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July 22, 2009 at 13:34 PM EDT
Bankrate Announces Preliminary Second Quarter Fiscal 2009 Results

NEW YORK, July 22 /PRNewswire-FirstCall/ -- Bankrate, Inc. (Nasdaq: RATE) today announced preliminary financial results for the second quarter of fiscal 2009 ended June 30, 2009.

(Logo: http://www.newscom.com/cgi-bin/prnh/20040122/FLTHLOGO)

Total revenue for the second quarter is expected to be $31.0 million compared to $40.2 million reported in the second quarter of 2008, a decrease of 23%. Net income is expected to be $1.9 million or $0.10 per fully diluted share in the second quarter of 2009, compared to $4.1 million, or $0.21 per fully diluted share in the second quarter of 2008. Earnings per fully diluted share, excluding share-based compensation expense ("Adjusted EPS"), is expected to be $0.19 for the second quarter of 2009, compared to Adjusted EPS of $0.33 for the second quarter of 2008.

Earnings before interest, taxes, depreciation, and amortization, excluding share-based compensation expense ("Adjusted EBITDA"), are expected to be $9.4 million in the second quarter of 2009 compared to $12.8 million in the second quarter of 2008, a decline of 26%. Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the second quarter of 2009, including share-based compensation expense are expected to be $6.7 million compared to the $9.0 million reported in the second quarter of 2008.

"Macroeconomic conditions have continued to impact financial advertising, particularly in our banking, mortgage and credit card channels," said Thomas R. Evans, President and CEO of Bankrate, Inc. "The softness in the financial service advertising sector has been a major contributor to our recent results. Consequently, we believe that revenue and EBITDA for the year will be well below the current consensus estimates," Mr. Evans added.

The second quarter 2009 estimated results are preliminary and subject to completion of the Company's quarterly closing process and the customary review by its external auditors. Accordingly, such estimated results are subject to change. Bankrate will release its full financial second quarter 2009 results on July 30, 2009.

In a separate press release also issued today, Bankrate announced that it has agreed to be acquired by funds advised by Apax Partners for $28.50 per share in cash.

Non-GAAP Measures

To supplement Bankrate's financial statements presented in accordance with generally accepted accounting principles ("GAAP"), Bankrate uses non-GAAP measures of certain components of financial performance, including EBITDA, Adjusted EBITDA, Adjusted EPS and Operating EPS, which are adjusted from results based on GAAP to exclude certain expenses, gains and losses. These non-GAAP measures are provided to enhance investors' overall understanding of Bankrate's current financial performance and its prospects for the future. Specifically, Bankrate believes the non-GAAP results provide useful information to both management and investors by excluding certain expenses, gains and losses that may not be indicative of its core operating results. In addition, because Bankrate has historically reported certain non-GAAP results to investors, Bankrate believes the inclusion of non-GAAP measures provides consistency in its financial reporting. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measures included in this press release have been reconciled to the nearest GAAP measure.

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

Certain matters included in the discussion above may be considered to be "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of the Company and members of our management team. Such forward-looking statements include, without limitation, statements made with respect to future revenue, revenue growth, market acceptance of our products, and profitability. Investors and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-looking statements include the following: the willingness of our advertisers to advertise on our web site, interest rate volatility, our ability to establish and maintain distribution arrangements, our ability to integrate the operations and realize the expected benefits of businesses that we have acquired and may acquire in the future, our ability to maintain the confidence of our advertisers by detecting click-through fraud or unscrupulous advertisers, the effect of unexpected liabilities we assume from our acquisitions, the effects of expanding our operations internationally, the ability of consumers to access our Online Network through non-PC devices, our ability to manage traffic on our Online Network and service interruptions, increased competition and its effect on traffic, advertising rates, margins and market share, our ability to protect our intellectual property, the effects of facing liability for content on our Online Network, the concentration of ownership of our common stock, the fluctuations of our results of operations from period to period, the accuracy of our financial statement estimates and assumptions, our ability to adapt to technological changes, the impact of legislative or regulatory changes affecting our business, changes in consumer spending and saving habits, changes in accounting principles, policies, practices or guidelines, effects of changes in the stock market and other capital markets, the strength of the United States economy in general, and risks to the consummation of Bankrate's pending acquisition by affiliates of Apax Partners, L.P., including the risk that a condition to closing of such transaction may not be satisfied. These and additional important factors to be considered are set forth under "Introductory Note," "Item 1A. Risk Factors," "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the other sections of our Annual Report on Form 10-K for the year ended December 31, 2007, and in our other filings with the Securities and Exchange Commission. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results or expectations.

About Bankrate, Inc.

The Bankrate network of companies includes Bankrate.com, Interest.com, Mortgage-calc.com, Nationwide Card Services, Savingforcollege.com, Fee Disclosure, InsureMe, CreditCardGuide.com and Bankaholic.com. Each of these businesses helps consumers make informed decisions about their personal finance matters. The company's flagship brand, Bankrate.com is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. Bankrate.com is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. Bankrate.com reviews more than 4,800 financial institutions in 575 markets in 50 states. In 2008, Bankrate.com had nearly 72 million unique visitors. Bankrate.com provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: TWX), The Wall Street Journal and The New York Times (NYSE: NYT). Bankrate.com's information is also distributed through more than 500 newspapers.

www.bankrate.com

- Financial Statements Follow -

    For more information contact: Bruce J. Zanca
    Senior Vice President, Chief Marketing and Communications Officer
    bzanca@bankrate.com
    (917) 368-8648

                                   Bankrate, Inc.
                   Condensed Consolidated Balance Sheets
                                  (Unaudited)
                   (In thousands, except share and per share data)

                                June 30,   December 31,
                                  2009         2008
                                  ----         ----
        Assets

      Cash and cash
       equivalents              $55,089      $46,055
      Accounts receivable, net
       of allowance
       for doubtful accounts
       of approximately
       $964 and $1,566
       at June 30, 2009
       and December 31,
       2008, respectively        15,181       22,567
      Deferred income
       taxes, current
       portion                      816          816
      Prepaid expenses
       and other current
       assets                     1,614        1,608
                                  -----        -----
        Total current
         assets                  72,700       71,046

      Furniture,
       fixtures and
       equipment, net             6,939        2,521
      Deferred income
       taxes                      7,413        7,413
      Intangible
       assets, net               78,077       83,347
      Goodwill                  101,886      101,856
      Other assets                  712        4,567
                                    ---        -----

        Total assets           $267,727     $270,750
                               ========     ========

        Liabilities and Stockholders' Equity

      Liabilities:
        Accounts payable         $2,993       $3,723
        Accrued expenses          4,371        5,665
        Acquisition earn-out
         liability                    -       11,750
        Deferred revenue            953        1,018
        Other current
         liabilities                  5           16
                                    ---          ---
        Total current
         liabilities              8,322       22,172

      Other liabilities             153          148
                                    ---          ---

        Total liabilities         8,475       22,320
                                  -----       ------

      Stockholders' equity:
         Preferred stock,
          10,000,000 shares
          authorized and
          undesignated                -            -
         Common stock, par value
          $.01 per share --
          100,000,000 shares
          authorized;
          18,885,504 and
          18,816,986 shares
          issued and
          outstanding at
          June 30, 2009 and
          December 31,
          2008, respectively        189          188
        Additional-paid
         in capital             224,122      219,294
        Retained
         earnings                34,941       28,948
                                 ------       ------
        Total
         stockholders'
         equity                 259,252      248,430
                                -------      -------

        Total
         liabilities and
         stockholders'
         equity                $267,727     $270,750
                               ========     ========



                              Bankrate, Inc.
             Condensed Consolidated Statements of Income
                               (Unaudited)
           (In thousands, except share and per share data)

                                      Three Months Ended     Six Months Ended
                                           June 30,              June 30,
                                       2009       2008       2009       2008
                                       ----       ----       ----       ----
      Revenue                       $31,027    $40,193    $69,364    $82,656
      Cost of revenue (1)            12,907     17,359     27,902     33,766
                                     ------     ------     ------     ------
      Gross margin                   18,120     22,834     41,462     48,890
                                     ------     ------     ------     ------

      Operating expenses (1):
        Sales                         2,187      2,207      4,621      4,285
        Marketing                     2,170      3,115      4,647      5,943
        Product development           1,837      1,890      3,654      3,591
        General and
         administrative               5,259      6,580     10,772     13,370
        Depreciation and
         amortization                 3,344      2,246      6,327      4,043
                                      -----      -----      -----      -----
                                     14,797     16,038     30,021     31,232
                                     ------     ------     ------     ------
        Income from operations        3,323      6,796     11,441     17,658

      Interest income                    16        360         26      1,206
                                         --        ---         --      -----

        Income before income
         taxes                        3,339      7,156     11,467     18,864
      Income tax expense              1,409      3,077      4,822      7,951
                                      -----      -----      -----      -----
        Net income                   $1,930     $4,079     $6,645    $10,913
                                     ======     ======     ======    =======

      Basic and diluted net
       income per share:
        Basic                         $0.10      $0.22      $0.35      $0.58
                                      =====      =====      =====      =====
        Diluted                       $0.10      $0.21      $0.34      $0.55
                                      =====      =====      =====      =====

        Shares used in
        computing
         basic net income
        per share                18,824,428 18,907,321 18,816,667 18,893,682
        Shares used in computing
         diluted net income per
         share                   19,379,325 19,557,759 19,296,985 19,678,146

        Includes share-based
        compensation expense
         as follows:

        Cost of revenue                $352       $618       $724     $1,221
        Other expenses:
          Sales                         533        525      1,112      1,020
          Marketing                     152        204        330        401
          Product development           175        287        408        554
          General and
           administrative             1,547      2,105      2,196      3,959
                                      -----      -----      -----      -----
                                     $2,759     $3,739     $4,770     $7,155
                                     ======     ======     ======     ======



                                 Bankrate, Inc.
              Non-GAAP Condensed Consolidated Statements of Income
                                   (Unaudited)
                 (In thousands, except share and per share data)

                                   Three Months Ended     Six Months Ended
                                        June 30,              June 30,
                                     2009       2008       2009       2008
                                     ----       ----       ----       ----
      Revenue                     $31,027    $40,193    $69,364    $82,656
      Cost of revenue              12,555     16,741     27,178     32,545
                                   ------     ------     ------     ------
      Gross margin                 18,472     23,452     42,186     50,111
                                   ------     ------     ------     ------

      Operating expenses:
        Sales                       1,654      1,682      3,509      3,265
        Marketing                   2,018      2,911      4,317      5,542
        Product development         1,662      1,603      3,246      3,037
        General and
         administrative             3,712      4,475      8,576      9,411
        Share-based
         compensation expense
         (1)                        2,759      3,739      4,770      7,155
        Depreciation and
         amortization               3,344      2,246      6,327      4,043
                                    -----      -----      -----      -----
                                   15,149     16,656     30,745     32,453
                                   ------     ------     ------     ------
        Income from operations      3,323      6,796     11,441     17,658

      Interest income                  16        360         26      1,206
                                       --        ---         --      -----

        Income before income
         taxes                      3,339      7,156     11,467     18,864
      Income tax expense            1,409      3,077      4,822      7,951
                                    -----      -----      -----      -----
        Net income                 $1,930     $4,079     $6,645    $10,913
                                   ======     ======     ======    =======

      Basic and diluted net
       income per share:
        Basic                       $0.10      $0.22      $0.35      $0.58
                                    =====      =====      =====      =====
        Diluted                     $0.10      $0.21      $0.34      $0.55
                                    =====      =====      =====      =====

      Adjusted EPS                  $0.19      $0.33      $0.50      $0.78
                                    =====      =====      =====      =====

        Shares used in
         computing basic net
         income per share,
         GAAP basis            18,824,428 18,907,321 18,816,667 18,893,682
        Shares used in
         computing diluted
         net income per
         share, GAAP basis     19,379,325 19,557,759 19,296,985 19,678,146
        Shares used in
         computing diluted
         net income per
         share, Non-GAAP basis 19,658,662 19,909,843 19,623,275 19,898,715


     (1)  See reconciliation of GAAP to Non-GAAP Condensed Consolidated
          Statements of Income.



                           Bankrate, Inc.
                 Non-GAAP Measures Reconciliation
          (In thousands, except share and per share amounts)
                           (Unaudited)

                                   Three Months Ended       Six Months Ended
                                         June 30,                June 30,
                                     2009        2008        2009        2008
                                     ----        ----        ----        ----
        EBITDA-
        Income from
         operations, GAAP
         basis                     $3,323      $6,796     $11,441     $17,658
        Depreciation and
         amortization               3,344       2,246       6,327       4,043
                                    -----       -----       -----       -----
        EBITDA                     $6,667      $9,042     $17,768     $21,701
                                   ======      ======     =======     =======

        Adjusted EBITDA-
        Income from
         operations, GAAP
         basis                     $3,323      $6,796     $11,441     $17,658
        Share-based
         compensation expense       2,759       3,739       4,770       7,155
        Depreciation and
         amortization               3,344       2,246       6,327       4,043
                                    -----       -----       -----       -----
        Adjusted EBITDA            $9,426     $12,781     $22,538     $28,856
                                   ======     =======     =======     =======

        Adjusted EPS-
        Net income, GAAP
         basis                     $1,930      $4,079      $6,645     $10,913
        Share-based
         compensation expense,
         net of tax                 1,729       2,458       3,097       4,698
                                    -----       -----       -----       -----
        Net income excluding
         share-based
         compensation expense      $3,659      $6,537      $9,742     $15,611
                                   ======      ======      ======     =======

        Adjusted EPS                $0.19       $0.33       $0.50       $0.78
                                    =====       =====       =====       =====

        Operating EPS-
        Net income, GAAP
         basis                     $1,930      $4,079      $6,645     $10,913
        Share-based
         compensation expense,
         net of tax                 1,729       2,458       3,097       4,698
        Intangibles
         amortization, net of
         tax                        1,571       1,173       3,163       2,045
        Interest income, net
         of tax                       (10)       (216)        (16)       (724)
                                      ---        ----         ---        ----
        Net income excluding
         share-based compensation
         expense, intangibles
         amortization and
         interest income           $5,221      $7,494     $12,890     $16,933
                                   ======      ======     =======     =======


        Operating EPS               $0.27       $0.38       $0.66       $0.85
                                    =====       =====       =====       =====

        Shares used in
         computing basic net
         income per share,
         GAAP basis            18,824,428  18,907,321  18,816,667  18,893,682
                               ==========  ==========  ==========  ==========

        Shares used in
         computing diluted net
         income per share,
         GAAP basis            19,379,325  19,557,759  19,296,985  19,678,146
        Impact of applying
         SFAS No. 123R            279,337     352,084     326,290     220,569
                                  -------     -------     -------     -------
        Shares used in
         computing diluted net
         income per share,
         excluding the
         impact of applying
         SFAS No. 123R         19,658,662  19,909,843  19,623,275  19,898,715
                               ==========  ==========  ==========  ==========



    Bankrate, Inc.
    Condensed Consolidated Statements of Income
    Reconciliation of GAAP to Non-GAAP Condensed Consolidated
    Statements of Income
    (Unaudited)
    (In thousands, except share and per share data)

                                          Three Months Ended
                                             June 30, 2009
                                   GAAP    Adjustments (1)   Non-GAAP
                                   ----    ---------------   --------
      Revenue                     $31,027              $-     $31,027
      Cost of revenue:             12,907            (352)     12,555
                                   ------            ----      ------
      Gross margin                 18,120             352      18,472
                                   ------             ---      ------

      Operating expenses:
        Sales                       2,187            (533)      1,654
        Marketing                   2,170            (152)      2,018
        Product development         1,837            (175)      1,662
        General and
         administrative             5,259          (1,547)      3,712
        Share-based
         compensation expense           -           2,759       2,759
        Depreciation and
         amortization               3,344               -       3,344
                                   ------             ---      ------
                                   14,797             352      15,149
                                   ------            ----      ------
        Income from operations      3,323               -       3,323

      Interest income, net             16               -          16
                                    -----            ----       -----

        Income before income
         taxes                      3,339               -       3,339
      Provision for income
       taxes                        1,409               -       1,409
                                   ------            ----      ------
        Net income                 $1,930              $-      $1,930
                                   ======            ====      ======

      Basic and diluted net income per share:
        Basic                       $0.10              $-       $0.10
                                    =====            ====       =====
        Diluted                     $0.10              $-       $0.10
                                    =====            ====       =====

        Shares used in
         computing basic net
         income per share      18,824,428               -  18,824,428
        Shares used in
         computing diluted net
         income per share      19,379,325         279,337  19,658,662



                                          Three Months Ended
                                             June 30, 2008
                                   GAAP    Adjustments (1)   Non-GAAP
                                   ----    ---------------   --------
      Revenue                     $40,193              $-     $40,193
      Cost of revenue:             17,359            (618)     16,741
                                   ------            ----      ------
      Gross margin                 22,834             618      23,452
                                   ------             ---      ------

      Operating expenses:
        Sales                       2,207            (525)      1,682
        Marketing                   3,115            (204)      2,911
        Product development         1,890            (287)      1,603
        General and
         administrative             6,580          (2,105)      4,475
        Share-based
         compensation expense           -           3,739       3,739
        Depreciation and
         amortization               2,246               -       2,246
                                    -----               -       -----
                                   16,038             618      16,656
                                   ------             ---      ------
        Income from operations      6,796               -       6,796

      Interest income, net            360               -         360
                                      ---               -         ---

        Income before income
         taxes                      7,156               -       7,156
      Provision for income
       taxes                        3,077               -       3,077
                                    -----               -       -----
        Net income                 $4,079              $-      $4,079
                                   ======              ==      ======

      Basic and diluted net income per share:
        Basic                       $0.22              $-       $0.22
                                    =====              ==       =====
        Diluted                     $0.21              $-       $0.21
                                    =====              ==       =====

        Shares used in
         computing basic net
         income per share      18,907,321               -  18,907,321
        Shares used in
         computing diluted net
         income per share      19,557,759         352,084  19,909,843



                                           Six Months Ended
                                             June 30, 2009
                                   GAAP    Adjustments (1)   Non-GAAP
                                   ----    ---------------   --------
      Revenue                     $69,364              $-     $69,364
      Cost of revenue:             27,902            (724)     27,178
                                   ------            ----      ------
      Gross margin                 41,462             724      42,186
                                   ------             ---      ------

      Operating expenses:
        Sales                       4,621          (1,112)      3,509
        Marketing                   4,647            (330)      4,317
        Product development         3,654            (408)      3,246
        General and
         administrative            10,772          (2,196)      8,576
        Share-based
         compensation expense           -           4,770       4,770
        Depreciation and
         amortization               6,327               -       6,327
                                    -----               -       -----
                                   30,021             724      30,745
                                   ------             ---      ------
        Income from operations     11,441               -      11,441

      Interest income, net             26               -          26
                                       --               -          --

        Income before income
         taxes                     11,467               -      11,467
      Provision for income
       taxes                        4,822               -       4,822
                                    -----               -       -----
        Net income                 $6,645              $-      $6,645
                                   ======              ==      ======

      Basic and diluted net income per share:
        Basic                       $0.35              $-       $0.35
                                    =====              ==       =====
        Diluted                     $0.34              $-       $0.34
                                    =====              ==       =====

        Shares used in
         computing basic net
         income per share      18,816,667               -  18,816,667
        Shares used in
         computing diluted net
         income per share      19,296,985         326,290  19,623,275



                                           Six Months Ended
                                             June 30, 2008
                                   GAAP    Adjustments (1)   Non-GAAP
                                   ----    ---------------   --------
      Revenue                     $82,656              $-     $82,656
      Cost of revenue:             33,766          (1,221)     32,545
                                   ------          ------      ------
      Gross margin                 48,890           1,221      50,111
                                   ------           -----      ------

      Operating expenses:
        Sales                       4,285          (1,020)      3,265
        Marketing                   5,943            (401)      5,542
        Product development         3,591            (554)      3,037
        General and
         administrative            13,370          (3,959)      9,411
        Share-based
         compensation expense           -           7,155       7,155
        Depreciation and
         amortization               4,043               -       4,043
                                    -----               -       -----
                                   31,232           1,221      32,453
                                   ------           -----      ------
        Income from operations     17,658               -      17,658

      Interest income, net          1,206               -       1,206
                                    -----               -       -----
        Income before income
         taxes                     18,864               -      18,864
      Provision for income
       taxes                        7,951               -       7,951
                                    -----               -       -----
        Net income                $10,913              $-     $10,913
                                  =======              ==     =======

      Basic and diluted net income per share:
        Basic                       $0.58              $-       $0.58
                                    =====              ==       =====
        Diluted                     $0.55              $-       $0.55
                                    =====              ==       =====

        Shares used in
         computing basic net
         income per share      18,893,682               -  18,893,682
        Shares used in
         computing diluted net
         income per share      19,678,146         220,569  19,898,715

      (1) Adjustments for the impact of applying SFAS No. 123R


    For more information contact:
    Bruce J. Zanca
    Senior Vice President, Chief Marketing and Communications Officer
    bzanca@bankrate.com
    (917) 368-8648

SOURCE Bankrate, Inc.

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