BluePhoenix Solutions Issues Correction to Q2 2008 Earnings Release with Respect to Non-GAAP EPS 

HERZLIYA, ISRAEL – August 5, 2008 – BluePhoenix Solutions, the leader in value-driven legacy modernization, today announced that the non-GAAP EPS for the second quarter 2008 should have been stated to be $0.13 rather than $0.14 as was reported in the earnings press release issued yesterday.

As stated by the Company CEO in the conference call held yesterday, the non-GAAP EPS should have been calculated based on the Company’s share count on a fully diluted basis, and not based on the outstanding share count.

The non-GAAP EPS for the second quarter of 2008 was calculated based on the outstanding share count of 20,951 (in ‘000s) shares. Accordingly, based on the revised share count of 21,877 (in ‘000s) shares, Q2 2008 non-GAAP EPS has been revised to $0.13 as compared to $0.16 per diluted share in the year-ago period.

About BluePhoenix Solutions(www.bphx.com)

BluePhoenix Solutions (NASDAQ: BPHX) is a leading provider of value-driven modernization solutions for legacy information systems. BluePhoenix offerings include a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.

SAFE HARBOR: Certain statements contained in this release may be deemed forward-looking statements, with respect to plans, projections, or future performance of the Company, the occurrence of which involves certain risks and uncertainties that could cause actual plans to differ materially from these statements. These risks and uncertainties include but are not limited to: market demand for the Company's tools, successful implementation of the Company's tools, competitive factors, the ability to manage the Company's growth, the ability to recruit and retrain additional software personnel, and the ability to develop new business lines. All names and trademarks are their owners' property.

Company Contact                                                          Investor Contact
Varda Sagiv                                                                  Peter Seltzberg
BluePhoenix Solutions                                                    Hayden Communications
+97299526100                                                              (646) 415-8972
vsagiv @bphx.com                                                         peter@haydenir.com
                                                                                   

                                                                                    Financial Media Contact
                                                                                    Jeffrey Stanlis
                                                                                    Hayden Communications
                                                                                    (602) 476-1821
                                                                                    jeff@haydenir.com

 

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