Welcome to Tucows Inc. second quarter 2008 conference call. I will now turn the call over to Ken Schafer; please go ahead.

Good afternoon and thank you for joining us today. With me is Elliot Noss, our President and Chief Executive Officer and Michael Cooperman, our Chief Financial Officer. Earlier this afternoon Tucows issued a news release reporting our results for the second quarter of fiscal 2008. The news release and other information are available on our website at www.tucowsinc.com and just click on Investors. Before we begin today I would like to point out that the matters we will be discussing include forward-looking statements and as such, are subject to risks and uncertainties that could cause actual results to differ materially. These risk factors are described in detail in our documents filed with the SEC, specifically the most recent reports on Form 10-K and 10-Q. We urge you to read our securities filings for a full description of the risk factors applicable to our business. I would now like to turn the call over to Elliot.

Thanks Ken, good afternoon and thanks for joining us today. On today’s I’ll provide an overview of our business during our second quarter ended June 30, 2008, Michael will then review the financial results before returning the call to me for a discussion of our growth opportunities. Our results for Q2 were on plan and position us to achieve year-over-year growth in revenue, profitability and cash flow in 2008. We have a number of new initiatives in place to help us achieve these goals and we look forward to recognizing the benefits of the hard work we have done and continue to do. This quarter’s results were driven by our core business which despite the price cut implemented last August, achieved revenue growth of 8% over the second quarter of last year; the result of increases in both new and renewal registrations. Other major highlights was the finalization of our email migration which now begins to provide material cost savings as well as greater reliability and operating simplicity. I would now like to review our progress by revenue source. First looking at the domain registration business in a little more detail, we are encouraged by the continuation of a number of favorable trends during the second quarter. Again we saw increased transaction volumes, a clear indication that the change in pricing of last August is having its intended affect. Renewal transactions are up, new domain transactions are up and we have a significantly higher level of increased interest from new customers. Increases across all of the metrics we track are obviously positive signs for our core business. There is always price pressure in this segment, but with transactions growing faster then we had expected, it bodes well for our ability to cross sell and up sell to email, personal names…

Thanks Elliot, our financial results for the second quarter were in line with our expectations as we made further progress in positioning key elements of our business for the future highlighted by the completion of the customer migration to our new email platform. While we experienced some of the impact of these initiatives in the second quarter we expect they will make a more material contribution to our financial results in the second half of this year and into 2009. Net revenue for the second quarter of fiscal 2008 was $20.5 million compared to $20.8 million for the corresponding quarter of last year. The slight decrease in revenue is primarily the result of the higher revenues from our traditional domain registration and retail services being offset by lower revenues from our email and domain portfolio services. I will remind you that revenue in the second quarter of last year was unusually high in that it included an atypically large sale of a block of domain names from our portfolio for $3 million. Cost of revenues including network costs for the second quarter increased by 10% to $14.5 million from $13.2 million and consistent with the first quarter primarily reflect lower margins following the price reduction on wholesale domain names implemented in August of last year, and the higher registration fees we are paying as a result of the 7% registry price increase in October last year. These were partially offset by a decrease in network costs that resulted from lower people costs and lower depreciation and amortization. As Elliot discussed earlier, we have now fully completed the migration of our customers to our new hosted email platform which will result in a significant reduction in cost in the second half of this year. Gross margin for the second quarter was…

Thanks Michael, now that Michael and I have updated you on the progress of the business, I’d like to take a final few minutes to discuss our strategy and why I believe we are in a better position then we have been at any time in our history. First Open SRS, a couple of weeks ago we re-launched Open SRS as the name for our wholesale reseller business. We are focusing our Open SRS team on two simple goals; win new resellers and increase revenue per reseller. To achieve these goals we are emphasizing three broad strategies. First we are reducing the time it takes for a new reseller to start selling our services. This includes improving on our self serve tools that help new resellers to get signed up and selling faster. Also, we are developing a hosted storefront for resellers who don’t want to invest the development time and resources to undertake a deep technical integration with our systems. The launch of storefront this fall will allow resellers to go from signup to selling our service in minutes instead of months. Any reseller looking to us for email demands easy migration from competitors or their own in-house systems. The faster we can get them up and running on our system the better for us and for the reseller. We have developed and continue to refine our tools to facilitate fast, reliable, low impact data migrations. In fact, our level of service and sophistication is already a competitive advantage. Second, we are creating new and innovative domain name and email services that ultimately appeal broadly to the resellers’ full customer base and therefore increase reseller RPU. We are focused on providing choice and flexibility to our resellers to reduce the need or desire for them and by extension their…

(Operator Instructions) Your first question comes from the line of Thanos Moschopoulos – BMO Capital Markets Thanos Moschopoulos – BMO Capital Markets: Can you just comment on the environment for large bulk sales, has that remained pretty consistent with what we’ve seen in the recent past despite what’s going on with the Google and Yahoo syndication fees and the like?

Well those—the Google and Yahoo sort of pressing upstream definitely has an impact on those sales so it doesn’t make the market—there are just as many participants but it does have an impact on the multiples. And I think that’s one of the reasons why we, I think uniquely, have always been looking to take a little bit of money off the table as we went along with that asset class. What I was calling out earlier on the call was the fact that that does have an impact and from our perspective the fact that we’ve been more focused strategically on the brandable side, it looks like it was the right choice. Thanos Moschopoulos – BMO Capital Markets: In terms of specifically of your own direct navigation revenue and how that’s being affected, where do you think we start to see the bottoming out of this issue with the syndication feels because you’ve been talking about it for a few quarters now, is there any signs of the trends slowing down or coming to a bottom or is this just ongoing pressure we’ll see for some time?

I talked about it I think last quarter, I don’t believe I talked about it two quarters ago, and this is the first quarter that you see it in the numbers. So I was getting out ahead of it when I was talking about it. I will also tell you that in terms of where’s the bottom, we’ve started to see a little bit of a pickup now so we may have hit the bottom. There’s another point here that I think is important is which is its not just that they’ve—that Google and Yahoo have pushed back on the payouts, they have also started to get more aggressive with some of the greyer parts of the market and long-term that affects us positively because we’ve got a very clean book of business. The more sort of bad traffic and bad clicks that are pushed out of the system, the better it is for us in the long-term. Thanos Moschopoulos – BMO Capital Markets: Turning to the email business, now that the migration to the new platform is complete and you mentioned your starting a new business, I think you’ve commented on this in the past, should we expect to see a slow and steady gradual ramp or might it be a bit of a step function as you sign some big customers or what should we expect as far as growth profile of that going forward?

I think there are two things, there is slow and steady—that’s the way we focused the ramp. I think that the only—its sort of all positive out there with a small cloud on the horizon around some of the very biggest customers and some of the competitive threat we do see at the very top end from Google. So the longer we’re able to fend that off the more progressive will be the ramp. And I think its tough to see a step function because we really don’t go after the very, very largest—you might see one or two or three—I shouldn’t say don’t go after—you see one or two or three massive deals a year. That’s not where we focus our efforts. So in a given year we might we lucky enough to win one of those deals that would have a step function up but that’s really not something we’re counting on when we build our model. Thanos Moschopoulos – BMO Capital Markets: Basically the cost structure should remain pretty flat go forward adjusting for some of the network costs coming off now with the migration complete?

Yes I think that’s a pretty accurate categorization. Thanos Moschopoulos – BMO Capital Markets: So the new retail site being launched, no particular expenses of significance associated with that beyond what the current run rate is I guess?

You’ve seen them already. They’re in the numbers. And definitely check it out and let me know what you think. Thanos Moschopoulos – BMO Capital Markets: On the Tucows site, in the past you’ve mentioned exploring strategic alternatives for that business, any update there?

I think what I would say at this point is we’re probably going to be talking about that shortly. I will say that that we have looked at the possibility of a transaction and we very happily come to the place where we think we’ve got a new operating strategy that we’re all very excited about. But more to follow shortly.

Your final question comes from the line of Aram Fuchs - Fertilemind Capital

I was wondering if you can give us a little more detail on your distribution strategy for the low end brandable names out to your resellers. You said you were going to go with trying to work with your top 50 maybe you can talk about the response and how that’s working out.

I think that we’re getting positive feedback. Its both brandable remember both brandable and personal names that we’re going at with that. Feedback has been good. People—it’s very tough to get on people’s roadmap in the summer, get them to kind of lift. But the interest I think has at a minimum met our expectations there.

How is the revenue split, what is the revenue split that you’re offering there in terms of retail partners?

There’s a 20% agency fee on any transaction through the system and that’s split equally 10% us, 10% to the web hosting company or ISP. And when you look at that relative to a typical domain name transaction, it’s extremely lucrative. Not only that but once a customer has bought a premium name, you can be very certain that that’s something there going to use. Making that easy for people really has a lot of knock-on affects too.

There are no further questions at this time; I would like to turn it back over to Elliot Noss for any closing remarks.

Thank you and we look forward to speaking with you all again next quarter.