Thursday, November 10th, 2011
Advant-e Corporation Announces
Third Quarter 2011 Results
Record Quarterly Revenue Increased by 3% and Net Income Increased by 5% Compared to the Third Quarter of Last Year
DAYTON, Ohio, November 10, 2011 -- Advant-e Corporation (OTC Bulletin Board: ADVC) today announced financial and operating results for the third quarter of 2011.  The Company provides Internet-based Electronic Data Interchange services through Edict Systems and sells electronic document management software and services through Merkur Group.

Revenue in the third quarter of 2011 of $2,447,674 increased by 3% over revenue of $2,380,510 in the third quarter of 2010. Revenue from Edict Systems increased by 6% and revenue from Merkur Group decreased 14%.

Net income in the third quarter of 2011 was $455,542, or $.007 per share, compared to net income of $434,231, or $.006 per share, in the same period in 2010.  Net income from Edict increased 11% while Merkur net income decreased by 36%.

Jason K. Wadzinski, Chairman of the Board and Chief Executive Officer, stated, “Edict Systems reported record revenue and net income this quarter.  In addition to growth in both the grocery and automotive industries, we are making some progress in the health care sector.”

“Customers of Edict’s Web EDI service will be upgraded to the latest version over the next several quarters,” continued Mr. Wadzinski.  “This upgrade will allow us to expand the depth of our service offerings to our customers and their large trading partners.”

“Although we continue to experience weakness in our software business, Merkur Group contributed approximately $40,000 to net income in the third quarter of 2011.”


ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
Three months ended (Sept 30th) Nine months ended (Sept 30th)
2011 2010 2011 2010
Revenue $2,447,674 2,380,510 7,107,718 6,918,147
Cost of revenue 955,698 913,522 2,850,509 2,769,072
Gross Margin 1,491,976 1,466,988 4,257,209 4,149,075
Marketing, general and administrative expenses 802,075 803,341 2,389,125 2,478,280
Operating income 689,901 663,647 1,868,084 1,670,795
Other income (expense), net 892 (2,964) 2,933 (959)
Income before income taxes 690,793 660,683 1,871,017 1,669,836
Income tax expense 235,251 226,452 637,928 571,486
Net income $455,542 434,231 1,233,089 1,098,350
Earnings per share - basic and diluted .007 .006 .018 .016
Weighted average shares outstanding
basic and diluted
66,722,590 66,722,590 66,722,590 66,722,590

--------------------------------------------------------------------------------------------------------------------------

ADVANT-E CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS

Sept 30th, 2011 (unaudited) December 31, 2010
Assets
Current assets
      Cash and equivalent assets $3,953,427 2,963,172
       Accounts receivable, net 752,404 743,020
       Prepaid software maintenance costs 208,554 174,013
       Prepaid expenses and deposits 69,267 99,234
       Deferred income taxes 210,818 153,643
       Total current assets 5,194,470 4,133,082
Software development costs, net 291,224 308,832
Property and equipment, net 147,952 228,121
Goodwill 1,474,615 1,474,615
Other tangible assets, net 180,973 244,508
Total Assets $7,289,234 6,389,158
-------------------------------------------------------------------------------------------------------------------------------------------------
Liabilities and Shareholders' Equity Sept 30th, 2011 (unaudited) December 31, 2010
Current liabilities
       Accounts payable $157,181 79,986
       Dividend payable 667,226 ---
       Income tax payable 33,396 33,619
       Accrued salaries and other expenses 340,706 180,311
       Deferred revenue 810,330 673,810
       Total current liabilities 2,008,839 967,726
Deferred income taxes 204,807 244,481
Total Liabilities 2,213,646 1,212,207
-------------------------------------------------------------------------------------------------------------------------------------------------
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 3,072,608 3,173,971
         Total Shareholders' equity 5,075,588 5,176,951
Total liabilities and Shareholders' equity $7,289,234 6,389,158

--------------------------------------------------------------------------------------------------------------------------

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

Nine Months Ended September 30, 2011
2011 2010
Cash flows from operating activities:
       Net Income $1,233,089 1,098,350
       Adjustments to reconcile net income to net cash flows        from operating activities:    
       Depreciation 114,860 158,995
       Amortization of software development costs 58,244 30,669
       Amortization of other intangible assets 63,535 63,534
       Loss on disposal of property and equipment --- 4,688
       Deferred income taxes (96,849) (39,253)
       Increase (decrease) in cash and cash equivalents arising        from changes in assets and liabilities:    
              Accounts receivable (9,384) (112,854)
              Prepaid software maintenance costs (34,541) (31,734)
              Prepaid expenses and deposits 29,967 19,341
              Prepaid income taxes --- 39,798
              Accounts payable 77,195 (11,701)
              Income taxes payable (223) 35,901
              Accrued salaries and other expenses 160,395 175,913
              Deferred revenue 136,520 125,393
              Net cash flows from operating activities 1,732,808 1,557,040
Cash flows from operating activities:    
       Purchases of property and equipment (34,691) (101,832)
       Software development costs (40,636) (148,650)
              Net cash flows from investing activities (75,327) (250,482)
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 990,255 639,332
Cash and cash equivalents, end of period $3,953,427 3,353,328
Supplemental disclosures of cash flow items:    
       Income taxes paid 735,000 535,000
       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.