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2009 Guidance

The company is providing updated guidance for fiscal 2009.

The company is reconfirming guidance for revenues in the range of $218-$223 million, or an increase of 27-30 percent over revenues in 2008. The company expects gross margins will be in the range of 59-60 percent, including depreciation of approximately $775,000 through the balance of the year related to the Goodman transition.

The company said it expects operating expenses for fiscal 2009 will be in the range of 67-69 percent of revenues. This includes stock-based compensation expense of approximately $13.0 million, intangible amortization of approximately $4.2 million and approximately $3.5 million in Goodman commissions.

Volcano expects to report a net loss of $0.38-$0.43 per share, which includes stock-based compensation of approximately $13.0 million and Goodman transition costs of approximately $4.3 million. Excluding such costs, the company expects to report a loss of $0.03-$0.08 per share. The company said its anticipated results for 2009 also reflect lower interest income and unfavorable currency exchange rates versus fiscal 2008. The company expects weighted average shares outstanding at year-end 2009 will be approximately 48.7 million basic shares and 50.0 million shares on a diluted basis.

Conference Call Information

The company will hold a conference call at 2:30 p.m., Pacific Daylight Time (5:30 p.m., Eastern Daylight Time), today. The teleconference can be accessed by calling (719) 325-4852, passcode 4962185, or via the company's website at http://w
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