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Financials Boost Berliner Share Price

Revenue Increases 281% over Second Quarter of Fiscal 2007; EBITDA Increases to $10 Million

ELMWOOD PARK, N.J., Feb. 14 /PRNewswire-FirstCall/ -- Berliner Communications, Inc. (OTC Bulletin Board: BERL) ('Berliner') today announced financial results for the second quarter ended December 31, 2007. Highlights for the Second Quarter include:

    -- Revenue increased from $13.7 million in the second quarter of fiscal
       2007 to $52.1 million, representing a 281% increase;

    -- Gross Profit increased from $5.0 million in the second quarter of
       fiscal 2007 to $17.7 million, representing a 252% increase;

    -- EBITDA increased from $1.7 million in the second quarter of fiscal 2007
       to $10.1 million;

    -- Net income increased to $5.4 million, or $0.32 per basic and $0.21 per
       diluted share.

'Our record financial performance this quarter is based on one driving factor, our total commitment, at every level of our organization, to meeting our customers' needs,' said Rich Berliner, Berliner's Chairman and CEO. 'Our customers set extremely aggressive goals for the end of the calendar year, and I am proud of the huge effort our employees made to achieve these goals while maintaining our high quality standards. I truly feel we have assembled the best team in the industry, and our continued success this quarter is further evidence of that fact.'

'Historically, our second fiscal quarter is the strongest quarter of our fiscal year in terms of our financial performance, and we believe that this will also be true for fiscal 2008,' continued Mr. Berliner. 'This trend is a result of our customers pushing to complete projects by the end of their fiscal years, and also to complete outdoor projects before winter weather can impact building schedules in northern states. Therefore, while we expect to continue to show improved results for the third and fourth quarter of fiscal 2008 versus comparable periods of fiscal 2007, we do not expect our results for these quarters to match our extraordinary results for the second quarter of fiscal 2008.'

Berliner continued, 'Our carrier and OEM customers are building networks, on a large-scale, often nationwide, basis. When they hire a company to build a network, they need a company they can trust to do it right the first time, on schedule. Just as important, with the scope of today's projects, size matters. We have added assets and resources across the country, significantly improved our financial strength, and can now take advantage of economies of scale to effectively manage and support these large projects. We believe our size, financial stability and national presence make us particularly well positioned to assist the winners of the current FCC Auction. Couple that strength and size with our robust and diverse array of service offerings, and we believe we have a package that gives us a competitive advantage over our competition.'

Financial Results

Revenue for the company for the three months ended December 31, 2007 was $52.1 million, as compared with $13.7 million for the three months ended December 31, 2006. Berliner reported net income allocable to common shareholders of $5.4 million, or $0.32 per basic share and $0.21 per diluted share for the quarter, as compared to net income allocable to common shareholders of $1.2 million, or $0.07 per basic share and $0.06 per diluted share for the prior year period.

The increases in revenue during the second quarter of Fiscal 2008 included approximately $5.4 million attributable to our acquisitions during the third and fourth quarters of Fiscal 2007.

Interest expense increased from $26 thousand in the quarter ended December 31, 2006 to $0.3 million in the quarter ended December 31, 2007. This increase is due to interest on the convertible notes issued in December 2006 and February 2007 and the need to carry higher balances on our credit line to support our higher level of sales during the current quarter. Also, in the quarter ended December 31, 2007, we incurred $0.3 million in non-cash charges for amortization of deferred financing fees and accretion of debt discount, both of which are associated with the issuance of the convertible notes.

EBITDA, that is operating income with depreciation and loss from sale of fixed assets added back, increased from $1.7 million to $10.1 million in the second quarter of fiscal 2008 compared to the same period in the prior year. A reconciliation of EBITDA to income from operations follows: