Thursday, August 11th, 2011
Advant-e Corporation Announces
Second Quarter 2011 Results
Quarterly Revenue of $2,359,624 Increased by 1% and Net Income of $392,460 Decreased by 2% Compared to the Second Quarter of Last Year
DAYTON, Ohio, August 11, 2011 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the second quarter of 2011.  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.

Revenue in the second quarter of 2011 of $2,359,624 increased by 1% over revenue of $2,343,816 in the second quarter of 2010. Revenue from Edict Systems increased 7% and revenue from Merkur Group decreased 26%.

Net income in the second quarter of 2011 was $392,460, or $.006 per share, compared to net income of $399,840, or $.006 per share, in the same period in 2010.  Net income from Edict increased 13% while Merkur net income decreased by 56%.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, “This quarter was very difficult for our Merkur Group subsidiary.  While Merkur contributed almost $40,000 to our net income for the second quarter, the market for their products and services continues to be challenging.  We are working on expanding the focus of Merkur to provide a broader-based solution as well as a renewed focus on in-bound document processing.”

“Edict increased both revenue and net income over last year,” continued Mr. Wadzinski.  “As we expand the use of our updated Web EDI platform, I believe there will be additional opportunities for growth with our existing and future customer base.”



ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three months ended (June 30th) Six months ended (June 30th)
2011 2010 2011 2010
Revenue $2,359,624 2,343,816 4,660,044 4,537,637
Cost of revenue 976,919 921,566 1,894,811 1,855,550
Gross Margin 1,382,705 1,422,250 2,765,233 2,682,087
Marketing, general and administrative expenses 787,593 815,838 1,587,050 1,674,941
Operating income 595,112 606,412 1,178,183 1,007,146
Other income, net 914 1,205 2,041 2,004
Income before income taxes 596,026 607,617 1,180,224 1,009,150
Income tax expense 203,566 207,777 402,677 345,034
Net income $392,460 399,840 777,547 664,116
Earnings per share - basic and diluted $.006 .006 .012 .010
Weighted average shares outstanding
basic and diluted
66,722,590 66,722,590 66,722,590 66,722,590

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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

June 30th, 2011 (unaudited) December 31, 2010
Assets
Current assets
      Cash and equivalent assets $3,348,296 2,963,172
       Accounts receivable, net 716,456 743,020
       Prepaid software maintenance costs 203,481 174,013
       Prepaid expenses and deposits 179,238 99,234
       Deferred income taxes 187,522 153,643
       Total current assets 4,634,993 4,133,082
Software development costs, net 320,346 308,832
Property and equipment, net 162,833 228,121
Goodwill 1,474,615 1,474,615
Other tangible assets, net 202,151 244,508
Total Assets $6,794,938 6,389,158
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Liabilities and Shareholders' Equity June 30th, 2011 (unaudited) December 31, 2010
Current liabilities
       Accounts payable $119,265 79,986
       Dividend payable 667,226 ---
       Income tax payable 8,561 33,619
       Accrued salaries and other expenses 390,683 180,311
       Deferred revenue 773,062 673,810
       Total current liabilities 1,958,797 967,726
Deferred income taxes 216,095 244,481
Total Liabilities 2,174,892 1,212,207
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Shareholders' Equity June 30th, 2011 (unaudited) December 31, 2010
       Common stock, $.001 par value; 100,000,000 shares        authorized; 66,722,590 shares issued and outstanding 66,723 66,723
       Paid-in capital 1,936,257 1,936,257
       Retained Earnings 2,617,066 3,173,971
         Total Shareholders' equity 4,620,046 5,176,951
Total liabilities and Shareholders' equity $6,794,938 6,389,158

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ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

Six Months Ended June 30, 2011
2011 2010
Cash flows from operating activities:
       Net Income $777,547 664,116
       Adjustments to reconcile net income to net cash flows        from operating activities:    
       Depreciation 79,875 110,020
       Amortization of software development costs 29,122 30,669
       Amortization of other intangible assets 42,357 42,356
       Loss on disposal of property and equipment --- 800
       Deferred income taxes (62,265) (30,105)
       Increase (decrease) in cash and cash equivalents arising        from changes in assets and liabilities:    
              Accounts receivable 26,564 (161,290)
              Prepaid software maintenance costs (29,468) (29,010)
              Prepaid expenses and deposits (80,004) 28,354
              Prepaid income taxes --- 39,798
              Accounts payable 39,279 7,396
              Income taxes payable (25,058) 50,341
              Accrued salaries and other expenses 210,372 238,386
              Deferred revenue 99,252 98,004
              Net cash flows from operating activities 1,107,573 1,089,835
Cash flows from operating activities:    
       Purchases of property and equipment (14,587) (69,131)
       Software development costs (40,636) (107,804)
              Net cash flows from investing activities (55,223) (176,935)
Cash flows from financing activities:    
       Dividends paid (667,226) (667,226)
Net increase in cash and cash equivalents 385,124 245,674
Cash and cash equivalents, beginning of period 2,963,172 2,713,996
Cash and cash equivalents, end of period $3,348,296 2,959,670
Supplemental disclosures of cash flow items:    
       Income taxes paid 490,000 285,000
       Non-cash transactions:    
              Declared dividends payable no later than December               31, 2011 667,226 ---
              Retirement of shares --- 28,192
 

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.