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Adams added, “During April, Rosetta Stone achieved an important companymilestone by successfully completing its initial public offering in the face ofa challenging stock market environment. There is a large and growing interest inlanguage learning among individuals and institutions alike, and Rosetta Stone isuniquely positioned to capitalize on this demand as a result of our innovativeapproach to language learning,” said Tom Adams, President and Chief ExecutiveOfficer of Rosetta Stone Inc. An explanation of thesemeasures is also included below under the heading “Non-GAAP Financial Measures.”"We are pleased with the company`s financial performance in the first quarter,which was highlighted by strong revenue growth, continued market share gains andexpanding profitability margins. Areconciliation of GAAP to non-GAAP results has been provided in the financialstatement tables included in this press release. Non-GAAP netincome, which excludes stock-based compensation expense and amortization ofintangibles, was $3.5 million, or $0.20 per share, as compared to non-GAAP netincome of $226,000, or $0.01 per share, in the prior year period. GAAP net income for thefirst quarter was $3.2 million, or $0.19 per share, compared to a GAAP net lossof $432,000, or $(0.23) per share, in the prior year period. Total revenue for the first quarter was $50.3 million, an increase of 41%,compared to $35.6 million in the prior year period.

ARLINGTON, Va.–(Business Wire)–Rosetta Stone Inc. (NYSE:RST) today announced financial results for thecompany`s fiscal first quarter ended March 31, 2009. (1) Average net AUM is calculated as a 2 point average for the quarters.Investors/analysts:GLG:Jeffrey RojekChief Financial Officer+1 212 224 orMichael HodesDirector of Public Markets+1 212 224 orMedia:Finsbury:Rupert Younger / Talia Druker+44 (0)20 7251 orAndy Merrill / Stephanie Linehan+ 1 212 303 Copyright Business Wire 2009. Note: Inflows over a period can distort performance figures when expressed as apercentage of opening net AUM Totals may not add up due to rounding. (2) See “Non-GAAP Financial Measures” for further detail.(3) Ratios annualized for quarterly information; ratios calculated using the 1Q2009 and 4Q 2008 average net AUM exclude the approximately $3.0 billion mandated with respect to the sub-advisory arrangement with Société Générale Asset Management UK which terminated upon the completion of its acquisition on April 3,2009 GLG Partners, Inc. 2 YTD returns are calculated on a dollar-weighted average basis as the compositeperformance of all constituent funds excluding managed accounts, funds of funds,the GLG Emerging Markets Special Situations Fund, the special asset funds, thePendragon funds and all SGAM UK funds GLG Partners, Inc. 1 YTD returns are calculated on a dollar-weighted average basis as the compositeperformance of all constituent funds excluding managed accounts, funds of funds,the GLG Emerging Markets Special Situations Fund, the special asset funds, thePendragon funds and all SGAM UK funds.

The non-GAAP financial measures presented by GLG may bedifferent from financial measures used by other companies. Investors should consider these non-GAAP financial measures in addition to, andnot as a substitute for, or superior to, measures of performance prepared inaccordance with GAAP. GLG also preparesforecasts for future periods on a basis consistent with these non-GAAP financialmeasures. In addition, GLG uses thesenon-GAAP financial measures in its evaluation of its core results of operationsand trends between fiscal periods and believes these measures are an importantcomponent of its internal performance measurement process. Non-GAAP weighted average fully dilutedshares is a non-GAAP financial measure that GLG uses internally to measure thenumber of shares on which it may elect to pay dividends plus the warrantsoutstanding under the treasury stock method.

In particular, GLG believes thatthe non-GAAP adjusted net income measure better represents economic income thandoes GAAP net (loss)/income primarily because of the adjustments described under”Non-GAAP Adjusted Net Income” above. GLG`s managementbelieves that non-GAAP financial measures also enhance comparisons of GLG`s coreresults of operations with historical periods. GLG is providing these non-GAAP financial measures to enable investors,securities analysts and other interested parties to perform additional financialanalysis of GLG`s personnel-related costs and its earnings from operations andbecause GLG believes that they will be helpful to investors in understanding allcomponents of personnel-related costs of GLG`s business. Non-GAAP Weighted Average Fully Diluted Shares: GLG`s management assessesbusiness performance per share based on the measure “non-GAAP weighted averagefully diluted shares,” which adjusts average fully diluted shares outstandingunder GAAP for (1) the unvested shares issued pursuant to our equityparticipation plan, which are recorded under GAAP as treasury shares, but uponwhich we will pay dividends to the extent we pay them on vested shares; and (2)unvested shares awarded under our 2007 Restricted Stock Plan and our 2007Long-Term Incentive Plan upon which we will pay dividends to the extent we paythem on vested shares.

Adjusted net income is not a measure offinancial performance under GAAP and should not be considered as an alternativeto GAAP net (loss)/income as an indicator of GLG`s operating performance or anyother measures of performance derived in accordance with GAAP. Compensation expense is only booked in accordance with SFAS 123(R) ondividends on unvested shares that are ultimately not expected to vest. GLG subtracts any compensation expense related to dividends paid on unvestedshares. Management believes that this non-cash charge to compensationexpense does not reflect GLG`s ongoing core business operations and compensationexpense and excludes such amounts for assessing GLG`s ongoing core businessperformance. Although there were no additional equity shares issued tothe principals and trustees as a result of the agreement, due to the serviceconditions contained in the agreement, GAAP requires a charge to compensation asthe service conditions are met for the fair value of those shares as of the dateof the agreement. The majority of the Acquisition-related compensation expense is the result ofthe accounting for an agreement among GLG’s principals and trustees concurrentwith the Acquisition.