National Coal Corp. Reports Third Quarter 2009 Results

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KNOXVILLE, Tenn.--(Business Wire)--
National Coal Corp. (Nasdaq: NCOC):

* Third quarter revenues from Tennessee operations increased 19.0% to $22.1
million, up from $18.6 million during the year-ago quarter.
* Tons of coal sold increased 5.9% to 286,447 tons up from 270,515 tons during
the year-ago quarter.
* The average price per ton increased 15.2% to $75.00 from $65.08 in the same
year-ago quarter.
* For the nine months ended September 30, 2009, net cash flows provided by
operating activities improved and are reported at $6.6 million, versus a
negative $3.6 million during the year-ago period.

National Coal Corp. (Nasdaq: NCOC), a Central and Southern Appalachian coal
producer, reports that for the three months ended September 30, 2009, it
achieved total revenues of $22.1 million based primarily on the sale of 286,447
tons of coal. In the same prior-year period, National Coal generated revenues of
$18.6 million primarily through the sale of 270,515 tons of coal.

For the three months ended September 30, 2009, National Coal reported a net loss
of $663,950 versus a net loss of $8.4 million during the year-ago quarter. The
net loss of $663,950 consists of a loss from continuing operations of $4.5
million or a loss of $0.13/share, and income from discontinued operations net of
tax of $3.9 million or earnings of $0.11/share, which includes a gain on
disposal of discontinued operations of $23.5 million. The net loss of $8.4
million during the year ago-quarter consists of a loss from continuing
operations of $4.5 million or a loss of $0.14/share, and a loss from
discontinued operations net of tax of $3.8 million or a loss of $0.11/share.

"Despite a number of economic challenges our results continue to strengthen and
show improvement, most dramatically in our reduced loss and our improved cash
flow," says Daniel A. Roling, President and CEO of National Coal Corp. "As we
look forward to the future we are mindful that even though our anticipated tons
to be sold are less than originally contracted, we have not seen any further
deterioration since mid summer. We continue to see opportunities for investing
in our Tennessee operations and are planning to be well positioned to benefit
when the market improves."

During the three months ended September 30, 2009, the average selling price for
coal sold from the Company`s Tennessee operations increased 15.2% from $65.08
per ton sold during the 2008 period to $75.00 per ton sold during the 2009
period, while tons sold also increased 5.9% from 270,515 tons in 2008 to 286,447
tons in 2009. During 2008, the Company successfully renegotiated several of its
existing coal supply agreements resulting in an increased selling price per ton
helping generate additional revenues from those contracts for its Tennessee
operations in 2009.

The Company also reported a positive EBITDA of $3.5 million versus a negative
EBITDA of $4.8 million reported in the year-ago quarter.

At September 30, 2009, the Company had available liquidity of $10.1 million,
consisting of $6.0 million available under a short-term revolving credit
facility and cash and cash equivalents of approximately $4.1 million. Cash flows
provided by (used in) the Tennessee operations were $2.9 million and $(6.2)
million for the nine months ended September 30, 2009 and 2008, respectively. "We
are currently in discussions to extend the maturity date of our revolving credit
facility, which is scheduled to mature on December 15, 2009," said Roling. "We
expect to conclude these negotiations within the next several weeks."

Roling explains the Company`s cash flow improvements, "Our ability to generate
cash has been bolstered by better pricing. As I have said before, the integrity
of our contracts has allowed us to move forward in this extremely challenging
economic environment."

In addition, the Company was successful during the quarter in securing a bonding
program for its reclamation bonds with an insurance company permitting the
release of approximately $4.4 million of restricted cash. Management continues
to work towards better utilization of all its assets.

The Company produced 201,121 tons of coal during the quarter, a decrease of
24.0% versus the year ago quarter and a decrease of 14% from the prior quarter.
The decline in production reflects both the weaker industry conditions and the
Company`s continuing efforts to control costs, especially in the current
economic environment. On a quarter-to-quarter basis, total tons decreased 14%,
while total production costs declined only 4.5%, resulting in higher per ton
costs. Management anticipates further improvements in its costs in the fourth
quarter.

Outlook

Year-to-date the Company invested approximately $5.5 million in equipment and
mine development in its Tennessee operations and for the balance of the year,
management expects to incur approximately $0.6 million to maintain existing
assets in Tennessee. "Due to the continued weak demand for coal and the
uncertainty of the economic recovery we have lowered our anticipated capital
expenditures for the balance of the year. However, looking forward significant
opportunity exists to increase production at the appropriate time to meet a
recovery in demand for coal," explains Roling.

Total domestic coal consumption has declined significantly - about 11.5% - so
far this year, which will make it two years in a row for lower coal demand. This
lower demand is being driven by a decline in electricity generation, which has
declined about 4% through late October, following a decline of 3.9% during 2008.
Given that almost 93% of all coal consumed in the Untied States is used to
generate electricity, this fall off in demand for electricity has had a direct
impact on coal demand. Year-to-date total coal production has declined about
7.5% while Appalachian production has declined 8.2%.

Roling says his opinion of the industry`s future is bullish. "Looking forward, I
believe a recovery in economic activity will stimulate demand for both
electricity and coal. Increases in consumption through 2010, even slight
increases, should help reduce coal stockpile levels in the electric utility
sector to more normal levels. With that said, I believe it is highly likely an
improving economy will result in increased demand for energy, especially coal,
among utilities, industrial customers, and steel companies resulting in a much
stronger operating environment for coal producers."

About National Coal Corp.

Headquartered in Knoxville, Tenn., National Coal Corp., through its wholly owned
subsidiary, National Coal Corporation, is engaged in coal mining in East
Tennessee. Currently, National Coal employs about 325 people. National Coal
sells steam coal to electric utilities and industrial companies in the
Southeastern United States. For more information and to sign-up for instant news
alerts visit www.nationalcoal.com.

Information about Forward Looking Statements

This release contains "forward-looking statements" that include information
relating to future events and future financial and operating
performance.Examples of forward looking-statements include anticipated benefits
of capital improvements and new mines, the anticipated reduction in future
periods of costs associated with lower production in the current period, the
Company`s negotiation of an extension of the maturity date of its revolving
credit facility, and an anticipated strengthening coal market in the
future.Forward-looking statements should not be read as a guarantee of future
performance or results, and will not necessarily be accurate indications of the
times at, or by which, that performance or those results will be
achieved.Forward-looking statements are based on information available at the
time they are made and/or management`s good faith belief as of that time with
respect to future events, and are subject to risks and uncertainties that could
cause actual performance or results to differ materially from those expressed in
or suggested by the forward-looking statements. Important factors that could
cause these differences include, but are not limited to: (i) the worldwide
demand for coal; (ii) the price of coal; (iii) the price of alternative fuel
sources; (iv) the supply of coal and other competitive factors; (v) the costs to
mine and transport coal; (vi) the ability to obtain new mining permits; (vii)
the costs of reclamation of previously mined properties; (viii) the risks of
expanding coal production; (ix) the ability to bring new mining properties
on-line on schedule; (x) industry competition; (xi) our ability to continue to
execute our growth strategies; and (xii) general economic conditions.These and
other risks are more fully described in the Company`s filings with the
Securities and Exchange Commission including the Company`s most recently filed
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, which should be
read in conjunction herewith for a further discussion of important factors that
could cause actual results to differ materially from those in the
forward-looking statements.Forward-looking statements speak only as of the date
they are made.You should not put undue reliance on any forward-looking
statements.We assume no obligation to update forward-looking statements to
reflect actual results, changes in assumptions or changes in other factors
affecting forward-looking information, except to the extent required by
applicable securities laws.If we do update one or more forward-looking
statements, no inference should be drawn that we will make additional updates
with respect to those or other forward-looking statements.

NATIONAL COAL CORP.
CALCULATION OF EBITDA
(Unaudited)

EBITDA is defined as net loss plus (i) other (income) expense, net, (ii) interest expense, (iii) depreciation, depletion, accretion and amortization minus (iv) interest income, (v) income tax benefits, and (vi) income from joint ventures. We present Adjusted EBITDA, including stock compensation expense and discontinued operations, net of tax, to enhance understanding of our operating performance. We use Adjusted EBITDA as a criterion for evaluating our performance relative to that of our peers, including
measuring our cost effectiveness and return on capital, assessing our allocations of resources and production efficiencies and making compensation decisions. We believe that Adjusted EBITDA is an operating performance measure that provides investors and analysts with a measure of our operating performance and permits them to evaluate our cost effectiveness and production efficiencies relative to competitors. In addition, our management uses Adjusted EBITDA to monitor and evaluate our business operations.
However, Adjusted EBITDA is not a measurement of financial performance under accounting principles generally accepted in the United States of America ("GAAP") and may not be comparable to other similarly titled measures of other companies. Adjusted EBITDA should not be considered as an alternative to cash flows from operating activities, determined in accordance with GAAP, as indicators of cash flows. The following reconciles our net loss to Adjusted EBITDA:

Three Months Ended Nine Months Ended
September 30, September 30,
2009 2008 2009 2008
Net loss $ (663,950 ) $ (8,389,873 ) $ (14,899,936 ) $ (27,562,983 )
Other (income) expense, net (39,324 ) (23,653 ) (63,944 ) 1,831,526
Interest income (65,175 ) (180,143 ) (222,281 ) (572,460 )
Interest expense 1,910,496 1,616,725 5,037,908 5,626,763
Depreciation, depletion, amortization and accretion 2,392,606 2,141,220 7,528,951 7,035,844
EBITDA 3,534,653 (4,835,724 ) (2,619,302 ) (13,641,310 )
Stock compensation expense 421,661 535,353 1,126,961 980,654
Discontinued operations, net of tax (3,872,741 ) 3,841,312 1,485,157 8,153,317
Adjusted EBITDA $ 83,573 $ (459,059 ) $ (7,184 ) $ (4,507,339 )

National Coal Corp.
Condensed Consolidated Balance Sheets
(Unaudited)

September 30, 2009 December 31, 2008

Assets
Current Assets:
Cash and cash equivalents $ 4,060,409 $ 3,908,469
Restricted cash 1,374,643 -
Accounts receivable, net 1,227,488 474,351
Inventory 3,722,220 2,957,654
Prepaid and other current assets 1,312,315 1,282,777
Current assets of discontinued operations - 9,751,877
Total Current Assets 11,697,075 18,375,128

Property, plant, equipment and mine development, net 42,389,955 43,674,758
Deferred financing costs 859,974 1,238,267
Restricted cash 7,543,608 11,338,137
Other non-current assets 1,469,247 1,562,901
Long-term assets of discontinued operations - 71,620,026
Total Assets $ 63,959,859 $ 147,809,217

Liabilities and Stockholders' (Deficit) Equity
Current Liabilities:
Accounts payable $ 13,280,165 $ 6,188,085
Accrued expenses 2,654,284 880,632
Borrowings under short-term line of credit 4,000,000 -
Current maturities of long - term debt 1,586,361 2,336,191
Current installments of obligations under capital leases 1,676,217 1,886,251
Current portion of asset retirement obligations 145,282 145,282
Deferred revenue - 1,241,840
Current liabilities of discontinued operations - 11,735,695
Total Current Liabilities 23,342,309 24,413,976

Long - term debt, less current maturities, net of discount 41,538,006 41,892,645
Obligations under capital leases, less current installments 175,549 1,314,188
Asset retirement obligations, less current portion 4,087,145 3,763,720
Deferred revenue 1,116,042 1,303,655
Other non-current liabilities 1,942,037 2,138,235
Long-term liabilities of discontinued operations - 67,492,063
Total Liabilities 72,201,088 142,318,482

Stockholders' (Deficit) Equity:
Common Stock, $.0001 par value; 80 million shares authorized;
34,379,889 and 34,184,824 shares issued and outstanding at September 30, 2009
and December 31, 2008, respectively 3,437 3,418
Additional paid - in capital 115,938,899 114,770,946
Accumulated deficit (124,183,565 ) (109,283,629 )
bwcellpaddingright0 bwverticalalignbottom bwtextalignright" id="t6093189_2_14_7833"> 3,551 3,832 7,454 8,110
Sales and marketing 7,812 8,190 15,955 16,307
General and administrative 3,412 3,259 7,070 6,720
Restructuring charges (recoveries) 17 8 (74 ) 850

Total operating expenses 14,792 15,289 30,405 31,987

Operating income 1,846 1,278 2,924 1,420
Interest and other income, net 273 350 268 623

Income before taxes 2,119 1,628 3,192 2,043
Income tax expense 273 401 602 730

Net income 1,846 1,227 2,590 1,313

Net income per share
Basic $ 0.07 $ 0.05 $ 0.09 $ 0.05

Diluted $ 0.07 $ 0.04 $ 0.09 $ 0.05

Weighted average shares used to compute basic and diluted net income per share
Basic 27,503 27,094 27,403 26,992
Diluted 27,901 27,367 27,662 27,177

ACCELRYS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

September 30, March 31,
2009 2009
Assets
Cash, cash equivalents, and marketable securities1 $ 79,983 $ 81,769
Trade receivables, net 8,577 21,860
Other assets, net2 55,919 56,985

Total assets $ 144,479 $ 160,614

Liabilities and stockholders` equity
Current liabilities, excluding deferred revenue 10,661 15,427
Total deferred revenue3 42,181 57,224
Noncurrent liabilities, excluding deferred revenue 7,256 7,204
Total stockholders` equity 84,381 80,759

Total liabilities and stockholders` equity $ 144,479 $ 160,614

1 Cash, cash equivalents, and marketable securities consist of the following
line items in our consolidated balance sheet: Cash and cash equivalents;
Marketable securities; Marketable securities, net of current portion; and
Restricted cash

2 Other assets, net, consists of the following line items in our consolidated
balance sheet: Prepaid expenses, deferred tax assets and other current assets;
Property and equipment, net; Goodwill; Purchased intangible assets, net; and
Other assets

3 Total deferred revenue consists of the following line items in our
consolidated balance sheet: Current portion of deferred revenue; and Deferred
revenue, net of current portion

for National Coal Corp.
Christine Pietryla, 865-690-6900, ext. 150
(Investor Relations)

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