Research In Motion Reports Third Quarter Results

Research In Motion Limited (RIM) (NASDAQ: RIMM)(TSX: RIM), a world leader in the mobile communications market, today reported third quarter results for the three months ended November 28, 2009 (all figures in U.S. dollars and U.S. GAAP, except where indicated).

Revenue for the third quarter of fiscal 2010 was $3.92 billion, up 11% from $3.53 billion in the previous quarter and up 41% from $2.78 billion in the same quarter of last year. The revenue breakdown for the quarter was approximately 82% for devices, 14% for service, 2% for software and 2% for other revenue. During the quarter, RIM shipped approximately 10.1 million devices, including its 75 millionth BlackBerry smartphone.

Approximately 4.4 million net new BlackBerry® subscriber accounts were added in the quarter. At the end of the quarter, the total BlackBerry subscriber account base was approximately 36 million.

“We are pleased to report record shipments of more than 10 million BlackBerry smartphones during the third quarter with higher than expected revenue, earnings and subscriber growth,” said Jim Balsillie, Co-CEO at Research In Motion. “RIM is experiencing a great start to the holiday buying season and the strong Q3 results and Q4 outlook clearly reflect the strength of our diversified product portfolio as well as the success of our efforts to expand into broader customer segments and new geographies while maintaining our strong position in North America.”

Net income for the quarter was $628.4 million, or $1.10 per share diluted, compared with net income of $475.6 million, or $0.83 per share diluted, in the prior quarter and net income of $396.3 million, or $0.69 per share diluted, in the same quarter last year. The earnings per share in the quarter was not impacted by repurchases under RIM’s Common Share Repurchase program.

Revenue for the fourth quarter of fiscal 2010 ending February 27, 2010 is expected to be in the range of $4.2-$4.4 billion. Gross margin for Q4 is expected to be approximately 43.5%. Net subscriber account additions in the fourth quarter are expected to be in the range of 4.4-4.7 million. Earnings per share for the fourth quarter are expected to be in the range of $1.23-$1.31 per share diluted. This reflects a positive impact of approximately $0.03 per share related to the cancellation of 12.3 million shares repurchased under RIM’s share repurchase program during the third quarter.

The total of cash, cash equivalents, short-term and long-term investments was $2.41 billion as at November 28, 2009, compared to $2.50 billion at the end of the previous quarter, a decrease of $90 million over the prior quarter. Cash flow from operations in Q3 was approximately $1.07 billion. Uses of cash in the quarter included capital expenditures of approximately $196 million, intangible asset purchases of approximately $143 million and a common share repurchase pursuant to the share repurchase program of $775 million.

A conference call and live webcast will be held beginning at 5 pm ET, December 17, 2009, which can be accessed by dialing 800-733-7571 (North America), 416-915-5761 (outside North America). The replay of the company’s Q3 conference call can be accessed after 7 pm ET, December 17, 2009 until midnight ET, December 31, 2009. It can be accessed by dialing 416-640-1917 and entering passcode 4189541#. The conference call will also be available on the RIM website live at 5 pm ET and will be archived athttp://www.rim.com/investors/events/index.shtml.

About Research In Motion (RIM)

Research In Motion is a leading designer, manufacturer and marketer of innovative wireless solutions for the worldwide mobile communications market. Through the development of integrated hardware, software and services that support multiple wireless network standards, RIM provides platforms and solutions for seamless access to time-sensitive information including email, phone, SMS messaging, internet and intranet-based applications. RIM technology also enables a broad array of third party developers and manufacturers to enhance their products and services with wireless connectivity. RIM’s portfolio of award-winning products, services and embedded technologies are used by thousands of organizations around the world and include the BlackBerry® wireless platform, the RIM Wireless Handheld(TM) product line, software development tools, radio-modems and software/hardware licensing agreements. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North America, Europe and Asia Pacific. RIM is listed on the Nasdaq Stock Market (NASDAQ: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visitwww.rim.com or www.blackberry.com.

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to RIM’s revenue, gross margin, earnings and net subscriber account additions for the fourth quarter of fiscal 2010, RIM’s expectations for the holiday buying season and its plans to expand into broader market segments and new geographies. The terms and phrases “expected”, “experiencing a great start”, “outlook”, “efforts to expand”, and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by RIM in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that RIM believes are appropriate in the circumstances including but not limited to general economic conditions, product pricing levels and competitive intensity, supply constraints and new product introductions. Many factors could cause RIM’s actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: reduced spending by customers and other risks relating to the uncertainty of economic and geopolitical conditions; risks relating to RIM’s intellectual property rights; RIM’s ability to enhance current products and develop new products and services; RIM’s reliance on carrier partners, third-party manufacturers, third-party network developers and suppliers; risks relating to the efficient and uninterrupted operation of RIM’s network operations centre; risks related to RIM’s international operations; and intense competition. These risk factors and others relating to RIM are discussed in greater detail in the “Risk Factors” section of RIM’s Annual Information Form, which is included in its Annual Report on Form 40-F and RIM’s MD&A (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on RIM’s forward-looking statements. RIM has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

The BlackBerry and RIM families of related marks, images and symbols are the exclusive properties and trademarks of Research In Motion Limited. RIM, Research In Motion and BlackBerry are registered with the U.S. Patent and Trademark Office and may be pending or registered in other countries. All other brands, product names, company names, trademarks and service marks are the properties of their respective owners.

                        Research In Motion Limited
                  Incorporated under the Laws of Ontario
   (United States dollars, in thousands except per share data)(unaudited)
                  Consolidated Statements of Operations
                             Three months ended           Nine months ended
          -------------------------------------- ---------------------------
           November 28,  August 29, November 29,  November 28,  November 29,
                  2009        2009         2008          2009          2008
----------------------------------------------------------------------------
Revenue    $ 3,924,310 $ 3,525,692  $ 2,782,098  $ 10,873,512   $ 7,601,993
Cost of
 sales       2,249,055   1,971,296    1,512,592     6,152,336     3,888,273
          -------------------------------------- ---------------------------
Gross
 margin      1,675,255   1,554,396    1,269,506     4,721,176     3,713,720
          -------------------------------------- ---------------------------
 Gross
  margin %        42.7%       44.1%        45.6%         43.4%         48.9%
Operating
 expenses
 Research
  and
  development  242,329     235,571      193,044       697,677       502,167
 Selling,
  marketing
  and
  adminis-
   tration     465,717     429,748      382,968     1,409,756     1,089,204
 Amortization   83,129      73,292       53,023       223,817       133,208
 Litigation          -     163,800            -       163,800             -
          -------------------------------------- ---------------------------
               791,175     902,411      629,035     2,495,050     1,724,579
          -------------------------------------- ---------------------------
Income
 from
 operations    884,080     651,985      640,471     2,226,126     1,989,141
 Investment
  income         6,425       7,625       31,554        23,186        67,699
          -------------------------------------- ---------------------------
Income
 before
 income
 taxes         890,505     659,610      672,025     2,249,312     2,056,840
          -------------------------------------- ---------------------------
Provision
 for
 income
 taxes         262,134     183,989      275,729       502,290       682,483
          -------------------------------------- ---------------------------
Net income   $ 628,371   $ 475,621    $ 396,296   $ 1,747,022   $ 1,374,357
          -------------------------------------- ---------------------------
          -------------------------------------- ---------------------------
Earnings
 per share
 Basic       $    1.11   $    0.84    $    0.70   $      3.08   $      2.43
          -------------------------------------- ---------------------------
          -------------------------------------- ---------------------------
 Diluted     $    1.10   $    0.83    $    0.69   $      3.05   $      2.39
          -------------------------------------- ---------------------------
          -------------------------------------- ---------------------------
Weighted
 average
 number
 of common
 shares
 outstanding
 (000's)
 Basic         566,277     567,789      565,687       566,951       564,710
 Diluted       570,929     573,565      573,514       572,608       574,469
Total
 common
 shares
 outstanding
 (000's)       556,913     568,219      565,998       556,913       565,998
                        Research In Motion Limited
                  Incorporated under the Laws of Ontario
   (United States dollars, in thousands except per share data)(unaudited)
                       Consolidated Balance Sheets
                                                November 28,    February 28,
As at                                                  2009            2009
----------------------------------------------------------------------------
Assets
 Current
  Cash and cash equivalents                     $ 1,286,309     $   835,546
  Short-term investments                            341,205         682,666
  Trade receivables                               2,712,414       2,112,117
  Other receivables                                 210,028         157,728
  Inventories                                       612,787         682,400
  Other current assets                              198,696         187,257
  Deferred income tax asset                         212,461         183,872
                                               -----------------------------
                                                  5,573,900       4,841,586
Long-term investments                               781,206         720,635
Capital assets                                    1,843,760       1,334,648
Intangible assets                                 1,359,060       1,066,527
Goodwill                                            146,557         137,572
Deferred income tax asset                                 -             404
                                               -----------------------------
                                                $ 9,704,483     $ 8,101,372
                                               -----------------------------
                                               -----------------------------
Liabilities
 Current
  Accounts payable                              $   815,415     $   448,339
  Accrued liabilities                             1,726,498       1,238,602
  Income taxes payable                              140,294         361,460
  Deferred revenue                                   70,169          53,834
  Deferred income tax liability                           -          13,116
                                               -----------------------------
                                                  2,752,376       2,115,351
Deferred income tax liability                       103,261          87,917
Income taxes payable                                 28,355          23,976
                                               -----------------------------
                                                  2,883,992       2,227,244
                                               -----------------------------
Shareholders' Equity
Capital stock                                     2,199,806       2,208,235
Treasury shares                                     (88,813)              -
Retained earnings                                 4,564,243       3,545,710
Additional paid-in capital                          150,095         119,726
Accumulated other comprehensive income (loss)        (4,840)            457
                                               -----------------------------
                                                  6,820,491       5,874,128
                                               -----------------------------
                                                $ 9,704,483     $ 8,101,372
                                               -----------------------------
                                               -----------------------------
                        Research In Motion Limited
                  Incorporated under the Laws of Ontario
   (United States dollars, in thousands except per share data)(unaudited)
                  Consolidated Statements of Cash Flows
                                      Nine months ended   Nine months ended
                                      November 28, 2009   November 29, 2008
----------------------------------------------------------------------------
Cash flows from operating activities
Net income                                  $ 1,747,022         $ 1,374,357
Items not requiring an outlay of cash:
 Amortization                                   434,766             211,771
 Deferred income taxes                            2,282             (39,914)
 Income taxes payable                             4,379              (6,441)
 Stock-based compensation                        41,691              29,200
 Other                                           (2,958)             (7,739)
Net changes in working capital items             36,341            (408,139)
                                      --------------------------------------
Net cash provided by operating
 activities                                   2,263,523           1,153,095
                                      --------------------------------------
Cash flows from investing activities
Acquisition of long-term investments           (605,429)           (439,756)
Proceeds on sale or maturity of
 long-term investments                          430,380             304,665
Acquisition of capital assets                  (750,954)           (581,589)
Acquisition of intangible assets               (385,548)           (465,949)
Business Acquisitions                          (131,541)                  -
Acquisition of short-term investments          (390,389)           (667,298)
Proceeds on sale or maturity of
 short-term investments                         868,066             568,843
                                      --------------------------------------
Net cash used in investing activities          (965,415)         (1,281,084)
                                      --------------------------------------
Cash flows from financing activities
Issuance of common shares                        24,722              24,841
Excess tax benefits from stock-based
 compensation                                     2,046              12,700
Purchase of treasury shares                     (88,813)                  -
Common shares repurchased pursuant to
 Common Share Repurchase Program               (775,008)                  -
Repayment of debt                                (6,099)               (244)
                                      --------------------------------------
Net cash (used in) provided by
 financing activities                          (843,152)             37,297
                                      --------------------------------------
Effect of foreign exchange (loss)
 gain on cash and cash equivalents               (4,193)              8,008
                                      --------------------------------------
Net increase (decrease) in cash and
 cash equivalents for the period                450,763             (82,684)
Cash and cash equivalents,
 beginning of period                            835,546           1,184,398
                                      --------------------------------------
Cash and cash equivalents, end
 of period                                  $ 1,286,309         $ 1,101,714
                                      --------------------------------------
                                      --------------------------------------
As at                                 November 28, 2009     August 29, 2009
----------------------------------------------------------------------------
Cash and cash equivalents                   $ 1,286,309         $ 1,083,251
Short-term investments                          341,205             580,921
Long-term investments                           781,206             833,575
                                      --------------------------------------
                                            $ 2,408,720         $ 2,497,747
                                      --------------------------------------
                                      --------------------------------------