November 12, 2009
Advant-e Corporation Announces
Third Quarter 2009 Results


Company Reports Net Income Increase of 28% and
Revenue Increase of 4% over Third Quarter of 2008

DAYTON, Ohio, November 12, 2009 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the third quarter of 2009.  The Company provides Internet-based Electronic Data Interchange services through Edict Systems, Inc. and sells electronic document management software and services through Merkur Group, Inc.  Edict Systems and Merkur Group are wholly owned subsidiaries of Advant-e Corporation.

For the third quarter of 2009 the Company reported revenue of $2,158,016, a 4% increase, compared to revenue of $2,067,253 in the third quarter of 2008. Revenue from Edict Systems increased by $83,284, and revenue from Merkur Group increased by $7,479.

Net income for the third quarter of 2009 was $316,678, or $.05 per share, a 28% increase compared to net income of $247,079, or $.04 per share, for the same period in 2008.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, remarked, “We continue our trend of strong cash flow and I believe we performed well in a sluggish economic environment.  Both Edict Systems and Merkur Group reported increased revenue in the quarter compared to last year.  While Merkur’s revenue growth was nominal, Merkur did contribute considerably to our net income.”  

“Due to current economic realities, our automotive related revenue declined 13% in the quarter, and software sales from Merkur are still affected by delayed purchasing decisions and the impact of budgetary constraints by potential customers,” continued Mr. Wadzinski.  “I believe that our significant value proposition and the great people we have at both Edict and Merkur will allow us to weather the current economic environment.  I also believe that we are well positioned for sustained growth when the overall economy improves."

The Company announced on October 30, 2009 that it’s Board of Directors has authorized a ten-for-one stock split of the Company's common stock. All shareholders of record on November 30, 2009 will receive 10 shares in exchange for each share held on that date.

The Board of Directors also declared the payment of $.03 per share (after the ten-for-one stock split) cash dividend, payable in three installments of $.01 each by no later than December 31, 2009, June 30, 2010, and December 31, 2010. The record date for each dividend will be announced separately on dates to be determined by the Board of Directors of the company.
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three Months Ended
September 30,
Six Months Ended
September 30,
2009
2008
2009
2008
Revenue
$2,158,016
2,067,253
6,514,265
6,712,754
Cost of revenue
858,522
792,351
2,688,352
2,615,977
Gross margin
1,299,494
1,274,902
3,825,913
4,096,777
Marketing, general and administrative expenses
801,355
884,584
2,526,143
2,869,978
Operating income
498,139
390,318
1,299,770
1,226,799
Other income (expense), net
(3,376)
(25,852)
2,459
(2,241)
Income before income taxes
494,763
364,466
1,302,229
1,224,558
Income tax expense
178,085
117,387
439,611
432,944
Net income
$316,678
247,079
862,618
791,614
Earnings per share - basic and diluted
$.05
.04
.13
.12
Weighted average shares outstanding
– basic and diluted
6,685,883
6,791,399
6,691,922
6,807,085
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
September 30, 2009
(Unaudited)
December 31,
2008
Assets
Current Assets:
     Cash and cash equivalents          
$3,121,338
2,090,005
     Short-term investments
---
232,721
     Accounts receivable, net             
712,543
699,095
     Prepaid software maintenance costs          
176,237
156,027
     Prepaid expenses and deposits   
165,495
74,361
     Prepaid income taxes
38,132
16,837
     Deferred income taxes   
138,134
152,156
Total current assets 
4,269,311
3,421,202
Software development costs, net     
111,620
112,453
Property and equipment, net             
333,068
434,645
Goodwill               
1,474,615
1,474,615
Other intangible assets, net              
350,398
413,932
Total assets         
$6,539,212
5,856,847
Liabilities and Shareholders’ Equity
Current liabilities:
     Accounts payable         
$144,018
207,374
     Accrued salaries and other expenses         
300,228
283,360
     Deferred revenue           
590,314
583,677
Total current liabilities             
1,,034,560
1,074,411
Deferred income taxes        
243,534
335,663
Total liabilities     
1,278,094
1,410,074
Shareholders’ equity:
Common stock, $.001 par value; 20,000,000 shares authorized; 6,737,741 shares issued and 6,672,269 outstanding at September 30, 2009; 6,738,261 shares issued and 6,713,919 shares outstanding at December 31, 2008    
6,738
6,738
Paid-in capital           
2,019,583
2,020,206
Retained earnings    
3,318,382
2,455,764
Treasury stock at cost, 60,842 and 24,342 shares at June 30, 2009 and December 31, 2008, respectively
(83,585)
(35,935)
Total shareholders’ equity
5,261,118
4,446,773
Total liabilities and shareholders’ equity        
$6,539,212
5,856,847
ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Nine Months Ended
September 30,
 
2009
2008
Cash flows from operating activities:
Net income
$862,618
791,614
Adjustments to reconcile net income to net cash flows from operating activities:       
Depreciation   
190,127
205,845
Amortization of software development costs           
61,338
61,338
Amortization of other intangible assets     
63,534
63,534
Deferred income taxes   
(78,107)
(93,920)
Purchases of trading securities   
(99,922)
(213,754)
Proceeds from sales of trading securities  
327,193
209,724
Net unrealized (gains) losses on trading securities 
(35,546)
38,095
Net realized (gains) losses on sales of securities     
39,996
(7,429)
Increase (decrease) in cash arising from changes in assets and liabilities:          
     Accounts receivable          
(13,448)
77,906
     Prepaid software maintenance costs               
(9,468)
831
     Prepaid expenses and deposits        
(19,308)
12695
     Prepaid income taxes
(21,295)
(55,553)
     Accounts payable              
(63,356)
(20,008)
     Accrued salaries and other expenses              
16,868
(22,063)
     Income taxes payable         
---
(136,947)
     Deferred revenue
6,637
2,953
Net cash flows from operating activities         
1,228,861
914,861
Cash flows from investing activities:
Purchases of property and equipment  
(88,550)
(162,948)
Software Development Costs
(60,705)
---
Net cash flows from investing activities
(149,255)
(162,948)
Cash flows from financing activities:
Purchase of treasury shares 
(48,273)
(88,581)
Net increase in case and cash equivalents       
1,031,333
663,332
Cash and cash equivalents, beginning of period
2,090,005
2,039,447
Cash and cash equivalents, end of period 
$3,121,338
2,702,779
Supplemental disclosures of cash flow items:
Income taxes paid 
$539,013
718,100
Non-cash transaction 
---
---
Retirement of 520 and 60,000 treasury shares during the nine months ended September 30, 2009 and 2008, respectively  
623
75,000
About Advant-e
Advant-e, via its wholly owned subsidiaries Edict Systems, Inc. and Merkur Group, Inc. is a provider of internet-based hosted Electronic Data Interchange (EDI) and electronic document management software and services. The Company helps businesses automate manual, paper-intensive processes via expanded use of EDI or by integrating directly with ERP/MRP systems.

Additional information about Advant-e Corporation can be found at www.Advant-e.com, www.EdictSystems.com, and www.MerkurGroup.com, or by contacting investor relations at (937) 429-4288.
The company's email is [email protected].

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.