The corrected release reads

BluePhoenix Solutions Reports Third Quarter Results

Q3/09 Revenues of $18.7 million, Non-GAAP EPS of $0.05

BluePhoenix Solutions (NASDAQ:BPHX), the leader in value-driven legacy modernization, today announced financial results for the third quarter. Revenues for the third quarter of 2009 were $18.7 million, a decrease of 2% from $19.1 million in the previous quarter and 15% from $22.0 million in the third quarter of 2008.

Operating income on a non-GAAP basis for the third quarter of 2009 was $1.5 million, compared to $1.3 million in the previous quarter and compared to a net loss of $170 thousand for the third quarter of 2008.

Net income on a non-GAAP basis for the third quarter of 2009 was $1.0 million, or $0.05 per diluted share, compared to $1.2 million or $0.06 per diluted share in the previous quarter, and compared to a net loss of $1.4 million or ($0.06) per share for the third quarter of 2008.

On a GAAP basis for the third quarter of 2009, the net loss was $2.7 million or $(0.13) per share, compared to a net loss of $1.9 million or $(0.09) per share in the previous quarter, and compared to a net loss of $6.8 million or ($0.32) per share in the third quarter of 2008. (Please refer to the accompanying financial table for reconciliation of GAAP financial information to non-GAAP).

"In the third quarter we started to see signs of stabilization of the business and achieved our operational and financial targets for the quarter," commented Yaron Tchwella, CEO of BluePhoenix Solutions. "A growing backlog and pipeline gives us increased confidence that the business is back on the right track and we expect that we will resume growth going forward."

                                                                       
 Non-GAAP Results (in thousands US$)     Q3/2009    Q2/2009    Q3/2008 
 Sales                                   18,688     19,050     22,029  
 Operating profit (loss)                 1,498      1,326      (170)   
 Net Income (loss)                       1,012      1,193      (1,354) 
 Earnings per share, diluted             $0.05      $0.06      ($0.06) 
                                                                       
 GAAP Results (in thousands US$)         Q3/2009    Q2/2009    Q3/2008 
 Sales                                   18,688     19,050     22,029  
 Operating (loss)                        (1,761)    (1,649)    (5,206) 
 Net (loss) from continued operations    (2,679)    (1,911)    (6,248) 
 Net (loss)                              (2,679)    (1,911)    (6,839) 
 Earnings per share, diluted             ($0.13)    ($0.09)    ($0.32) 
                                                                       


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Non-GAAP financial measures

The release includes non-GAAP diluted earnings per share and other non-GAAP financial measures, non-GAAP cost of revenues, non-GAAP research and development, non-GAAP selling, general and administrative, non-GAAP operating income, non-GAAP net income and non-GAAP net income (loss) per share. These non-GAAP measures exclude the following items:

Amortization of purchased intangible assets;

Equity-based compensation expense

Expenses related to cost saving plan and one time charges

Non-cash derivatives expenses

The presentation of these non-GAAP financial measures should be considered in addition to BluePhoenix' GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. BluePhoenix' management believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance by excluding certain charges, gains and tax effects that may not be indicative of BluePhoenix' core business operating results. BluePhoenix believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing BluePhoenix' performance. These non-GAAP financial measures also facilitate comparisons to BluePhoenix' historical performance and its competitors' operating results. BluePhoenix includes these non-GAAP financial measures because management believes they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision-making. Non-GAAP measures are reconciled to comparable GAAP measures in the table entitled "Reconciliation of GAAP to Non-GAAP."

Conference Call

A conference call discussing BluePhoenix' results for the third quarter of 2009, will take place today, November 12, 2009 at 8:30 a.m. (ET). Investors are invited to join the Company's teleconference by calling (877) 941-4775 or international +1-480-629-9761 at 8:25 a.m. This call is being web cast by ViaVid Broadcasting and can be accessed at BluePhoenix's website at http://www.bphx.com.

About BluePhoenix Solutions

BluePhoenix Solutions (NASDAQ:BPHX) is the leading provider of value-driven legacy IT modernization solutions. The BluePhoenix portfolio includes a comprehensive suite of tools and services from global IT asset assessment and impact analysis to automated database and application migration, rehosting, and renewal. Leveraging over 20 years of best-practice domain expertise, BluePhoenix works closely with its customers to ascertain which assets should be migrated, redeveloped, or wrapped for reuse as services or business processes, to protect and increase the value of their business applications and legacy systems with minimized risk and downtime.

BluePhoenix provides modernization solutions to companies from diverse industries and vertical markets such as automotive, banking and financial services, insurance, manufacturing, and retail. Among its prestigious customers are: Aflac, Capita Group, CareFirst, Citigroup, Danish Commerce and Companies Agency, Desjardins, Los Angeles County Employees Retirement Association, Rabobank, Rural Servicios Informaticos, SDC Udvikling, TEMENOS, Toyota, and Volvofinans. BluePhoenix has 14 offices in the USA, UK, Denmark, Germany, Italy, The Netherlands, Romania, Russia, Cyprus, South Korea, Australia, and Israel.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this release may be deemed forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and other Federal Securities laws. You can identify these and other forward-looking statements by the use of words such as "may," "will," "plans," "believes," "estimates," "expects", "predicts", "intends," the negative of such terms, or other comparable terminology. Because such statements deal with future events, plans, projections, or future performance of the Company, they are subject to various risks and uncertainties that could cause actual results to differ materially from the Company's current expectations. These risks and uncertainties include but are not limited to: the ability to successfully defend claims brought against the Company; the effects of the global economic and financial crisis; market demand for the Company's products; successful implementation of the Company's products; changes in the competitive landscape, including new competitors or the impact of competitive pricing and products; the ability to manage the Company's growth; the ability to recruit and retain additional software personnel; the ability to develop new business lines; and such other risks and uncertainties as identified in BluePhoenix' most recent Annual Report on Form 20-F and other reports filed by it with the SEC. Except as otherwise required by law, BluePhoenix undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

This press release is also available at www.bphx.com. All names and trademarks are their owners' property.

                                                                                                           
 BluePhoenix Solutions Ltd.