Language Line 8-K Language Line Holdings, Inc. Reports 2004 Fourth Quarter and Full Year 2004 Financial Results and Conference Call

Exhibit 99.1

Language Line Holdings, Inc. Reports 2004 Fourth Quarter and Full Year 2004 Financial Results and Conference Call

Monterey, CA (March 31, 2005) – Language Line Holdings, Inc. (“Holdings”) reported today financial results for the three months and twelve months ended December 31, 2004. The Company will host a conference call at 4:00 p.m. ET on Thursday, March 31, 2005 to discuss its results.

Three Months Ended December 31, 2003 and December 31, 2004

Revenue for the three months ended December 31, 2004 was $36.7 million as compared to $35.2 million for the three months ended December 31, 2003, with the increase in revenue being driven by a 13% increase in billed minutes offset by an 8% decline in the average rate per minute.

For the three months ended December 31, 2004, cost of services was $12.2 million, compared with $11.6 million for the three months ended December 31, 2003. This increase was primarily driven by the increase in billed minutes, offset by efficiencies gained from continued business process improvements.

For the three months ended December 31, 2004, other expenses were $26.7 million, compared with $8.8 million of other operating expenses for the three months ended December 31, 2003. This increase was primarily driven by increase in interest expense and amortization expense resulting from the merger that took place in June, 2004.

The net loss for the three months ended December 31, 2004 was $1.6 million as compared to net income of $9.1 million for the three months ended December 31, 2003 due to the increase in interest expense and amortization expense.

Twelve Months Ended December 31, 2003 and December 31, 2004

For the twelve months ended December 31, 2004, revenue was $145.0 million as compared to $140.6 million for the twelve months ended December 31, 2003, with the increase in revenue being driven by an 12% increase in billed minutes offset by an 8% decline in the average rate per minute.

For the twelve months ended December 31, 2004, cost of services was $47.5 million, compared with $47.9 million for the twelve months ended December 31, 2003. This decrease was primarily driven by the efficiencies gained from continued business process improvements.

For the twelve months ended December 31, 2004 other expenses were $87.6 million, compared with $39.9 million of other operating expenses for the twelve months ended December 31, 2003. This increase was primarily driven by increase in interest expense and amortization expense resulting from the merger that took place in June, 2004. The net income for the twelve months ended December 31, 2004 was $5.5 million as compared to net income of $32.4 million for the twelve months ended December 31, 2003. This decrease was primarily due to the increase in interest expense and amortization expenses.

As of December 31, 2004 total debt outstanding was $499.6 million and cash balances were $12.2 million.

Other Matters

In connection with the Merger, which occurred on June 11, 2004, certain loans to our Chief Executive Officer and Chief Financial Officer were modified to extend their maturities. These modifications were made when Language Line, Inc. (“Language Line”) was a private company not subject to the Sarbanes-Oxley Act of 2002. Since then Language Line has become subject to the Sarbanes-Oxley Act and recently determined that the modifications were not compliant with the Act. Language Line intends to remedy this error as soon as possible.

Access to the Conference Call

To access the conference call, interested parties may dial (800) 862-9098 and provide the conference ID “LANGUAGE” to the attendant. A replay will be available beginning on April 1st, for seven days following the live event.

Note Regarding Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based upon current expectations and assumptions, and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as “intends”, “expects”, “expected”, “anticipates” or variations of such words and similar expressions are intended to identify such forward-looking statements. Key risks are described in each of Language Line’s and Holdings’ respective Annual Reports on Form 10-K for 2004 filed with the Securities and Exchange Commission (SEC).

Contact:

Matthew T. Gibbs II

Chief Financial Officer

Language Line, Inc. and Language Line Holdings, Inc.

(831) 648-5836

(An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)

	Predecessor					Predecessor		Predecessor
	Three months ended December 31, 2003		Three months ended December 31, 2004			January 1, 2003 to December 31, 2003		January 1, 2004 to June 11, 2004			June 12, 2004 to December 31, 2004
Revenues	$	35,245	$	36,668		$	140,641	$	64,692		$	80,284
Cost of services:
Interpreters		10,111		10,432			40,740		18,374			22,359
Telecommunications		1,339		1,627			6,646		2,882			3,364
Answer points		131		102			542		256			250
Total cost of services		11,581		12,161			47,928		21,512			25,973
Gross Margin		23,664		24,507			92,713		43,180			54,311
Other expenses:
Selling, general and administrative expenses		4,551		5,681			24,221		10,423	��		12,441
Interest - net		3,332		9,445			12,025		5,982			20,944
Merger related expenses		—		40			—		9,848			104
Depreciation and amortization		926		9,798			3,612		1,735			21,709
Total other expenses		8,809		24,964			39,858		27,988			55,198
Income (loss) before income taxes		14,855		(457	)		52,855		15,192			(887	)
Income tax provision (benefit)		5,757		(145	)		20,467		5,968			(364	)
Net income (loss)	$	9,098	$	(312	)	$	32,388	$	9,224		$	(523	)

LANGUAGE LINE, INC. AND SUBSIDIARIES

(An Indirect Wholly-Owned Subsidiary of Language Line Holdings, LLC)

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share amounts)

	December 31, 2003			December 31, 2004
ASSETS
Current assets:
Cash	$	4,571		$	12,164
Accounts receivable - net of allowance for doubtful accounts of $714 in 2003 and $474 in 2004		21,603			19,626
Prepaid expenses and other current assets		1,909			1,820
Deferred taxes on income		1,230			411
Total current assets		29,313			34,021
Property and equipment, net		6,394			5,897
Goodwill		203,619			408,793
Intangible assets - net of accumulated amortization of $2,383 in 2003 and $20,307 in 2004		11,917			439,793
Deferred financing costs - net of accumulated amortization of $7,451 in 2003 and $1,046 in 2004		10,780			13,035
Other assets		1,402			1,333
Total assets	$	263,425		$	902,872
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable	$	658		$	462
Accrued payroll and related benefits		2,573			1,740
Accrued cost of interpreters		1,391			1,331
Other accrued liabilities		3,006			2,958
Income taxes payable		820			2,504
Current portion of derivative contracts liability		3,301			—
Current portion of long-term debt		26,504			12,947
Total current liabilities		38,253			21,942
Long-term debt		209,276			266,428
Senior subordinated notes		—			160,948
Deferred taxes on income		22,474			174,531
Total liabilities		270,003			623,849
Mandatorily redeemable preferred stock of Predecessor:
$.001 par value per share; 100,000 shares authorized; 45,000 shares designated as Series B preferred stock; no shares issued and outstanding at December 31, 2003 and 2004		—			—
Stockholders’ equity (deficit)
Common stock, $.001 par value per Predecessor share, 1,050,000 authorized and 983,200 issued shares at December 31, 2003; $.01 par value per Language Line, Inc. share and 1,000 shares authorized, issued and outstanding at December 31, 2004		1			—
Additional paid-in capital		6,414			281,207
Accumulated deficit		(12,741	)		(523	)
Deferred stock compensation		—			(1,661	)
Less: Treasury stock; 21,450 shares at cost at December 31, 2003.		(252	)		—
Total stockholders’ equity (deficit)		(6,578	)		279,023
Total liabilities and stockholders’ equity (deficit)	$	263,425		$	902,872