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Advant-e Corporation Announces Second Quarter 2005 Results
Company Reports 26% Increase in Revenue and 12% Increase in Net Income over Q2 2004


DAYTON, Ohio, Aug. 8 /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 June 30, 2005.

For the second quarter of 2005 the Company reported revenues of $1,076,385, a 26% increase over revenues of $851,982 in the second quarter of 2004. The increase in revenue was the direct result of continued growth of the Company's web-based electronic data interchange subscription services for small and medium-size businesses (Web EDI) and the Company's electronic business transaction network service (EnterpriseEC(TM)).

Net income for the quarter was $120,270, or $.02 per share, compared to $107,343, or $.02 per share for the same period in 2004.

"These results mark our eighth consecutive profitable quarter and reflect our steady and continued growth, " said Jason K. Wadzinski, Chairman and Chief Executive Officer. "Our sales reached record numbers and our net income in the second quarter increased by 14% over the first quarter and by 12% over the net income for the second quarter of 2004. Our increase in revenue is exceeding the additional investments in our sales and marketing efforts, infrastructure improvements and additional personnel costs."

"While revenue increased steadily from GroceryEC.com, our industry leading web EDI solution, we've experienced excellent growth in the automotive and retail web EDI segments which now account for approximately 10% of our total revenue."

For the six months ending June 30, 2005 the Company reported revenues of $2,115,873, a 25% increase over revenues of $1,690,617 in the same period in 2004. Net income for the period in 2005 was $225,379, or $.04 per share, compared to net income of $221,584, or $.04 per share in the 2004 period ($.03 per share on a diluted basis)

                      ADVANT-E CORPORATION AND SUBSIDIARY
            CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)

                            Three Months Ended        Six Months Ended
                                 June 30,                 June 30,
                           2005         2004         2005         2004

    Revenue             $1,076,385      851,982    2,115,873    1,690,617
    Cost of revenue        374,335      310,264      763,379      604,481

    Gross margin           702,050      541,718    1,352,494    1,086,136
    Marketing, general and
     administrative
     expenses              501,680      361,375      977,015      716,152

    Income before taxes    200,370      180,343      375,479      369,984
    Income tax expense      80,100       73,000      150,100      148,400

    Net income            $120,270      107,343      225,379      221,584

    Basic earnings
     per common share        $0.02         0.02         0.04         0.04

    Diluted earnings
     per common share        $0.02         0.02         0.04         0.03

    Weighted average
     common shares
     outstanding         6,294,917    6,244,917    6,281,657    6,244,917

    Weighted average
     common shares
     outstanding,
     assuming dilution   6,294,917    6,722,654    6,281,657    6,627,694



                     ADVANT-E CORPORATION AND SUBSIDIARY
                    CONSOLIDATED CONDENSED BALANCE SHEETS

                                                 June 30, 2005    December 31,
                                                  (Unaudited)         2004
    Assets

    Current Assets
      Cash and cash equivalents                     $1,412,245        944,892
      Accounts receivable, net                         303,116        290,394
      Prepaid expenses and deposit                      32,710         26,420
    Total current assets                             1,748,071      1,261,706

    Software development costs, net                    208,479        298,809

    Property and equipment, net                        294,934        271,604

        Total assets                                $2,251,484      1,832,119

    Liabilities and Shareholders' Equity

    Current liabilities
      Accounts payable                                $109,210         39,681
      Accrued salaries and other expenses              106,545         99,810
      Income taxes payable                             174,100         26,000
      Deferred revenue                                  84,160        142,788
    Total current liabilities                          474,015        308,279

    Long-term liabilities
      Deferred income taxes                            159,000        191,000
        Total liabilities                              633,015        499,279

    Shareholders' equity
      Common stock, $.001 par value;
       20,000,000 shares authorized;
       6,294,917 outstanding at
       June 30, 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)                       76,390       (148,989)

        Total shareholders' equity                   1,618,469      1,332,840

        Total liabilities and
         shareholders' equity                       $2,251,484      1,832,119



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

                                                        Six Months Ended
                                                             June 30,
                                                       2005           2004

    Cash flows from operating activities:
      Net income                                      $225,379        221,584
      Adjustments to reconcile net income to
       net cash flows from operating activities:
        Depreciation                                    51,389         34,099
        Amortization of software development costs     134,639        164,014
        Deferred income taxes                          (32,000)       148,400
        Increase (decrease) in cash arising
         from changes in assets and liabilities:
          Accounts receivable                          (12,722)       (28,533)
          Prepaid expenses                              (6,290)         6,825
          Accounts payable                              69,529         32,803
          Accrued salaries, interest and
           other expenses                                6,735         16,359
          Income taxes payable                         148,100             --
          Deferred revenue                             (58,628)        31,348

          Net cash flows from
           operating activities                        526,131        626,899

    Cash flows from investing activities:
      Purchases of equipment                           (74,719)      (126,614)
      Software development costs                       (44,309)       (84,245)

          Net cash flows from
          investing activities                        (119,028)      (210,859)

    Cash flows from financing activities:
      Issuance of common stock                          60,250             --
      Payments on notes                                     --        (94,965)
      Payments of direct costs of securities
       registration                                         --         (7,945)

          Net cash flows from
           financing activities                         60,250       (102,910)

    Net increase in cash and cash equivalents          467,353        313,130
    Cash and cash equivalents, beginning of period     944,892        216,448

    Cash and cash equivalents, end of period        $1,412,245        529,578

    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.

Copyright © 2000-2009 Advant-e Corporation
All Rights Reserved
Phone: (800) 443-3428
Fax: (937) 429-4309
Please send comments on this page to info@edictsystems.com


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.