Research In Motion

Research In Motion

December 08, 2006 16:05 ET

RIM Provides Status Update

WATERLOO, ONTARIO--(CCNMatthews - Dec. 8, 2006) - Research In Motion Limited (RIM) (NASDAQ:RIMM)(TSX:RIM) today provides this status update pursuant to the alternative information guidelines of the Ontario Securities Commission (OSC). These guidelines contemplate that the Company will normally provide bi-weekly updates on its affairs until such time as the Company is current with its filing obligations under Canadian securities laws.

The Company's management-initiated, voluntary review of stock option grants is ongoing. As previously disclosed, the Audit Committee of RIM's Board of Directors has made a preliminary determination that a restatement of RIM's historical financial statements will be required. The Company does not currently anticipate a material adjustment to the preliminary second quarter operating results reported on September 28, 2006 or to current or future financial years' operating results. As the review of the Company's historical stock option practices has not yet been concluded, the Company has notified the OSC that it does not anticipate that it will be in a position to file its restated historical financial statements or its financial statements for the second quarter of fiscal 2007 on or before December 17, 2006. If these filings are not made by December 18, 2006, RIM will report on the status of its continuous disclosure obligations to the OSC pursuant to the management cease trade order issued by the OSC on November 7, 2006.

On December 21, 2006, the Company intends to announce preliminary operating results for the third quarter of fiscal 2007. The Company expects that the potential impact of any restatement on GAAP and preliminary operating results for the third quarter of fiscal 2007 will be immaterial. The Company expects to file its financial statements for the second and third quarters of fiscal 2007 and any historical restatements prior to its fiscal year end of March 3, 2007.

The Company has had communications with both staff of the OSC and staff of the Securities and Exchange Commission (SEC) about its internal review. The Company intends to continue to cooperate with the OSC and SEC. On November 30, 2006, upon application of the Company and certain officers of the Company, the OSC issued an order varying its management cease trade order to permit certain officers of the Company who held stock options in the Company due to expire on December 4, 2006 to exercise such options. The common shares of the Company issued upon the exercise of such options are subject to the management cease trade order issued by the OSC and cannot be disposed of before the management cease trade order expires or is revoked. In addition, Jim Balsillie and Mike Lazaridis, two of the officers who were permitted to exercise stock options due to expire, have deposited the common shares acquired upon exercise into escrow with the Audit Committee to be held pending completion of the Audit Committee's review of the Company's historical stock option granting practices.

About Research In Motion (RIM)

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, Internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity to data. RIM's portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld™ product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (NASDAQ:RIMM) and the Toronto Stock Exchange (TSX:RIM). For more information, visit or

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws relating to RIM's ongoing management-initiated voluntary review of its historical option granting practices, including statements regarding preliminary determinations and expectations regarding the financial impact of the review on RIM's historical, current and future financial statements, the anticipated timing of filing financial statements and releasing preliminary operating results, and its intention to provide regular updates to its shareholders. The terms and phrases, "preliminary determination", "may", "would", "expects", "will", "anticipate", "intends" and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience, its current assessment of matters relating to its ongoing internal review, and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances. Many factors could cause RIM's actual results, or future events to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: determinations made by RIM's Audit Committee, outside advisors, auditors and others; unanticipated developments and delays encountered during the ongoing review; developments relating to RIM's ongoing communications with the SEC and the OSC; additional corrections that may be required based on factual findings and analysis in the ongoing review; and legal and accounting developments regarding stock option grants and interpretations of such guidance. Readers are cautioned to consider the forward-looking statements in light of these risks and others relating to RIM are discussed in greater detail in the "Risk Factors" section of RIM's Annual Information Form, which is included in its Annual Report on Form 40-F (copies of which filings may be obtained at or These factors should be considered carefully, and readers should not place undue reliance on RIM's forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

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