Integral Systems, Inc. (Nasdaq: ISYS)has reaffirmed fiscal year 2009 (FY 2009) guidance and has provided initial earnings guidance for fiscal year 2010 (FY 2010), which began on September 28, 2009. Management reaffirms its previous FY 2009 guidance for full-year earnings per share (EPS) of approximately $0.15 per diluted share, in line with previous guidance. Full FY 2009 earnings results will be released in early December 2009. FY 2010 results are anticipated to be significantly improved over FY 2009. For the FY 2010, the Company provides the following guidance:

• Revenue: $170.0M — $174.0M
• Gross Margin: 35 — 37 percent
• Earnings Per Share (diluted): $0.35 — $0.40
• EBITDA: $20M — $25M

Earnings per share (EPS) of $0.35 - $0.40 versus the $0.15 of fiscal year 2009 reflect an increase in revenue due to higher gross margin product sales, and lower selling, general, and administrative (SG&A) costs as a percent of sales. Annual revenue is estimated to increase between 5 and 7 percent above FY 2009 levels. Earnings will benefit from ongoing efforts to trim operating expenses and an elimination of a number of non-recurring and one-time expenses recorded in 2009.

Integral Systems also announced that it has initiated plans to launch a new line of business to offer global SATCOM network operations management services to address the growing needs of satellite operators, resellers, users, and regulators of satellite and satellite-interfaced networks worldwide. This new line of business leverages Integral Systems' current product offerings and is anticipated to provide a significant new revenue stream in future years. FY 2010 guidance includes the impact of investment in this new line of business, which is expected to reduce EPS by approximately $0.07.