Unaudited Pro Forma Condensed Combined Financial Information The unaudited pro forma condensed combined financial information gives effect to Premiere Technologies, Inc.'s ("Premiere" or the "Company") merger (the "Merger") with Xpedite Systems, Inc. ("Xpedite") as though such transaction occurred on January 1, 1997. The Company and Xpedite entered into a definitive merger agreement on November 13, 1997. Under the terms of the merger agreement, the Company exchanged its common shares for Xpedite's using an exchange ratio of 1.165 which valued Xpedite's shares at $34.00 per share and the Company's shares at $29.18 per share, its average trading price for the 20 trading days preceding the date on which Xpedite stockholders voted on the Merger. Certain income statement amounts in the proforma financial information of Xpedite have been reclassified to conform with the unaudited pro forma combined financial information presentation and disclosure practices of Premiere. The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and is not necessarily indicative of the financial position or results of operations that would have actually been reported had the acquisition of Xpedite occurred at the beginning of the period presented nor is it indicative of future financial position or results of operations. The unaudited pro forma combined financial information is based on the respective historical financial statements for Premiere and Xpedite and should be read in conjunction with the respective historical financial statements incorporated by reference herein. PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1997 (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) Pro Forma Pro Forma Adjustments Premiere/ Historical Historical Xpedite Xpedite Premiere Xpedite Merger Merger Revenues $229,352 $166,153 - $ 395,505 Costs of service 63,974 63,576 - 127,550 -------- -------- -------- --------- Gross Profit 165,378 102,577 - 267,955 Operating Expenses: Selling, general and administrative 101,308 68,983 - 170,291 Depreciation and amortization 17,074 11,289 73,172 (A) 101,535 Restructuring, merger costs and other special charges 73,597 16,502 - 90,099 Accrued settlement costs 1,500 150 - 1,650 -------- -------- -------- --------- Total operating expenses 193,479 96,924 73,172 363,575 -------- -------- -------- --------- Operating income (loss) (28,101) 5,653 (73,172) (95,620) Other income (expense): Interest, net (912) (2,546) - (3,458) Other, net 226 411 - 637 -------- -------- -------- --------- Total other income (expense) (686) (2,135) - (2,821) -------- -------- -------- --------- (Income) loss before income tax (28,787) 3,518 (73,172) (98,441) Income tax provision (benefit) (3,412) 1,407 (7,000) (B) (9,005) -------- -------- -------- --------- Net income (loss) before extraordinary item (25,375) 2,111 (66,172) (89,436) Extraordinary item - 577 - 577 -------- -------- -------- --------- Net income (loss) $(25,375) $ 1,534 $(66,172) $ (90,013) ======== ======== ======== ========= Basic net income (loss) per share $ (0.78) $ 0.17 $ (2.07) ======== ======== ========= Diluted net income (loss) per share $ (0.78) $ 0.17 $ (2.07) ======== ======== ========= Weighted average shares outstanding: Basic 32,443 8,994 1,992 (C) 43,429 Diluted 32,443 8,994 1,992 43,429 PREMIERE TECHNOLOGIES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED PROFORMA CONDENSED COMBINED STATEMENT OF OPERATIONS Pro Forma adjustments have been made to: (A) Reflect depreciation and amortization expense associated with the fair value of tangible and intangible assets acquired over the estimated useful lives of the associated assets. (B) Reflect income tax effects of proforma adjustments. (C) Reflect issuance of shares of Premiere common stock in exchange for all outstanding Xpedite common stock.