Premiere Global Services 8-K Premiere Global Services to Restate Financial Statements to Appropriately Account for Interest Rate Swaps

Exhibit 99.1

Premiere Global Services to Restate Financial Statements to Appropriately Account for Interest Rate Swaps

Non-Cash Expenses Will Not Affect Reported or Future Revenues, Cash Flows, Operating Income or Pro Forma Diluted EPS(a); Company Reaffirms Financial Outlook

ATLANTA--(BUSINESS WIRE)--Premiere Global Services, Inc. (NYSE: PGI), a global provider of on-demand, communication technologies-based business process improvement solutions, today announced that it will restate its annual financial statements for the year ended 2007 and interim financial statements for the first and second quarters of 2008 to correct the accounting for interest rate swaps on its revolving credit facility entered into in August 2007. The Company anticipates filing restated financial statements covering these periods with the Securities and Exchange Commission as soon as practicable and prior to the filing of its Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.

The Company entered into two interest rate swaps in August 2007 with the intention of hedging the cash flow risk of variable 30-day LIBOR interest rate changes on the interest payments associated with its revolving credit facility. These agreements swapped a total of $200 million of the Company’s floating interest rate debt for a fixed rate. The termination dates of the interest rate swaps are currently August 2009 and August 2010.

These interest rate swaps were disclosed in the Company’s filings with the SEC during the periods covered by the Company’s 2007 annual and first and second quarter 2008 interim financial statements, which were audited and reviewed, respectively, by the Company’s independent registered public accounting firm.

Subsequent to the issuance of the Company’s interim financial statements for the quarter ended June 30, 2008 and as a result of the Company’s own efforts to update documentation surrounding its critical accounting policies, including derivative accounting policies mandated by Statement of Financial Accounting Standards No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended (SFAS 133), the Company determined that the fair value of the interest rate swaps and the change in their fair value were not properly recorded in the Company’s financial statements for 2007 and the first and second quarters of 2008.

“We believe these interest swap agreements are prudent hedges, consistent with our strategy to minimize, when possible, volatility and economic risks to our business,” said Boland T. Jones, Founder, Chairman and CEO of Premiere Global Services, Inc. “Accounting for these types of hedges is very technical and complex. While we are disappointed with today’s announcement, it is important to note that the change in accounting treatment for these interest rate swaps results in non-cash expenses that will not affect our reported or future revenues, cash flows, operating income or pro forma diluted EPS(a), which we believe are the primary operating metrics monitored by our investors. We remain committed to maintaining strong internal controls and transparency in our disclosures.

Our business momentum remains solid in the midst of continuing global economic uncertainty, which we believe underscores the value we provide to our enterprise customers that are looking to improve their productivity and efficiency during these challenging times. Consistent with our prior guidance, despite substantial fluctuations in foreign currency exchange rates in recent weeks, we continue to anticipate consolidated revenues in 2008 will increase at least 13% from 2007 totals and that diluted EPS will increase at least 20% this year.”

This correction to our previously reported earnings reflects the change in fair value of these interest rate swap agreements and is included in the attached expected financial results, as restated, as “Unrealized gain (loss) on change in fair value of interest rate swaps.” Management has excluded this item in its calculation of pro forma diluted EPS(a), similar to other non-cash items, in the attached reconciliation of non-GAAP financial measures tables.

The Company believes the interest rate swaps are effective economic hedges against interest rate risk associated with its revolving credit facility, and the accounting correction for these swaps does not affect the favorable risk management characteristics of the swaps themselves. The Company intends to re-designate the interest rate swaps as cash flow hedges utilizing the long-haul method of effectiveness testing and, as a result, anticipates receiving hedge accounting treatment for these swaps in future periods.

(a) To supplement the Company’s quarterly financial statements presented in accordance with GAAP, it also includes pro forma diluted EPS and other non-GAAP measures of financial performance. Management uses these measures internally as a means of analyzing the Company’s current and future financial performance and identifying trends in the Company’s financial condition and results of operations. The Company provides this information to investors to assist in meaningful comparisons of past, present and future operating results and to assist in highlighting the results of ongoing core operations. These non-GAAP financial measures may differ materially from comparable or similarly titled measures provided by other companies and should be considered in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.

Financial outlook statements contained in this release are based on Premiere Global Services’ current expectations as of September 15, 2008. These financial outlook statements contain forward-looking statements and Company estimates, and actual results may differ materially. The Company assumes no duty to update any forward-looking statements made in this press release. A discussion concerning forward-looking statements is included at the end of this press release and in the Company’s filings with the SEC.

About Premiere Global Services, Inc.

Premiere Global Services, Inc. is a global provider of on-demand, communication technologies-based business process improvement solutions. Our PGi Communications Operating System supports business applications within the following solution sets: Conferencing & Collaboration, Document Solutions, Notifications & Reminders, and eMarketing.

Headquartered in Atlanta, Georgia, and with presence in 23 countries worldwide, Premiere Global delivers solutions to an established customer base of over 50,000 companies, including nearly 95% of the Fortune 500. Additional information can be found at www.premiereglobal.com

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Premiere Global Services' forward-looking statements, including, but not limited to, the following factors: competitive pressures, including pricing pressures; technological change; the development of alternatives to our services; market acceptance of our new services and enhancements; integration of acquired companies; service interruptions; increased financial leverage; our dependence on our subsidiaries for cash flow; continued weakness in our legacy broadcast fax business; foreign currency exchange rates; possible adverse results of pending or future litigation or infringement claims; federal or state legislative or regulatory changes, including government regulations applicable to traditional telecommunications service providers; general domestic and international economic, business or political conditions; and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited to the "Risk Factors" sections of our Annual Report on Form 10-K for the year ended December 31, 2007 and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, UNAUDITED, EXCEPT PER SHARE DATA)
			Twelve Months Ended December 31, 2007
			As Reported			Adjustment			As Restated
Net revenues			$	559,706		$	-		$	559,706
Operating expenses
	Cost of revenues (exclusive of depreciation and amortization shown separately below)			227,259			-			227,259
	Selling and marketing			141,322			-			141,322
	General and administrative (exclusive of net legal settlements shown separately below)			66,007			-			66,007
	Research and development			14,109			-			14,109
	Depreciation			30,008			-			30,008
	Amortization			15,659			-			15,659
	Restructuring costs			3,447			-			3,447
	Net legal settlements and related expenses			349			-			349
		Total operating expenses		498,160			-			498,160
Operating income				61,546			-			61,546
Other (expense) income:
	Interest expense			(13,598	)		-			(13,598	)
	Unrealized (loss) on change in fair value of interest rate swaps			-			(4,482	)		(4,482	)
	Interest income			780			-			780
	Other, net			1,418			-			1,418
		Total other (expense) income		(11,400	)		(4,482	)		(15,882	)
Income before income taxes				50,146			(4,482	)		45,664
Income tax expense				16,791			(1,569	)		15,222
Net income			$	33,355		$	(2,913	)	$	30,442
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING:				62,654						62,654
	Basic earnings per share from net income		$	0.53		$	(0.04	)	$	0.49
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING:				63,940						63,940
	Diluted earnings per share from net income		$	0.52		$	(0.04	)	$	0.48

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, UNAUDITED, EXCEPT SHARE DATA)
ASSETS			December 31, 2007
			As Reported			Adjustment			As Restated
CURRENT ASSETS
	Cash and equivalents		$	18,259		$	-		$	18,259
	Accounts receivable (less allowances of $4,526)			89,683			-			89,683
	Prepaid expenses and other current assets			13,066			-			13,066
	Deferred income taxes, net			5,522			-			5,522
		Total current assets		126,530			-			126,530
PROPERTY AND EQUIPMENT, NET				110,767			-			110,767
OTHER ASSETS
	Goodwill			337,246			-			337,246
	Intangibles, net of amortization			43,115			-			43,115
	Deferred income taxes, net			1,018			1,569			2,587
	Other assets			5,411			-			5,411
			$	624,087		$	1,569		$	625,656
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable		$	51,631		$	-		$	51,631
	Income taxes payable			4,497			-			4,497
	Accrued taxes			8,076			-			8,076
	Accrued expenses			37,276			-			37,276
	Current maturities of long-term debt and capital lease obligations			1,664			-			1,664
	Accrued restructuring costs			1,717			-			1,717
		Total current liabilities		104,861			-			104,861
LONG-TERM LIABILITIES
	Long-term debt and capital lease obligations			267,817			-			267,817
	Accrued restructuring costs			1,575			-			1,575
	Accrued expenses			7,627			4,482			12,109
		Total long-term liabilities		277,019			4,482			281,501
SHAREHOLDERS' EQUITY
	Common stock $0.01 par value; 150,000,000 shares authorized, 61,755,728 shares issued and outstanding
				618			-			618
	Additional paid-in capital			548,418			-			548,418
	Notes receivable, shareholder			(1,702	)		-			(1,702	)
	Cumulative translation adjustment			10,523			-			10,523
	Accumulated deficit			(315,650	)		(2,913	)		(318,563	)
		Total shareholders' equity		242,207			(2,913	)		239,294
			$	624,087		$	1,569		$	625,656

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS, UNAUDITED)
						Twelve Months Ended December 31, 2007
						As Reported			Adjustment			As Restated
	CASH FLOWS FROM OPERATING ACTIVITIES
		Net income				$	33,355		$	(2,913	)	$	30,442
		Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation				30,008			-		$	30,008
			Amortization				15,659			-		$	15,659
			Amortization of deferred financing costs				513			-		$	513
			Net legal settlements and related expenses				349			-		$	349
			Deferred income taxes, net of effect of acquisitions				2,488			(1,569	)	$	919
			Restructuring costs				3,447			-		$	3,447
			Payments for restructuring costs				(7,109	)		-		$	(7,109	)
			Equity-based compensation				10,590			-		$	10,590
			Excess tax benefits from share-based payment arrangements				(3,323	)		-		$	(3,323	)
			Loss on disposal of assets				287			-		$	287
			Changes in assets and liabilities, net of effect of acquisitions:
				Accounts receivable, net			(737	)		-		$	(737	)
				Prepaid expenses and other current assets			(893	)		-		$	(893	)
				Accounts payable and accrued expenses			6,953			4,482		$	11,435
					Total adjustments		58,232			2,913			61,145
			Net cash provided by operating activities from continuing operations				91,587			-			91,587
			Net cash used in operating activities from discontinued operations				(650	)		-			(650	)
				Net cash provided by operating activities			90,937			-			90,937
	CASH FLOWS FROM INVESTING ACTIVITIES
			Capital expenditures				(46,341	)		-			(46,341	)
			Business acquisitions, net of cash acquired				(47,749	)		-			(47,749	)
				Net cash used in investing activities			(94,090	)					(94,090	)
	CASH FLOWS FROM FINANCING ACTIVITIES
			Principal payments under borrowing arrangements				(344,388	)		-			(344,388	)
			Proceeds from long-term borrowing arrangements				470,099			-			470,099
			Payments of debt issuance costs				(50	)		-			(50	)
			Repayment of shareholder notes				413			-			413
			Excess tax benefits from share-based payment arrangements				3,323			-			3,323
			Purchase of treasury stock, at cost				(136,049	)		-			(136,049	)
			Exercise of stock options				8,553			-			8,553
				Net cash provided by financing activities			1,901						1,901
	Effect of exchange rate changes on cash and equivalents						534			-			534
	NET DECREASE IN CASH AND EQUIVALENTS						(718	)		-			(718	)
	CASH AND EQUIVALENTS, beginning of period					$	18,977		$	-		$	18,977
	CASH AND EQUIVALENTS, end of period					$	18,259		$	-		$	18,259

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(IN THOUSANDS, UNAUDITED)
	Twelve Months Ended December 31, 2007
As Reported
	Common Stock Issued			Additional Paid-In Capital			Notes Receivable, Shareholder			Accumulated Deficit			Cumulative Translation Adjustment		Total Shareholders' Equity
BALANCE, December 31, 2006	$	702		$	663,232		$	(2,004	)	$	(347,727	)	$	2,088	$	316,291
Other comprehensive income:
Net income		-			-			-			33,355			-		33,355
Translation adjustments		-			-			-			-			8,435		8,435
Adoption of FIN 48		-			-			-			(1,278	)		-		(1,278	)
Other comprehensive income																40,512
Issuance of common stock:
Exercise of stock options		13			8,540			-			-			-		8,553
Stock compensation expense – restricted shares		-			7,598			-			-			-		7,598
Treasury stock purchase and retirement		(104	)		(132,882	)		-			-			-		(132,986	)
Stock compensation expense – variable accounting		-			-			-			-			-		-
FAS 123(R) expense		-			812			-			-			-		812
Stock compensation in exchange for services		-			504			-			-			-		504
Issuance of restricted shares and related stock- based compensation		7			(2,710	)		-			-			-		(2,703	)
Income tax expense from exercise of stock options		-			3,324			-			-			-		3,324
Payments and interest related to shareholder notes receivable		-			-			302			-			-		302
BALANCE, December 31, 2007	$	618		$	548,418		$	(1,702	)	$	(315,650	)	$	10,523	$	242,207
Adjustment
	Common			Additional Paid-In			Notes Receivable,			Accumulated			Cumulative Translation		Total Shareholders'
	Stock Issued			Capital			Shareholder			Deficit			Adjustment		Equity
Comprehensive income:
Net income	$	-		$	-		$	-		$	(2,913	)	$	-	$	(2,913	)
Comprehensive income															$	(2,913	)
As Restated
	Common Stock Issued			Additional Paid-In Capital			Notes Receivable, Shareholder			Accumulated Deficit			Cumulative Translation Adjustment		Total Shareholders' Equity
BALANCE, December 31, 2006	$	702		$	663,232		$	(2,004	)	$	(347,727	)	$	2,088	$	316,291
Comprehensive income:
Net income		-			-			-			30,442			-		30,442
Translation adjustments		-			-			-			-			8,435		8,435
Adoption of FIN 48		-			-			-			(1,278	)		-		(1,278	)
Comprehensive income																37,599
Issuance of common stock:
Exercise of stock options		13			8,540			-			-			-		8,553
Stock compensation expense – restricted shares		-			7,598			-			-			-		7,598
Treasury stock purchase and retirement		(104	)		(132,882	)		-			-			-		(132,986	)
Stock compensation expense – variable accounting		-			-			-			-			-		-
FAS 123(R) expense		-			812			-			-			-		812
Stock compensation in exchange for services		-			504			-			-			-		504
Issuance of restricted shares and related stock- based compensation		7			(2,710	)		-			-			-		(2,703	)
Income tax expense from exercise of stock options		-			3,324			-			-			-		3,324
Payments and interest related to shareholder notes receivable		-			-			302			-			-		302
BALANCE, December 31, 2007	$	618		$	548,418		$	(1,702	)	$	(318,563	)	$	10,523	$	239,294

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, UNAUDITED, EXCEPT PER SHARE DATA)
			Twelve Months Ended December 31, 2007
			As Reported		Adjustment			As Restated
Pro Forma Diluted EPS (1)
	Diluted EPS from net income, as reported		$	0.52	$	(0.04	)	$	0.48
	Unrealized loss on change in fair value of interest rate swaps, net of taxes			-		0.04			0.04
	Restructuring costs, net of taxes			0.04		-			0.04
	Proxy-related costs, net of taxes			0.03		-			0.03
	Equity-based compensation, net of taxes			0.11		-			0.11
	Amortization, net of taxes			0.16		-			0.16
		Pro forma diluted EPS from net income	$	0.86	$	-		$	0.86
	(1) Management believes that pro forma diluted EPS provides useful information regarding underlying trends in our continuing operations. Management expects equity-based compensation and amortization expenses to be recurring costs and presents pro forma diluted EPS from continuing operations to exclude these items as well as non-recurring items that are unrelated to our ongoing operations, including restructuring costs, proxy-related costs and unrealized loss on change in fair value of interest rate swaps.

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, UNAUDITED, EXCEPT PER SHARE DATA)
			Three Months Ended March 31, 2008
			As Reported			Adjustment			As Restated
Net revenues			$	152,854		$	-		$	152,854
Operating expenses
	Cost of revenues (exclusive of depreciation and amortization shown separately below)			61,662			-			61,662
	Selling and marketing			39,851			-			39,851
	General and administrative			16,233			-			16,233
	Research and development			4,059			-			4,059
	Depreciation			7,247			-			7,247
	Amortization			4,243			-			4,243
		Total operating expenses		133,295			-			133,295
Operating income				19,559			-			19,559
Other (expense) income:
	Interest expense			(4,629	)		-			(4,629	)
	Unrealized (loss) on change in fair value of interest rate swaps			-			(4,592	)		(4,592	)
	Interest income			213			-			213
	Other, net			837			-			837
		Total other (expense) income		(3,579	)		(4,592	)		(8,171	)
Income before income taxes				15,980			(4,592	)		11,388
Income tax expense				3,960			(1,607	)		2,353
Net income			$	12,020		$	(2,985	)	$	9,035
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING:				59,331						59,331
	Basic earnings per share from net income		$	0.20		$	(0.05	)	$	0.15
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING:				60,497						60,497
	Diluted earnings per share from net income		$	0.20		$	(0.05	)	$	0.15

PREMIERE GLOBAL SERVICES, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, UNAUDITED, EXCEPT SHARE DATA)
ASSETS			March 31, 2008
			As Reported			Adjustment			As Restated
CURRENT ASSETS
	Cash and equivalents		$	22,753		$	-		$	22,753
	Accounts receivable (less allowances of $4,001)			101,939			-			101,939
	Prepaid expenses and other current assets			9,256			-			9,256
	Deferred income taxes, net			8,595			-			8,595
		Total current assets		142,543			-			142,543
PROPERTY AND EQUIPMENT, NET				119,713			-			119,713
OTHER ASSETS
	Goodwill			340,602			-			340,602
	Intangibles, net of amortization			39,660			-			39,660
	Deferred income taxes, net			-			1,700			1,700
	Other assets			9,510			-			9,510
			$	652,028		$	1,700		$	653,728
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable		$	55,831		$	-		$	55,831
	Income taxes payable			5,922			-			5,922
	Accrued taxes, other than income taxes			4,378			-			4,378
	Accrued expenses			36,238			-			36,238
	Current maturities of long-term debt and capital lease obligations			1,915			-			1,915
	Accrued restructuring costs			1,006			-			1,006
		Total current liabilities		105,290			-			105,290
LONG-TERM LIABILITIES
	Long-term debt and capital lease obligations			271,704			-			271,704
	Accrued restructuring costs			1,385			-			1,385
	Accrued expenses			9,747			9,075			18,822
	Deferred income taxes, net			1,476			(1,476	)		-
		Total long-term liabilities		284,312			7,599			291,911
SHAREHOLDERS' EQUITY
	Common stock $0.01 par value; 150,000,000 shares authorized, 61,743,950 shares issued and outstanding
				617			-			617
	Additional paid-in capital			551,247			-			551,247
	Notes receivable, shareholder			(1,727	)		-			(1,727	)
	Cumulative translation adjustment			15,919			-			15,919
	Accumulated deficit			(303,630	)		(5,899	)		(309,529	)
		Total shareholders' equity		262,426			(5,899	)		256,527
			$	652,028		$	1,700		$	653,728

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS, UNAUDITED)
						Three Months Ended March 31, 2008
						As Reported			Adjustment			As Restated
	CASH FLOWS FROM OPERATING ACTIVITIES
		Net income				$	12,020		$	(2,985	)	$	9,035
		Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation				7,247			-			7,247
			Amortization				4,243			-			4,243
			Amortization of deferred financing costs				141			-			141
			Deferred income taxes, net of effect of acquisitions				178			(1,607	)		(1,429	)
			Payments for restructuring costs				(929	)		-			(929	)
			Equity-based compensation				3,462			-			3,462
			Excess tax benefits from share-based payment arrangements				(23	)		-			(23	)
			Changes in assets and liabilities, net of effect of acquisitions:
				Accounts receivable, net			(10,664	)		-			(10,664	)
				Prepaid expenses and other current assets			51			-			51
				Accounts payable and accrued expenses			153			4,592			4,745
					Total adjustments		3,859			2,985			6,844
				Net cash provided by operating activities			15,879			-			15,879
	CASH FLOWS FROM INVESTING ACTIVITIES
			Capital expenditures				(13,692	)		-			(13,692	)
			Business acquisitions, net of cash acquired				(138	)		-			(138	)
				Net cash used in investing activities			(13,830	)					(13,830	)
	CASH FLOWS FROM FINANCING ACTIVITIES
			Principal payments under borrowing arrangements				(167,880	)		-			(167,880	)
			Proceeds from borrowing arrangements				170,896			-			170,896
			Excess tax benefits from share-based payment arrangements				23			-			23
			Purchase of treasury stock, at cost				(1,027	)		-			(1,027	)
			Exercise of stock options				219			-			219
				Net cash provided by financing activities			2,231						2,231
	Effect of exchange rate changes on cash and equivalents						214			-			214
	NET INCREASE IN CASH AND EQUIVALENTS						4,494			-			4,494
	CASH AND EQUIVALENTS, beginning of period					$	18,259		$	-		$	18,259
	CASH AND EQUIVALENTS, end of period					$	22,753		$	-		$	22,753

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, UNAUDITED, EXCEPT PER SHARE DATA)
			Three Months Ended March 31, 2008
			As Reported			Adjustment			As Restated
Pro Forma Diluted EPS (1)
	Diluted EPS from net income, as reported		$	0.20		$	(0.05	)	$	0.15
	Elimination of one-time tax adjustments			(0.02	)		-			(0.02	)
	Unrealized loss on change in fair value of interest rate swaps, net of taxes			-			0.05			0.05
	Equity-based compensation, net of taxes			0.04			-			0.04
	Depreciation, net of taxes			(0.01	)		-			(0.01	)
	Amortization, net of taxes			0.04			-			0.04
		Pro forma diluted EPS from net income	$	0.25		$	-		$	0.25
	(1) Management believes that pro forma diluted EPS provides useful information regarding underlying trends in our continuing operations. Management expects equity-based compensation and amortization expenses to be recurring costs and presents pro forma diluted EPS from continuing operations to exclude these items as well as non-recurring items that are unrelated to our ongoing operations, including one-time income tax adjustments and unrealized loss on change in fair value of interest rate swaps. The portion of depreciation expense excluded from the pro forma calculations reflects management's review and adjustment of the useful economic lives of depreciable assets.

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, UNAUDITED, EXCEPT PER SHARE DATA)
			Three Months Ended June 30, 2008								Six Months Ended June 30, 2008
			As Reported			Adjustment		As Restated			As Reported			Adjustment			As Restated
Net revenues			$	161,565		$	-	$	161,565		$	314,419		$	-		$	314,419
Operating expenses
	Cost of revenues (exclusive of depreciation and amortization shown separately below)			66,202			-		66,202			127,864			-			127,864
	Selling and marketing			40,211			-		40,211			80,062			-			80,062
	General and administrative			16,738			-		16,738			32,971			-			32,971
	Research and development			4,163			-		4,163			8,222			-			8,222
	Excise tax expense			2,890			-		2,890			2,890			-			2,890
	Depreciation			8,600			-		8,600			15,847			-			15,847
	Amortization			3,914			-		3,914			8,157			-			8,157
	Restructuring costs			3,339			-		3,339			3,339			-			3,339
	Net legal settlements and related expenses			1,608			-		1,608			1,608			-			1,608
		Total operating expenses		147,665			-		147,665			280,960			-			280,960
Operating income				13,900			-		13,900			33,459			-			33,459
Other (expense) income:
	Interest expense			(5,532	)		-		(5,532	)		(10,161	)		-			(10,161	)
	Unrealized gain (loss) on change in fair value of interest rate swaps			-			4,119		4,119			-			(473	)		(473	)
	Interest income			138			-		138			351			-			351
	Other, net			(21	)		-		(21	)		816			-			816
		Total other (expense) income		(5,415	)		4,119		(1,296	)		(8,994	)		(473	)		(9,467	)
Income before income taxes				8,485			4,119		12,604			24,465			(473	)		23,992
Income tax expense				2,692			1,442		4,134			6,652			(165	)		6,487
Net income			$	5,793		$	2,677	$	8,470		$	17,813		$	(308	)	$	17,505
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING:				59,419					59,419			59,425						59,425
	Basic earnings per share from net income		$	0.10		$	0.04	$	0.14		$	0.30		$	(0.01	)	$	0.29
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING:				60,603					60,603			60,646						60,646
	Diluted earnings per share from net income		$	0.10		$	0.04	$	0.14		$	0.29		$	(0.01	)	$	0.28

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, UNAUDITED, EXCEPT SHARE DATA)
ASSETS			June 30, 2008
			As Reported			Adjustment			As Restated
CURRENT ASSETS
	Cash and equivalents		$	24,824		$	-		$	24,824
	Accounts receivable (less allowances of $3,284)			105,845			-			105,845
	Prepaid expenses and other current assets			11,294			-			11,294
	Deferred income taxes, net			8,838			-			8,838
		Total current assets		150,801			-			150,801
PROPERTY AND EQUIPMENT, NET				126,839			-			126,839
OTHER ASSETS
	Goodwill			344,406			-			344,406
	Intangibles, net of amortization			37,398			-			37,398
	Deferred income taxes, net			385			1,735			2,120
	Other assets			8,988			-			8,988
			$	668,817		$	1,735		$	670,552
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
	Accounts payable		$	56,293		$	-		$	56,293
	Income taxes payable			5,272			-			5,272
	Accrued taxes, other than income taxes			7,931			-			7,931
	Accrued expenses			35,958			-			35,958
	Current maturities of long-term debt and capital lease obligations			2,691			-			2,691
	Accrued restructuring costs			3,279			-			3,279
		Total current liabilities		111,424			-			111,424
LONG-TERM LIABILITIES
	Long-term debt and capital lease obligations			278,978			-			278,978
	Accrued restructuring costs			1,195			-			1,195
	Accrued expenses			11,361			4,956			16,317
		Total long-term liabilities		291,534			4,956			296,490
SHAREHOLDERS' EQUITY
	Common stock $0.01 par value; 150,000,000 shares authorized, 61,556,412 shares issued and outstanding
				616			-			616
	Additional paid-in capital			549,057			-			549,057
	Notes receivable, shareholder			(1,752	)		-			(1,752	)
	Cumulative translation adjustment			15,775			-			15,775
	Accumulated deficit			(297,837	)		(3,221	)		(301,058	)
		Total shareholders' equity		265,859			(3,221	)		262,638
			$	668,817		$	1,735		$	670,552

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS, UNAUDITED)
						Six Months Ended June 30, 2008
						As Reported			Adjustment			As Restated
	CASH FLOWS FROM OPERATING ACTIVITIES
		Net income				$	17,813		$	(308	)	$	17,505
		Adjustments to reconcile net income to net cash provided by operating activities:
			Depreciation				15,847			-			15,847
			Amortization				8,157			-			8,157
			Amortization of deferred financing costs				282			-			282
			Net legal settlements and related expenses				1,608			-			1,608
			Deferred income taxes, net of effect of acquisitions				(1,044	)		(165	)		(1,209	)
			Restructuring costs				3,339			-			3,339
			Payments for restructuring costs				(1,638	)		-			(1,638	)
			Equity-based compensation				6,463			-			6,463
			Excess tax benefits from share-based payment arrangements				(832	)		-			(832	)
			Gain on disposal of assets				(7	)		-			(7	)
			Changes in assets and liabilities, net of effect of acquisitions:
				Accounts receivable, net			(14,261	)		-			(14,261	)
				Prepaid expenses and other current assets			(1,144	)		-			(1,144	)
				Accounts payable and accrued expenses			5,031			473			5,504
					Total adjustments		21,801			308			22,109
				Net cash provided by operating activities			39,614			-			39,614
	CASH FLOWS FROM INVESTING ACTIVITIES
			Capital expenditures				(26,791	)		-			(26,791	)
			Business acquisitions, net of cash acquired				(8,443	)		-			(8,443	)
				Net cash used in investing activities			(35,234	)		-			(35,234	)
	CASH FLOWS FROM FINANCING ACTIVITIES
			Principal payments under borrowing arrangements				(297,912	)		-			(297,912	)
			Proceeds from borrowing arrangements				306,272			-			306,272
			Payments of debt issuance costs				(8	)		-			(8	)
			Excess tax benefits from share-based payment arrangements				832			-			832
			Purchase of treasury stock, at cost				(9,164	)		-			(9,164	)
			Exercise of stock options				2,210			-			2,210
				Net cash provided by financing activities			2,230			-			2,230
	Effect of exchange rate changes on cash and equivalents						(45	)		-			(45	)
	NET INCREASE IN CASH AND EQUIVALENTS						6,565			-			6,565
	CASH AND EQUIVALENTS, beginning of period					$	18,259		$	-		$	18,259
	CASH AND EQUIVALENTS, end of period					$	24,824		$	-		$	24,824

PREMIERE GLOBAL SERVICES, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(IN THOUSANDS, UNAUDITED, EXCEPT PER SHARE DATA)
			Three Months Ended June 30, 2008								Six Months Ended June 30, 2008
			As Reported		Adjustment			As Restated			As Reported			Adjustment			As Restated
Pro Forma Diluted EPS (1)
	Diluted EPS from net income, as reported		$	0.10	$	0.04		$	0.14		$	0.29		$	(0.01	)	$	0.28
	Elimination of one-time tax adjustments			-		-			-			(0.02	)		-			(0.02	)
	Unrealized (gain) loss on change in fair value of interest rate swaps, net of taxes			-		(0.04	)		(0.04	)		-			0.01			0.01
	Restructuring costs, net of taxes			0.04		-			0.04			0.04			-			0.04
	Net legal settlements and related expenses			0.02		-			0.02			0.02			-			0.02
	Equity-based compensation, net of taxes			0.03		-			0.03			0.07			-			0.07
	Excise tax expense, net of taxes			0.03		-			0.03			0.03			-			0.03
	Excise tax interest, net of taxes			0.01		-			0.01			0.01			-			0.01
	Depreciation, net of taxes			-		-			-			(0.01	)		-			(0.01	)
	Amortization, net of taxes			0.04		-			0.04			0.09			-			0.09
		Pro forma diluted EPS from net income	$	0.27	$	-		$	0.27		$	0.52		$	-		$	0.52
	(1) Management believes that pro forma diluted EPS provides useful information regarding underlying trends in our continuing operations. Management expects equity-based compensation and amortization expenses to be recurring costs and presents pro forma diluted EPS from continuing operations to exclude these items as well as non-recurring items that are unrelated to our ongoing operations, including one-time income tax adjustments, restructuring costs, net legal settlements and related expenses, unrealized (gain) loss on fair value of interest rate swaps and excise tax expense. The portion of depreciation expense excluded from the pro forma calculations reflects management's review and adjustment of the useful economic lives of depreciable assets.

CONTACT:
Premiere Global Services, Inc.
Investor Calls
Sean O’Brien, 404-262-8462
Senior Vice President
Strategic Planning & IR