HireRight, Inc. Reports Second Quarter 2008 Financial Results

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-- Service revenue for the second quarter increased 7.2% to $18.0 million from the second quarter of 2007

-- Gross profit increased 10.3% year-over-year to $10.4 million for the second quarter, yielding a margin on service revenue of 57.8%, compared to 56.2% in second quarter of 2007

-- Operating income, excluding pending merger related transaction costs, increased 4.6% to $3.3 million in the second quarter from $3.1 million in second quarter of 2007

IRVINE, Calif.--(BUSINESS WIRE)--Aug. 7, 2008--HireRight, Inc.(NasdaqGM: HIRE), a leading provider of on-demand employment screeningsolutions, today announced financial results for the second quarterended June 30, 2008.

Service revenue for the second quarter increased 7.2% to $18.0million, compared to $16.8 million in the second quarter of 2007.Gross profit for the quarter rose to $10.4 million from $9.4 millionin the prior year quarter. Gross profit as a percentage of servicerevenue rose to 57.8%, compared to 56.2% in the same quarter a yearago.

HireRight president and chief executive officer, Eric Boden,stated, "In the second quarter, in spite of the challenging economicenvironment, we executed well and exceeded expectations. We arepleased with our new customer growth in the second quarter. We plan tocontinue investing in initiatives to grow our customer base and extendour leadership position, which also should enhance our ability todeliver outstanding service and support to our existing customers."

Operating income, excluding $1.2 million in financial advisory,legal advisory and ancillary costs relating to the pending mergertransaction, increased 4.6% to $3.3 million from $3.1 million in theprior year period. Income from operations including the pending mergerexpenses was $2.1 million for the second quarter of 2008, compared to$3.1 million during the same prior year period.

The Company also recorded an impairment charge of $0.8 million inthe second quarter of 2008 as a result of the current lack ofliquidity in its auction rate securities portfolio due to currentmarket conditions. As of December 31, 2007 the Company held auctionrate securities with a par value of $37.6 million, and as of June 30,2008 the balance decreased to a par value of $11.8 million as a resultof sales and redemptions.

Net income was $1.2 million, or $0.10 per diluted share, adecrease from $1.9 million in the second quarter of 2007. Excludingthe foregoing pending merger related costs and the impairment charge,net income was $2.5 million, or $0.21 per diluted share, taking intoconsideration the tax-effect of these items. The adjusted net incomeamount represents an increase of $0.6 million from the second quarterof 2007. The effective tax rate for the second quarter of 2008 wasapproximately 32.5%.

Cash, equivalents, and investments totaled $58.0 million at theend of the second quarter of 2008, an increase from $55.4 million atthe end of 2007. The increase was primarily due to operating earningsand additional interest income earned during the current six-monthperiod.

Information on non-GAAP financial measures is presented belowunder "Non-GAAP Financial Measures."

As previously reported, HireRight has entered into an agreementand plan of merger, as amended, with US Investigations Services, LLC("USIS") and a wholly-owned subsidiary of USIS (the "Merger Sub")pursuant to which it is anticipated that the Merger Sub will mergewith and into HireRight, and HireRight will become a wholly-ownedsubsidiary of USIS. HireRight announced on July 25, 2008 that a recorddate and special meeting date have been established for the Company'sstockholders to consider and vote on the proposal to approve theagreement and plan of merger with USIS. HireRight stockholders ofrecord at the close of business on July 15, 2008 will be entitled tonotice of the special meeting and to vote on the proposal. The specialmeeting is scheduled to be held at 9:00 a.m. (PDT) on August 18, 2008at HireRight's principal executive offices located at 5151 CaliforniaAvenue, Irvine, California 92617. Consummation of the merger issubject to receipt of approval from HireRight's stockholders, as wellas satisfaction of customary closing conditions, and the merger isexpected to be completed in the third quarter of 2008.

Safe Harbor Statement under the Private Securities LitigationReform Act of 1995

This message may contain forward-looking statements based on ourcurrent expectations, estimates and projections about our industry,management's beliefs, and certain assumptions made by us. Words suchas ''anticipates,'' ''expects,'' ''intends,'' ''plans,'' ''believes,''''seeks,'' ''estimates,'' ''may,'' ''will'' and variations of thesewords or similar expressions are intended to identify forward-lookingstatements. These statements include, but are not limited to, ourexpectations regarding our future financial condition and results ofoperations, any statements or implications regarding our futurecustomer growth and the impact of our growth initiatives, ourexpectations regarding the consummation of the merger and impact ofthe merger. Such statements speak only as of the date hereof and aresubject to change. We undertake no obligation to revise or updatepublicly any forward-looking statements for any reason. Thesestatements are not guarantees of future performance and are subject tocertain risks, uncertainties and assumptions that are difficult topredict. Therefore, our actual results could differ materially andadversely from those expressed in any forward-looking statements as aresult of various factors. Important factors that may cause such adifference include, but are not limited to, the various risks anduncertainties described in the "Risk Factors" section of our AnnualReport on Form 10-K for the year ended December 31, 2007 and oursubsequent Form 10-Q filings, the risk that our business could sufferdue to the uncertainty relating to the merger, the fact that themerger may not be consummated or may be delayed, and the generaleconomic and political conditions and specific conditions that mayimpact our operations, including hiring trends. Further information onHireRight, Inc., including additional risk factors that may affect ourforward looking statements, is contained in our Annual Report on Form10-K and our other SEC filings that are available through the SEC'swebsite (www.sec.gov).

Additional Information about the Merger and Where to Find It

This press release is not a solicitation of a proxy, an offer topurchase nor a solicitation of an offer to sell shares of HireRight,and it is not a substitute for any proxy statement or other filingsthat have been or may be made with the SEC should the proposed mergergo forward. In connection with the proposed merger, HireRight hasfiled a proxy statement with the SEC. BEFORE MAKING ANY VOTING ORINVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS ARE URGED TOCAREFULLY READ THE ENTIRE PROXY STATEMENT, AS WELL AS ANY AMENDMENTSOR SUPPLEMENTS THERETO, BECAUSE THEY WILL CONTAIN IMPORTANTINFORMATION ABOUT THE PROPOSED MERGER. A definitive proxy statementand supplement thereto have been sent to the stockholders ofHireRight. Investors and security holders may also obtain a free copyof the proxy statement and other documents filed by HireRight with theSEC at the SEC's web site at http://www.sec.gov. Free copies of theproxy statement and other documents filed by HireRight with the SECmay also be obtained by requesting them in writing from HireRight at5151 California Avenue, Irvine, CA 92617, or by telephone at949-428-5855.

Proxy Solicitation

HireRight and its directors, executive officers and other membersof its management and employees may be deemed to be participants inthe solicitation of proxies from its stockholders in connection withthe proposed merger. Information concerning the interests ofHireRight's participants in such solicitation, including theirrespective security holdings, is set forth in HireRight's proxystatement for such merger, which was filed with the Securities andExchange Commission on July 25, 2008.

About HireRight

HireRight is a leading provider of on-demand employment backgroundand drug screening solutions that help organizations efficientlyimplement, manage and control screening programs. Many companies,including 70 of the Fortune 500, trust HireRight because the companydelivers customer-focused solutions that we believe provides greaterefficiency and faster results. HireRight also provides pre-integratedemployment screening services through enterprise e-recruitingsolutions from top providers such as Oracle/PeopleSoft, Taleo, Vurv,ADP/VirtualEdge and PeopleAdmin. HireRight's worldwide headquartersare located in Irvine, California with offices and affiliates aroundthe globe. For more information, visit the company's web site atwww.hireright.com.

CONTACT: Media Relations:
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Lindsay Thompson, 714-957-8880 ext. 128
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Investor Relations:
ICR
Garo Toomajanian, 949-428-5855
ir@hireright.com
SOURCE: HireRight, Inc.

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