Phil Perillo, chief financial officer, added, "Our 2008 revenues were also hurt by an increase in first-year lapses on policies where we have not yet received the full first-year annual commission, perhaps due to the national economic climate. We record first-year commission revenues on the full annual premium when a life policy goes in force. So if a customer stops paying and lapses during the first year, we will not realize all of the revenue we had anticipated. While we set up a reserve at the time revenue is recognized, our lapses exceeded the reserve, resulting in a $200,000 charge against revenue in the fourth quarter due to an increase in the reserve. We cannot say with certainty at this time whether the lapse of first-year policies is a trend or a one-time event."

Insure.com has a strong balance sheet with no debt. Cash and investments in marketable securities totaled $9.0 million at December 31, 2008, and our total 2008 cash flow from operations was a positive $93,000.

Stockholders' equity amounted to $16.4 million at December 31, 2008, as compared to $19.2 million at December 31, 2007, with about $1.8 million of the decrease coming from the repurchase of 510,000 shares of Company stock during the year. The Company is currently authorized by its board to repurchase up to 487,000 additional shares in the open market or in negotiated transactions. DARIEN