FOR IMMEDIATE RELEASE

CONTACT
Philip A. Baratelli
Chief Financial Officer
Clarus Corporation
(203) 428-2000
pbaratelli@claruscorp.com

Clarus Announces Third Quarter 2007 Results

STAMFORD, CONNECTICUT — November 9, 2007 — Clarus Corporation (OTC:CLRS.PK) today announced financial results for the three and nine months ended September 30, 2007. Clarus reported no revenues for the quarters ended September 30, 2007 and 2006, respectively. Net income for the third quarter of 2007 decreased $63,000 to $36,000 or $0.00 per diluted share compared to net income of $99,000 or $0.01 per diluted share during the comparable period of 2006. The decrease in net income was primarily a result of a $111,000 increase in general and administrative costs partially offset by a reduction in transaction expenses of $25,000 and an increase of $26,000 in interest income due to higher interest rates on our cash, cash equivalents and marketable securities. For the nine months ended September 30, 2007, Clarus reported net income of $319,000 or $0.02 per diluted share compared to a net loss of $1,307,000 or $(0.08) per diluted share for the same period in 2006. The increase in net income was primarily a result of a decrease in transaction expense of $1,405,000 and an increase of $320,000 in interest income due to higher interest rates on our cash, cash equivalents and marketable securities partially offset by an increase of $87,000 in general and administrative costs. The increase in general and administrative expense for the three and nine months ended September 30, 2007 was primarily attributable to increases in employment compensation and benefits, rent and legal fees offset by decreases in investment custody fees, accounting fees, stock administrative fees and other professional fees. Prior year transaction expenses relate to an acquisition process that terminated without Clarus consummating the acquisition and include the costs incurred during due diligence and negotiation of potential acquisitions such as legal, accounting and other professional fees and related expenses.

As of September 30, 2007, Clarus’ cash, cash equivalents and marketable securities were $85.8 million, (or $4.99 gross cash per share) compared to $84.4 million as of December 31, 2006. Gross cash per share at September 30, 2007 equals cash, cash equivalents and marketable securities of $85.8 million divided by 17.2 million common shares outstanding. Clarus has provided this non-GAAP measure because it believes that it is useful to investors assessing the extent of Clarus’ assets available for redeployment. Clarus is unaware of any comparable GAAP measure.

Clarus estimates that it has available net operating loss, research and experimentation credit and alternative minimum tax credit carryforwards for U.S. federal income tax purposes of approximately $222.8 million, $1.3 million and $53,000, respectively, which expire in varying amounts between 2009 and 2026, after application of the limitation under Section 382 of the Internal Revenue Code. Of the approximately $222.8 million of net operating loss carryforwards available to offset taxable income, approximately $206.4 million does not expire until 2020 or later, subject to compliance with Section 382 of the Internal Revenue Code. The Company also has a capital loss carryforward of $14.0 million which expires in varying amounts in 2007 and 2008.
 

 
Clarus does not currently intend to hold conference calls to discuss quarterly earnings releases unless and until it consummates an acquisition in connection with its redeployment strategy. At such time, Clarus plans to resume holding quarterly conference calls to review earnings and operating performance.

Clarus, formerly a provider of e-commerce business solutions, is seeking to redeploy its assets and use its substantial cash, cash equivalent assets and marketable securities to enhance stockholder value.
______________
This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Exchange Act of 1934. Information in this release includes Clarus' beliefs, expectations, intentions and strategies regarding Clarus, its future and its products and services. Assumptions relating to the forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risks including our inability to execute successfully our planned effort to redeploy our assets to enhance stockholder value, the unavailability of our net operating loss carry forward, and that the unaudited financial information provided in this press release may be adjusted as a result of the year end audit. Clarus cannot guarantee its future performance. All forward-looking statements contained in this release are based on information available to Clarus as of the date of this release and Clarus assumes no obligation to update the forward-looking statements contained herein.

For further information regarding the risks and uncertainties in connection with Clarus' business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of Clarus' filings with the Securities and Exchange Commission, including but not limited to, its most recent annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained at our web site at http://www.claruscorp.com or the SEC's web site at http://www.sec.gov.


CLARUS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
 
 
  
SEPTEMBER 30,
  
 DECEMBER 31,
  
   
2007
  
 2006
  
ASSETS
  
(unaudited) 
       
            
CURRENT ASSETS:
              
Cash and cash equivalents
  
$
20,722
  
$
1,731
  
Marketable securities
    
65,093
    
82,634
  
Interest receivable
    
3
    
402
  
Prepaids and other current assets
    
211
    
207
  
               
Total current assets
    
86,029
    
84,974
  
               
PROPERTY AND EQUIPMENT, NET
    
1,474
    
1,699
  
               
TOTAL ASSETS
  
$
87,503
  
$
86,673
  
               
               
LIABILITIES AND STOCKHOLDERS' EQUITY
              
               
CURRENT LIABILITIES:
              
Accounts payable and accrued liabilities
  
$
547
  
$
680
  
               
Total current liabilities
    
547
    
680
  
               
LONG-TERM LIABILITIES:
              
Deferred rent
    
327
    
277
  
               
Total liabilities
    
874
    
957
  
               
STOCKHOLDERS' EQUITY:
              
Preferred stock, $.0001 par value; 5,000,000 shares authorized; none issued
    
—
    
—
  
Common stock, $.0001 par value; 100,000,000 shares authorized; 17,241,747 and 17,188,622 shares issued and 17,166,747 and 17,113,622 outstanding in 2007 and 2006, respectively
    
2
    
2
  
Additional paid-in capital
    
368,514
    
367,945
  
Accumulated deficit
    
(281,919
)
  
(282,238
)
Treasury stock, at cost
    
(2
)
  
(2
)
Accumulated other comprehensive income
    
34
    
9
  
               
Total stockholders' equity
    
86,629
    
85,716
  
               
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
87,503
  
$
86,673
  
 
 
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
 
 
THREE MONTHS
 
 NINE MONTHS
 
 
 
ENDED SEPTEMBER 30,
 
 ENDED SEPTEMBER 30,
 
 
 
2007
 
 2006
 
 2007
 
 2006
 
REVENUES:
 
$
—
 
$
—
 
$
—
 
$
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
 
—
 
 
—
 
 
—
 
 
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING EXPENSES:
 
 
 
 
 
 
 
 
 
 
 
 
 
General and administrative
 
 
961
 
 
850
 
 
2,644
 
 
2,557
 
Transaction expenses
 
 
—
 
 
25
 
 
8
 
 
1,413
 
Depreciation
 
 
89
 
 
86
 
 
270
 
 
259
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total operating expenses
 
 
1,050
 
 
961
 
 
2,922
 
 
4,229
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OPERATING LOSS
 
 
(1,050
)
 
(961
)
 
(2,922
)
 
(4,229
)
OTHER EXPENSE
 
 
—
 
 
—
 
 
(1
)
 
—
 
INTEREST INCOME
 
 
1,086
 
 
1,060
 
 
3,242
 
 
2,922
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET INCOME (LOSS)
 
$
36
 
$
99
 
$
319
 
$
(1,307
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
$
0.00
 
$
0.01
 
$
0.02
 
$
(0.08
)
Diluted
 
$
0.00
 
$
0.01
 
$
0.02
 
$
(0.08
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
 
 
16,667
 
 
16,614
 
 
16,649
 
 
16,613
 
Diluted
 
 
17,079
 
 
16,744
 
 
17,074
 
 
16,613
 

 
CLARUS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)

   
NINE MONTHS
  
   
 ENDED SEPTEMBER 30,
  
   
2007
  
 2006
  
OPERATING ACTIVITIES:
              
Net income (loss)
  
$
319
  
$
(1,307
)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
              
Depreciation on property and equipment
    
270
    
259
  
Amortization of deferred employee compensation
    
201
    
221
  
Amortization of discount on securities, net
    
(2,252
)
  
(1,719
)
Changes in operating assets and liabilities:
              
Decrease (increase) in interest receivable, prepaids and other current assets
    
395
    
(132
)
Decrease in accounts payable and accrued liabilities
    
(133
)
  
(969
)
Increase in deferred rent
    
50
    
52
  
Decrease in deposits and other long-term assets
    
—
    
956
  
               
NET CASH USED IN OPERATING ACTIVITIES
    
(1,150
)
  
(2,639
)
               
INVESTING ACTIVITIES:
              
Purchases of marketable securities
    
(105,793
)
  
(117,824
)
Proceeds from sale of marketable securities
    
—
    
—
  
Proceeds from maturity of marketable securities
    
125,611
    
98,563
  
Sale of property and equipment
    
2
    
—
  
Additions to property and equipment
    
(47
)
  
(8
)
               
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
    
19,773
    
(19,269
)
               
FINANCING ACTIVITIES:
              
Proceeds from the exercises of stock options
    
368
    
—
  
               
NET CASH PROVIDED BY FINANCING ACTIVITIES
    
368
    
—
  
               
CHANGE IN CASH AND CASH EQUIVALENTS
    
18,991
    
(21,908
)
               
CASH AND CASH EQUIVALENTS, Beginning of Period
    
1,731
    
23,270
  
               
CASH AND CASH EQUIVALENTS, End of Period
  
$
20,722
  
$
1,362
  
               
SUPPLEMENTAL DISCLOSURE:
              
               
               
Cash paid for franchise and property taxes
  
$
387
  
$
456