Advanced Micro "is now pursuing a strategy where it could maintain market relevancy and drive profitability," UBS wrote. "We now believe the company is on a prudent path but are disappointed poor execution and a potential price war with Nvidia are likely to limit margin expansion."

UBS forecast a loss of $1.76 a share for the company and 2008, with a loss of 72 cents a share expected for 2009. It previously saw a loss of $1.19 a share for 2008 and of 5 cents a share for 2009.

The mean estimate of analysts polled by Thomson Reuters is for a loss of $1.46 a share in 2008 and a loss of 67 cents a share in 2009.

Late Thursday the company reported a second-quarter loss from continuing operations of 44 cents a share with revenue of $1.35 billion. Wall Street was looking for a loss of 52 cents a share and revenue of $1.45 billion, on average. Ryan Vlastelica rv/pc

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

MMMM

Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

MMMM

The Company also reported that the provision for income taxes in the second quarter of 2008 continued to be unusually high due to delays in federal legislation required to extend research tax credits for the 2008 year.

The Company also announced that its Board of Directors declared a cash dividend for the second quarter of 2008. The quarterly cash dividend is $0.09 per common share to be paid to holders of record at the close of business on July 31, 2008. The ex-dividend date is July 29, 2008 and the payment date is August 14, 2008.

The Company also confirmed that its second quarter conference call will be held Tuesday, July 15, 2008 at 9:30 a.m. Central Time. This conference call will be web cast live through StreetEvents.com. To listen, simply visit the Investor Relations site at http://www.adtran.com or http://streetevents.com approximately 10 minutes prior to the start of the call and click on the conference call link provided.

An online replay of the conference call will be available for seven days at http://streetevents.com. In addition, an online replay of the conference call, as well as the text of the Company's earnings release, will be available on the Investor Relations site at http://www.adtran.com for at least 12 months following the call.

ADTRAN, Inc. is a leading global provider of networking and communications equipment, with a portfolio of more than 1,700 solutions for use in the last mile of today's telecommunications networks. Widely deployed by carriers and enterprises alike, ADTRAN solutions enable voice, data, video, and Internet communications across copper, fiber, and wireless network infrastructures. ADTRAN solutions are currently in use by every major U.S. service provider and many global ones, as well as by thousands of public, private and governmental organizations worldwide.

For more information, contact the company at 800 9ADTRAN (800 923-8726) or via email at info@adtran.com. On the Web, visit www.adtran.com.

This press release contains forward-looking statements which reflect management's best judgment based on factors currently known. However, these statements involve risks and uncertainties, including the successful development and market acceptance of new products, the degree of competition in the market for such products, the product and channel mix, component costs, manufacturing efficiencies, and other risks detailed in our annual report on Form 10-K for the year ended December 31, 2007. These risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements included in this press release.

                       Condensed Balance Sheet
                              Unaudited
                            (In thousands)

                                                June 30,  December 31,
                                                  2008        2007
                                                --------  ------------
Assets
Cash and cash equivalents                      $  57,854 $      13,941
Short-term investments                           120,915       148,416
Accounts receivable, net                          62,688        70,667
Other receivables                                  2,854         3,085
Inventory, net                                    49,825        48,546
Prepaid expenses                                   1,704         2,023
Deferred tax assets, net                           8,126         7,659
                                               --------- -------------
Total current assets                             303,966       294,337

Property, plant and equipment, net                75,776        75,969
Deferred tax assets, net                           3,196         1,113
Other assets                                         110           505
Long-term investments                            123,120       107,296
                                               --------- -------------
Total assets                                   $ 506,168 $     479,220
                                               ========= =============

Liabilities and Stockholders' Equity
Accounts payable                               $  24,545 $      22,200
Unearned revenue                                   6,265         5,361
Accrued expenses                                   4,186         3,801
Accrued wages and benefits                        10,623        10,497
Income tax payable, net                            5,739         1,217
                                               --------- -------------
Total current liabilities                         51,358        43,076

Other non-current liabilities                     10,028         9,213
Bonds payable                                     48,500        48,500
                                               --------- -------------
Total liabilities                                109,886       100,789

Stockholders' equity                             396,282       378,431
                                               --------- -------------
Total liabilities and stockholders' equity     $ 506,168 $     479,220
                                               ========= =============

                  Consolidated Statements of Income
                (In thousands, except per share data)
                              Unaudited

                                Three     Three      Six       Six
                                 Months    Months    Months    Months
                                 Ended     Ended     Ended     Ended
                                 June      June      June      June
                                  30,       30,       30,       30,
                                  2008      2007      2008      2007
                               --------- --------- --------- ---------

Sales                          $131,183  $123,674  $251,068  $233,986
Cost of sales                    51,789    50,115   101,434    94,637
                               ---------------------------------------

Gross profit                     79,394    73,559   149,634   139,349

Selling, general and
 administrative expenses         25,709    26,155    51,256    52,631
Research and development
 expenses                        20,215    19,546    39,768    37,904
                               ---------------------------------------

Operating income                 33,470    27,858    58,610    48,814

Interest and dividend income      2,219     3,006     4,502     5,914
Interest expense                   (660)     (626)   (1,279)   (1,245)
Net realized investment gain
 (loss)                             (15)      185      (104)      268
Other income, net                   339       199       466       497
Life insurance proceeds               -         -         -     1,000
                               ---------------------------------------

Income before provision for
 income taxes                    35,353    30,622    62,195    55,248

Provision for income taxes      (12,939)  (10,779)  (22,734)  (18,477)
                               ---------------------------------------

Net income                     $ 22,414  $ 19,843  $ 39,461  $ 36,771
                               =======================================

Weighted average shares
 outstanding
  Basic                          64,239    68,797    64,419    69,073
  Diluted (1)                    65,340    70,267    65,400    70,583

Earnings per common share
  Basic                        $   0.35  $   0.29  $   0.61  $   0.53
  Diluted (1)                  $   0.34  $   0.28  $   0.60  $   0.52

(1) Assumes exercise of dilutive stock options calculated under the
 treasury stock method.

                       Supplemental Information
                   Stock Based Compensation Expense
                            (In thousands)

                                  Three Months Ended  Six Months Ended
                                  ------------------  ----------------
                                       June 30,           June 30,
                                  ------------------  ----------------
                                    2008      2007     2008     2007
                                  ---------   -----   -------   -----

Stock-based compensation expense
 included in cost of sales       $       79  $   94  $    158  $  187
                                 -------------------------------------

Selling, general and
 administrative expense                 889   1,120     1,843   2,199
Research and development expense        992   1,082     1,998   2,149
                                 -------------------------------------
Stock-based compensation expense
 included in operating expenses       1,881   2,202     3,841   4,348
                                 -------------------------------------

Total stock-based compensation
 expense                              1,960   2,296     3,999   4,535
Tax benefit for expense
 associated with non-qualified
 options                               (196)   (230)     (404)   (416)
                                 -------------------------------------
Total stock-based compensation
 expense, net of tax             $    1,764  $2,066  $  3,595  $4,119
                                 =====================================

                 Consolidated Statements of Cash Flow
                  For the Six Months Ended June 30,
                              Unaudited
                            (In thousands)

                                                    2008       2007
                                                  --------   --------
Cash flows from operating activities:
Net income                                       $  39,461  $  36,771
Adjustments to reconcile net income to net cash
provided by operating activities:
  Depreciation and amortization                      4,823      5,336
  Amortization of net premium on available-for-
   sale investments                                    873      1,153
  Net realized loss (gain) on long-term
   investments                                         104       (268)
  Loss (gain) on disposal of property, plant and
   equipment                                           (15)        70
  Stock-based compensation expense                   3,999      4,535
  Deferred income taxes                             (1,411)    (2,159)
  Tax benefits from stock option exercises             456      3,787
  Excess tax benefits from stock-based
   compensation arrangements                          (247)    (2,842)
Change in operating assets and liabilities:
  Accounts receivable, net                           7,979     (9,653)
  Other receivables                                    231      3,130
  Income tax receivable, net                             -      1,446
  Inventory, net                                    (1,279)    10,327
  Prepaid expenses                                     714        929
  Accounts payable                                   2,345     (3,095)
  Accrued expenses and other liabilities             2,230      2,082
  Income tax payable, net                            4,522        439
                                                 ---------- ----------
Net cash provided by operating activities           64,785     51,988
Cash flows from investing activities:
Purchases of property, plant and equipment          (4,615)    (3,816)
Proceeds from sales and maturities of available-
 for-sale investments                              120,232     98,980
Purchases of available-for-sale investments       (112,590)  (116,650)
                                                 ---------- ----------
Net cash provided by (used in) investing
 activities                                          3,027    (21,486)

Cash flows from financing activities:
Proceeds from stock option exercises                 1,724     12,921
Purchases of treasury stock                        (14,871)   (52,289)
Dividend payments                                  (11,624)   (12,465)
Excess tax benefits from stock-based
 compensation arrangements                             247      2,842
                                                 ---------- ----------
Net cash used in financing activities              (24,524)   (48,991)
Net increase (decrease) in cash and cash
 equivalents                                        43,288    (18,489)
Effect of exchange rate changes                        625        403
Cash and cash equivalents, beginning of period      13,941     40,147
                                                 ---------- ----------
Cash and cash equivalents, end of period         $  57,854  $  22,061
                                                 ========== ==========

SOURCE: ADTRAN, Inc.

ADTRAN, Inc.
Jim Matthews, 256-963-8775
Senior Vice President/CFO
or
INVESTOR SERVICES/ASSISTANCE:
Gayle Ellis, 256-963-8220