8Restructuring and related charges 1 2 19

GAAPEPS in the first quarter of 2008 were $1.07, or $1.16 excluding $0.09 pershare for restructuring-related activities.Conference Call TodayThe company will be hosting a conference call with securities analyststoday at 8:30 a.m (EST). A live broadcast and a complete replay of this callcan be accessed from Lexmark's investor relations Web site at If you are unable to connect to the Internet, youcan access the call via telephone at 888-693-3477 (outside the U.S. by calling973-582-2710) or the replay shortly afterward by calling 800-642-1687 (outsidethe U.S by calling 706-645-9291) using access code 80314259. This telephonereplay of the conference call will be available through Feb.

3, 2009.Supplemental information slides, including reconciliations between GAAPand non-GAAP financial measures, will be available on Lexmark's investorrelations Web site prior to the live broadcast.About LexmarkLexmark International, Inc. (NYSE: LXK) provides businesses and consumersin more than 150 countries with a broad range of printing and imagingproducts, solutions and services that help them to be more productive In2008, Lexmark reported $4.5 billion in revenue. The Company undertakes no obligation toupdate any forward-looking statement.Lexmark and Lexmark with diamond design are trademarks of LexmarkInternational, Inc., registered in the U.S and/or other countries. All othertrademarks are the property of their respective owners LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIESCONSOLIDATED CONDENSED STATEMENTS OF EARNINGS (In Millions, Except Per Share Amounts) (Unaudited)Three Months Ended Year Ended December 31 December 312008200720082007Revenue$1,083.7$1,309.7$4,528.4$4,973.9Cost of revenue (1) (2) 769.5 871.7 2,993.8 3,410.3Gross profit314.2 438.0 1,534.6 1,563.6Research and development105.0 100.5 423.3 403.8Selling, general and administrative (1) (2) 190.1 204.3 807.3 812.8Restructuring and related charges (1) (2) 19.119.126.825.7Operating expense 314.2 323.9 1,257.4 1,242.3Operating income0.0 114.1 277.2 321.3Interest (income) expense, net2.8(7.4) (6.1)(21.2)Other (income) expense, net (3) 2.3 0.0 7.4(7.0)Earnings before income taxes (5.1)121.5 275.9 349.5Provision (benefit) for income taxes(23.2) 22.535.748.7Net earnings$18.1 $99.0$240.2$300.8Net earnings per share:Basic $0.23 $1.04 $2.70 $3.16Diluted $0.23 $1.04 $2.69 $3.14Shares used in per share calculation:Basic79.695.088.995.3Diluted80.195.389.295.8(1) Amounts for the three months ended December 31, 2008, include totalrestructuring-related charges and project costs of $46.8 million with$15.2 million and $12.5 million included in Cost of revenue andSelling, general and administrative, respectively, in addition to the$19.1 million in Restructuring and related charges.Amounts for the year ended December 31, 2008, include totalrestructuring-related charges and project costs of $92.7 million with$42.5 million and $23.4 million included in Cost of revenue andSelling, general and administrative, respectively, in addition to the$26.8 million in Restructuring and related charges.(2) Amounts for the three months ended December 31, 2007, included totalrestructuring-related charges and project costs of $30.1 million with$6.8 million and $4.2 million included in Cost of revenue and Selling,general and administrative, respectively, in addition to the $19.1million in Restructuring and related charges.Amounts for the year ended December 31, 2007, included totalrestructuring-related charges and project costs of $55.5 million and a$3.5 million gain on the sale of the Company's Scotland facility.Ofthe net $52.0 million of restructuring-related charges and projectcosts incurred, $17.0 million and $9.3 million were included in Costof revenue and Selling, general and administrative, respectively, inaddition to the $25.7 million in Restructuring and related charges.(3) Amounts for the year ended December 31, 2007, included an $8 millionpre-tax foreign exchange gain realized upon the substantialliquidation of the Company's Scotland entity.LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL POSITION(In Millions) (Unaudited) December 31 December 31 20082007ASSETSCurrent assets:Cash and cash equivalents $279.2$277.0Marketable securities694.1 519.1Trade receivables, net 427.3 578.8Inventories438.3 464.4Prepaid expenses and other current assets223.8 227.5Total current assets 2,062.7 2,066.8Property, plant and equipment, net 863.2 869.0Marketable Securities 24.7 -Other assets 314.8 185.3Total assets$3,265.4$3,121.1LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities:Short term debt $5.5$-Current portion of long-term debt- 149.9Accounts payable 557.1 636.9Accrued liabilities694.9 710.5Total current liabilities1,257.5 1,497.3Long-term debt 648.7 -Other liabilities547.1 345.5Total liabilities2,453.3 1,842.8Stockholders' equity:Common stock and capital in excess of par804.4 888.9Retained earnings692.5 935.7Treasury stock, net (404.5) (454.7)Accumulated other comprehensive loss(280.3)(91.6)Total stockholders' equity 812.1 1,278.3Total liabilities and stockholders' equity $3,265.4$3,121.1 LEXMARK INTERNATIONAL, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP MEASURES (Unaudited)Net Earnings (In Millions) 4Q084Q07GAAP$18 $99Restructuring-related charges & project costs4224Non-GAAP$60$123Earnings Per Share Guidance1Q091Q08GAAP $0.52 to $0.62 $1.07Restructuring-related charges & project costs0.130.09Non-GAAP $0.65 to $0.75 $1.16Note:Management believes that presenting the non-GAAP measures above is useful because they enhance shareholders' understanding of how management assesses the performance of the Company's businesses.

Management reviews the performance of the Company's operating segments based on GAAP and non-GAAP measures which reflect income and expense items which are recurring in nature, and do not include the impact of actions that management believes are not reflective of the ongoing operation of the Company. These measures may not be comparable to similar measures of other companies as not all companies calculate these measures in the same manner. Totals may not foot due to rounding.LEXMARK INTERNATIONAL, INC. These measures may not be comparable to similar measures of other companies as not all companies calculate these measures in the same manner. Totals may not foot due to rounding.SOURCELexmark International, Inc.Investors: John Morgan, 1-859-232-5568, ; Media: JerryGrasso, 1-859-232-3546, . Going into week five the Denver Broncos remain an undefeated team. One of the most surprising undefeated teams left, standing besides the likes of the Colts, Saints, Giants, and possibly the Vikings. There has been a lot of controversy if the Broncos are a legit undefeated team, defeating teams such as the Browns and Raiders. However today the Denver Broncos maintained that undefeated record by beating the Cowboys a team that has always been in the contentions.Looking ahead, the Denver Broncos as noted by many "experts" the Broncos have a very intense schedule of them. As of today they kicked off a nasty eight game stretch against some real competitors such as the Ravens, Steelers, and Giants. One can argue that they have some breaks playing teams like the Redskins or the Chargers who many feel have underachieved this year. Regardless Denver will have some real competition to play against in the upcoming weeks.In week five the New England Patriots will be playing the Broncos at Invesco, a game that is regarded as one of the biggest games next week. Now before the past two weeks many fans and experts may have felt that this isn't as scary of a game for the Broncos because up to that point the Patriots had played poorly or at least poorly to elite standards. However after giving the first lose to two undefeated teams, the Falcons and Ravens, one must wonder if the Broncos will be the third team knocked from the undefeated pedestal by the Patriots.Both teams come into the matchup with a lot of momentum, and as my dad constantly tells me, "Football is a game of momentum." The Patriots like stated previously have beaten the Falcons and the Ravens two top ten teams, both have played very well this year. It isn't like these games were super-close either, in fact both were won convincingly by the Patriots. Now the Broncos also come in with a great deal of momentum, boasting the best scoring defense in the country, allowing only 6.5 points a game. Did I mention they are 4-0 as wellThe predictions that are going around show New England most likely winning the game, and with good reason as well. But there are a couple factors I think might change the flow of the game that aren't as conventional as the ones you will probably hear from analysts or other reports.The first factor is the fact that New England is coming to Invesco to play. This is a fairlyunderrated factor in general, and I think stadium by stadium that Invesco gives a greater advantage then other home fields. As most everyone knows, Invesco is set on high altitude which does one major thing. While the Broncos are generally all used to the altitude many players are not, it isn't a thing you can really train for.