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Management believes that these non-GAAP measures of financial resultsprovide useful information to investors regarding certain financial and businesstrends relating to the company`s financial condition and results of operations.Management uses these non-GAAP measures to compare the Company’s performance tothat of prior periods for trend analyses, for purposes of determining executiveincentive compensation, and for budgeting and planning purposes. In addition, they are subject to inherentlimitations as they reflect the exercise of judgments by management about whichexpenses and income are excluded from these non-GAAP financial measures. In order to compensate for these limitations, management presents its non-GAAPfinancial measures in connection with its GAAP results. Rosetta Stone urgesinvestors to review the reconciliation of its non-GAAP financial measures to thecomparable GAAP financial measures, which it includes in press releasesannouncing earnings information, including this press release, and not to relyon any single financial measure to evaluate the company’s business. Reconciliation tables of the most comparable GAAP financial measures to thenon-GAAP measures used in this press release are included at the end of thisrelease. Managementbelieves that the use of these non-GAAP financial measures provides anadditional tool for investors to use in evaluating ongoing operating results andtrends and in comparing the company’s financial measures with other softwarecompanies, many of which present similar non-GAAP financial measures toinvestors. Management does not consider these non-GAAP measures in isolation or as analternative to financial measures determined in accordance with GAAP.

Theprincipal limitation of these non-GAAP financial measures is that they excludesignificant expenses and income that are required by GAAP to be recorded in thecompany’s financial statements. These measuresare used in monthly financial reports prepared for management and in quarterlyfinancial reports presented to the company’s board of directors. * Adjusted EBITDA – Adjusted EBITDA, which excludes the impact of stock-basedcompensation expense, was $7.3 million, or 14.5% of revenues, for the firstquarter as compared to $2.2 million, or 6.3% of revenues, for the same period in2008. * Cash – Cash and Cash Equivalents at March 31, 2009 was $29.4 million, whichdoes not include approximately $34.2 million in net proceeds generated from thecompletion of the company`s initial public offering in April 2009.Non-GAAP Financial MeasuresThis press release contains four non-GAAP financial measures: non-GAAP netincome, non-GAAP net income per share, adjusted EBITDA, and non-GAAP operatingincome. Non-GAAP operating income, which excludesstock-based compensation expense and amortization of intangibles, was $6.0million for the first quarter, or 11.9% of revenues. This represented anincrease of $1.0 million, or 2.8% of revenues, for the same period in 2008. In managing ourbusiness, we analyze our performance quarterly on a consolidated income before income tax basis.

Our Boardof Directors and Management use consolidated EBITDA before share based compensation to evaluate the operating performance of the company and to makecompensation and bonus determinations, and our lenders use consolidated EBITDA before share based compensation as a measure of our ability to make interest payments and to comply with our debt covenants INTERSECTIONS INC. We believethat the consolidated EBITDA before share based compensation calculation providesuseful information to investors because they are indicators of our operating performance. Consolidated EBITDA before share based compensation is commonly usedas a basis for investors and analysts to evaluate and compare the periodic and future operating performance and value of companies within our industry. An explanation regarding the company`s use of non-GAAP financial measures and a reconciliation of non-GAAP financial measures usedby the company to GAAP measures is provided below. These non-GAAP financialmeasures should be considered in addition to, but not as a substitute for, net income and the other information prepared in accordance with GAAP, and may not becomparable to similarly titled measures reported by other companies.(1) Consolidated EBITDA before share based compensation, represents consolidated income before income taxes plus non-cash share based compensation, non-cashgoodwill, intangible and long-lived asset impairment charges, depreciation and amortization, interest income (expense), and other income (expense). ConsolidatedEBITDA before share based compensation is presented in a manner consistent withthe way management evaluates operating results and which management believes isuseful to investors and others. Reconciliation of Non-GAAP Financial Measures(dollars in thousands, except for per subscriber information) The table below includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well asother financial measures referred to as non-GAAP financial measures.

* Corporate online brand monitoring and enforcement solutions, provided by NetEnforcers, Inc., which investigates, monitors and reports on the violation andmisuse of proprietary information and products. * Security breach remediation, provided by Intersections to enable companies torespond to security incidents and mitigate potential damage to their employees,customers, and corporate brands. Intersections alsomarkets full identity theft protection solutions under its brand, IDENTITYGUARD®. Intersections` consumer identity theft protection services havesafeguarded more than 20 million consumers against identity theft. To address the growing threat of corporate fraud, Intersections and itssubsidiaries provide cutting edge identity risk management solutions including:* Pre-employment background screening, provided domestically through AmericanBackground Information Services, Inc., and internationally through Control RisksScreening Limited (London, United Kingdom) and Control Risks Screening(Singapore) Pte Ltd. Securities and Exchange Commission.The Company undertakes no obligationto revise or update any forward-looking statements.About UsIntersections Inc. (NASDAQ:INTX) is a leading global provider of consumer andcorporate identity risk management services.