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Advant-e Corporation Announces First Quarter 2005 Results
Company Reports 24% Increase in Revenue over 2004; Seventh Consecutive Profitable Quarter


DAYTON, Ohio, May 10 /PRNewswire-FirstCall/ -- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the quarter ending March 31, 2005.

For the first quarter of 2005 the Company reported revenues of $1,039,488, a 24% increase over revenues of $838,635 in the first quarter of 2004, and a 5% increase over revenues of $990,077 in the fourth quarter of 2004. The increase in revenue was the result of continued growth and market acceptance of the Company's internet-based electronic commerce subscription services.

Net income for the quarter was $105,109, or $.02 per share, compared to $114,241, or $.02 per share for the same period in 2004, and $127,111 for the fourth quarter of 2004. The decrease in net income was primarily the result of increased personnel costs. The first quarter of 2005 marks the seventh consecutive profitable quarter for Advant-e Corporation.

Jason K. Wadzinski, President and CEO of Advant-e, stated, "The first quarter of 2005 is significant for us in that this is the first quarter where we've surpassed the million dollar mark in revenue. This was accomplished with strong growth for our web-EDI service in the grocery industry of 15% relative to the first quarter of 2004, but also with the 279% growth in non- grocery industries, which now accounts for 10% of our total revenue. Our balance sheet is gaining strength and we are looking forward to continuing our success in 2005 and beyond."

 

                     ADVANT-E CORPORATION AND SUBSIDIARY
           CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
                     For the three months ended March 31,

                                                          2005        2004
                                                         -----       -----


    Revenue                                            $1,039,488    838,635
    Cost of revenue                                       389,044    294,217

    Gross margin                                          650,444    544,418
    Marketing, general and administrative expenses        475,335    352,597

    Operating income                                      175,109    191,821
    Interest                                                  ---      2,180

    Income before taxes                                   175,109    189,641
    Income tax expense                                     70,000     75,400

    Net income                                           $105,109    114,241

    Basic earnings per common share                         $0.02       0.02

    Diluted earnings per common share                       $0.02       0.02

    Weighted average common shares outstanding          6,268,250  6,244,917

    Weighted average common shares outstanding,
     assuming dilution                                  6,268,250  6,542,186



                     ADVANT-E CORPORATION AND SUBSIDIARY
              CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited)
                   At March 31, 2005 and December 31, 2004

                                                     March 31,   December 31,
                                                        2005         2004
    Assets

    Current Assets
       Cash and cash equivalents                     $1,230,429      944,892
       Accounts receivable, net                         295,086      290,394
       Prepaid expenses and deposit                      31,033       26,420

    Total current assets                              1,556,548    1,261,706

    Software development costs, net
                                                        248,725      298,809
    Property and equipment, net                         265,448      271,604

    Total assets                                     $2,070,721   $1,832,119

    Liabilities and Shareholders' Equity

    Current liabilities
       Accounts payable                                 $58,008       39,681
       Accrued salaries and other expenses              150,263       99,810
       Income taxes payable                              98,000       26,000
       Deferred revenue                                 103,251      142,788

    Total current liabilities                           409,522      308,279

    Long-term liabilities
       Deferred income taxes                            163,000      191,000

          Total liabilities                             572,522      499,279

    Shareholders' equity
       Common stock, $.001 par value; 20,000,000
        shares authorized; 6,294,917 outstanding
        at March 31, 2005 and 6,244,917
        outstanding at December 31, 2004                  6,295        6,245
       Paid-in capital                                1,535,784    1,475,584
       Retained earnings deficit                        (43,880)    (148,989)

          Total shareholders' equity                  1,498,199    1,332,840

          Total liabilities and shareholders'
           equity                                    $2,070,721    1,832,119



                     ADVANT-E CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
              For the three months ended March 31, 2005 and 2004

                                                             2005     2004

    Cash flows from operating activities:
       Net income                                          $105,109   114,241
       Adjustments to reconcile net income to net
        cash flows from operating activities:
          Depreciation                                       23,383    12,816
          Amortization of software development costs         66,397    80,252
          Deferred income taxes                             (28,000)   75,400
          Increase (decrease) in cash arising from changes
           in assets and liabilities:
             Accounts receivable                             (4,692)   (3,408)
             Prepaid expenses                                (4,613)    2,046
             Accounts payable                                18,327   (36,531)
             Accrued salaries, interest and other expenses   50,453    48,256
             Income taxes payable                            72,000       ---
             Deferred revenue                               (39,537)  (26,890)

                   Net cash flows from operating activities 258,827   266,182

    Cash flows from investing activities:
       Purchases of equipment                               (17,227)   (5,872)
       Software development costs                           (16,313)  (43,359)

                   Net cash flows from investing activities (33,540)  (49,231)

    Cash flows from financing activities:
       Issuance of common stock                              60,250       ---
       Payments on notes                                        ---   (94,965)
       Payments of direct costs of securities registration      ---    (2,040)

                   Net cash flows from financing activities  60,250   (97,005)

    Net increase in cash and cash equivalents               285,537   119,946

    Cash and cash equivalents, beginning of period          944,892   216,448

    Cash and cash equivalents, end of period             $1,230,429   336,394

    Supplemental disclosures of cash flow items:
       Interest paid                                           $---     3,014


About Advant-e

Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC®, an Internet-based Trading Community Connectivity, Management, and Integration solution, and within specific industries via web-based EDI services including www.GroceryEC.com, www.RetailEC.com, www.AutomotiveEC.com, www.CPGSupplier.com, and www.WebEDI.com.

Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.

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Phone: (800) 443-3428
Fax: (937) 429-4309
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The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any or its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.