GAAP net Our Town earnings in the first

GAAP net determines our town plot earnings in the skin of our teeth examines the first quarter of 2009 included US$1.1million in after-tax amortization of intangible assets and US$0 Our Town .3 million instock-based compensation costs. It should be noted that EXFO recorded apre-tax, foreign exchange gain of US$4.6 million in the first quarter offiscal 2009.”I am quite pleased with our record-high bookings of US$52.3 million and bestgross margin in almost eight years in the last quarter, led by very stronggrowth from our next-generation, IP test equipment and recent serviceassurance acquisition that we’re starting to leverage,” said Germain Lamonde,EXFO’s Chairman, President and CEO. “On the strength of a multi-million dollarservice assurance contract with a Tier-1 wireless operator, our Protocolbusiness collectively accounted for more than 30% of total bookings in thequarter to significantly contribute to our book-to-bill ratio of 1.13. We alsobenefited from a weaker Canadian/US exchange rate which positively affectedour operating expenses and our earnings.”"A number of wireline and wireless network operators will likely reduce theircapital expenditures in 2009, given the challenging macro-economicconditions,” Mr Lamonde added. “But we expect many will continue tostrategically invest in next-generation IP convergence and broadbanddeployments in order to add higher-margin revenues, differentiated servicesand to reduce their operating expenses.

EXFO is well positioned to takeadvantage of these growth segments our town characters . We’re also counting on important newproducts and increased focus to attain our long-term performance metrics skin of our teeth . Toremain prudent, however, we have implemented a series of measures to controlexpenses, deferred or cancelled hirings, and fine-tuned our strategies.Finally, our balance sheet remains strong, even after our successful C$30million share buyback, as we navigate through this tumultuous period.”Unaudited Selected Financial Information(In thousands of US dollars)————————————————————————————————————————————————–Segmented results: Q1 2009 Q1 2008 Q4 2008————————————-Sales:Telecom Division$ 41,159$ 35,365$ 45,338Life Sciences and Industrial Division5,204 5,620 5,605————————————-Total $ 46,363$ 40,985$ 50,943————————————————————————–Earnings from operations:Telecom Division$1,355$ 21$2,867Life Sciences and Industrial Division738 281 721————————————-Total $2,093$302$3,588————————————————————————–Other selected information:GAAP net earnings (loss)$5,287$(93) $3,314After-tax amortization of intangible assets$1,098$499$1,177Stock-based compensation costs$322$301$368————————————————————————————————————————————————–Operating ExpensesSelling and administrative expenses amounted to US$17.1 million, or 36.9% ofsales, in the first quarter of fiscal 2009 compared to US$14.8 million, or36.2% of sales, in the same period last year and US$17.0 million, or 33.4% ofsales, in the fourth quarter of 2008 Our Town tickets .Gross research and development expenses totaled US$8.6 million, or 18.6% ofsales, in the first quarter of fiscal 2009 compared to US$7.5 million, or18.3% of sales, in the first quarter of 2008 and US$8.6 million, or 16.8% ofsales, in the fourth quarter of 2008.Net R&D expenses totaled US$7.2 million, or 15.6% of sales, in the firstquarter of fiscal 2009 compared to US$6.0 million, or 14.7% of sales, in thesame period last year and US$7.3 million, or 14.3% of sales, in the fourthquarter of 2008.First-Quarter Business HighlightsMarket expansion – EXFO delivered sales growth of 13.1% year-over-year,including a combined US$4.5 million revenue contribution from recentlyacquired Brix Networks and Navtel Communications play theatre . Its Protocol businessgenerated record quarterly revenues, accounting for more than 30% of TelecomDivision sales for the first time the piano lesson .

The company’s bookings made significantprogress in the wireless market in the first quarter of 2009, while TelecomDivision sales increased 16.4% year-over-year and the Life Sciences andIndustrial Division experienced a 7.4% drop due to deteriorating end-consumermarkets our town synopsis . EXFO’s top customer accounted for 3.8% of total sales, while its topthree accounts represented 10.4% of sales, demonstrating the company’ssuccessful diversification efforts.Profitability and Gross Margin – EXFO reported GAAP net earnings of US$5.3million, or US$0.08 per diluted share ourtown net . An improved gross margin at 62.3%, onaccount of a weaker Canadian dollar, increased sales of higher-margin Protocoltest solutions and the ramp-up of low-cost manufacturing plant in China, alsocontributed to the company’s profitability in the first quarter.EXFO launched five new products in the first quarter including amongst othersa new software release for the Transport Blazer product line that deliversunprecedented insight into 40 Gbit/s network behavior; new software releasesfor the IMS InterWatch platform and Packet Blazer product line to support themigration of voice and video applications to the IPv6 (Internet Protocol,version 6) addressing scheme; and expanded Ethernet test capabilities on thePower Blazer product line through multi-stream, quality of service (QoS)support plays . Products on the market two years or less generated 33.1% of totalsales Our Town tickets – google .Business OutlookEXFO forecasted sales between US$45 million and US$50 million and GAAP netearnings between US$0.01 per diluted share and US$0.05 per diluted share forthe second quarter of 2009 our play . GAAP net earnings include US$0.02 per share inafter-tax amortization of intangible assets and stock-based compensationcosts.This guidance was established by management based on existing backlog as ofthe date of this press release, seasonality, expected bookings for theremaining of the quarter, as well as stability in exchange rates compared tothe previous quarter Our Town – barrowstreettheatre .Conference Call and WebcastEXFO will host a conference call today at 5 p.m.

(Eastern time) to review itsfinancial results for the first quarter of fiscal 2009 our town play . To listen to theconference call and participate in the question period via telephone, dial1-416-620-2416 a doll’s house . Germain Lamonde, Chairman, President and CEO, and PierrePlamondon, CA, Vice-President of Finance and Chief Financial Officer, willparticipate in the call the matchmaker . An audio replay of the conference call will beavailable one hour after the event until 7 p.m on January 20, 2009 theatre plays . Thereplay number is 1-402-977-9141 and the reservation number is 21405504. Theaudio Webcast and replay of the conference call will also be available onEXFO’s Website at, under the Investors section Our Town .Forward-Looking StatementsThis press release contains forward-looking statements within the meaning ofthe U.S. Private Securities Litigation Reform Act of 1995, and we intend thatsuch forward-looking statements be subject to the safe harbors createdthereby.

Forward-looking statements are statements other than historicalinformation or statements of current condition . Words such as may, will,expect, believe, anticipate, intend, could, estimate, continue, or thenegative or comparable terminology are intended to identify forward-lookingstatements theater plays Our Town – wikipedia . In addition, any statements that refer to expectations,projections or other characterizations of future events and circumstances areconsidered forward-looking statements ourtown serco . They are not guarantees of futureperformance and involve risks and uncertainties . Actual results may differmaterially from those in forward-looking statements due to various factorsincluding consolidation in the global telecommunications test, measurement andmonitoring industry; capital spending levels in the telecommunications, lifesciences and high-precision assembly sectors; concentration of sales;fluctuating exchange rates and our ability to execute in these uncertainconditions; the effects of the additional actions we have taken in response tosuch economic uncertainty (including our ability to quickly adapt coststructures with anticipated levels of business, ability to manage inventorylevels with market demand); market acceptance of our new products and otherupcoming products; limited visibility with regards to customer orders and thetiming of such orders; our ability to successfully integrate our acquired andto-be-acquired businesses; our ability to successfully expand internationaloperations; the retention of key technical and management personnel; andfuture economic, competitive, financial and market conditions, including anyslowdown or recession in the global economy. Assumptions relating to theforegoing involve judgments and risks, all of which are difficult orimpossible to predict and many of which are beyond our control. Other riskfactors that may affect our future performance and operations are detailed inour Annual Report, on Form 20-F, and our other filings with the U.S.Securities and Exchange Commission and the Canadian securities commissions.

Private Securities Litigation Reform Act of1995 and “forward-looking information” within the meaning of applicableCanadian securities laws. Hit by falling prices and sluggish demand, ToshibaMatsushita Display is expected to post an operating loss of 30billion yen on sales of 270 billion yen last business year. Of the 2,200 patients we enrolled only twofailed to complete the study and that`s another achievement in terms of thequality of patients we are able to deliver for our clients.” – ends – *ACC The American College of Cardiology Synexus background Synexus headquartered in Manchester, England, is the world`s largestmulti-national company dedicated to the recruitment of clinical trials at itsown research centres across the globe on behalf of its pharmaceutical, biotechand CRO clients. During the year ended January 31, 2009, the order intakereached $9.8 billion, compared to $11.3 billion for the same period lastyear. And of course, there’s the Wings and their fifteen-plus season playoff streak and multiple Cups to watch.As for the Niners, they’ve escaped the franchise cellar for now.