Daily Journal Corporation Announces Financial Results for the Six Months Ended March 31, 2008

Revenues of Daily Journal Corporation (NASDAQ:DJCO) were $18,924,000 and $16,903,000 for the six months ended March 31, 2008 and 2007, respectively. This increase of $2,021,000 (12%) was primarily attributed to an increase in trustee foreclosure sale notices, partially offset by a decrease in commercial advertising revenues. The Company’s traditional business segment pretax profit increased by $1,895,000 (63%) from $2,995,000 to $4,890,000 primarily resulting from the increase in revenues. Sustain’s business segment pretax loss decreased $187,000 (67%) from $279,000 to $92,000, primarily because of increased consulting revenues. Consolidated net income was $2,928,000 and $1,036,000 for the six months ended March 31, 2008 and 2007, respectively. Net income per share increased to $2.02 from $.71. Summarized financial information for our reportable segments is shown in the following table. (All figures are in thousands except for the numbers for common stock outstanding and the per share amounts.)             Six months ended March 31, 2008 Six months ended March 31, 2007 Traditional Traditional Business Sustain Total Business Sustain Total Revenues $ 16,729 $ 2,195 $ 18,924 $ 15,030 $ 1,873 $ 16,903 Income (loss) before taxes 4,890 (92 ) 4,798 2,995 (279 ) 2,716 Income tax (expense) benefit   (1,905 ) 35 (1,870 ) (1,790 ) 110 (1,680 ) Net income (loss) 2,985 (57 ) 2,928 1,205 (169 ) 1,036 Weighted average of number of common stock outstanding – basic and diluted       1,452,854     1,452,970 Basic and diluted net income per share   $ 2.02 $ .71     Three months ended March 31, 2008   Three months ended March 31, 2007 Traditional     Traditional     Business Sustain Total Business Sustain Total Revenues $ 8,643 $ 1,295 $ 9,938 $ 7,897 $ 994 $ 8,891 Income (loss) before taxes 2,596 77 2,673 1,730 (54 ) 1,676 Income tax (expense) benefit   (980 ) (40 ) (1,020 ) (1,290 ) 20 (1,270 ) Net income (loss) 1,616 37 1,653 440 (34 ) 406 Weighted average of number of common stock outstanding – basic and diluted       1,452,854     1,452,930 Basic and diluted net income per share   $ 1.14 $ .28   Daily Journal Corporation publishes newspapers and web sites covering California, Arizona and Nevada, as well as the California Lawyer and 8-K magazines, and produces several specialized information services. Sustain Technologies, Inc., a wholly owned subsidiary as of March 31, 2008, supplies case management software systems and related products to courts and other justice agencies, including district attorney offices and administrative law organizations. (In March 2008, the Company acquired from two shareholders the remaining 7% equity interest in Sustain not already owned by the Company for $60,000.) Daily Journal Corporation’s Form 10-Q for the six months ended March 31, 2008 is expected to be filed electronically with the Securities and Exchange Commission today. We invite your attention to the Form 10-Q which contains our consolidated financial statements, management’s discussion and analysis of financial condition and results of operations, and other information. This press release includes "forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain statements contained in this press release are "forward-looking” statements that involve risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Words such as "expects,” "intends,” "anticipates,” "should,” "believes,” "will,” "plans,” "estimates,” "may,” variations of such words and similar expressions are intended to identify such forward-looking statements. We disclaim any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments, or otherwise. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to have been correct. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in documents we file with the Securities and Exchange Commission, including the Form 10-Q we expect to file today and our Annual Report on Form 10-K for the fiscal year ended September 30, 2007.