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To: keithcray who wrote (555)	6/21/2001 4:25:30 PM
From: 2MAR$	Read Replies (1) \| Respond to of 208838

Research in Motion reports first quarter results -->5c WATERLOO, ON, June 21 /PRNewswire/ - Research In Motion Limited (RIM) (Nasdaq: RIMM, TSE: RIM), a world leader in innovative wireless solutions for the mobile communications market, today reported first quarter results for the three months ended June 2, 2001. (all figures in US $ and Canadian GAAP) Revenue for the first quarter of fiscal 2002 was $77.0 million, an increase of 184% over the $27.1 million in the first quarter last year. As expected, this was lower than the $90.1 million in the previous quarter. BlackBerry(TM) accounted for approximately 65% of the Company's current quarterly revenue, RIM Wireless Handhelds(TM) accounted for 27% and OEM radio modems and other revenue accounted for 8%. "We're pleased that we've been able to continue to perform well in a challenging economic environment," said Jim Balsillie, Chairman and Co-CEO. "With a growing BlackBerry subscriber base and impending product launches in Europe, the company is prepared to execute on the large growth phase expected this Fall." Net income for the quarter was $3.8 million or $0.05 per share basic and diluted compared to $0.4 million or $0.01 per share basic and $0.00 diluted in the first quarter of fiscal 2001. The net increase was due primarily to the significant increase in the scale of the business, with increases in gross profit and investment income being larger than offsetting increases in operating costs. Gross research and development costs for the quarter were $9.6 million or 13% of revenue, compared to $9.1 million or 10% of revenue in the fourth quarter of fiscal 2001 and $4.5 million or 17% of revenue in the first quarter of fiscal 2001. The increase was primarily due to increased staffing levels, costs related to pending new product launches and growth in technology infrastructure. Net research and development costs were $7.3 million. Selling, marketing and administration expenses were $21.9 million or 28% of revenue, compared to $22.3 million or 25% of revenue in the prior quarter of fiscal 2001 and $10.4 million or 38% of revenue in the first quarter of fiscal 2001. As expected, SM&A was relatively flat with the prior quarter. The company continues to ramp sales and marketing resources as well