Good morning, ladies and gentlemen. Thank you so much for standing by and welcome to the Rollins’ first quarter conference call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. (Operator Instructions). As a reminder, this conference is being recorded today, Wednesday, the 23rd of April, 2008. I will now turn the conference over to Ms. Leslie Loyet of the Financial Relations Board. Please go ahead.

Thank you. By now you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact our office at 212-827-3777. We will send you the release and make sure you are on the company’s distribution list. There will be a replay of the call which will begin one hour after the call and run for one week. The replay can be accessed by dialing 1-800-405-2236 with the pass code 11112420. Additionally, the call is being webcast over www.viavid.com and a replay will be available for 90 days. On the line with us today are Gary Rollins, President and Chief Executive Officer; and Harry Cynkus, Chief Financial Officer and Treasurer. Management will make some opening remarks and then we’ll open up the lines for questions. Gary, would you like to begin?

Yes, thank you Leslie. Good morning and thank you all for joining our first quarter 2008 conference call. Harry will read our forward-looking statements and disclaimer and then we will begin. Harry Cynkus – Chief Financial Officer and Treasurer: Thanks, Gary. Our earnings release discusses our business outlook and contains certain forward-looking statements. These particular forward-looking statements and all other statements that may be made on this call excluding historical facts are subject to a number of risks and uncertainties and actual results may differ materially from any statement we make today. Please refer to today’s press release and our SEC filings, including the risk factor section on Form 10-K for the year ended December 31, 2007, for more information on the risk factors that could cause actual results to differ.

Thank you, Harry. We were pleased to report a 4.4% increase in revenues for the first quarter. Total pest control sales were up approximately 10% led by a strong commercial pest control sales result. We saw strong commercial performance particularly in our national accounts, which was up over a100% from the same quarter last year with more than $7 million in sales. As I mentioned on our last call, this quarter we started service on three national accounts that were sold earlier with approximately 3,500 locations in the US, which contributed. There was not a high volume of new residential pest control or termite control sales due to the small amount of pest activity this quarter. We are pleased to have completed the acquisitions of HomeTeam Pest Defense, a Centex subsidiary. It could be said that this is an acquisition that took a long time to come to fruition. We first contacted them almost 10 years ago and have routinely been in touch throughout the period. We last contacted them about five months ago they were more receptive. As one Centex’s executive said we really like pest control but right now we need to focus completely on our home building business. HomeTeam’s fiscal year ended March 31, and recorded revenues of approximately $134 million. The revenue and customer base when combined with ours will considerably broaden our market share. HomeTeam was attractive to us for a number of reasons beginning with the fact that they provide a strategic opportunity to handle a market channel that we’ve not previously pursued, new home construction and the new home owner. I know people can be a little nervous these days when they think of home construction but home building is not going to stop. It slows down from time to time but it…

Thank you, Harry. We are now ready to open the call for any questions that you might have.

Thank you. (Operator Instructions). And, our first question from the line of Jim Famalette with Sidoti & Company. Please go ahead.

Hi, Gary. Harry, good morning.

Good morning.

Good morning

Gary, one thing about --about HomeTeam their business model that I’m a little unclear about in and I really you know as a part of a large organization so this, limited historical numbers out there for us, but, did this HomeTeam technician actually have to be onsite when the tubes are essentially built into a home or they just sell the tubes themselves?

No, they actually install the tubes.

Okay. Okay, so, I’m looking at just their EBITDA margin based on the last 12 months, looks like it’s cut it was been half of what Rollins is, when times are challenging in a home building market as they are now, is there infrastructure in place at HomeTeam that the company just got it has to absorb until time is get better and I guess it’s kind of a follow up question so there will be two parts would be, where margins better in say 2005 and early 2006 in this business and would you expect that when conditions improve I mean is there a fair amount of margin upside in this business?

We have to answer a lot of questions.

I’m sorry, I apologize. You don’t worry, I’m going with this.

If there are, as margin now opportunities, you know, we think that we have knowledge, that we can share, that we’ve gained and wrapped the pest control business, these are good people, they are good operators, but, we think that we can bring some things that to the party to help, show them some things that they may not be aware of-- to get back into the kind of the margin movement and how things were two years ago versus you know this past year. Their margins have continued to improve. This business till some extent is kind of like to burglar alarm business or the cable television business. When you are adding a lot of homes, it’s really more costly than when you are not adding a lot of homes.

Okay.

You have the benefit of the recurring revenue base which you don’t have the installation recruitment et cetera. So, to some extent as a kind of good news bad news, the bad news is that the housing industries are, but the good news is that the housing industry is all -- because you don’t have this phenomenal investment that you are extending to install these units in these new homes. So, we really think that as Harry mentioned that there is a lot of areas that we can improve the margins and one of the factors that I have mentioned a little earlier is half of the business is just the conventional pest control. And I guess a reasonable question would be, why is that so and that’s so is because they acquired pest control companies that have a base of operation when they went into these various cities. So, they have a large number of customers that they don’t have anything to do with the tubes.

Okay. And presumably you know they operate in, I believe you said what was 13 states?

That’s right.

And you operate a lot more than that. So, that would also be an opportunity I would assume?

Well I think so and they really have to do it the hard way and I think Centex really made a major investment in this business by acquiring a large number of pest control operators and really dealing with the losses in the first years but there is many markets that we could go into that you know Orkin already in there you know we’ve got a facility now because we changed our marketing model through our call offices et cetera. We have space in a lot of our facility. So, it may not require that they have to -- the first year go out and let a new facility. So, I think that there is a lot of synergies in that regard.

Okay.

Okay, we don’t have all the answers, we don’t even know what are the questions are? We are going to learn, we have no real interest to turn this business upside down, these are great people they have done a terrific job, Bob Wanzar is a super operator and you know, we should try this like we did with Western and we are likely to do with PCL. We are going to try to be helpful. I think our experience rather are in contacts with them, they are very open to ideas and suggestions, they have never really market it much to multiple unit apartments you know, this might be a great opportunity with some softness and single family homes to do some work as far as these apartments are concerned, so we think that there is a lot of great opportunities.

Okay. And Harry just last follow up question, I don’t know if I got the exact number, but your non-cash intangible amortization charge for the first quarter was wide and either millions are in per share basis.

For Rollins in the Q1 it was 3.3 million.

Okay.

The annual run rate when you combine what HomeTeam would be close to 8 million and Rollins had a little over 13; will be nearly $42 million in non-cash charges.

Okay. Very good.

Thank you very much.

Thank you, James.

(Operator Instruction). Our next question is from the line of Clint Fendley with Davenport. Please go ahead.

Hi, gentlemen. This is Jerry for Clint this morning. Just a question on the SG&A, obviously it was impacted this quarter by the acquisition, I don’t know how she think about further impacts going forward turn the acquisition and in addition it looks like HomeTeam had the significantly higher issues and higher amount of SG&A expense as only with the time frame. Your thoughts in that time frame and cutting that down to be more loyal in the Rollins core business?

Well as -- as we mentioned they have a different sales model in terms of Q1 in SG&A, we incurred around $1 million in cost related to that acquisition, this is you know the counts for lawyer’s environmental, consultants and what not, they are still a little to come in Q2, we tried to capture much what we do in Q1, the price there’ll be some additional transaction cost in Q2, but I suspect it should be less than $400,000. In terms of there SG&A, organic and with the different sales model and that’s one thing, you know, we will look at in brain storm with them. You know, and I really don’t have at this point have any forward-looking estimate and what we can do in that area and we will share more with you when we learn what opportunities that might be there.

I think we do have some upside though in that to the extent that - in the last few years, we made major investments in our commercial sales organization and any time you build sales organization you got a pretty significant cost burden until these people with successful and be productive, so we do have some opportunities as I mentioned our sales force, you know, is selling higher average sales per salesman and they are maturing and so, you know, we do have some potential as far as the sales that are - the sales margin, expense margin related to our commercial sales organization.

Hi, that’s helpful, thank you and just one another question on fuel within a huge factor, I guess this quarter is out what are your thoughts going forward, it is a past re-provisions or is there any kind of controls in place as you priced this share and that is going down any time?

y:

One of the good things I guess about our company is that our people as you know when we kind of come up with an adverse situation, we try to find a way to offset it and there will be a lot more motivation to proper routing, there will be a lot more attention given to parking the vehicles where we have facilities that allow parking the vehicles. As Harry mentioned, we will be looking at after our use of the vehicles, you know, we have a kind of wake-up call like gas selling for $3.50 and I guess $4 on the west coast, it just makes me start looking at areas that you can help offset that kind of an increase.

Alright, thank you very much gentlemen.

Thank you.

Alright, thank you. Our next question is from the line [Sam Lau] with [Asset Value Investors]. Please go ahead.

Hello. It's Sam Lau. Thank you for taking the call or question. I wanted to ask you, I guess couple of just nuts and bolts type thing and then I also wanted to ask about the just if you could elaborate on why your claims that I guess experience is lower in the first quarter and a little more detail and after that I want to ask you, the amortization of intangibles from HomeTeam acquisition, are those deductible for taxes, income taxes as well? And then the actual share count on March 31st toward the end of the quarter?

Okay. The write off for tax purposes is actually even greater than it is in the books, the full amount allocated for goodwill would be written off over 15 years for tax purpose. We do have a book tax difference there.

What’s the amount in your one then for example?

For book or for tax?

For tax?

For tax, I guess that I don’t have a calculator, but the final goodwill is $145 million and you get it over 15 years, it’s about $9.6 million in tax deduction on per month basis.

Yeah, I don’t believe you -- you get any bonus or salary, it’s a pretty…

Okay.

I will verify my tax form, I’m pretty sure it’s 115.

Alright.

Share count on the press release...

Okay, on your press release you gave the average equivalent shares outstanding?

Okay. It should be right around that $103 million on the --

I was hoping for.

103 million shares.

I will look for more exact count, but the best we think wait for this. Thank you.

Yeah, I don’t have it in front.

Okay.

I can address, you know, your question about termite claims, you know simply we are, I guess reaping the benefits of the investments that we have made over the last several years as early as the late 90’s where we changed the treating requirements, changed from either sides that we used, changed our claims processing procedures where we really get an early reporting of the current potential termite claims much like you will do on workmen’s comp claim. So, we have really reengineered our termite business and fortunately we are starting to see and just like I guess anything that involves a large face with a tail which has taken several years to which has really started seeing the benefits of these changes that we have made back in the late 90s.

Okay. Alright, thank you.

Thank you.

There are no further questions at this time. Mr. Rollins, please continue with any closing comments.

Okay. Well, we appreciate your attendance and in your interest in our company and we look forward to meeting with you again next quarter where we can share results. Thank you.

Thank you. Ladies and gentlemen, this does conclude the Rollins first quarter conference call. If you would like to listen to a replay of today’s conference in its entirety, you can do by dialing 1-800-405-2236 or 303-590-3000, enter the access code 11112420. Those numbers again, 1-800-405-2236 or 303-590-3000 and put the access code 11112420. We would like to thank you very much for your participation, you may now disconnect. Have a very pleasant rest of your day.