Moduslink Global Solutions Concludes Restatement Process

  Moduslink Global Solutions Concludes Restatement Process

                    Outlines additional turnaround actions

             Announces intent to sell its Tech for Less business

               Concludes strategic alternatives review process

   Returns to current SEC reporting as required under NASDAQ listing rules

  Reports financial results for third and fourth quarters of fiscal 2012 and
                         first quarter of fiscal 2013

     Conference call scheduled for 5:00 p.m. ET, Monday, January 14, 2013

Business Wire

WALTHAM, Mass. -- January 11, 2013

ModusLink Global Solutions^™ Inc. (NASDAQ: MLNK) today filed with the
Securities and Exchange Commission (SEC) an annual report on Form 10-K for the
fiscal year ended July 31, 2012, which includes a restatement of the Company’s
financial statements for fiscal years 2009 through 2011 and unaudited selected
financial data for fiscal years 2007 and 2008, as well as unaudited interim
financial statements for the four fiscal quarters of each of 2010 and 2011,
and the first two quarters of fiscal 2012. The Company also filed a Form 10-Q
for the third quarter of fiscal 2012 ended April 30, 2012 and a Form 10-Q for
the first quarter of fiscal 2013 ended October 31, 2012. With these filings,
the Company has become current in its SEC reporting as required under NASDAQ
Listing Rules.

Results of Restatement

The restated periods from fiscal 2007 through the first two quarters of fiscal
2012 include cumulative downward adjustments to revenue of $32.9 million, or
0.6% of restated aggregate revenue of $5.4 billion. These restated periods
include cumulative downward adjustments to net income of $18.0 million on a
restated aggregate net loss of $231.1 million, inclusive of $231.6 million of
impairments related to goodwill and intangible assets. Details related to the
restatement are contained in the Company’s Form 10-K for the fiscal year ended
July 31, 2012, filed with the SEC earlier today.

“The restatement process took longer than we originally expected due to the
volume of work involved and number of historical periods reviewed,” said
Francis J. Jules, chairman of the board of directors of ModusLink Global
Solutions. “We undertook a comprehensive process designed to ensure that our
financial statements are accurate and are strengthening our financial controls
to prevent this from reoccurring. We thank our shareholders for their patience
as we worked to complete this necessary and extensive review.

“As we continue to navigate through a challenging business environment,
management is focused on executing a turnaround plan to improve operational
and financial results. Our actions are well underway and include reducing
operating costs, increasing our focus on our core services, improving our
balance sheet and appointing new leadership. While executing on our plan, we
continue to provide the high level of service our clients have come to expect
from us. We are confident that we have the right plan in place to improve
results, and ModusLink remains committed to building long-term, sustainable
value for our shareholders,” said Jules.

Executing on Additional Turnaround Actions

Following the conclusion of the restatement process, the management team is
continuing to execute its turnaround plan to improve operational and financial
results. Actions include:

  *Reducing operating costs – The Company plans to reduce total annualized
    employee costs by $20 million to $24 million, or by 13% to 16%, with the
    majority of the reductions being implemented in the first half of fiscal
    2013. This includes actions taken in the first quarter of fiscal 2013,
    which have reduced total annualized employee costs by $7.3 million. In the
    full year fiscal 2013, the Company expects to record between $13 million
    and $16 million of restructuring costs associated with cost reduction
    actions.
    As part of these cost reduction actions, ModusLink is consolidating its
    business unit structure and centralizing key functions. The Company has
    combined its Integrated Service Group, which includes Aftermarket Services
    and e-Business solutions, with its Supply Chain operations. This
    consolidation enables ModusLink to centralize key functions where such
    resources were previously organized regionally or for a specific facility.
    These actions are expected to result in improved efficiencies and cost
    reduction.

  *Increasing focus on core services – The Company is increasing its focus on
    its core global supply chain and logistics business. As part of this
    focus, ModusLink intends to sell its Tech for Less operations and is in
    advanced discussions with a third party regarding a transaction. The
    Company will continue to offer a strong remarketing capability to its
    clients through partnerships. Although the proceeds from a sale are not
    material to its cash position, ModusLink believes a sale would immediately
    improve the Company’s profitability. In fiscal 2012, the Tech for Less
    operations generated revenue of $25.9 million and an operating loss of
    $11.0 million.
  *Strengthening balance sheet – The Company is working to reduce operating
    expenses and working capital needs to improve cash flow, without
    compromising client service. In addition, during the first quarter of
    fiscal 2013, ModusLink took steps to support the Company’s financial
    flexibility and established an asset secured revolving credit facility,
    which replaced a credit facility that expired on October 31, 2012. At
    October 31, 2012, no debt was outstanding and the amount available under
    the new credit facility was approximately $36.0 million.
  *Appointing new leadership – The Company is at an advanced stage in its CEO
    search and expects to announce a new CEO in the near future. In addition,
    during the first quarter of fiscal 2013, the Company appointed Scott
    Crawley to the role of President, Global Operations and he is now
    responsible for the management of ModusLink’s worldwide operations.
    Crawley joined ModusLink in August 2011 as President, Integrated Services
    and is among the half of ModusLink’s executive leadership team that has
    joined the Company since the beginning of fiscal 2011.

Status of Strategic Alternative Review Process

As previously announced, the Company’s Board of Directors has been exploring
strategic alternatives. As part of the review process, the Company and its
financial advisors engaged in detailed reviews and discussions with both
potential financial and strategic partners. The Board has now completed this
process and concluded that the best opportunity to enhance the value of its
operating business is the continued execution of the Company’s business plan,
including the turnaround actions discussed above, and it is not currently
pursuing the sale of its operations. The Board believes that the Company
possesses a strong platform for growth and world class capabilities that are
not appropriately valued in the market today.

In the course of the strategic alternatives review, the Company was presented
with proposals by parties attracted to the Company due to its non-operating
assets, in particular its tax attributes. The Board intends to continue to
review such opportunities and to explore ways to accelerate the realization of
the value of the Company’s federal net operating loss carry forwards, which
had a balance of $2.0 billion at July 31, 2012.

Financial Summary – First Quarter Fiscal 2013

  *Net revenue of $200.7 million, compared to $205.9 million in the first
    quarter of fiscal 2012
  *Gross margin as a percentage of revenue of 9.3%, compared to 12.4% in the
    first quarter of fiscal 2012
  *SG&A expenses of $25.0 million, compared to $22.2 million in the same
    quarter of fiscal 2012. Included in SG&A for the first quarter of fiscal
    2013 were expenses of $4.1 million related primarily to the restatement
    process and other corporate actions.
  *Operating loss of $8.1 million, compared to operating income of $2.2
    million in the first quarter of fiscal 2012.
  *Net loss of $10.7 million, or $(0.24) per share, compared to net income of
    $1.1 million, or $0.03 per share, in the first quarter of fiscal 2012
  *Non-GAAP operating loss of $2.2 million, compared to income of $7.9
    million in the first quarter of fiscal 2012

“As we entered fiscal 2013, we continued to face industry and client-specific
challenges particularly from those programs related to notebook computers and
microprocessors,” said Steven G. Crane, chief financial officer, ModusLink
Global Solutions. “We are encouraged, however, by the growth in revenue from
new programs, which more than doubled in the fiscal first quarter compared to
the same period of last year, and we expect to achieve growth in revenue from
new programs for fiscal 2013. Moving forward, we remain focused on executing
on our stated plans to improve operational and financial performance.”

Consolidated Financial Results – First Quarter Fiscal 2013

ModusLink reported net revenue of $200.7 million for the first quarter of
fiscal 2013, a decrease of 2.6% compared to net revenue of $205.9 million
reported in the first quarter of fiscal 2012. The decline was primarily due to
lower unit volumes from significant client programs related to notebook
computers and microprocessors, which impacted financial results in each of the
Company’s geographical segments.

Revenue generated from new programs for the first quarter of fiscal 2013 was
$39.0 million, an increase of 169.0% compared to the first quarter of fiscal
2012 ^(1). The increase in revenue from new programs was primarily driven by a
previously disclosed large new client program in the consumer products market,
which drove total revenue growth in Europe, and a new program for a consumer
electronics company.

Gross profit for the first quarter of fiscal 2013 was $18.7 million, or 9.3%
of revenue, compared to $25.5 million, or 12.4% of revenue, in the first
quarter of fiscal 2012. The decline was primarily driven by unfavorable
revenue mix.

Operating loss for the first quarter of fiscal 2013 was $8.1 million, compared
to operating income of $2.2 million in the first quarter of fiscal 2012. The
operating loss was due to lower gross margin and higher selling general and
administrative costs, and restructuring expenses, compared to the same period
in fiscal 2012.

Included in the Company’s operating results for the first quarter of fiscal
2013 were selling, general and administrative expenses (SG&A) of $25.0
million, compared to $22.2 million in the same quarter of fiscal 2012.
Included in SG&A for the first quarter of fiscal 2013 were expenses of $4.1
million related primarily to the restatement process and other corporate
actions.

Restructuring charges for the first quarter of fiscal 2013 were $1.5 million
related to reductions in the Company’s indirect labor workforce, compared to
$0.8 million in the first quarter of the previous year related to employee
severance costs and actions to restructure facilities.

Other income (expense) was an expense of $1.7 million in the first quarter of
fiscal 2013, compared to income of $0.8 million in the first quarter of fiscal
2012. The $2.5 million change was primarily the result of foreign exchange
transaction losses recognized in the first quarter of fiscal 2013, compared to
foreign exchange transaction gains in the first quarter of fiscal 2012.

Net income (loss) for the first quarter of fiscal 2013 was a loss of $10.7
million, or $(0.24) per share, compared to net income of $1.1 million, or
$0.03 per share, for the same period in fiscal 2012.

Excluding net charges related to depreciation, amortization of intangible
assets, share-based compensation and restructuring, the Company reported
non-GAAP operating loss of $2.2 million for the first quarter of fiscal 2013,
compared to income of $7.9 million for the same period in fiscal 2012.

As of October 31, 2012, the Company had working capital of $105.5 million,
which included cash, cash equivalents and marketable securities totaling $58.4
million. The Company concluded the quarter with no outstanding bank debt.

For the first quarter of fiscal 2013, cash flow from operating activities was
$8.8 million and additions to property and equipment were $2.1 million,
resulting in free cash flow from operations of $6.6 million, an improvement
compared to $3.5 million in the same period in 2012.

Outlook

The Company’s outlook takes into account the macroeconomic environment and the
challenges that certain of its clients tied to the market for personal
computers are experiencing. Based on these factors, the Company expects
revenue for the second quarter of fiscal 2013 to be in line with, or modestly
higher than, revenue of $178 million reported in the second quarter of fiscal
2012.

In the second quarter of fiscal 2013, the Company expects to report a lower
cash position compared to the first quarter of fiscal 2013 due to expenses
primarily related to the restatement process and its restructuring actions,
and begin to increase its cash position in the second half of the fiscal year.

Financial Summary – Fourth Quarter Fiscal 2012

  *Net revenue of $177.1 million, compared to $198.7 million in the fourth
    quarter of fiscal 2011
  *Gross margin, as a percentage of revenue, of 4.3%, compared to 8.9% in the
    fourth quarter of fiscal 2011. Inventory write-downs negatively impacted
    gross margin by 400 basis points or 4.0% of revenue.
  *Operating loss of $23.4 million, compared to operating loss of $4.4
    million in the fourth quarter of fiscal 2011
  *Non-GAAP operating loss of $17.5 million, compared to non-GAAP operating
    income of $1.5 million in the fourth quarter of fiscal 2011

“Revenue in the fourth fiscal quarter was primarily affected by lower unit
volumes, including those from a significant client with programs related to
notebook computers, and the previously disclosed discontinuation of certain
client programs,” said Crane. “During fiscal 2012, our cash position was
primarily impacted by operating losses, which include expenses related to
restructuring, the restatement and other corporate actions, as well as
significant working capital needs for two new client programs. We expect to
reverse these trends by reducing operating expenses and working capital
needs,” concluded Crane.

Consolidated Financial Results – Fourth Quarter Fiscal 2012

ModusLink reported net revenue of $177.1 million for the fourth quarter of
fiscal 2012, a decrease of 10.9% compared to net revenue of $198.7 million
reported in the fourth quarter of fiscal 2011. The decline was primarily due
to lower unit volumes including those from a significant client with programs
related to notebook computers as well as lower volumes from certain
discontinued client programs.

Revenue generated from new programs for the fourth quarter of fiscal 2012 was
$22.8 million, an increase of 47.5% compared to $15.4 million in the fourth
quarter of fiscal 2011^(1). Driving the increase was a large new client supply
chain program in Europe and a significant new client program for aftermarket
services, both of which commenced in the third quarter of fiscal 2012.

Gross profit for the fourth quarter of fiscal 2012 was $7.6 million, or 4.3%
of revenue, compared to $17.6 million, or 8.9% of revenue, in the fourth
quarter of fiscal 2011. Negatively impacting gross margin was unfavorable
revenue mix as well as a $3.4 million write-down of inventory in the Company’s
Tech for Less operations, and $3.6 million inventory write-off related to a
canceled client program. Combined, the inventory adjustments negatively
impacted gross margin by 400 basis points or 4.0% of revenue.

SG&A expenses for the fourth quarter of fiscal 2012 were $29.1 million,
compared to $21.4 million in the same quarter of fiscal 2011. The increase was
primarily due to $2.1 million of higher costs related to severance expenses,
$4.6 million of expenses related to the restatement process, review of
strategic alternatives and other activities, and a $0.6 million increase
related to investments in sales and marketing.

Restructuring expenses for the fourth quarter of 2012 were $1.6 million
related to cost reduction actions, compared with a credit of $0.4 million in
the fourth quarter of fiscal 2011 related to a recovery of costs associated
with a facility that had been restructured in a previous year.

Operating loss for the fourth quarter of fiscal 2012 was $23.4 million,
compared to operating loss of $4.4 million in the fourth quarter of fiscal
2011.

Other income was $5.2 million in the fourth quarter of fiscal 2012 compared to
an expense of $2.9 million in the fourth quarter of fiscal 2011. Included in
other income for the fourth quarter of fiscal 2012 was foreign exchange
transaction gains of $1.4 million and $4.3 million of gains from the
derecognition of accrued pricing liabilities. Other expense for the fourth
quarter of fiscal 2011 was comprised primarily of losses associated with the
Company’s @Ventures portfolio.

Net loss for the fourth quarter of fiscal 2012 was $20.2 million, or $(0.46)
per share, compared to net loss of $4.5 million, or $(0.10) per share, for the
same period in fiscal 2011.

Excluding net charges related to depreciation, amortization of intangible
assets, share-based compensation, restructuring and impairment of goodwill,
the Company reported non-GAAP operating loss of $17.5 million for the fourth
quarter of fiscal 2012, compared to non-GAAP operating income of $1.5 million
for the same period in fiscal 2011.

As of July 31, 2012, the Company had working capital of $113.5 million,
compared to $152.4 million at July 31, 2011. Included in working capital as of
July 31, 2012 were cash, cash equivalents and marketable securities totaling
$52.4 million compared to $111.2 million at July 31, 2011. The reduction in
cash was primarily due to operating losses and significant working capital
needs for two new client programs. The Company concluded the quarter with no
outstanding bank debt.

Financial Summary – Third Quarter Fiscal 2012

  *Net revenue of $178.6 million, compared to $206.6 million in the third
    quarter of fiscal 2011
  *Gross margin, as a percentage of revenue, of 8.6%, compared to 9.5% in the
    third quarter of fiscal 2011
  *Operating loss of $11.0 million, compared to operating loss of $2.2
    million in the third quarter of fiscal 2011
  *Non-GAAP operating loss of $4.2 million, compared to non-GAAP operating
    income of $3.7 million in the third quarter of fiscal 2011

Consolidated Financial Results – Third Quarter Fiscal 2012

ModusLink reported net revenue of $178.6 million for the third quarter of
fiscal 2012, a decrease of 13.6%, compared to net revenue of $206.6 million
reported in the third quarter of fiscal 2011. The decline in revenue was
primarily due to client-specific conditions previously disclosed by the
Company as well as the economic environment, especially in Europe.

Revenue from new programs in the third quarter of fiscal 2012 was $21.1
million, compared to $20.9 million in the same period in fiscal 2011.^(1)

Gross profit for the third quarter of fiscal 2012 was $15.4 million, or 8.6%
of revenue, compared to $19.7 million, or 9.5% of revenue, in the third
quarter of fiscal 2011. The decrease in gross margin as a percentage of
revenue was primarily due to lower revenue.

Included in the Company’s operating results for the third quarter of fiscal
2012 were SG&A expenses of $23.5 million, compared to $20.8 million in the
same quarter of fiscal 2011. The increase in SG&A was primarily due to
professional fees related to the Company’s evaluation of strategic
alternatives, the previously disclosed SEC inquiry, planned investments in
sales and marketing, and other expenses.

ModusLink reported impairment of long-lived assets of $2.1 million for the
third quarter of fiscal 2012. These non-cash charges primarily relate to a
solution center in Europe that had experienced lower volumes from client
programs managed in that facility, and its Tech for Less operations.
Restructuring expenses for the third quarter of fiscal 2012 were $0.5 million
related to the Company’s cost reduction initiatives.

Operating loss for the third quarter of fiscal 2012 was $11.0 million,
compared to operating loss of $2.2 million in the third quarter of fiscal
2011.

Other income for the third quarter of fiscal 2012 was $3.7 million, compared
to $5.1 million in the third quarter of fiscal 2011. Other income for the
third quarter of fiscal 2012 included a $2.8 million impairment charge
associated with the Company’s @Ventures portfolio, which was offset by a gain
of $7.5 million as a result of the derecognition of accrued pricing
liabilities. Other income for the third quarter of fiscal 2011 included
foreign exchange transaction losses of $1.5 million, offset by a gain of $7.2
million as a result of the derecognition of accrued pricing liabilities.

Net loss for the third quarter of fiscal 2012 was $6.1 million, or $(0.14) per
share, compared to net income of $1.5 million, or $0.03 per share, for the
same period in fiscal 2011.

Excluding net charges related to depreciation, amortization of intangible
assets, impairment of goodwill and intangible assets, share-based
compensation, and restructuring, the Company reported a non-GAAP operating
loss of $4.2 million for the third quarter of fiscal 2012, compared to
non-GAAP operating income of $3.7 million for the same period in fiscal 2011.

Conference Call Information

ModusLink Global Solutions, Inc. will hold a conference call to discuss
today’s announcement at 5:00 p.m. ET on January 14, 2013. To access the
conference call, please dial (877) 212-4894 from the United States or (312)
429-0467 for international access.

A live webcast of the call will be available on the Investor Relations section
of the Company’s web site, www.ir.moduslink.com. To listen to the live call,
go to the web site at least 15 minutes prior to the start time to download and
install the necessary audio software.

For those who cannot listen to the live broadcast, a replay of the call will
be available from January 14, 2013 at 7:00 p.m. until January 21, 2013 at 5:00
p.m. The replay can be accessed by dialing (800) 633-8284 or (402) 977-9140,
using access code 21645682.

About ModusLink Global Solutions, Inc.

ModusLink Global Solutions Inc. (NASDAQ: MLNK) executes comprehensive supply
chain and logistics services that improve clients’ revenue, cost,
sustainability and customer experience objectives. ModusLink is a trusted and
integrated provider to the world’s leading companies in consumer electronics,
communications, computing, medical devices, software, luxury goods and retail.
The Company’s operating infrastructure annually supports more than $80 billion
of its clients’ revenue and manages approximately 470 million product
shipments through more than 30 sites in 15 countries across North America,
Europe, and the Asia/Pacific region. For details on ModusLink's flexible and
scalable solutions visit www.moduslink.com and www.valueunchained.com, the
blog for supply chain professionals.

(1) New programs defined as client programs that have been executed for fewer
than 12 months. Base business defined as client programs that have been
executed for 12 months or more.

Non-GAAP Information

The Company believes that its non-GAAP measure of operating income/(loss)
("non-GAAP operating income/(loss)") provides investors with a useful,
supplemental measure of the Company’s operating performance by excluding the
impact of non-cash charges and restructuring activities. Each of the excluded
items was excluded because it may be considered to be of a non-operational or
non-cash nature. Historically, the Company has recorded significant impairment
and restructuring charges. These charges, as well as charges related to
depreciation, amortization of intangible assets and stock-based compensation,
have been excluded for the purpose of enhancing the understanding by both
management and investors of the underlying baseline operating results and
trends of the business, which management uses to evaluate our financial
performance for purposes of planning and forecasting future periods. Non-GAAP
operating income/(loss) does not have any standardized definition and,
therefore, is unlikely to be comparable to similar measures presented by other
reporting companies. Non-GAAP operating income/(loss) should not be evaluated
in isolation of, or as a substitute for, the Company’s financial results
prepared in accordance with United States generally accepted accounting
principles. The Company’s usage of non-GAAP operating income/(loss), and the
underlying methodology in excluding certain charges, is not necessarily an
indication of the results of operations that may be expected in the future, or
that the Company will not, in fact, incur such charges in future periods. A
table reconciling the Company’s non-GAAP operating income/(loss) to its GAAP
operating income/(loss) and its GAAP net income/(loss) is included in the
statement of operations information in this release.

ModusLink Global Solutions is a registered trademark of ModusLink Global
Solutions, Inc. All other company names and products are trademarks or
registered trademarks of their respective companies.

This release contains forward-looking statements, which address a variety of
subjects including, for example, the expectation that the Company’s controls
have been strengthened; the expected actions to appoint new leadership,
reducing cost and improving the balance sheet; the expectation that the
business plan will yield improved results and sustained shareholder value; the
expectation of growth in revenue from new programs in fiscal 2013; the
expectation as to revenue results in the second quarter of fiscal 2013; the
expectation as to cash use in the second quarter of fiscal 2013 and begin to
increase cash position in the second half of fiscal 2013; and the expectation
that the cash trends will be reversed and the Company will be successful in
efforts to reduce inventory requirements, operating costs and other expenses.
All statements other than statements of historical fact, including without
limitation, those with respect to the Company’s goals, plans, expectations and
strategies set forth herein are forward-looking statements. The following
important factors and uncertainties, among others, could cause actual results
to differ materially from those described in these forward-looking statements:
the Company’s ability to execute on its business strategy, including its cost
reduction plans and the continued and increased demand for and market
acceptance of its services, which could negatively affect the Company’s
ability to meet its revenue, operating income and cost savings targets,
maintain and improve its cash position, expand its operations and revenue,
lower its costs, improve its gross margins, reach and sustain profitability,
reach its long-term objectives and operate optimally; uncertainties and
volatility relating to global economic conditions, especially in the
technology sector; unanticipated declines in, or failure to achieve the
anticipated levels of, the demand for our clients’ products; potential strains
on managerial and operational resources resulting from expanded operations;
failure to realize expected benefits of restructuring and cost-cutting
actions; inability to expand operations in accordance with the Company’s
business strategy; insufficient cash balances that could prevent the Company
from meeting business or investment goals; difficulties integrating
technologies, operations and personnel in accordance with the Company’s
business strategy; customer losses; demand variability in supply chain
management clients, to which the Company sells on a purchase order basis
rather than pursuant to contracts with minimum purchase requirements; risks
inherent with conducting international operations; changes in tax rates in
jurisdictions where profits are determined to be earned and taxed; changes in
estimates of tax credits, benefits and deductions; unfavorable resolution of
issues arising from tax audits with various tax authorities, including payment
of interest and penalties and the ability to realize deferred tax assets;
adverse conditions in the mergers and acquisitions or IPO markets, which could
prevent liquidity for securities in the Company’s venture capital portfolio;
and increased competition and technological changes in the markets in which
the Company competes. For a detailed discussion of cautionary statements that
may affect the Company’s future results of operations and financial results,
please refer to the Company's filings with the Securities and Exchange
Commission, including the Company's most recent Annual Report on Form 10-K and
Quarterly Reports on Form 10-Q. Forward-looking statements represent
management's current expectations and are inherently uncertain. We do not
undertake any obligation to update forward-looking statements made by us
except as otherwise required under federal securities laws.

ModusLink Global Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                                               
                   Three months ended                      Nine months ended
                   April 30                                April 30
                    2012        2011       Fav         2012        2011       Fav
                                               (Unfav)                                 (Unfav)
                   (restated)                              (restated)
Net revenue        $ 178,565     $ 206,579     (13.6  %)   $ 562,797     $ 675,061     (16.6  %)
Cost of             163,146     186,912    12.7   %     506,101     611,706    17.3   %
revenue
Gross margin        15,419      19,667     (21.6  %)    56,696      63,355     (10.5  %)
                     8.6     %     9.5     %   (0.9   %)     10.1    %     9.4     %   0.7    %
Operating
expenses:
Selling,
general and          23,515        20,788      (13.1  %)     70,320        63,797      (10.2  %)
administrative
Amortization
of intangible        331           1,062       68.8   %      995           4,420       77.5   %
assets
Impairment of
goodwill &           2,062         -           100.0  %      2,062         27,166      92.4   %
intangible
assets
Restructuring,      495         -          100.0  %     5,847       1,201      (386.8 %)
net
Total
operating           26,403      21,850     (20.8  %)    79,224      96,584     18.0   %
expenses
                                                                                       
Operating            (10,984 )     (2,183  )   (403.2 %)     (22,528 )     (33,229 )   32.2   %
income (loss)
                                                                                       
Other income        3,744       5,083      (26.3  %)    5,137       7,227      (28.9  %)
(expense)
                                                                                       
Income (loss)
from
continuing           (7,240  )     2,900       (349.7 %)     (17,391 )     (26,002 )   33.1   %
operations
before taxes
Income tax
expense             (1,202  )    1,331      190.3  %     1,050       3,772      72.2   %
(benefit)
Income (loss)
from                 (6,038  )     1,569       (484.8 %)     (18,441 )     (29,774 )   38.1   %
continuing
operations
                                                                                       
Discontinued
operations,
net of income
taxes:
Income (loss)
from                (98     )    (91     )   (7.7   %)    572         (239    )   339.3  %
discontinued
operations
                                                                                       
Net Income         $ (6,136  )   $ 1,478      (515.2 %)   $ (17,869 )   $ (30,013 )   40.5   %
(loss)
                                                                                       
Basic and
diluted
earnings
(loss) per
share:
Income (loss)
from               $ (0.14   )   $ 0.03        (559.1 %)   $ (0.42   )   $ (0.68   )   37.7   %
continuing
operations
                                                                                       
Income (loss)
from                (0.00   )    (0.00   )   0.0    %     0.01        (0.01   )   337.9  %
discontinued
operations
                                                                                       
Net income         $ (0.14   )   $ 0.03       (559.1 %)   $ (0.41   )   $ (0.69   )   40.8   %
(loss)
                                                                                       
Shares used in
computing
basic earnings      43,844      43,303                  43,546      43,289  
(loss) per
share
                                                                                       
Shares used in
computing
diluted             43,844      43,502                  43,546      43,289  
earnings
(loss) per
share
                                                                                       
                                                                                       
                                                                                       

ModusLink Global Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                                
                Three months ended              12 months ended
                July 31                         July 31
                2012       2011      Fav       2012       2011       Fav
                                     (Unfav)                          (Unfav)
                (restated)                      (restated)
Net revenue     $         $         (10.9%)    $          $          (15.3%)
                177,094    198,688              739,891    873,748
Cost of revenue 169,477   181,103   6.4%       675,579    792,809    14.8%
Gross margin    7,617      17,585    (56.7%)    64,312     80,939     (20.5%)
                4.3%       8.9%      (4.5%)     8.7%       9.3%       (0.6%)
Operating
expenses:
Selling,
general and     29,090    21,390    (36.0%)    99,409     85,187     (16.7%)
administrative
Amortization of
intangible      284       1,037     72.6%      1,279      5,457      76.6%
assets
Impairment of
goodwill &      -         -         0.0%       2,062      27,166     92.4%
intangible
assets
Restructuring,  1,608     (406)     (496.1%)   7,455      795        (837.7%)
net
Total operating 30,982     22,021    (40.7%)    110,205    118,605    7.1%
expenses
                                                                      
Operating       (23,365)   (4,436)   (426.7%)   (45,893)   (37,666)   (21.8%)
income (loss)
                                                                      
Other income    5,191     (2,878)   280.4%     10,329     4,350      137.4%
(expense)
                                                                      
Income (loss)
from continuing (18,174)   (7,314)   (148.5%)   (35,564)   (33,316)   (6.7%)
operations
before taxes
Income tax
expense         1,985     (2,954)   (167.2%)   3,035      819        (270.6%)
(benefit)
Income (loss)
from continuing (20,159)   (4,360)   (362.4%)   (38,599)   (34,135)   (13.1%)
operations
                                                                      
Discontinued operations,
net of income taxes:
Income (loss)
from            (81)      (91)      11.0%      491        (330)      248.8%
discontinued
operations
                                                                      
Net Income      $          $         (354.7%)   $          $          (10.6%)
(loss)          (20,240)   (4,451)              (38,108)   (34,465)
                                                                      
Basic and
diluted
earnings (loss)
per share:
Income (loss)              $
from continuing $ (0.46)   (0.10)    (357.1%)   $ (0.88)   $ (0.79)   (11.1%)
operations
                                                                      
Income (loss)
from            (0.00)     (0.00)    0.0%       0.01       (0.01)     247.9%
discontinued
operations
                                                                      
Net income      $ (0.46)   $         (357.1%)   $ (0.87)   $ (0.80)   (9.9%)
(loss)                     (0.10)
                                                                      
Shares used in
computing basic 43,811     43,317               43,565     43,294
earnings (loss)
per share
                                                                      
Shares used in
computing
diluted         43,811     43,317               43,565     43,294
earnings (loss)
per share
                                                                      
                                                                      
                                                                      

ModusLink Global Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
                                                              
                                       Three months ended
                                       October 31
                                        2012        2011       Fav (Unfav)
                                                     (restated)
Net revenue                            $ 200,656     $ 205,908     (2.6     %)
Cost of revenue                         181,973     180,437    (0.9     %)
Gross margin                            18,683      25,471     (26.6    %)
                                         9.3     %     12.4    %   (3.1     %)
Operating expenses:
Selling, general and                     25,024        22,198      (12.7    %)
administrative
Amortization of intangible assets        285           332         14.2     %
Impairment of goodwill &                 -             -           0.0      %
intangible assets
Restructuring, net                      1,479       755        (95.9    %)
Total operating expenses                26,788      23,285     (15.0    %)
                                                                   
Operating income (loss)                  (8,105  )     2,186       (470.8   %)
                                                                   
Other income (expense)                  (1,650  )    830        (298.8   %)
                                                                   
Income (loss) from continuing            (9,755  )     3,016       (423.4   %)
operations before taxes
Income tax expense (benefit)            909         1,871      51.4     %
Income (loss) from continuing            (10,664 )     1,145       (1031.4  %)
operations
                                                                   
Discontinued operations, net of
income taxes:
Income (loss) from discontinued         4           -          100.0    %
operations
                                                                   
Net Income (loss)                      $ (10,660 )   $ 1,145      (1031.0  %)
                                                                   
Basic and diluted earnings (loss)
per share:
Income (loss) from continuing          $ (0.24   )   $ 0.03        (1025.5  %)
operations
Income (loss) from discontinued         0           -          0.0      %
operations
                                                                   
Net income (loss)                      $ (0.24   )   $ 0.03       (1025.5  %)
                                                                   
Shares used in computing basic          43,589      43,315  
earnings (loss) per share
                                                                   
Shares used in computing diluted        43,589      43,318  
earnings (loss) per share
                                                                   
                                                                   
                                                                   

ModusLink Global
Solutions, Inc.                                                            
and Subsidiaries
Condensed
Consolidated
Balance Sheets
(In thousands)
(Unaudited)
                                                                                 
                   April 30                 July 31                  October 31
                    2012        2011       2012        2011       2012        2011
                               (restated)               (restated)               (restated)
Assets:
Cash and cash      $ 78,450    $  119,120   $ 52,369    $  111,225   $ 58,355    $  111,526
equivalents
Available-for-sale   132          130         131          131         130          133
securities
Trade accounts       163,824      135,622     148,931      146,411     164,707      187,952
receivable, net
Inventories, net     93,653       83,263      83,990       76,883      89,793       94,909
Prepaid and other   9,250       13,803     10,466      10,876     10,323      10,120
current assets
Total current       345,309     351,938    295,887     345,526    323,308     404,640
assets
Property and         42,648       50,052      40,772       47,403      39,951       44,807
equipment, net
Investments in       10,796       13,276      10,803       12,016      11,080       12,642
affiliates
Goodwill             3,058        3,058       3,058        3,058       3,058        3,058
Intangible assets,   3,182        5,736       2,897        4,699       2,612        4,360
net
Other assets        10,081      10,402     5,465       9,545      6,686       9,510
                   $ 415,074     434,462    358,882   $  422,247   $ 386,695   $  479,017
Liabilities:
Current portion of
capital lease      $ 79        $  89        $ 73        $  94        $ 93        $  88
obligations
Accounts payable     135,775      111,000     110,520      114,588     141,630      164,196
Current portion of
accrued              1,721        1,618       1,724        1,456       1,751        1,909
restructuring
Accrued income       -            -           -            180         335          1,260
taxes
Accrued expenses     40,037       40,572      41,753       36,384      46,074       42,407
Other current        31,735       39,228      26,778       38,624      26,542       39,765
liabilities
Current
liabilities of      1,485       1,686      1,528       1,817      1,393       1,817
discontinued
operations
Total current       210,832     194,193    182,376     193,143    217,818     251,442
liabilities
Long-term portion
of accrued           98           299         -            8           -            36
restructuring
Long-term portion
of capital leases    87           80          69           86          72           90
obligations
Other long-term      11,107       16,894      11,012       12,585      10,627       12,326
liabilities
Non-current
liabilities of      673         2,241      293         1,883      101         1,623
discontinued
operations
                     11,965       19,514      11,374       14,562      10,800       14,075
Stockholders'       192,277     220,755    165,132     214,542    158,077     213,500
equity
                   $ 415,074   $  434,462   $ 358,882   $  422,247   $ 386,695   $  479,017

ModusLink Global Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Information
(In thousands)
(Unaudited)
                                                               
                 Three months ended                  Nine months ended
                 April 30                            April 30
                   2012            2011           2012        2011    
                                   (restated)                      (restated)
Net revenue:
Americas         $  58,825         $  70,652         $ 187,835     $ 227,438
Asia                56,642            56,934           168,506       176,722
Europe              50,706            63,444           159,020       218,008
TFL                 5,012             6,415            21,979        23,943
All other          7,380           9,134          25,457      28,950  
                 $  178,565       $  206,579       $ 562,797    $ 675,061 
                                                                   
Operating income
(loss):
Americas         $  (3,112   )     $  (3,318   )     $ (6,260  )   $ (25,029 )
Asia                4,671             6,741            18,216        19,272
Europe              (4,222   )        (2,425   )       (12,983 )     (2,565  )
TFL                 (3,114   )        (275     )       (5,720  )     (14,847 )
All other          (498     )       483            378         1,476   
                    (6,275   )        1,206            (6,369  )     (21,693 )
Other
reconciling        (4,709   )       (3,389   )      (16,159 )    (11,536 )
items
                 $  (10,984  )     $  (2,183   )     $ (22,528 )   $ (33,229 )
                                                                   
Non-GAAP
operating income
(loss):
Americas         $  (2,004   )     $  (1,673   )     $ (1,907  )   $ (2,802  )
Asia                5,785             8,363            22,355        24,800
Europe              (1,966   )        (825     )       (4,412  )     2,201
TFL                 (1,560   )        (197     )       (3,862  )     (2,814  )
All other          27              956            1,850       2,934   
                    282               6,624            14,024        24,319
Other
reconciling        (4,452   )       (2,883   )      (14,543 )    (9,783  )
items
                 $  (4,170   )     $  3,741         $ (519    )   $ 14,536  
                                                                   
Note: The Company defines non-GAAP operating income (loss) as total operating
income (loss), excluding net charges related to depreciation, amortization of
intangible assets, impairment of goodwill and long-lived assets, share-based
compensation, and restructuring.
                                                                   
TABLE RECONCILING NON-GAAP OPERATING INCOME (LOSS) TO GAAP OPERATING INCOME
AND NET INCOME (LOSS)
                                                                   
NON-GAAP
Operating income $  (4,170   )     $  3,741          $ (519    )   $ 14,536
(loss)
                                                                   
Adjustments:
Depreciation        (3,398   )        (4,140   )       (10,698 )     (12,359 )
Amortization of
intangible          (331     )        (1,062   )       (995    )     (4,420  )
assets
Impairment of
goodwill &          (2,062   )        -                (2,062  )     (27,166 )
intangible
assets
Stock-based         (528     )        (722     )       (2,407  )     (2,619  )
compensation
Restructuring,     (495     )       -              (5,847  )    (1,201  )
net
GAAP Operating     (10,984  )       (2,183   )      (22,528 )    (33,229 )
income (loss)
                                                                   
Other income        3,744             5,083            5,137         7,227
(expense), net
Income tax
benefit             1,202             (1,331   )       (1,050  )     (3,772  )
(expense)
Income (loss)
from               (98      )       (91      )      572         (239    )
discontinued
operations
Net income       $  (6,136   )     $  1,478         $ (17,869 )   $ (30,013 )
(loss)
                                                                             
                                                                             
                                                                             

ModusLink Global Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Information
(In thousands)
(Unaudited)
                                                               
                Three months ended                  12 months ended
                July 31                             July 31
                  2012            2011            2012        2011    
                                  (restated)                       (restated)
Net revenue:
Americas        $  62,105         $  68,926         $  249,940     $ 296,362
Asia               50,374            57,003            218,880       233,724
Europe             52,299            57,056            211,319       275,065
TFL                3,965             5,528             25,944        29,471
All other         8,351           10,175          33,808      39,126  
                $  177,094       $  198,688       $  739,891    $ 873,748 
                                                                   
Operating
income (loss):
Americas        $  (7,848   )     $  (4,808   )     $  (14,108 )   $ (29,984 )
Asia               3,234             9,879             21,450        29,168
Europe             (2,735   )        (3,606   )        (15,718 )     (6,181  )
TFL                (5,312   )        (1,292   )        (11,032 )     (16,139 )
All other         256             272             634         1,889   
                   (12,405  )        445               (18,774 )     (21,247 )
Other
reconciling       (10,960  )       (4,881   )       (27,119 )    (16,419 )
items
                $  (23,365  )     $  (4,436   )     $  (45,893 )   $ (37,666 )
                                                                   
Non-GAAP
operating
income (loss):
Americas        $  (5,768   )     $  (3,113   )     $  (7,675  )   $ (6,029  )
Asia               4,456             11,342            26,811        36,155
Europe             (1,649   )        (1,997   )        (6,061  )     198
TFL                (4,919   )        (1,212   )        (8,781  )     (4,026  )
All other         1,091           769             2,941       3,811   
                   (6,789   )        5,789             7,235         30,109
Other
reconciling       (10,742  )       (4,259   )       (25,285 )    (14,043 )
items
                $  (17,531  )     $  1,530         $  (18,050 )   $ 16,066  
                                                                   
Note: The Company defines non-GAAP operating income (loss) as total operating
income (loss), excluding net charges related to depreciation, amortization of
intangible assets, impairment of goodwill and long-lived assets, share-based
compensation, and restructuring.
                                                                   
TABLE RECONCILING NON-GAAP OPERATING INCOME (LOSS) TO GAAP OPERATING INCOME
AND NET INCOME (LOSS)
                                                                   
NON-GAAP
Operating       $  (17,531  )     $  1,530          $  (18,050 )   $ 16,066
income (loss)
                                                                   
Adjustments:
Depreciation       (3,360   )        (4,474   )        (14,057 )     (16,833 )
Amortization of
intangible         (284     )        (1,037   )        (1,279  )     (5,457  )
assets
Impairment of
goodwill &         -                 -                 (2,062  )     (27,166 )
intangible
assets
Stock-based        (582     )        (861     )        (2,990  )     (3,481  )
compensation
Restructuring,    (1,608   )       406             (7,455  )    (795    )
net
GAAP Operating    (23,365  )       (4,436   )       (45,893 )    (37,666 )
income (loss)
                                                                   
Other income       5,191             (2,878   )        10,329        4,350
(expense), net
Income tax
benefit            (1,985   )        2,954             (3,035  )     (819    )
(expense)
Income (loss)
from              (81      )       (91      )       491         (330    )
discontinued
operations
Net income      $  (20,240  )     $  (4,451   )     $  (38,108 )   $ (34,465 )
(loss)
                                                                             
                                                                             

                                                       
ModusLink Global Solutions, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations Information
(In thousands)
(Unaudited)
                                                             
                                    Three months ended
                                    October 31
                                        2012                  2011      
Net revenue:                                                 (restated)
Americas                            $    63,909              $   69,511
Asia                                     56,375                  60,739
Europe                                   68,930                  57,605
TFL                                      3,605                   8,079
All other                               7,837                 9,974     
                                   $    200,656            $   205,908   
Operating income (loss):
Americas                            $    (2,036     )        $   (120      )
Asia                                     7,174                   9,292
Europe                                   (3,829     )            (1,688    )
TFL                                      (832       )            (1,395    )
All other                               405                   856       
                                         882                     6,945
Other reconciling items                 (8,987     )           (4,759    )
                                    $    (8,105     )        $   2,186     
Non-GAAP operating income
(loss):
Americas                            $    (604       )        $   1,326
Asia                                     9,026                   10,965
Europe                                   (1,999     )            (296      )
TFL                                      (816       )            (1,315    )
All other                               848                   1,343     
                                         6,455                   12,023
Other reconciling items                 (8,685     )           (4,120    )
                                    $    (2,230     )        $   7,903     
                                                             
Note: The Company defines non-GAAP operating income (loss) as total operating
income (loss), excluding net charges related to depreciation, amortization of
intangible assets, impairment of goodwill and long-lived assets, share-based
compensation, and restructuring.
                                                             
TABLE RECONCILING NON-GAAP OPERATING INCOME (LOSS) TO GAAP OPERATING INCOME
AND NET INCOME (LOSS):

                                                             
NON-GAAP Operating income           $    (2,230     )        $   7,903
(loss)
Adjustments:
Depreciation                             (3,618     )            (3,748    )
Amortization of                          (285       )            (332      )
intangible assets
Impairment of goodwill &                 -                       -
intangible assets
Stock-based compensation                 (493       )            (882      )
Restructuring, net                      (1,479     )           (755      )
GAAP operating income                   (8,105     )           2,186     
(loss)
Other income (expense),                  (1,650     )            830
net
Income tax expense                       (909       )            (1,871    )
(benefit)
Income (loss) from                      4                     -         
discontinued operations
Net income (loss)                   $    (10,660    )        $   1,145     
                                                             
                                                             
                                                             
Reconciliations for
non-GAAP measure:
                                                             
                                    Three months ended
                                    October 31
                                        2012                  2011      
                                                             (restated)
Net cash provided by
operating activities of                  8,780                   5,234
continuing operations
Additions to property and               (2,134     )           (1,750    )
equipment
Free cash flow from                     6,646                 3,484     
operations

Contact:

ModusLink Investor Relations
Robert Joyce, 781-663-5120
ir@moduslink.com