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Hi guys, Thanks for the answers. The reason I asked is because a competing website's link building strategy is completely focused on press releases. While they haven't usurped the #1 or #2 SERPs, they have managed to place themselves solidly as #3 in a short amount of time. Sometimes what we're hearing from the Search Engines and what actually happens doesn't always line up. I started this discussion to hear what people think and to find thoughtful new ideas to why this may be happening. Appreciate the feedback!

I would say it's all about motive.  We've become link-phobic now. As others have mentioned, it's Penguin that is concerned with inbound links and not Panda.  With that being said, however, Penguin is meant to penalize websites that have grossly abused anchor text.  So, if you got a pile of inbound links from a bunch of different websites all containing your money keyword as anchor text then this can set off the Penguin filter. But, one sitebound link (even if it results in thousands of links from that site) is not likely to do that.  If this were the case I could easily take down my competitor by pointing a single sitebound link at their site!  (Agh...don't start negative SEO debating now though.)