LGBT/Planet Out (LGBT)

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PlanetOut Inc. Revises Third Quarter Revenue Expectations
Tuesday September 5, 4:39 pm ET
Shortfall Due to Unexpected Change in RSVP Riverboat Itinerary and Slower Growth in Local Advertising Sales


SAN FRANCISCO, Sept. 5 /PRNewswire-FirstCall/ -- PlanetOut Inc. (Nasdaq: LGBT - News), the leading media and entertainment company exclusively focused on the gay and lesbian market, today announced that it is lowering its revenue outlook for the third quarter of 2006. The company now anticipates that revenue for the third quarter will be $15 to $16 million, down approximately 14 percent from its previous range. The company also lowered its third quarter adjusted EBITDA expectations to $0.0 to $1.0 million.
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The third quarter changes are largely due to a shortfall in revenue and an unexpected increase in expenses related to itinerary changes for two of its four riverboat trips offered through RSVP in August and September 2006. The itinerary changes were necessary due to the disclosure by RSVP's independent European riverboat operator that it was unable to meet its contractual obligations to RSVP. In response, RSVP changed the itineraries for these two trips to meet its commitments to its customers.

Also contributing to the company's revised third quarter revenue projections is slower revenue growth expectations for Local Scene, PlanetOut's branded local advertising business, as well as advertising shortfalls at The Advocate magazine.

"Despite our disappointment in having to lower our revenue projections for the third quarter, we remain confident in our core strategy," said Karen Magee, chief executive officer, PlanetOut Inc. "We are taking a very pragmatic look at our business and have a high level of confidence that we are identifying the operational issues that need to be addressed. We are implementing broad process improvements that we believe will improve both our ability to forecast our business and execute on our operating plan."

Although the company has experienced a lower than expected ramp in its Local Scene revenue for the current quarter, Magee pointed out that local advertising remains a compelling business and has the potential of being a significant revenue contributor.

The company is reviewing its full year revenue guidance for 2006 and expects to significantly reduce its full year EBIDTA guidance in its third quarter earnings announcement currently scheduled for November 2, 2006.

About PlanetOut Inc.

PlanetOut Inc. is the leading global media and entertainment company exclusively serving the lesbian, gay, bisexual and transgender (LGBT) community.

PlanetOut's digital media brands include Gay.com, PlanetOut.com, OUT&ABOUT Travel, Advocate.com, Out.com, OutTraveler.com and HIVPlusMag.com, as well as localized versions of the Gay.com site in English, French, German, Italian, Portuguese and Spanish. PlanetOut print media brands include The Advocate, Out, The Out Traveler and HIVPlus, as well as SpecPub, Inc. titles. Transaction services brands include e-commerce Web sites Kleptomaniac.com and BuyGay.com, travel and events marketer RSVP, book publisher Alyson Publications, and direct marketer Triangle Marketing Services, among others.

PlanetOut, based in San Francisco with additional offices in New York, Los Angeles, Minneapolis, London and Buenos Aires, offers Global 1000 and local advertisers as well as its own properties access to what it believes to be the most extensive multi-channel, multi-platform network of gay and lesbian people in the world. For more information, please visit www.planetoutinc.com.

Forward-Looking Statements

In addition to the historical information contained herein, this press release contains forward-looking statements, including statements regarding PlanetOut's anticipated future growth and financial performance, the potential of its local advertising business and ability to identify operating issues and implement process improvements, as well as statements containing the words "believes," "anticipates," "expects," and similar words. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the company's limited operating history and variability of operating results; the company's ability to attract and retain subscribers and advertisers, including local online advertisers and print advertisers; the company's ability to realize anticipated synergies from the integration of the assets of RSVP and LPI; the company's ability to successfully implement its recent integration-related restructuring and management changes; competition; timing and success of cruises, events and product launches; and the company's dependence on technology infrastructure and the Internet. Additional information concerning factors that could affect PlanetOut's future business and financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 2005, Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 and other public filings filed from time to time with the Securities and Exchange Commission (SEC), which are available at the SEC's website at www.sec.gov. All such forward-looking statements are current only as of the date on which such statements were made. PlanetOut does not undertake any obligation to publicly update any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.




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Source: PlanetOut Inc.

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