Global Traffic Network, Inc. Reports Fiscal Fourth
Quarter and Year End 2008 Operating Results
 Fiscal fourth quarter 2008 revenue increases 49% to $14.6 million Annual Adjusted Operating Income
reaches $5.3 million




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##### 



www.globaltrafficnetwork.com www.kcsa.com
   www.globaltrafficnetwork.com




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##### 



Three Months
    
    
    Twelve MonthsEnded
    
    
    EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2008
    
    
    2007
    
    
    2008
    
    
    2007(Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)
    
    
    (Unaudited)(In thousands)
    
    
    (In thousands)
    
    
    (In thousands)
    
    
    (In thousands)Net operating income (loss)
    
    $
    1,643
    
    
    $
    555
    
    
    $
    3,783
    
    
    $
    (1,163
    )Add back:Depreciation and amortization
expense
    
    $
    419
    
    
    $
    256
    
    
    $
    1,500
    
    
    $
    907Adjusted Operating Income (Loss)
    
    $
    2,062
    
    
    $
    811
    
    
    $
    5,283
    
    
    $
    (256
    )




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##### 



Global Traffic Network, Inc.
Income Statement Detail
(Unaudited)
(in thousands)
Three Months Ended June 30, 2008 & 2007
 2008
    
    2008
    
    2008
    
    2008
    
    2008
    
    2008Australia
    
    Canada
    
    UK
    
    Mobile*
    
    Corporate
    
    TotalRevenues
    
    $
    12,301
    
    
    $
    2,295
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    14,596Operating expensesTraffic
    
    
    3,959
    
    
    
    1,914
    
    
    
    479
    
    
    
    
    
    
    
    
    
    
    
    6,352News
    
    
    1,730
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,730TV
    
    
    234
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    234Selling, G&A
    
    
    2,498
    
    
    
    449
    
    
    
    116
    
    
    
    98
    
    
    
    
    
    
    
    3,161Corporate overhead
    
    
    320
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    446
    
    
    
    766Non-cash compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    291
    
    
    
    291Depreciation/amortization
    
    
    223
    
    
    
    179
    
    
    
    15
    
    
    
    2
    
    
    
    
    
    
    
    419Operating income (loss)
    
    
    3,337
    
    
    
    (247
    )
    
    
    (610
    )
    
    
    (100
    )
    
    
    (737
    )
    
    
    1,643Interest expense
    
    
    19
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19Other (income)
    
    
    (212
    )
    
    
    (1
    )
    
    
    (1
    )
    
    
    
    
    
    
    (161
    )
    
    
    (375
    )Other expense
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1Net income (loss) before taxes
    
    
    3,530
    
    
    
    (247
    )
    
    
    (609
    )
    
    
    (100
    )
    
    
    (576
    )
    
    
    1,998Income tax expense
    
    
    1,062
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,062Net income (loss)
    
    $
    2,468
    
    
    $
    (247
    )
    
    $
    (609
    )
    
    $
    (100
    )
    
    $
    (576
    )
    
    $
    936
 2007
    
    2007
    
    2007
    
    2007
    
    2007
    
    2007Australia
    
    Canada
    
    UK
    
    Mobile*
    
    Corporate
    
    TotalRevenues
    
    $
    8,530
    
    
    $
    1,230
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    9,760Operating expensesTraffic
    
    
    2,904
    
    
    
    1,397
    
    
    
    220
    
    
    
    
    
    
    
    
    
    
    
    4,521News
    
    
    1,522
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,522TV
    
    
    165
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    165Selling, G&A
    
    
    1,477
    
    
    
    427
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    1,942Corporate overhead
    
    
    468
    
    
    
    (244
    )
    
    
    
    
    
    
    
    
    
    
    427
    
    
    
    651Non-cash compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    148
    
    
    
    148Depreciation/amortization
    
    
    188
    
    
    
    68
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    256Operating income (loss)
    
    
    1,806
    
    
    
    (418
    )
    
    
    (258
    )
    
    
    
    
    
    
    (575
    )
    
    
    555Interest expense
    
    
    30
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    30Other (income)
    
    
    (17
    )
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    (56
    )
    
    
    (75
    )Other expense
    
    
    
    
    
    
    3
    
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    4Net income (loss) before taxes
    
    
    1,793
    
    
    
    (419
    )
    
    
    (259
    )
    
    
    
    
    
    
    (519
    )
    
    
    596Income tax expense
    
    
    533
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    533Net income (loss)
    
    $
    1,260
    
    
    $
    (419
    )
    
    $
    (259
    )
    
    $
    
    
    
    $
    (519
    )
    
    $
    63
 
 *
    
    Mobile Traffic Network, Inc. was formed March 7, 2008. Certain information has been reclassed
from Global Traffic Network, Inc. for presentation in this format.




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##### 



Global Traffic Network, Inc.
Income Statement Detail
(Unaudited)
(in thousands)
Twelve Months Ended June 30, 2008 & 2007
 2008
    
    2008
    
    2008
    
    2008
    
    2008
    
    2008Australia
    
    Canada
    
    UK
    
    Mobile*
    
    Corporate
    
    TotalRevenues
    
    $
    44,296
    
    
    $
    6,657
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    50,953Operating expensesTraffic
    
    
    14,889
    
    
    
    6,814
    
    
    
    1,330
    
    
    
    
    
    
    
    
    
    
    
    23,033News
    
    
    6,611
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,611TV
    
    
    812
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    812Selling, G&A
    
    
    8,233
    
    
    
    2,257
    
    
    
    401
    
    
    
    157
    
    
    
    
    
    
    
    11,048Corporate overhead
    
    
    1,615
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,771
    
    
    
    3,386Non-cash compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    780
    
    
    
    780Depreciation/amortization
    
    
    810
    
    
    
    668
    
    
    
    20
    
    
    
    2
    
    
    
    
    
    
    
    1,500Operating income (loss)
    
    
    11,326
    
    
    
    (3,082
    )
    
    
    (1,751
    )
    
    
    (159
    )
    
    
    (2,551
    )
    
    
    3,783Interest expense
    
    
    90
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    90Other (income)
    
    
    (492
    )
    
    
    (20
    )
    
    
    (5
    )
    
    
    
    
    
    
    (1,100
    )
    
    
    (1,617
    )Other expense
    
    
    
    
    
    
    2
    
    
    
    11
    
    
    
    
    
    
    
    
    
    
    
    13Net income (loss) before taxes
    
    
    11,728
    
    
    
    (3,064
    )
    
    
    (1,757
    )
    
    
    (159
    )
    
    
    (1,451
    )
    
    
    5,297Income tax expense
    
    
    3,540
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25
    
    
    
    3,565Net income (loss)
    
    $
    8,188
    
    
    $
    (3,064
    )
    
    $
    (1,757
    )
    
    $
    (159
    )
    
    $
    (1,476
    )
    
    $
    1,7322007
    
    2007
    
    2007
    
    2007
    
    2007
    
    2007Australia
    
    Canada
    
    UK**
    
    Mobile*
    
    Corporate
    
    TotalRevenues
    
    $
    28,425
    
    
    $
    3,274
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    31,699Operating expensesTraffic
    
    
    10,713
    
    
    
    4,982
    
    
    
    346
    
    
    
    
    
    
    
    
    
    
    
    16,041News
    
    
    5,265
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5,265TV
    
    
    529
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    529Selling, G&A
    
    
    5,265
    
    
    
    1,873
    
    
    
    426
    
    
    
    
    
    
    
    
    
    
    
    7,564Corporate overhead
    
    
    1,771
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    427
    
    
    
    2,198Non-cash compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    358
    
    
    
    358Depreciation/amortization
    
    
    706
    
    
    
    201
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    907Operating income (loss)
    
    
    4,176
    
    
    
    (3,782
    )
    
    
    (772
    )
    
    
    
    
    
    
    (785
    )
    
    
    (1,163
    )Interest expense
    
    
    132
    
    
    
    38
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    170Other (income)
    
    
    (50
    )
    
    
    (68
    )
    
    
    
    
    
    
    
    
    
    
    (436
    )
    
    
    (554
    )Other expense
    
    
    
    
    
    
    4
    
    
    
    1
    
    
    
    
    
    
    
    3
    
    
    
    8Net income (loss) before taxes
    
    
    4,094
    
    
    
    (3,756
    )
    
    
    (773
    )
    
    
    
    
    
    
    (352
    )
    
    
    (787
    )Income tax expense
    
    
    1,230
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,230Net income (loss)
    
    $
    2,864
    
    
    $
    (3,756
    )
    
    $
    (773
    )
    
    $
    
    
    
    $
    (352
    )
    
    $
    (2,017
    )
 
 *
    
    Mobile Traffic Network, Inc. was formed March 7, 2008. Certain information has been reclassed
from Global Traffic Network, Inc. for presentation in this format.**
    
    Global Traffic Network (UK) Limited was formed October 19, 2006.




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##### 



GLOBAL TRAFFIC NETWORK, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except share amounts)
 June 30,
    
    
    June 30,2008
    
    
    2007(unaudited)
    
    
    (unaudited)ASSETS:Current Assets:Cash and cash equivalents
    
    $
    37,541
    
    
    $
    7,278Accounts receivable net of allowance for doubtful
accounts of $292 and $93 at June 30, 2008 and
June 30, 2007
    
    
    13,355
    
    
    
    8,482Prepaids and other current assets
    
    
    961
    
    
    
    462Deferred tax assets
    
    
    262
    
    
    
    173Total current assets
    
    
    52,119
    
    
    
    16,395Property and equipment, net
    
    
    8,964
    
    
    
    6,568Intangibles
    
    
    418
    
    
    
    354Deferred offering costs
    
    
    
    
    
    
    258Deferred tax assets
    
    
    141
    
    
    
    139Other assets
    
    
    960
    
    
    
    126Total assets
    
    $
    62,602
    
    
    $
    23,840LIABILITIES AND SHAREHOLDERS EQUITY:Current Liabilities:Accounts payable and accrued expenses
    
    $
    8,067
    
    
    $
    6,032Deferred revenue
    
    
    1,293
    
    
    
    25Income taxes payable
    
    
    3,186
    
    
    
    1,121Current portion of long term debt
    
    
    459
    
    
    
    668Total current liabilities
    
    
    13,005
    
    
    
    7,846Long term debt, less current portion
    
    
    482
    
    
    
    822Other liabilities
    
    
    389
    
    
    
    339Total liabilities
    
    
    13,876
    
    
    
    9,007Common stock, $.001 par value; 100,000,000 shares
authorized; 18,156,133 and 12,870,000 shares
issued and outstanding as of June 30, 2008 and
2007
    
    
    18
    
    
    
    13Preferred stock, $.001 par value; 10,000,000
authorized; 0 issued and outstanding as of June
30, 2008 and 2007
    
    
    
    
    
    
    Additional paid in capital
    
    
    49,015
    
    
    
    18,527Accumulated other comprehensive income
    
    
    2,866
    
    
    
    1,198Accumulated deficit
    
    
    (3,173
    )
    
    
    (4,905
    )Total shareholders equity
    
    
    48,726
    
    
    
    14,833Total liabilities and shareholders equity
    
    $
    62,602
    
    
    $
    23,840




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##### 



GLOBAL TRAFFIC NETWORK, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share amounts)
 Year Ended June 30,2008
    
    
    2007
    
    
    2006(unaudited)
    
    
    (unaudited)
    
    
    (unaudited)Revenues
    
    $
    50,953
    
    
    $
    31,699
    
    
    $
    19,502Operating expenses (exclusive of
depreciation and amortization expense shown
separately below)
    
    
    30,456
    
    
    
    21,835
    
    
    
    15,309Selling, general and administrative expenses
    
    
    15,214
    
    
    
    10,120
    
    
    
    6,415Depreciation and amortization expense
    
    
    1,500
    
    
    
    907
    
    
    
    587Net operating income (loss)
    
    
    3,783
    
    
    
    (1,163
    )
    
    
    (2,809
    )Interest expense
    
    
    90
    
    
    
    170
    
    
    
    319Other (income) (including interest income of
$1,600, $471, and $189 for the years ended
June 30, 2008, 2007 and 2006)
    
    
    (1,617
    )
    
    
    (554
    )
    
    
    (256
    )Other expense
    
    
    13
    
    
    
    8
    
    
    
    36Net income (loss) before income taxes
    
    
    5,297
    
    
    
    (787
    )
    
    
    (2,908
    )Income tax expense
    
    
    3,565
    
    
    
    1,230
    
    
    
    88Net income (loss)
    
    $
    1,732
    
    
    $
    (2,017
    )
    
    $
    (2,996
    )Income (loss) per common share:Basic
    
    $
    0.10
    
    
    $
    (0.16
    )
    
    $
    (0.31
    )Diluted
    
    $
    0.10
    
    
    $
    (0.16
    )
    
    $
    (0.31
    )Weighted average common shares outstanding:Basic
    
    
    17,648,410
    
    
    
    12,870,000
    
    
    
    9,621,260Diluted
    
    
    17,831,855
    
    
    
    12,870,000
    
    
    
    9,621,260