments and the timing of payments for restructuring costs.

Cash used in investing activities

Cash used in investing activities totaled $35.2 million for the six months ended June 30, 2008 compared to $21.6 million for the same period in 2007. The principal uses of cash used in investing activities for
the six months ended June 30, 2008 included $26.8 million of capital expenditures and an aggregate of $8.4 million related to current year business acquisitions and working capital settlements for prior year acquisitions. The principal uses
of cash used in investing activities for the six months ended June 30, 2007 included $20.2 million of capital expenditures and an aggregate of $1.3 million related to the payment of non-compete obligations from prior year acquisitions.

Cash provided by or used in financing activities

Cash provided by financing activities for the six months ended June 30, 2008 totaled $2.2 million compared with cash used in financing activities of $8.1 million for the same period in 2007. Cash provided by

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financing activities for the six months ended June 30, 2008 included approximately $8.4 million of net proceeds on our credit facility and approximately $2.2 million of proceeds from stock option exercises, offset by approximately $9.2
million of treasury stock purchases of which $2.3 million was associated with the netting of shares to pay certain employees income tax withholding due upon the vesting of restricted stock awards and $6.9 million was associated with
the purchase of treasury stock. Cash used in financing activities for the six months ended June 30, 2007 included $124.5 million of treasury stock purchases, of which $122.6 million was associated with the shares repurchased in our
self-tender offer, $0.9 million was associated with capitalized costs related to our self-tender offer and $1.0 million associated with the netting of shares to pay certain employees income tax withholding due upon the vesting of
restricted stock awards, offset by $107.2 million of net borrowings on our line of credit and $6.9 million of proceeds from stock option exercises.

Off-balance sheet arrangements

At June 30, 2008, we did not have any off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.

State sales tax and excise tax

We have reserves for certain state sales tax contingencies based on the likelihood of obligation in accordance with SFAS No. 5. Historically, we have collected and remitted sales tax from our non-Conferencing &
Collaboration Solutions customers in applicable states, but have not collected and remitted state sales tax from our Conferencing & Collaboration Solutions customers in all applicable jurisdictions.

We were audited by the Commonwealth of Massachusetts Department of Revenue claiming that our Conferencing & Collaboration Solutions are subject to sales tax in Massachusetts. In March 2006, we began assessing sales
tax to our customers in Massachusetts as a result of this audit. In July 2006, we paid an initial payment of approximately $1.2 million to the Commonwealth of Massachusetts Department of Revenue for taxable years prior to 2005. We made an
additional payment of $0.5 million in January 2008 associated with taxable years prior to 2005. In April 2008, we filed returns for January 2005 to February 2006 and made another payment of $0.3 million.

In March 2007, we were notified by the State of Illinois regarding the taxability of our Conferencing & Collaboration Solutions, and we began assessing sales tax to our Conferencing & Collaboration customers in
Illinois in April 2007. In April 2007, we filed returns and paid approximately $0.6 million to the Illinois Department of Revenue for taxable periods prior to March 2007. Additional amounts may be due as these returns are audited.

During the first quarter of 2008, an outstanding audit with the State of New York related to our former operating segment, Voicecom, which was discontinued in 2001, was completed and payment in the amount of $1.7
million was made for outstanding telecommunications excise taxes.

During the second quarter of 2008, we were made aware that certain of our Conferencing & Collaboration Solutions may be subject to a certain states telecommunications excise tax statutes. We are currently
working with this states department of revenue to bring to resolution this matter which spans tax years 20012007. Accordingly, we have accrued approximately $4.0 million of excise tax and interest for the applicable time period as of
June 30, 2008. We recorded approximately $2.9 million in Operating expenses and $1.1 million in Interest expense in our condensed consolidated statements of operations.

At June 30, 2008 and December 31, 2007, we had reserved approximately $5.7 million and $5.2 million, respectively, for certain state sales and excise tax contingencies. These amounts are included in
Accrued taxes, other than income taxes in our condensed consolidated balance sheets. We believe we are appropriately accrued for these contingencies. In the event that actual results differ from these reserves, we may need to make
adjustments which could materially impact our financial condition and results of operations. In addition, it is possible states may disagree with our method of assessing and remitting such taxes or additional states may subject us to inquiries
regarding such taxes.

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Income taxes

Income tax expense, income taxes payable and deferred tax assets and liabilities are determined in accordance with SFAS No. 109. Under SFAS No. 109, the deferred tax liabilities and assets are determined based on
temporary differences between the basis of certain assets and liabilities for income tax and financial reporting purposes, in addition to net operating loss carryforwards which will more likely than not be utilized. These differences are primarily
attributable to differences in the recognition of depreciation and amortization of property, equipment and intangible assets, allowances for doubtful accounts and certain employee benefit accruals. Deferred tax assets and liabilities are measured by
applying enacted statutory tax rates applicable to future years in which the deferred tax assets or liabilities are expected to be settled or realized. Valuation allowances are established when necessary to reduce deferred tax assets to the amount
expected to be realized. Permanent differences are primarily attributable to non-deductible employee compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended.

The effective income tax rate was 33% and 27% for the three and six months ended June 30, 2008, respectively. The effective income tax rate varied from statutory rates during the three and six months ended June 30, 2008
primarily as a result of non-deductible executive compensation expenses and the realization of net operating losses related to tax planning strategies associated with our United Kingdom subsidiary. The change in the effective income tax rate for the
three and six months ended June 30, 2008 is primarily related to a change in income mix between international tax jurisdictions. The effective income tax rate was 35% and 33% for the three and six months ended June 30, 2007, respectively. The
effective income tax rate varied from statutory rates during the three and six months ended June 30, 2007 primarily as a result of non-deductible executive compensation expenses and the impact of the release of a net operating loss usage limitation
related to a prior years acquisition. The change in the effective income tax rate for the three and six months ended June 30, 2007 is primarily related to a change in income mix between international tax jurisdictions, favorable changes to tax
rates in certain foreign jurisdictions and changes in valuation allowance accounts, which are estimates where adjustments are required when facts and circumstances indicate that realization of tax benefits or the actual amount of taxes expected to
be paid has changed. The decline in tax rates in 2008 from 2007 is primarily attributable to continued favorable changes to tax rates in certain foreign jurisdictions.

In the normal course of business, we are subject to inquiries from U.S. and non-U.S. tax authorities regarding the amount of taxes due. These inquiries may result in adjustments of the timing or amount of taxable income
or deductions or the allocation of income among tax jurisdictions. Furthermore, during the ordinary course of business, other changing facts and circumstances may impact our ability to utilize income tax benefits as well as the estimated taxes to be
paid in future periods. We believe we have appropriately accrued for income taxes. In the event that actual results differ from these estimates, we may need to adjust Income taxes payable which could materially impact our financial
condition and results of operations.

We adopted the provisions of FIN No. 48 on January 1, 2007. We recorded provisions for certain asserted international and state income tax uncertain tax positions based on the recognition and measurement standards of
FIN No. 48. We file federal income tax returns and income tax returns in various states and international jurisdictions. In major tax jurisdictions, tax years from 2000 to 2007 remain subject to income tax examinations by tax authorities.

At June 30, 2008, we had $4.1 million of unrecognized tax benefits, including $1.0 million of unrecognized tax benefits that if recognized would affect our annual effective tax rate. The unrecognized tax
benefits at June 30, 2008 are included in Other assets, Income taxes payable and Accrued expenses under Long-Term Liabilities in our accompanying condensed consolidated balance sheets. We do not expect
our unrecognized tax benefit to change significantly over the next 12 months. As permitted with the adoption of FIN No. 48, we have changed our classification of interest and penalties related to uncertain tax positions and recognize them in
Interest expense and Operating expenses, respectively, in our condensed consolidated statements of operations. As of June 30, 2008 and December 31, 2007 we had accrued interest and penalties of approximately $1.5 million
and $1.3 million, respectively, related to uncertain tax positions.

In the normal course of business, we are subject to inquiries from U.S. and non-U.S. tax authorities regarding the amount of taxes due. These inquiries may result in adjustments to the timing or amount of taxable

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income or deductions or the allocation of income among tax jurisdictions. Further, during the ordinary course of business, other changing facts and circumstances may impact our ability to utilize income tax benefits as well as the estimated taxes to
be paid in future periods. We believe we are appropriately accrued for income taxes. In the event that actual results differ from these estimates, we may need to adjust Income taxes payable which could materially impact our financial
condition and results of operations.

Capital resources

We have a $375.0 million committed revolving credit facility (which consists of an original revolving credit facility of $300.0 million with a $100.0 million accordion feature, of which $75.0 million has
been exercised to date). This accordion feature allows for additional credit commitments to increase the revolving credit facility up to a maximum of $400.0 million, subject to its terms and conditions.

During the six months ended June 30, 2008, we expanded the committed amounts under the accordion feature of our credit facility by $50.0 million from $325.0 million at December 31, 2007 to $375.0 million at
June 30, 2008. We paid less than $0.1 million in financing costs for this expansion of our credit facility. Certain of our material domestic subsidiaries have guaranteed our obligations under the credit facility, which is secured by
substantially all of our assets and the assets of our material domestic subsidiaries. In addition, we have pledged as collateral all of the issued and outstanding stock of our material domestic subsidiaries and 65.0% of our material foreign
subsidiaries.

In April 2007, we entered into an amendment to our credit facility which inserted into the applicable margin pricing grid a new tier based on a total leverage ratio of 2.5 times or greater, increased the permitted
covenant level of the consolidated total leverage ratio and amended certain other provisions to allow us to purchase, redeem or otherwise acquire up to an additional $150.0 million of our common stock during 2007, of which approximately
$122.6 million was used to fund our self-tender offer in the second quarter of 2007.

At June 30, 2008, we were in compliance in all material respects with the covenants under our credit facility. Proceeds drawn under our credit agreement may be used for refinancing of existing debt, working capital,
capital expenditures, acquisitions and other general corporate purposes. The annual interest rate applicable to borrowings under the credit facility, at our option, is the base rate (the greater of the federal funds rate plus 0.5% or the Bank of
America prime rate) or LIBOR, plus, in each case, an applicable margin which will vary based upon our leverage ratio at the end of each fiscal quarter. At June 30, 2008, the applicable margin with respect to base rate loans was 0.0%, and the
applicable margin with respect to LIBOR loans was 1.50%. At June 30, 2008, our interest rate on 30-day LIBOR loans was 3.96% for our borrowings on which we did not have an interest rate swap agreement in place. At June 30, 2008, we had
approximately $275.3 million of borrowings outstanding and approximately $1.6 million in letters of credit outstanding under our credit facility.

In February 2006, we entered into a three-year $50.0 million interest rate swap at a fixed rate of 4.99%, and in August 2006, we entered into two separate three-year $12.5 million interest rate swaps at 5.14%
and 5.16%, respectively. We did not designate these interest rate swaps as hedges. During the second quarter of 2007, we terminated these interest rate swaps and recorded a gain of approximately $0.4 million in Interest expense in
our condensed consolidated statements of operations. Monthly settlements with the bank resulted in a gain of $0.1 million for the six months ended June 30, 2007 and are recognized in earnings as Interest expense.

In August 2007, we entered into two $100.0 million two-year interest rate swaps at a fixed rate of approximately 4.99%. In December 2007, we amended the life of one of the $100.0 million swaps to three years
and reduced the fixed rate to approximately 4.75%. We did not designate these interest rate swaps as hedges and, as such, we did not account for them under hedge accounting in accordance with SFAS No. 133. Changes in fair value, which were
approximately $4.2 million and ($0.4) million for the three and six months ended June 30, 2008, respectively, are recognized as Unrealized gain (loss) on change in fair value of interest rate swaps as a component of Other
(expense) income in our condensed consolidated statements of operations. The fair value of the interest rate swaps resulted in a liability of $4.9 million recognized in Accrued expenses under Long-Term Liabilities
at June 30, 2008. Monthly settlements with the bank resulted in a loss of $1.1 million for the six months ended June 30, 2008 and are recognized in earnings as Interest expense.

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In September 2006, we entered into our Yen-denominated line of credit for ¥300.0 million with Sumitomo Mitsui Banking which has an interest rate of 1.82% through June 2008. At June 30, 2008, there were no outstanding borrowings under this facility.

We have entered into various capital leases for the purchase of operating equipment. These capital leases have interest rates ranging from 3.1% to 10.3% and terms ranging from 36 months to 60 months. The capital lease obligations recorded on our consolidated balance sheets for these leases was $6.3 million and $4.5 million at June 30, 2008 and December 31, 2007, respectively.

Liquidity

At June 30, 2008, we had $24.8 million of cash and equivalents. We generated positive
operating cash flows from each of our geographic business segments for the six months ended June 30, 2008. Each geographic business
segment had sufficient cash flows from operations to service existing debt obligations, to fund capital expenditure requirements,
which historically have been 4% to 8% of annual consolidated net revenues, and to fund research and development costs for new
services and enhancements to existing services, which historically have been approximately 2% to 3% of annual consolidated net
revenues. Assuming no material change to these costs, which we do not anticipate, we believe that we will generate adequate
operating cash flows for capital expenditures and contractual commitments and to satisfy our indebtedness and fund our liquidity
needs for at least the next 12 months. We have historically borrowed on our credit facility in order to fund
acquisitions. At June 30, 2008, we had $98.1 million of available credit on our existing $375.0 million credit facility, without
regard to the uncommitted $25.0 million of the accordion feature.

We regularly review our capital structure and evaluate potential alternatives in light of current conditions in the capital markets. Depending upon conditions in these markets, cash flows from our operating segments and other factors, we may engage in other capital transactions. These capital transactions include, but are not limited to, debt or equity issuances or credit facilities with banking institutions.

CRITICAL ACCOUNTING POLICIES

Managements Discussion and Analysis of Financial Condition and Results of Operations is based upon our condensed consolidated financial statements and the notes thereto, which have been prepared in accordance with GAAP. The preparation of the condensed consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. We have reviewed the accounting policies used in reporting our financial results on a regular basis. We have reviewed these critical accounting policies and related disclosures with the audit committee of our board of directors. We have identified the policies below as critical to our business operations and the understanding of our financial condition and results of operations:

- revenue recognition;
- allowance for uncollectible accounts receivable;
- goodwill and other intangible assets;
- income taxes;
- restructuring costs;
- legal contingencies; and
- derivative instruments.

For a detailed discussion on the application of these accounting policies, see Item 7, Managements Discussion and Analysis of Financial Condition and Results of Operations, in our annual report on Form 10-K/A for the fiscal year ended December 31, 2007.

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FORWARD LOOKING STATEMENTS

When used in this quarterly report on Form 10-Q/A and elsewhere by us or by management
from time to time, the words believes, anticipates, expects, will, may, 
should, intends, plans, estimates, predicts, potential, continue
and similar expressions are intended to identify forward-looking statements concerning our operations, economic performance and financial
condition. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995. These statements are based on a number of assumptions and estimates that are inherently
subject to significant risks and uncertainties, many of which are beyond our control, and reflect future business decisions which
are subject to change. A variety of factors could cause actual results to
differ materially from those anticipated in our forward-looking statements, including the following factors:

- Our ability to compete based on price and against our existing and future competitors;
- Our ability to respond to rapid technological change and the development of alternatives to our services;
- Market acceptance of new services and enhancements to existing services;
- Costs or difficulties related to the integration of any new or acquired businesses and technologies;
- Concerns regarding the security of transactions and transmitting confidential information over the Internet and public networks;
- Our ability to upgrade our equipment or increase our network capacity to meet customer demands;
- Our services may be interrupted due to failure of the platforms and network infrastructure utilized in providing our services;
- Continued weakness in our legacy broadcast fax services;
- Our ability to efficiently utilize or re-negotiate our telecommunications supply agreements;
- Increased leverage may harm our financial condition and results of operations;
- Our dependence on our subsidiaries for cash flow may negatively affect our business and our ability to pay amounts due under our indebtedness;
- Our financial performance could cause future write-downs of goodwill or other intangible assets in future periods;
- Assessment of income, state sales and other taxes for which we have not accrued;
- Our ability to attract and retain qualified key personnel;
- Our ability to successfully identify suitable acquisition candidates, complete acquisitions, integrate acquired operations into our existing operations or expand into new markets;
- Our ability to protect our proprietary technology and intellectual property rights;
- Possible adverse results of pending or future litigation or adverse results of current or future infringement claims;
- Regulatory or legislative changes, including those applicable to traditional telecommunications service providers, may adversely affect our business;

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- Risks associated with expansion of our international operations and fluctuations in currency exchange rates;
- Domestic and international terrorist activity, war and political instability may adversely affect the level of services utilized by our customers and the ability of those customers to pay for services utilized;
- General economic or business conditions, internationally, nationally or in the local jurisdiction in which we are doing business, may be less favorable than expected;
- Factors described under the caption Item 1A. Risk Factors in our annual report on Form 10-K/A for the year ended December 31, 2007 and in this Form 10-Q/A; and
- Factors described from time to time in our press releases, reports and other filings made with the SEC.

We caution that these factors are not exclusive. Consequently, all of the forward-looking statements made in this quarterly report on Form 10-Q/A and in other documents filed with the SEC are qualified by these cautionary statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of the original filing of our Form 10-Q. We take on no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the original filing of our Form 10-Q, or the date of the statement, if a different date.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We have no material changes to the disclosure on this matter made in our annual report on Form 10-K/A for the year ended December 31, 2007.

ITEM 4. CONTROLS AND PROCEDURESDisclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial
officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2008. Based on that initial evaluation,
our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were effective, as of
June 30, 2008, to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit
under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods
specified in SEC rules and forms. Subsequent to that evaluation and in connection with the restatement and filing of this amendment,
under the supervision and with the participation of our chief executive officer and chief financial officer, our management
reevaluated the effectiveness of our disclosure controls and procedures and concluded that our
disclosure controls and procedures were not effective as of June 30, 2008 as a result of the unremediated material weakness
in internal control over financial reporting with respect to the application of GAAP in the accounting for our interest rate
swaps under SFAS No. 133 as of December 31, 2007, as discussed below.

Changes in Internal Control Over Financial Reporting

As disclosed in our annual report on Form 10-K/A for the year ended December 31, 2007, our management identified the following material weakness in our internal control over financial reporting as of December 31, 2007, which has not yet been fully remediated and which resulted in the restatement of our consolidated financial statements for the year ended December 31, 2007 and for the quarters ended March 31, 2008 and June 30, 2008. Our disclosure controls and procedures in place related to interest rate swaps were not properly designed to provide reasonable assurance that these swaps would be properly recorded and disclosed in accordance with GAAP in our consolidated financial statements, which resulted in a material weakness in our internal control over financial reporting.

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Remediation steps to address material weakness

While we have corrected the accounting error for our interest rate swaps by restating our financial results for the affected periods to reflect the fair value and changes in fair value in our interest rate swaps in our
consolidated financial statements, we have not yet completed the remediation of the material weakness in our internal control over financial reporting as of the date of the filing of this amendment. We believe, however, that our remediation efforts,
when completed, will be sufficient to eliminate the material weakness. In addition, we intend to designate our interest rate swaps as cash flow hedges utilizing the long-haul method of effectiveness testing in order to receive hedge
accounting treatment for these swaps in future periods. These remediation efforts will include:

- Installing new software to support our derivative testing with the assistance of third party consultants with expertise in hedge accounting requirements; and
- Providing additional training and accounting reviews designed to ensure that accounting and other relevant personnel involved in derivative transactions appropriately apply SFAS No. 133 and its related interpretations.

There were no changes in internal controls over financial reporting identified in connection with the above evaluation that occurred during the quarter ended June 30, 2008 that have materially affected, or that are
reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We have settled the litigation matters as described below.

On August 21, 2006, a lawsuit was filed in the U.S. District Court for the Eastern District of Texas by Ronald A. Katz Technology Licensing against three conferencing service providers, including us and our subsidiary,
ATS, alleging that the defendants automated telephone conferencing systems that enable [their] customers to perform multiple-party meetings and various other functions over the telephone infringe six of plaintiffs patents.
The complaint sought undisclosed monetary damages, together with pre- and post-judgment interest, treble damages for what was alleged to be willful infringement, attorneys fees and costs and injunctive relief. On March 20, 2007, a
multidistrict litigation panel granted a motion to consolidate 25 pending infringement suits, including our suit, brought by Katz against various defendants to the District Court in California. On June 16, 2008, the parties entered into confidential
settlement and license agreements that provided for, among other things, dismissal of all claims and counterclaims with prejudice. On July 1, 2008, we made a payment to Katz for a nonexclusive, fully-paid license and release pursuant to such
agreements.

On May 18, 2007, Gibson & Co. Ins. Brokers served an amended complaint upon us and our subsidiary, Xpedite, in a purported class action entitled, Gibson & Co. Ins. Brokers, Inc., et al. v. The Quiznos
Corporation, et al., pending in U.S. District Court for the Central District of California. The underlying complaint alleges that Quizno's sent unsolicited fax advertisements on or about November 1, 2005 in violation of the federal TCPA and
seeks damages of $1,500 per fax for alleged willful conduct in sending of the faxes. On June 26, 2007, we answered the plaintiffs amended complaint, including asserting cross-claims against the Quiznos defendants. On June 29, 2007,
the Quiznos defendants filed their answer and asserted cross-claims against us. On July 31, 2007, the court entered an order in which it granted certain Quiznos defendants motion to dismiss and denied the motion with respect to
other Quiznos entities. On September 7, 2007, plaintiff proceeded to file another amended complaint against the Quiznos defendants, Growth Partners (Quiznos consultant) and us. On September 21, 2007, we filed our answer and
affirmative defenses. Certain Quizno's defendants filed a Motion to Dismiss, which was denied by the Court on December 7, 2007. Subsequently, we filed cross-claims against the other defendants, and the Quizno's defendants filed cross-claims against
us. On May 9, 2008, all parties finalized a confidential term sheet for the settlement. On July 28, 2008, the parties entered into a settlement agreement and release and a motion for preliminary approval of class action settlement. The settlement is
subject to approval by the court, and the court has scheduled a hearing for August 18, 2008 during which it will consider the motion to preliminarily approve the class settlement. We believe that our financial contribution to the settlement will be
well below the limits of our insurance policy.

We are also involved in various other legal proceedings which we do not believe will have a material adverse effect upon our business, financial condition or results of operations, although no assurance can be given as
to the ultimate outcome of any such proceedings.

ITEM 1A. RISK FACTORS.

Part I, Item 1A. Risk Factors in our annual report on Form 10-K/A for the year ended December 31, 2007 and Part II, Item 1A. Risk Factors in our quarterly report on Form 10-Q/A for the quarter
ended March 31, 2008 include a detailed discussion of risk factors that could materially affect our business, financial condition or results of operations. Other than with respect to the following risk factor previously disclosed in our SEC filings
and updated below, there have been no material changes from the risk factors disclosed in those reports.

Government regulations applicable to traditional telecommunications service providers could adversely impact our results of operations and place financial burdens on our business related to compliance.

Our business is affected by regulatory decisions, trends and policies made by international, federal and state telecommunications regulatory agencies, including the FCC and state public service or utility commissions.
On

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June 30, 2008, the FCC issued an order ruling that audio conferencing providers are providers of telecommunications
who must contribute to the federal USF on a prospective basis. In accordance with the FCCs public notice dated July 17, 2008, we
filed Forms 499-Q on August 1, 2008 reporting estimated revenues for the fourth quarter of 2008 and will begin assessing our
applicable Conferencing & Collaboration Solutions customers and contributing to the USF in October 2008. The extent to which
our services are viewed as the provision of telecommunications rather than as an offering of enhanced, information services will
affect our USF contribution payments, as well as the federal regulations with which we must comply. It is possible that state
regulatory authorities may also seek to require us to submit to traditional telecommunications carrier regulation under various
state laws as a provider of telecommunications. It is too early to predict how regulatory
requirements may affect customer demand for our Conferencing & Collaboration Solutions or our existing or future competitors, as
well as whether regulatory authorities, including the FCC and/or state public service or utility commissions, will impose additional
requirements, regulations or charges on the provision of certain of our services. Although we use reasonable efforts to monitor
applicable regulatory requirements, if we fail to comply with any applicable government regulations, or if we were required to
submit to the jurisdiction of state government authorities as providers of traditional telecommunications services, we could become
subject to additional reporting and compliance obligations and/or could be subject to litigation, fines, forfeitures, regulatory
surcharge remittance requirements or other penalties arising from any noncompliance. Subjecting our services to these regulations
could have an adverse impact on our business, financial condition and results of operations and place
additional financial burdens on our business related to compliance.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDSISSUER PURCHASES OF EQUITY SECURITIES

|Period           | Total Numberof SharesPurchased | AveragePrice Paidper Share | Total Number of SharesPurchased as Part ofPublicly AnnouncedPlans or Programs | Maximum Number ofShares that May Yet BePurchased Under thePlans or Programs
|---------------- | ------------------------------ | -------------------------- | ----------------------------------------------------------------------------- | ---------------------------------------------------------------------------
|                
|April 1-30, 2008 |                               |                            |                                                                              |                                                                            
|May 1-31, 2008   | 496,781                        |                            | $13.85                                                                        |                                                                            
|June 1-30, 2008  | 3,219                          |                            | $14.92                                                                        |                                                                            
|                 |                                |                            |                                                                               |                                                                            
|Total            | 500,000                        |                            |                                                                               |                                                                            

In June 2006, our board of directors authorized, and we announced, a new stock repurchase program under which we could purchase up to 7.0 million shares of our common stock.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
       None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Our annual meeting of shareholders was held on June 11, 2008. At the annual meeting, the following matters were voted on with the following results:

Election of Directors. Boland T. Jones, Jeffrey T. Arnold, Wilkie S. Colyer, John R. Harris, W. Steven Jones, Raymond H. Pirtle, Jr. and J. Walker Smith, Jr. were elected to serve as directors for a term of one year.

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|Name of Director       | Votes For  | Votes Withheld
|---------------------- | ---------- | --------------
|Boland T. Jones        | 49,560,230 | 1,966,617     
|Jeffrey T. Arnold      | 30,634,541 | 20,892,306    
|Wilkie S. Colyer       | 46,207,269 | 5,319,578     
|John R. Harris         | 30,692,541 | 20,834,306    
|W. Steven Jones        | 47,631,165 | 3,895,682     
|Raymond H. Pirtle, Jr. | 49,112,680 | 2,414,167     
|J. Walker Smith, Jr.   | 50,198,319 | 1,328,528     

Approve our amended and restated 2004 long-term incentive plan.

|Votes For  | Votes Against | Abstentions | Broker Non-Votes
|---------- | ------------- | ----------- | ----------------
|39,761,763 | 6,911,021     | 1,334,170   | 3,519,893       

Approve our amended and restated 2000 directors stock plan.

|Votes For  | Votes Against | Abstentions | Broker Non-Votes
|---------- | ------------- | ----------- | ----------------
|42,511,469 | 4,773,508     | 700,355     | 3,541,515       

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

| | (a) | Exhibits
| | --- | --------

The exhibits filed with this report are listed on the Exhibit Index following the signature page of this amendment, which are incorporated by reference.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this amendment to be signed on its behalf by the undersigned thereunto duly authorized.

|Date: October 8, 2008 | PREMIERE GLOBAL SERVICES, INC.                 
|--------------------- | -----------------------------------------------
|                     
|                     
|                     
|                      | /s/ Michael E. Havener                         
|                      | Michael E. Havener                             
|                      | Chief Financial Officer                        
|                      | (principal financial and accounting officer and
|                      | duly authorized signatory of the Registrant)   

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EXHIBIT INDEX

|Exhibit Number | Description                                                                                                                                                                                                                                                                       
|-------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|
|10.1           | Premiere Global Services, Inc. Amended and Restated 2004 Long-Term Incentive Plan (incorporated herein by reference to Appendix A of the Companys Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 18, 2008).*              
|              
|10.2           | Premiere Global Services, Inc. Amended and Restated 2000 Directors Stock Plan (incorporated herein by reference to Appendix B of the Companys Definitive Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on April 18, 2008).*                  
|              
|10.3           | Separation Agreement between T. Lee Provow and the Registrant dated May 19, 2008 and effective as of June 30, 2008 (incorporated by reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K dated May 16, 2008 and filed May 19, 2008).*                         
|              
|10.4           | Amended and Restated Employment Agreement between David M. Guthrie and the Registrant dated May 19, 2008 and effective as of June 30, 2008. (incorporated by reference to Exhibit 10.2 to the Registrants Current Report on Form 8-K dated May 16, 2008 and filed May 29, 2008).*
|              
|10.5           | Restricted Stock Agreement between David M. Guthrie and the Registrant, dated June 30, 2005, under the Registrants 2004 Long-Term Incentive Plan.*                                                                                                                               
|              
|10.6           | Restricted Stock Agreement between David M. Guthrie and the Registrant, dated May 5, 2006, under the Registrants 1995 Stock Plan.*                                                                                                                                               
|              
|10.7           | First Amendment to Restricted Stock Agreement dated May 5, 2006 between David M. Guthrie and the Registrant, effective July 13, 2006.*                                                                                                                                            
|              
|10.8           | Restricted Stock Agreement between David M. Guthrie and the Registrant, dated September 30, 2007, under the Registrants 1995 Stock Plan.*                                                                                                                                        
|              
|10.9           | Form of Restricted Stock Agreement under the Registrants Amended and Restated 2004 Long- Term Incentive Plan.*                                                                                                                                                                   
|              
|10.10          | Form of Restriction Agreement for non-employee directors under the Amended and Restated 2000 Directors Stock Plan.*                                                                                                                                                               
|              
|10.11          | Form of Restricted Stock Agreement to be issued to Boland T. Jones as Stock Bonuses pursuant to the terms of his Fourth Amended and Restated Executive Employment Agreement with the Registrant.*                                                                                 
|              
|10.12          | First Amendment to Lease Agreement, dated July 14, 2006, by and between American Teleconferencing Services, Ltd. and 3280 Peachtree I LLC.*                                                                                                                                       
|              
|10.13          | Acknowledgment, Consent and Reaffirmation of Guarantor of Lease to the First Amendment to Lease Agreement between American Teleconferencing Services, Ltd. and 3280 Peachtree I LLC, dated July 14, 2006, by the Registrant.*                                                     
|              
|10.14          | Second Amendment to Lease Agreement, dated March 15, 2007, by and between American Teleconferencing Services, Ltd. and 3280 Peachtree I LLC.*                                                                                                                                     

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|10.15 | Acknowledgment, Consent and Reaffirmation of Guarantor of Lease to the Second Amendment to Lease Agreement between American Teleconferencing Services, Ltd. and 3280 Peachtree I LLC, dated March 15, 2007, by the Registrant.*
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                
|10.16 | Third Amendment to Lease Agreement, dated June 3, 2008, by and between American Teleconferencing Services, Ltd. and 3280 Peachtree I LLC.*                                                                                     
|      |                                                                                                                                                                                                                                
|10.17 | Acknowledgment, Consent and Reaffirmation of Guarantor of Lease to the Third Amendment to Lease Agreement between American Teleconferencing Services, Ltd. and 3280 Peachtree I LLC, dated June 3, 2008, by the Registrant.*   
|      |                                                                                                                                                                                                                                
|10.18 | First Amendment to Lease Agreement, dated July 14, 2006, by and between Xpedite Systems, LLC and 3280 Peachtree I LLC.*                                                                                                        
|      |                                                                                                                                                                                                                                
|10.19 | Acknowledgment, Consent and Reaffirmation of Guarantor of Lease to the First Amendment to Lease Agreement between Xpedite Systems, LLC and 3280 Peachtree I LLC, dated July 14, 2006, by the Registrant.*                      
|      |                                                                                                                                                                                                                                
|10.20 | Second Amendment to Lease Agreement, dated March 15, 2007, by and between Xpedite Systems, LLC and 3280 Peachtree I LLC.*                                                                                                      
|      |                                                                                                                                                                                                                                
|10.21 | Acknowledgment, Consent and Reaffirmation of Guarantor of Lease to the Second Amendment to Lease Agreement between Xpedite Systems, LLC and 3280 Peachtree I LLC, dated March 15, 2007, by the Registrant.*                    
|      |                                                                                                                                                                                                                                
|10.22 | Third Amendment to Lease Agreement, dated June 3, 2008, by and between Xpedite Systems, LLC and 3280 Peachtree I LLC.*                                                                                                         
|      |                                                                                                                                                                                                                                
|10.23 | Acknowledgment, Consent and Reaffirmation of Guarantor of Lease to the Third Amendment to Lease Agreement between Xpedite Systems, LLC and 3280 Peachtree I LLC, dated June 3, 2008, by the Registrant.*                       
|      |                                                                                                                                                                                                                                
|31.1  | Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.                                                                                                          
|      |                                                                                                                                                                                                                                
|31.2  | Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934.                                                                                                          
|      |                                                                                                                                                                                                                                
|32.1  | Certification of Chief Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.                                                                               
|      |                                                                                                                                                                                                                                
|32.2  | Certification of Chief Financial Officer, as required by Rule 13a-14(b)/15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.                                                                           
|      |                                                                                                                                                                                                                                
|*     | Previously filed.                                                                                                                                                                                                              

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