Clarus Announces First Quarter 2008 Results

The decrease in net income was primarily a result of a $255,000 decrease in interest income due to lower rates on our cash, cash equivalents and marketable securities and a $366,000 increase in general and administrative costs including $131,000 in non-cash equity compensation expense.

As of March 31, 2008, Clarus' cash, cash equivalents and marketable securities were $87.0 million, (or $5.00 gross cash per share) compared to $87.1 million as of December 31, 2007. Gross cash per share at March 31, 2008 equals cash, cash equivalents and marketable securities of $87.0 million divided by 17.4 million common shares outstanding. Clarus has provided this Non-GAAP measure because it believes that it is useful to investors assessing the extent of Clarus' assets available for redeployment. Clarus is unaware of any comparable GAAP measure.

Clarus estimates that it has available net operating loss, research and experimentation credit and alternative minimum tax credit carryforwards for U.S. federal income tax purposes of approximately $223.4 million, $1.3 million and $56,000, respectively, which expire in varying amounts between 2009 and 2026, after application of the limitation under Section 382 of the Internal Revenue Code. Of the approximately $223.4 million of net operating losses available to offset taxable income, approximately $206.6 million does not expire until 2020 or later, subject to compliance with Section 382 of the Internal Revenue Code. Clarus also has capital loss carryforwards of $1.6 million which expires in 2008.

Warren B. Kanders, Executive Chairman of Clarus, stated, "While the state of the economy and credit markets continue to be challenging, this has not translated into a slow-down in potentially actionable transaction opportunities under review or materially impacted our ability to seek debt financing. We continue to be actively reviewing potential acquisition opportunities that meet our publicly stated goals of acquiring an industry market leader with solid management teams, strong free cash flow generation and a minimum EBITDA of $25 million." -- Clarus Corporation