D&B Announces Third Quarter 2009 Results; Reconfirms Guidance

• Diluted EPS Before Non-Core Gains and Charges Up 1%; GAAP Diluted

  EPS down 14% Primarily Due to Discrete Tax Benefits in the Prior Year

• Core Revenue Up 2% Before the Effect of Foreign Exchange (Flat to

  Prior Year After the Effect of Foreign Exchange)

• Total Revenue on a GAAP Basis Down 1% Before the Effect of Foreign

  Exchange (Down 3% After the Effect of Foreign Exchange), Reflecting

  the Impact of a Business Divested in the Second Quarter of 2009

SHORT HILLS, N.J., Oct 28, 2009 (BUSINESS WIRE) -- D&B (NYSE: DNB), the leading provider of global business information,

tools and commercial insight, today reported results for the third

quarter ended September 30, 2009.

"Our third quarter performance was very much in line with our

expectations," noted Steve Alesio, D&B's Chairman and CEO.

"International delivered another quarter of strong growth. North America

performed as expected and continues to focus on enhancing our value

proposition and retaining customers for the long term. We feel good

about our company's performance on a year-to-date basis in the context

of the economic environment and relative to many other companies."

Third Quarter 2009 Results

Diluted earnings per share before non-core gains and charges for

the quarter ended September 30, 2009, were $1.13, up 1 percent from

$1.12 in the prior year similar period. On a GAAP basis, diluted

earnings per share for the quarter ended September 30, 2009, were $1.02,

down from $1.18 in the prior year similar period, due to discrete tax

benefits recorded in the prior year quarter.

See attached Schedule 3 for a reconciliation of diluted earnings per

share before non-core gains and charges to earnings per share on a GAAP

basis, as well as the definitions of the non-GAAP financial measures

that the Company uses to evaluate the business.

Core revenue for the third quarter of 2009 was $399.0 million, up

2 percent from the prior year similar period before the effect of

foreign exchange (flat after the effect of foreign exchange).

Core revenue results for the third quarter of 2009 reflect the following

by solution set:

• Risk Management Solutions revenue of $264.8 million, up 3 percent

  before the effect of foreign exchange (flat after the effect of

  foreign exchange);

• Sales & Marketing Solutions revenue of $105.9 million, up 2 percent

  both before and after the effect of foreign exchange; and

• Internet Solutions revenue of $28.3 million, down 8 percent before the

  effect of foreign exchange (down 9 percent after the effect of foreign

  exchange).

See attached Schedules 4, 5 and 6 for additional detail.

Total revenue for the third quarter of 2009, was $399.0 million.

This result is down 1 percent as compared to the prior year similar

period, which included the results of a divested business as described

below, before the effect of foreign exchange (down 3 percent after the

effect of foreign exchange).

We reclassified revenue associated with the domestic portion of our

Italian operations as non-core as of the quarter ending June 30^th,

2009, due to the sale of substantially all of the assets and liabilities

associated with that portion of the business (see the Company's Form

8-K, filed with the SEC on June 1, 2009). Total revenue for the third

quarter of 2008 included $10.2 million of revenue associated with the

domestic portion of our Italian operations, with no revenue from those

operations in the third quarter of 2009.

Operating income before non-core gains and charges for the third

quarter of 2009 was $104.8 million, down 3 percent from the prior year

similar period. On a GAAP basis, operating income was $92.6 million, up

2 percent from the prior year similar period. During the third quarter

of 2009, the Company also incurred transition costs of $4.0 million

compared with $3.1 million incurred in the prior year similar period.

Net income before non-core gains and charges for the third

quarter of 2009 was $60.1 million, down 3 percent from the prior year

similar period. On a GAAP basis, net income for the quarter was $54.0

million, down 17 percent from the prior year similar period, primarily

due to discrete tax benefits in the same prior year period.

See attached Schedule 3 for additional detail.

Free cash flow for the first nine months of 2009, excluding the

impact of legacy tax matters, was $244 million, compared with $273

million in the prior year similar period. The Company defines free cash

flow as net cash provided by operating activities less capital

expenditures and additions to computer software and other intangibles.

On a GAAP basis, net cash provided by operating activities for the first

nine months of 2009 was $303 million, compared with $348 million in the

prior year similar period.

See attached Schedule 4 for additional detail.

Share repurchases during the third quarter of 2009 under the

Company's discretionary repurchase program totaled $60 million, while

repurchases made to offset the dilutive effect of shares issued under

employee benefit plans totaled an additional $4 million.

The Company ended the quarter with $187 million of cash and cash

equivalents.

Third Quarter 2009 Segment Results

North America

Core and total revenue for the third quarter of 2009 was $310.8

million, down 3 percent from the prior year similar period both before

and after the effect of foreign exchange.

North America core and total revenue results for the third quarter of

2009 reflect the following:

• Risk Management Solutions revenue of $198.7 million, down 1 percent

  both before and after the effect of foreign exchange;

• Sales & Marketing Solutions revenue of $84.7 million, down 5 percent

  before the effect of foreign exchange (down 6 percent after the effect

  of foreign exchange); and

• Internet Solutions revenue of $27.4 million, down 8 percent before the

  effect of foreign exchange (down 9 percent after the effect of foreign

  exchange).

Operating income for the third quarter of 2009 was $105.4

million, down 7 percent from the prior year similar period. The result

was primarily due to lower revenue, partially offset by reengineering

savings.

International

Core revenue for the third quarter of 2009 was $88.2 million, up

24 percent from the prior year similar period before the effect of

foreign exchange (up 13 percent after the effect of foreign exchange).

International core revenue results for the third quarter of 2009 reflect

the following:

• Risk Management Solutions revenue of $66.1 million, up 16 percent

  before the effect of foreign exchange (up 6 percent after the effect

  of foreign exchange);

• Sales & Marketing Solutions revenue of $21.2 million, up 54 percent

  before the effect of foreign exchange (up 46 percent after the effect

  of foreign exchange); and

• Internet Solutions revenue of $0.9 million, down 2 percent before the

  effect of foreign exchange (down 19 percent after the effect of

  foreign exchange).

See attached Schedules 4, 5 and 6 for additional detail.

Total revenue for the third quarter of 2009, was $88.2 million,

up 10 percent from the prior year similar period before the effect of

foreign exchange (flat after the effect of foreign exchange). The

results of the domestic portion of our Italian operation which we

divested in the second quarter of 2009 are included in the prior year

period total revenue.

Operating income for the third quarter of 2009 was $17.7 million,

up 13 percent from the prior year similar period. The increase was

primarily due to revenue growth in the International segment, lower

costs resulting from the sale of our domestic portion of our Italian

operations and the benefit of reengineering savings, partially offset by

the negative impact of foreign exchange.

Non-Core Gains and Charges

During the third quarter of 2009 and 2008, the Company recorded:

• A net pre-tax, non-core charge of $14.1 million in the third quarter

  of 2009 and a net pre-tax, non-core charge of $8.9 million in the

  third quarter of 2008;

• A net after-tax, non-core charge of $6.1 million in the third quarter

  of 2009 and a net after-tax, non-core gain of $3.0 million in the

  third quarter of 2008.

See attached Schedule 3 for additional explanations and details of these

charges.

D&B's restructuring charges may be viewed as recurringas

they are part of its Financial Flexibility initiatives. In addition to

reporting GAAP results, the Company reports results before restructuring

charges and other non-core gains and charges because they do not reflect

the Company's underlying business performance and they may have a

disproportionate positive or negative impact on the results of its

ongoing business operations. For additional information, see the section

titled "Use of Non-GAAP Financial Measures" below.

Full Year 2009 Guidance

D&B today reconfirmed the following financial guidance for the full year

2009:

• Core revenue down 1 percent to up 1 percent, before the effect of

  foreign exchange;

• Operating income down 3 percent to up 1 percent, before non-core gains

  and charges;

• Diluted EPS growth of 1 percent to 5 percent, before non-core gains

  and charges; and

• Free cash flow of $285 million to $315 million, excluding the impact

  of legacy tax matters.

D&B does not provide guidance on a GAAP basis because D&B is unable to

predict, with reasonable certainty, the future movement of foreign

exchange rates or the future impact of non-core gains and charges, such

as restructuring charges and legacy tax matters, which are a component

of the most comparable financial measures calculated in accordance with

GAAP. Non-core gains and charges are uncertain and will depend on

several factors, including industry conditions, and could be material to

D&B's results computed in accordance with GAAP.

Use of Non-GAAP Financial Measures

D&B reports non-GAAP financial measures in this press release and the

schedules attached. See "Item 7. Management's Discussion and Analysis of

Financial Condition and Results of Operations - How We Manage Our

Business" in the Company's Annual Report on Form 10-K for the year

ending December 31, 2008, filed February 24, 2009 with the SEC, for a

discussion of how the Company defines these measures, why it uses them

and why it believes they provide useful information to investors.

Additionally, these measures are defined in Schedule 3 attached to this

press release.

Third Quarter 2009 Teleconference

As previously announced, D&B will review its third quarter 2009

financial results in a conference call with the investment community on

October 29, 2009, at 8 a.m. ET. Live audio, as well as a replay of the

conference call and other related information, will be accessible on

D&B's Investor Relations Web site at http://investor.dnb.com.

About Dun & Bradstreet^(R)(D&B)

Dun & Bradstreet (NYSE:DNB) is the world's leading source of commercial

information and insight on businesses, enabling companies to Decide with

Confidence^(R) for 168 years. D&B's global commercial database

contains more than 150 million business records. The database is

enhanced by D&B's proprietary DUNSRight^(R) Quality Process,

which provides our customers with quality business information. This

quality information is the foundation of our global solutions that

customers rely on to make critical business decisions.

D&B provides solution sets that meet a diverse set of customer needs

globally. Customers use D&B Risk Management Solutions^TM

to mitigate credit and supplier risk, increase cash flow and drive

increased profitability; D&B Sales & Marketing Solutions^TM

to increase revenue from new and existing customers; and D&B Internet

Solutions^TM to convert prospects into clients faster by

enabling business professionals to research companies, executives and

industries. For more information, please visit www.dnb.com%2F&;esheet=6085357&lan=en_US&anchor=www.dnb.com&index=2&md5=80a2b26d4a65d7a8b22e266a0d4c54b6">www.dnb.com.

Forward-Looking and Cautionary Statements

This press release, including, in particular, the section titled "Full

Year 2009 Guidance," contains projections of future results and other

forward-looking statements that involve a number of trends, risks and

uncertainties, and are made pursuant to the safe harbor provisions of

the Private Securities Litigation Reform Act of 1995.

The following important factors could cause actual results to differ

materially from those projected in such forward-looking statements.

• D&B relies significantly on third parties to support critical

  components of its business model in a continuous and high-quality

  manner, including third-party data providers, strategic third party

  members in its Worldwide Network, and third parties with which it has

  outsourcing arrangements.

• Demand for D&B's products is subject to intense competition, changes

  in customer preferences and economic conditions which impact customer

  behavior.

• D&B's solutions and brand image are dependent upon the integrity and

  security of its global database and the continued availability thereof

  through the Internet and by other means, as well as our ability to

  protect key assets, such as our data centers.

• D&B's ability to maintain the integrity of its brand and reputation,

  which it believes are key assets and competitive advantages.

• D&B's ability to renew large contracts, the related revenue

  recognition and the timing thereof may impact its results of

  operations from period to period.

• As a result of the credit market crisis and other macro-economic

  challenges currently affecting the global economy, our customers or

  vendors may experience cash flow problems. This may cause our

  customers to delay, cancel or significantly decrease their purchases

  from us and impact their ability to pay amounts owed to us. In

  addition, our vendors may substantially increase their prices without

  notice. Such behavior may adversely affect our earnings and cash flow.

  In addition, if economic conditions in the United States and other key

  markets deteriorate further or do not show improvement, we may

  experience material adverse impacts to our business and operating

  results.

• D&B's results are subject to the effects of foreign economies,

  exchange rate fluctuations, legislative or regulatory requirements,

  such as the adoption of new or changes in accounting policies and

  practices, including pronouncements by the Financial Accounting

  Standards Board or other standard-setting bodies, and the

  implementation or modification of fees or taxes that we must pay to

  acquire, use, and/or redistribute data.

• D&B's ability to introduce new solutions or services in a seamless way

  and without disruption to existing solutions such as DNBi.

• D&B's ability to acquire and successfully integrate other

  complementary businesses, products and technologies into its existing

  business, without significant disruption to its existing business or

  to its financial results.

• The continued adherence by third party members of our D&B Worldwide

  Network to our quality standards, our brand and communication

  standards and to the terms and conditions of our commercial services

  arrangements.

• D&B's future success requires that it attract and retain qualified

  personnel, including members of its sales force, in regions throughout

  the world.

• The profitability of D&B's International segment depends on its

  ability to identify and execute on various initiatives, such as the

  implementation of subscription plan pricing and successfully managing

  its D&B Worldwide Network, and its ability to identify and contend

  with various challenges present in foreign markets, such as local

  competition and the availability of public records at no cost.

• D&B's ability to successfully implement its growth strategy requires

  that it successfully reduce its expense base through its Financial

  Flexibility initiatives, and reallocate certain of the expense-base

  reductions into initiatives that produce desired revenue growth.

• D&B is involved in various tax matters and legal proceedings, the

  outcomes of which are unknown and uncertain with respect to the impact

  on D&B's cash flow and profitability. See the Company's most recent

  Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and

  notes to the financial statements included therewith, for a more

  detailed description of these matters.

• D&B's ability to repurchase shares is subject to market conditions,

  including trading volume in its stock, and its ability to repurchase

  shares in accordance with applicable securities laws.

• D&B's projection for free cash flow is dependent upon its ability to

  generate revenue, its collection processes, customer payment patterns,

  the timing and volume of stock option exercises and the amount and

  timing of payments related to the tax and other matters and legal

  proceedings in which it is involved, as referenced above and as more

  fully described in the Company's filings with the SEC, including its

  most recent Annual Report on Form 10-K and Quarterly Reports on Form

  10-Q and notes to the financial statements included therewith.

For a more detailed discussion of the trends, risks and uncertainties

that may affect D&B's operating and financial results and its ability to

achieve the financial objectives discussed in this press release,

readers should review the Company's most recent filings with the SEC,

including the Annual Report on Form 10-K and Quarterly Reports on Form

10-Q. Copies of the Company's Annual Report on Form 10-K and Quarterly

Reports on Form 10-Q are available on its Web site at www.dnb.com&;esheet=6085357&lan=en_US&anchor=www.dnb.com&index=3&md5=e42847b58f3b130341260acea3e8d304">www.dnb.com

and on the SEC's web site at www.sec.gov%2F&;esheet=6085357&lan=en_US&anchor=www.sec.gov&index=4&md5=8aa549a1abd83713d56868a56adea7f3">www.sec.gov.

D&B cautions that the foregoing list of important factors is not

complete and except as otherwise required by federal securities laws

does not undertake any obligation to update any forward-looking

statements.