For the fiscal 2009 second quarter, revenue decreased to $10.0 million from $10.8 million in the same quarter of last year. Gross profit was $5.8 million, or 58% of revenue, compared with $6.4 million, or 59% of revenue, for the prior year period. Net income was $604,000, or $0.07 per diluted share, compared with net income of $1.8 million, or $0.16 per diluted share, for the same period last year. During the first fiscal quarter of 2009, ClearOne repurchased 1.3 million shares of its common stock in a tender offer. As a result, shares outstanding used to calculate earnings per share decreased to 9.0 million for the fiscal 2009 second quarter from 10.9 million for the fiscal 2008 second quarter.

"Our financial results for the quarter were impacted by the current economic environment," said Zee Hakimoglu, president, chief executive officer and chairman of ClearOne. "To better position us for the long term, we have implemented strategic initiatives designed to enhance our sales and marketing efforts and continue to invest in new product development. Also, between November 2008 and January 2009, we strengthened our balance sheet and enhanced liquidity with the sale, at par value, of our entire balance of auction rate securities."

For the first six months of fiscal 2009, revenue was $20.2 million, approximately even with the first six months of last year. Gross profit grew to $12.4 million, or 61% of revenue, compared with $11.5 million, or 57% of revenue, for the prior year period. Net income increased to $1.7 million, or $0.18 per diluted share, compared with net income of $858,000, or $0.08 per diluted share, for the same period last year. Diluted weighted average shares outstanding used to calculate earnings per share decreased to 9.6 million for the first six months of fiscal 2009 from 11.0 million for the same period of fiscal 2008.

At December 31, 2008, the company had cash, cash equivalents, and investments of $12.0 million and no long-term debt. In addition, inventory levels of certain key products were higher to buffer against potential disruptions in the supply chain.

About ClearOne

ClearOne is a communications solutions company that develops and sells audio conferencing systems and other related products for audio, video, and web conferencing applications. The reliability, flexibility, and performance of ClearOne's comprehensive solutions create a natural communications environment, which saves organizations time and money by enabling more effective and efficient communication. For more information, visit ClearOne's website at www.clearone.com.

This release contains "forward-looking" statements that are based on present circumstances and on ClearOne's predictions with respect to events that have not occurred, that may not occur, or that may occur with different consequences and timing than those now assumed or anticipated.Such forward-looking statements, including statements regarding the company's ability to successfully commercialize newer products and enter new markets, are not guarantees of future performance or results and involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements.Such forward-looking statements are made only as of the date of this release and ClearOne assumes no obligation to update forward-looking statements to reflect subsequent events or circumstances.Readers should not place undue reliance on these forward-looking statements.

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CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands of dollars)
			(unaudited)			(audited)
			December 31,			June 30,
			2008			2008
ASSETS
Current assets:
Cash and cash equivalents			$	2,323		$	3,327
Marketable securities				9,628			5,922
Accounts receivable, net of allowance for doubtful accounts of $64 and $87, respectively				7,532			7,238
Deposit, bond for preliminary injunction				0			908
Note Receivable				14			43
Inventories, net				12,859			7,799
Income tax receivable				592			0
Deferred income taxes				3,124			2,828
Prepaid expenses				627			820
Total current assets				36,699			28,885
Long-term marketable securities				0			11,168
Property and equipment, net				2,768			2,554
Intangible assets, net				42			47
Long-term deferred tax asset				724			1,639
Other assets				21			7
Total assets			$	40,254		$	44,300
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			$	1,736		$	2,187
Accrued taxes				0			72
Accrued liabilities				3,463			3,600
Deferred product revenue				4,881			4,547
Total current liabilities				10,080			10,406
Deferred rent				622			700
Other long-term liabilities				1,372			1,054
Total liabilities				12,074			12,160
Total shareholders' equity				28,180			32,140
Total liabilities and shareholders' equity			$	40,254		$	44,300

CLEARONE COMMUNICATIONS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of dollars, except per share amounts)
(unaudited)
		Three Months Ended December 31,								Six Months Ended December 31,
			2008				2007				2008				2007
Revenue		$	9,970			$	10,787			$	20,229			$	20,229
Cost of goods sold			4,168				4,414				7,794				8,714
Gross profit			5,802				6,373				12,435				11,515
Operating expenses:
Sales & Marketing			1,934				1,578				3,911				3,180
Research and product development			1,844				1,678				3,620				3,433
General and administrative			1,257				1,198				2,329				4,093
Total operating expenses			5,035				4,454				9,860				10,706
Operating income			767				1,919				2,575				809
Total other income, net			96				311				161				653
Income from continuing operations before income taxes			863				2,230				2,736				1,462
(Provision) for income taxes			(259	)			(449	)			(998	)			(620	)
Income from continuing operations			604				1,781				1,738				842
Income from discontinued operations			0				1				0				16
Net income		$	604			$	1,782			$	1,738			$	858
Basic earnings per common share		$	0.07			$	0.16			$	0.18			$	0.08
Diluted earnings per common share		$	0.07			$	0.16			$	0.18			$	0.08
Basic weighted average shares outstanding			8,889,974				10,840,193				9,501,381				10,900,725
Diluted weighted average shares outstanding			8,989,283				10,941,491				9,600,291				11,012,239

ClearOne Communications, Inc.
Investor Relations, 801-303-3555