Language Line 8-K Language Line Holdings, Inc. Reports 2006 Third Quarter Financial Results

Exhibit 99.1

Language Line Holdings, Inc. Reports 2006 Third Quarter Financial Results

Monterey, CA (October 26, 2006) – Language Line Holdings, Inc. (“Holdings”) reported today financial results for the three months ended September 30, 2006. The company will issue another press release at a later date to announce the date and time of its quarterly conference call to discuss its results.

Three Months Ended September 30, 2006 and September 30, 2005

Revenues for the three months ended September 30, 2006 were $41.0 million as compared to $36.4 million for the three months ended September 30, 2005, an increase of $4.6 million or 13%. The majority of the increase in revenue was driven by a 20% increase in OPI billed minutes offset by a 6% decline in the average rate per billed minute.

Cost of services consists primarily of costs associated with interpretation services and customer support. Significant cost components include compensation of interpreters and telecommunication charges. For the three months ended September 30, 2006, cost of services were $14.3 million as compared to $12.2 million for the three months ended September 30, 2005, an increase of $2.1 million or 17%. This increase was primarily due to increased interpretation minutes.

For the three months ended September 30, 2006, other expenses were $29.0 million, compared with $28.0 million for the three months ended September 30, 2005. This increase was primarily driven by an increase in interest expense and an increase in selling, general and administrative expenses.

For the three months ended September 30, 2006, other income was $795K, representing a one-time final settlement of an escrow account established for potential indemnity obligations as part of the merger transaction with respect to the acquisition of Holdings on June 11, 2004.

The net loss for the three months ended September 30, 2006 was $1.2 million as compared to a net loss of $2.6 million for the three months ended September 30, 2005. This decrease in net loss was a result of the factors described above.

Nine Months Ended September 30, 2006 and September 30, 2005

Revenues for the nine months ended September 30, 2006 were $121.2 million as compared to $107.8 million for the nine months ended September 30, 2005, an increase of $13.4 million or 12%. The majority of the increase in revenue was driven by a 19% increase in OPI billed minutes offset by a 6% decline in the average rate per billed minute.

Cost of services consists primarily of costs associated with interpretation services and customer support. Significant cost components include compensation of interpreters and telecommunication charges. For the nine months ended September 30, 2006, cost of services were $42.6 million as compared to $36.5 million for the nine months ended September 30, 2005, an increase of $6.1 million or 17%. This increase was primarily due to increased interpretation minutes.

For the nine months ended September 30, 2006, other expenses were $89.3 million, compared with $85.0 million for the nine months ended September 30, 2005. This increase was primarily driven by an increase in interest expense and an increase in selling, general and administrative expenses.

For the nine months ended September 30, 2006, other income was $795K, representing a one-time final settlement of an escrow account established for potential indemnity obligations as part of the merger transaction with respect to the acquisition of Holdings on June 11, 2004.

The net loss for the nine months ended September 30, 2006 was $6.9 million as compared to a net loss of $9.0 million for the nine months ended September 30, 2005. This decrease in net loss was a result of the factors described above.

As of September 30, 2006 total debt outstanding was $476.9 million and cash balances were $25.6 million.

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. This press release also includes financial information, of which, as of the date of this press release, the Company’s independent auditors have not completed their review. Key risks are described in Language Line, Inc. and Holding’s respective Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on April 12, 2006.

Contact:

Matthew T. Gibbs II

Chief Financial Officer

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

(831) 648-5836

LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES

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

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

(Unaudited)

	September 30, 2006			December 31, 2005
Assets
Current assets:
Cash and cash equivalents	$	25,617		$	13,991
Accounts receivable, net		23,903			22,329
Prepaid expenses and other current assets		2,232			2,681
Deferred taxes on income		1,073			621
Total current assets		52,825			39,622
Property and equipment, net		5,651			4,991
Goodwill		408,793			408,793
Intangible assets, net		377,048			403,056
Deferred financing costs, net		11,538			13,173
Other assets		319			96
Total assets	$	856,174		$	869,731
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	2,950		$	1,208
Accrued interest		9,769			4,848
Accrued payroll and related benefits		1,783			817
Accrued cost of interpreters		968			1,288
Other accrued liabilities		2,406			1,786
Income taxes payable		2,644			2,341
Current portion of long-term debt		14,158			18,638
Total current liabilities		34,678			30,926
Long-term debt		225,813			236,431
Senior subordinated notes		161,619			161,315
Senior discount notes		75,354			67,996
Deferred taxes on income		151,929			159,643
Total liabilities		649,393			656,311
Stockholders’ equity:
Common stock, $.01 par value per share and 1,000 shares authorized, issued and outstanding		—			—
Additional paid-in capital		227,061			228,015
Accumulated deficit		(20,280	)		(13,343	)
Deferred stock compensation		—			(1,252	)
Total stockholders’ equity		206,781			213,420
Total liabilities and stockholders’ equity	$	856,174		$	869,731

LANGUAGE LINE HOLDINGS, INC. AND SUBSIDIARIES

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

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands)

(Unaudited)

	Three months ended September 30, 2006			Three months ended September 30, 2005			Nine months ended September 30, 2006			Nine months ended September 30, 2005
Revenues	$	41,039		$	36,362		$	121,201		$	107,786
Cost of services		14,332			12,243			42,575			36,547
Gross Margin		26,707			24,119			78,626			71,239
Other expenses:
Selling, general and administrative		7,067			5,603			21,364			18,685
Interest - net		13,701			12,607			40,139			36,914
Depreciation and amortization		8,249			9,797			27,826			29,427
Total other expenses		29,017			28,007			89,329			85,026
Other income:
Settlement		795			—			795			—
Loss before income taxes		(1,515	)		(3,888	)		(9,908	)		(13,787	)
Income tax benefit		(291	)		(1,317	)		(2,971	)		(4,815	)
Net loss	$	(1,224	)	$	(2,571	)	$	(6,937	)	$	(8,972	)