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Purple Communications(TM) Announces Second Quarter 2009 Results
Date:8/14/2009

sses. We believe the next year will be transformative for the industry and Purple is excited to play an active role in helping bring about these developments to ensure that innovation thrives, that our industry is healthy and competitive, and that a clear regulatory path is charted for a broadband and IP-based era of telecommunications relay services for people who are deaf, hard of hearing, or speech impaired."

"The video relay industry is largely dominated by a single provider who has distributed over the past few years the majority of the physical devices used by deaf and hard of hearing customers to place calls. Service providers like Purple have historically been 'dial around' options where a customer would use the equipment of one provider but the service from another provider. With the recent advent of 10-digit numbering and customer registration, more providers are moving towards a 'managed end point' approach to the market. During the quarter, the Company introduced two such endpoints, a mobile video phone and a software based endpoint called P3 that works on Windows based computing devices with wireless connectivity, in an effort to provide functional equivalency to the deaf, hard of hearing and speech impaired consumers whether it be access from the home, mobile or workplace environment. Accordingly, while the Company saw an increase in volume coming from its endpoints it experienced a softening of demand from 'dial around' callers resulting in an overall loss of market share during this industry transition toward registered users. The Company will continue to aggressively distribute end points to the market as well as further invest in product development in an effort to bring innovative and practical solutions to our consumer base. These product and technology investments coupled with the transitional effects of the industry from a regulatory perspective will continue to impact revenue and profitability in the near term. As a result,
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SOURCE Purple Communications, Inc.
Copyright©2009 PR Newswire.
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