Intrado Announces Second Quarter 2003 Results; Total Revenue of $30.2 Million; Earnings Per Diluted Share of $0.16; Free Cash Flow of $7.9 Million.

Business Editors/High-Tech Writers

LONGMONT, Colo.--(BUSINESS WIRE)--July 24, 2003

Intrado Inc. (NASDAQ: TRDO), the nation's leading provider of solutions that manage and deliver mission-critical information for telecommunications providers and public safety organizations, today announced its financial results for the second quarter ended June 30, 2003.

-- For the three months ended June 30, 2003, the Company reported

revenue of $30.2 million, up 14% from $26.4 million in the

second quarter last year.

-- Net income for the second quarter of 2003 was $2.6 million, or

$0.16 per fully diluted share. This compared to a net loss of

$2.9 million, or $0.19 per fully diluted share for the second

quarter of 2002, which reflected an inventory impairment

charge of $4.7 million or $0.31 per share. Net income of $2.6

million for the second quarter of 2003 includes income tax

expense of $1.4 million, a 35.5% effective tax rate.

-- Cash provided from operating activities for the second quarter

was $10.1 million, compared to $363,000 for the same period in

2002.

-- Free cash flow for the second quarter of 2003 was $7.9 million

(cash provided from operating activities of $10.1 million less

cash used in investing activities of $2.2 million), compared

to a negative $5.0 million for the same period in 2002 (cash

provided from operating activities of $363,000 less cash used

in investing activities of $5.4 million).

-- Intrado reiterates aggregate full-year 2003 guidance as

previously released in December 2002.

"This quarter has shown continued growth in revenue, net income and cash flow," said George Heinrichs, President and Chief Executive Officer of Intrado. "Again, we have delivered a solid quarter notwithstanding the challenging sector and economic environment. We remain committed to our long-term growth strategy and we believe the Company is well positioned to benefit from improvements in the sector and macroeconomic circumstances."

Recent Highlights

-- As recently announced in a Current Report on Form 8-K, Intrado

extended its 9-1-1 data management services agreement with a

major ILEC customer. The agreement, which was set to expire on

July 31, 2005, will continue until July 31, 2010.

-- During the quarter we presented our strategic initiative to

deliver a new infrastructure that will support the next

generation of 9-1-1 and public safety services. This next

generation architecture will support enhanced emergency

services and new applications, including homeland security and

homeland defense capabilities. Intrado's platform will also

provide customers with increased adaptability to changes in

telecommunication technology as well as opportunities to

reduce costs.

-- Intrado signed an agreement to provide a major cable and

telecommunications company with critical 9-1-1 data management

services. This agreement expands Intrado's presence in the

cable telephony market.

-- Intrado and Andrew Corporation, (NASDAQ: ANDW) announced that

Intrado Mobile Positioning Center/Gateway Mobile Location

Centers (MPC/GMLC), working in concert with GSM-compatible

Andrew Corporation Geometrix(R) Wireless Location Systems,

have been placed into commercial service and are providing

locations of GSM 9-1-1 wireless callers in multiple market

areas selected by a national cellular carrier.

-- Intrado's Wireless Group continued to add new customers to its

E9-1-1 services -- growing our overall customer base to over

40 customers including 15 served through State agency

contracts, reaffirming Intrado's leadership position in

wireless E9-1-1 Phase I and Phase II services.

-- Intrado entered into an agreement with a major ILEC customer

to jointly market IntelliCast(SM) Target Notification

services.

-- Intrado implemented five new customers representing 336,000

telephone number records to our installed base for IntelliCast

Target Notification services.

Business Performance Summary

Wireline: Revenue increased to $20.2 million in the second quarter of 2003, up 1.5% from $19.9 million in the second quarter of 2002. Direct costs were $9.3 million in the second quarter of 2003, down from $9.9 million in the same period in 2002 and down from $10.3 million in the first quarter of 2003. The decrease in direct costs from Q1 2003 to Q2 2003 is primarily due to higher cost of systems equipment sold in the first quarter and lower maintenance and facility costs in the second quarter.

Wireless: Revenue increased to $9.6 million in the second quarter of 2003, up 55% from $6.2 million in the second quarter of 2002 and up 11% from $8.6 million in the first quarter of 2003. Direct costs were $5.1 million in the second quarter, down slightly from $5.3 million in the first quarter of 2003, but up from the $3.6 million for the second quarter of 2002. The year-over-year increase from $3.6 million in 2002 to $5.1 million in 2003 is primarily a function of the increase in revenue and additional support and implementation costs associated with a larger customer base. The slight decrease in direct costs from $5.3 million in the first quarter of 2003 to $5.1 million in the second quarter is primarily a result of operational efficiencies, improved business processes and an increase in sales of higher-margin professional services and software enhancements the second quarter of 2003.

New Markets:

Revenue increased to $383,000 in the second quarter of 2003, up 53% from $251,000 in the second quarter of 2002. Direct costs were $1.2 million in the second quarter of 2003, up from $500,000 in the same period in 2002, but flat with the $1.2 million of direct costs reported in the first quarter of 2003.

Indirect Overhead Expenses:

Total indirect overhead expenses decreased to $10.3 million in the second quarter of 2003 (defined as indirect business unit costs of $4.4 million and corporate overhead of $5.9 million), down 31% from $14.9 million in the second quarter of 2002 (defined as indirect business unit costs of $4.0 million, corporate overhead of $6.2 million and inventory impairment of $4.7 million). Total indirect overhead expenses for the first quarter of 2003 were $11.1 million (defined as indirect business unit costs of $4.9 million and corporate overhead of $6.2 million). The decrease of $800,000, from $11.1 million in Q1 2003 to $10.3 million in Q2 2003 is primarily attributable to cost-control initiatives in various areas and a decrease in external costs to support various initiatives.

Intrado finished the quarter with $26.1 million in cash, up $10.6 million from $15.5 million at March 31, 2003. The increase in cash was primarily a function of net cash provided by operating activities in the second quarter of $10.1 million, partially offset by ongoing investments in software development projects of $1.1 million and capital expenditures of $1.1 million. In addition, we received $3.9 million of cash through a new three-year term loan with GE Capital.

As of June 30, 2003, Intrado recorded the final additional obligation in preferred stock of $7.5 million related to the acquisition of Lucent Public Safety Systems in 2001, for a total obligation of $12.8 million. The preferred stock will be redeemed in cash over the next 24 months and the Company will impute interest of $855,000 over the redemption period.

Days' sales outstanding were 54 days at June 30, 2003, compared to 59 days for the quarter ending June 30, 2002.

As of June 30, 2003, Intrado had $9.0 million available under its revolving line of credit with GE Capital and an additional $8.0 million under existing capital lease facilities.

Third Quarter 2003 Outlook

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially from current expectations.

Intrado's expectations for third quarter 2003 revenue range between $31.7 million and $32.5 million.

Our third quarter 2003 expectations for net income range between $2.8 and $3.1 million, with an estimated effective tax rate of 35.5%. On a diluted basis, third quarter 2003 earnings per share is expected to range between $0.16 and $0.19 per share on a projected share base of 16.8 million.

Intrado anticipates that free cash flow will range between $5.8 million and $6.0 million in the third quarter of 2003, consisting of net cash provided by operating activities between $9.5 million and $9.7 million less estimated capital expenditures of $2.4 million and estimated capitalized software development costs of $1.3 million.

Additionally, Intrado provides the following performance guidance for each of its three business units and for indirect overhead expenses:

Wireline:

Expectations for third quarter 2003 revenue range between $20.1 and $20.5 million. Direct costs and expenses are estimated to be approximately $9.6 million.

Wireless:

Outlook for third quarter revenue ranges between $11.0 and $11.2 million. Direct costs and expenses are estimated to be approximately $5.9 million.

New Markets:

Outlook for third quarter revenue is approximately $0.6 million to $0.8 million. Direct costs and expenses are estimated to be approximately $1.6 million.

Corporate:

Outlook for third quarter direct costs and expenses are estimated to be approximately $0.6 million.

Indirect Overhead Expenses:

Intrado expects third quarter 2003 indirect overhead expenses to be approximately $9.5 million.

Conference Call Webcast

Intrado will be hosting a live broadcast over the Internet of the previously announced conference call on July 24, 2003, at 4:30 p.m. EDT, 2:30 p.m. MDT, and 1:30 p.m. PDT to discuss second quarter 2003 results. To participate, access the Company's Web site at www.intrado.com and click on the Intrado Q2 Earnings Call Webcast button under the caption "Headlines."

About Intrado

Founded in 1979, Intrado Inc. (NASDAQ: TRDO) is pioneering the technology of Informed Response(R) by providing telecommunications companies and public safety organizations with accurate, efficiently delivered, mission-critical information--enabling them to respond effectively, anywhere and anytime.

The Company's unparalleled industry knowledge in systems engineering of complex, integrated data and telephony environments and critical operations management reduces the effort, cost and time associated with providing reliable communications information for 9-1-1, safety and commercial applications. Intrado has received International Organization of Standardization (ISO) 9001-2000 certification. To receive Intrado press releases and Company updates via e-mail, please register at the Company's Web site: www.intrado.com.

Note Concerning Non-GAAP Financial Measures

Certain of the information set forth herein, including total indirect overhead expenses and free cash flow, may be considered non-GAAP financial measures. Intrado believes this information, along with comparable GAAP measurements, is useful to investors because it provides a basis for measuring our operating performance, ability to retire debt and invest in new business opportunities. Intrado's management uses these financial measures, along with the most directly comparable GAAP financial measures, in evaluating the Company's operating performance and capital resources. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-GAAP financial measures as reported by Intrado may not be comparable to similarly titled amounts reported by other companies.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995

Statements in this announcement that are not historical facts are hereby identified as forward-looking statements for the purpose of the safe harbor provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this announcement. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated in forward-looking statements.

The forward-looking statements included in this announcement are necessarily estimates reflecting the best judgment of senior management. Although we believe that these forward-looking statements are reasonable, we cannot promise that they will turn out to be correct. Our actual results could be materially different from our expectations due to a variety of risks and uncertainties, including the following:

-- Our reliance on large contracts from a limited number of

significant telecommunications customers and, especially in

light of recent competitive pressures in the

telecommunications industry, their ability to pay for our

services;

-- Fluctuations in quarterly operating results, including those

that are due to adverse trends in the telecommunications

industry, bankruptcy filings by WorldCom and other customers,

and other factors that are beyond our control;

-- Whether our investments in research and development and

capitalized software will expand our service offerings and

prove to be economically viable;

-- Our ability to retain key executives, particularly George K.

Heinrichs, our co-founder, President, Chief Executive Officer

and Chairman of the Board;

-- Competition in service, price and technological innovation

from entities with substantially greater resources than us;

-- Our ability to integrate businesses and assets that we may

acquire;

-- Constraints on our sales and marketing channels due to the

fact that many of our customers compete with each other;

-- Our ability to accurately predict and recoup the large amount

of up-front expenditures necessary to serve new customers and

possible delays in sales cycles;

-- Our ability to expand our services beyond our traditional

business and into the highly competitive data management

industry, such as our proposed IntelliBase(SM) National

Repository Line Level Database and IntelliCast(SM) Target

Notification services;

-- The unpredictable rate of adoption of wireless 9-1-1 services,

including further delays in the Federal Communications

Commission's mandated deployment of Phase I and Phase II

wireless location services;

-- The potential for liability claims, including product

liability claims relating to our software;

-- Technical difficulties and network downtime, including those

caused by sabotage or unauthorized access to our systems;

-- Developments in telecommunications regulation and the

unpredictable manner in which existing or new legislation and

regulation may be applied to our business; and

-- Developments in governance, accounting and financial

regulation and their unpredictable impact on general and

administrative expenses.

This list is intended to identify some of the principal factors that could cause actual results to differ materially from those described in the forward-looking statements included elsewhere in this announcement. These factors are not intended to represent a complete list of all risks and uncertainties inherent in our business, and should be read in conjunction with the more detailed risk factors included in our SEC filings. Except for our ongoing obligations to disclose material information under U.S. federal securities laws, we undertake no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this announcement or to reflect the occurrence of unanticipated events.

                            INTRADO INC.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
             (Dollars in Thousands, Except Per Share Data)
                              (Unaudited)

                         THREE MONTHS ENDED       SIX MONTHS ENDED
                              JUNE 30,                JUNE 30,
                          2003        2002        2003        2002
                       ----------- ----------- ----------- -----------

Revenue:
   Wireline business
    unit                  $20,178     $19,945     $41,049     $39,154
   Wireless business
    unit                    9,590       6,188      18,216      11,061
   New markets business
    unit                      383         251         755         408
                       ----------- ----------- ----------- -----------
      Total revenue        30,151      26,384      60,020      50,623

Costs and expenses:
   Wireline business
    unit direct costs       9,293       9,942      19,580      19,222
   Wireless business
    unit direct costs       5,137       3,592      10,393       7,053
   New markets business
    unit direct costs       1,160         499       2,375         870
   Indirect business
    unit costs              4,357       3,950       9,219       8,282
  Corporate overhead        5,895       6,249      12,142      12,504
   Inventory impairment         0       4,697           0       4,697

                       ----------- ----------- ----------- -----------
     Total costs and
      expenses             25,842      28,929      53,709      52,628
                       ----------- ----------- ----------- -----------
Income (loss) from
 operations                 4,309      (2,545)      6,311      (2,005)

Other income (expense):
   Interest and other
    income                     53          38          88          95
   Interest and other
    expense                  (356)       (371)       (622)       (655)
                       ----------- ----------- ----------- -----------
Net income (loss)
 before income taxes        4,006      (2,878)      5,777      (2,565)

Income tax expense          1,422           -       2,051           -

                       ----------- ----------- ----------- -----------
Net income (loss)          $2,584     $(2,878)     $3,726     $(2,565)
                       =========== =========== =========== ===========

Net income (loss)
 per share:
   Basic                    $0.17      $(0.19)      $0.24      $(0.17)
                       =========== =========== =========== ===========
   Diluted                  $0.16      $(0.19)      $0.23      $(0.17)
                       =========== =========== =========== ===========

Shares used in
 computing net income
 (loss) per share:
   Basic               15,540,614  15,188,153  15,542,809  15,171,230
                       =========== =========== =========== ===========
   Diluted             16,353,153  15,188,153  16,101,629  15,171,230
                       =========== =========== =========== ===========



                             INTRADO INC.
                     CONSOLIDATED BALANCE SHEETS
                        (Dollars in Thousands)

                                               June 30,   December 31,
                                                 2003         2002
                                             ------------ ------------
                                             (Unaudited)

                   ASSETS
Current assets:
     Cash and cash equivalents                   $26,111      $12,895
     Accounts receivable, net of allowance
      for doubtful accounts of approximately
      $540 and $589, respectively                 15,938       14,900
     Unbilled revenue                              1,616        6,165
     Inventory                                       321          382
     Prepaids and other                            1,401        1,762
     Deferred contract costs                       4,092        3,196
     Deferred income taxes-current portion         9,892        4,091

                                             ------------ ------------
              Total current assets                59,371       43,391
                                             ------------ ------------

Property and equipment, net                       27,116       30,277
Goodwill, net of accumulated amortization of
 $1,394                                           24,517       11,716
Other intangibles, net of accumulated
 amortization of $4,998 and $3,823,
 respectively                                      6,760        7,934
Deferred income taxes                              1,291        8,916
Deferred contract costs                            2,634        2,710
Software development costs, net                   12,186       11,760
Other assets                                         647          676

                                             ------------ ------------
              Total assets                      $134,522     $117,380
                                             ============ ============

    LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
     Accounts payable and accrued liabilities     $9,595       $8,646
     Current portion of capital lease
      obligations                                  2,764        3,131
     Current portion of note payable               4,250          917
     Payable to Lucent                                 -        2,395
     Mandatorily redeemable preferred stock
      payable                                      8,849            -
     Deferred contract revenue                    14,140       10,280

                                             ------------ ------------
               Total current liabilities          39,598       25,369
                                             ------------ ------------

Capital lease obligations, net of current
 portion                                           1,285        2,689
Line of credit                                     2,000        8,000
Deferred rent, net of current portion              1,497        1,424
Notes payable, net of current portion              8,083        1,833
Mandatorily redeemable preferred stock
 payable                                           4,021            -
Deferred contract revenue                          6,617       12,346

                                             ------------ ------------
              Total liabilities                   63,101       51,661
                                             ------------ ------------

Stockholders' equity:
     Common stock                                     16           15
     Additional paid-in-capital                   82,911       80,936
     Accumulated deficit                         (11,506)     (15,232)
                                             ------------ ------------
               Total stockholders' equity         71,421       65,719

                                             ------------ ------------
               Total liabilities and
                stockholders' equity            $134,522     $117,380
                                             ============ ============



                             INTRADO INC.
                             CONSOLIDATED
                        STATEMENTS OF CASH FLOW
                        (Dollars in Thousands)
                              (Unaudited)

                                    THREE MONTHS      SIX MONTHS ENDED
                                    ENDED JUNE 30,        JUNE 30,
                                  -----------------  -----------------
                                    2003     2002      2003     2002
                                  -------- --------  -------- --------

Cash flows from operating
 activities:
Net income (loss)                  $2,584  $(2,878)   $3,726  $(2,565)
Adjustments to reconcile net
 income to net cash provided by
 (used in) operating activities-
   Depreciation and amortization    4,036    2,250     8,068    4,247
   Tax benefit for stock option
    exercises                         166        -       226        -
   Stock-based compensation            54       37        54       68
   Inventory impairment                 -    4,697         -    4,697
   Other adjustments                  (89)     (18)      (32)     163
   Accretion of interest on
    mandatorily redeemable
    preferred stock payable            69        -        69        -
Change in-
   Accounts receivable and
    unbilled revenue                1,838   (7,079)    3,560   (2,806)
   Inventory                           41        -        61    1,369
   Prepaids and other                 309      114       390   (1,995)
   Deferred contract costs           (622)     (44)     (820)     596
   Deferred income taxes            1,255        -     1,824        -
   Accounts payable and accrued
    liabilities                       108      600     1,475   (3,410)
   Deferred revenue                   395    2,684    (1,869)   1,366
                                  -------- --------  -----------------
Net cash provided by operating
 activities                        10,144      363    16,732    1,730

Cash flows from investing
 activities:
   Acquisition of property and
    equipment                      (1,134)  (1,825)   (2,063)  (4,711)
   Investment in TechnoCom              -     (500)        -     (500)
   Capitalized software
    development costs              (1,102)  (3,051)   (2,530)  (5,208)
                                  -------- --------  -----------------
Net cash used in investing
 activities                        (2,236)  (5,376)   (4,593) (10,419)

Cash flows from financing
 activities:
   Principal payments on capital
    lease obligations                (930)  (1,498)   (1,807)  (2,461)
   Repayments on note payable and
    Lucent inventory payable       (1,349)       -    (2,712)       -
   Proceeds from line of credit         -    3,000         -    3,000
   Proceeds from notes payable      3,900        -     3,900        -
   Proceeds from exercise of
    options, warrants and
    employee stock purchase plan    1,055    1,383     1,696    1,546
                                  -------- --------  -------- --------
Net cash provided by financing
 activities:                        2,676    2,885     1,077    2,085
Net increase (decrease) in cash
 and cash equivalents              10,584   (2,128)   13,216   (6,604)
Cash and cash equivalents,
 beginning of period               15,527   11,240    12,895   15,716
                                  -------- --------  -------- --------
Cash and cash equivalents, end of
 period                           $26,111   $9,112   $26,111   $9,112
                                  ======== ========  ======== ========

Supplemental schedule of noncash
 financing and investing
 activities:
Property acquired with capital
 leases                                $-   $1,414       $36   $2,870
                                  ======== ========  ======== ========