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Advant-e Corporation Announces Record Revenue and Net Income for 2006

Company Reports 21% Increase in Revenue, 43% Increase in Net Income over Prior Year

DAYTON, Ohio, Feb. 12 /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 year ending December 31, 2006.

In 2006 the Company reported record revenues of $5,403,632 compared to $4,462,702 for 2005. The 21% increase in revenue is attributed to the continued expansion and market acceptance of the Company's Internet-based business-to-business electronic commerce subscription services. Net income for 2006 was a record $858,670 or $.13 per share compared to $600,318 or $.09 per share in 2005.

For the fourth quarter of 2006 the Company reported revenue of $1,439,123 and net income of $227,734 or $.03 per share, compared to revenue of $1,203,771 and net income of $209,994 or $.03 per share in the fourth quarter of 2005.

Highlights of 2006 financial and operating results include:

-- Revenue Increase for the sixth consecutive year - Continued strong acceptance of core Web EDI services to small and medium size suppliers of large grocery and general merchandise retailers, automotive manufacturers, and other large buying organizations.

--
Net Income Increased by 43% and Pre-tax Profit was 25% of Revenue. - Net Income and pre-tax profitability benefited from lower amortization of software development costs in 2006 of $124,498 compared to $217,780 in 2005, and from capitalized software development costs of $219,018 in 2006 compared to $79,627 in 2005.

--
Automotive Web EDI Revenue Acceleration - Automotive Web EDI revenue comprised 7% of total revenue in 2006 compared to 4% in 2005 indicating increased activity with both automotive manufacturers and their suppliers.

--
EnterpriseEC® Revenue Growth of 67% - Trading Community Connectivity, Management, and Integration Services accounted for 15% of revenue in 2006 compared to 11% in 2005 indicating an increased reliance upon this service by higher volume customers for enhanced data management and integration into in-house systems.

--
Cash and Short-term Investments increased 25% - Increase to $2,484,216 in 2006 from $1,989,337 in 2005.

--
Shareholders Equity Increased 47% - From $2,014,953 in 2005 to $2,958,383 in 2006.

Commenting on the year-end results, Mr. Jason K. Wadzinski, CEO of Advant-e stated, "In 2006 we continued to strengthen our financial position while growing key elements of the business. Although our 21% revenue growth was lower than our goal for the year, we substantially exceeded our pre-tax profit target.

"In 2006 we made significant investments in our infrastructure, product offerings, and our sales and marketing activities. In 2007 we expect to announce an updated version of our Web EDI service, which accounts for the majority of our revenue. We are also working with several large customers for a new hosted service that is an extension of our existing Testing & Certification service. Called ValidateEC, it enables our customers to monitor their electronic commerce activities via a hosted business rule engine so that they can rapidly design, test, and implement business rules and proactively respond to exceptions.

"We are pleased with our accomplishments in 2006. I would like to thank the dedicated, hard-working Edict Systems team for their outstanding efforts resulting in these achievements. In 2007 we will continue our focus on accelerating revenue growth while maintaining an acceptable level of profitability."

                     ADVANT-E CORPORATION AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF INCOME

                                  Three Months Ended         Year Ended
                                     December 31,            December 31,
                                   2006        2005        2006        2005

    Revenue                   $1,439,123   1,203,771   5,403,632   4,462,702
    Cost of revenue              478,014     368,486   1,677,937   1,511,007

    Gross margin                 961,109     835,285   3,725,695   2,951,695
    Marketing, general and
     administrative expenses     654,071     539,793   2,453,883   2,010,911

    Operating income             307,038     295,492   1,271,812     940,784
    Other income, net             41,331       4,602      87,862       9,734

    Income before taxes          348,369     300,094   1,359,674     950,518
    Income tax expense           120,635      90,100     501,004     350,200

    Net income                  $227,734     209,994     858,670     600,318

    Basic earnings per share       $0.03        0.03        0.13        0.09

    Diluted earnings per share     $0.03        0.03        0.13        0.09

    Weighted average shares
     outstanding               6,424,370   6,403,174   6,408,516   6,325,218

    Weighted average shares
     outstanding, assuming
     dilution                  6,447,771   6,408,788   6,434,615   6,340,851



                     ADVANT-E CORPORATION AND SUBSIDIARY
                         CONSOLIDATED BALANCE SHEETS


                                                   December 31,  December 31,
                                                        2006          2005

    Assets

    Current assets:
      Cash and cash equivalents                     $2,209,782     1,763,435
      Short-term investments                           274,434       225,902
      Accounts receivable, net                         477,639       351,482
      Prepaid expenses and deposit                      28,339        25,128

    Total current assets                             2,990,194     2,365,947
    Software development costs, net                    247,621       160,656
    Property and equipment, net                        386,697       262,523

        Total assets                                 3,624,512     2,789,126

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable                                  66,936        44,838
      Accrued salaries and other expenses              157,802       115,510
      Income taxes payable                             109,642       375,652
      Deferred income taxes                             53,119        26,000
      Deferred revenue                                 112,846        76,173

    Total current liabilities                          500,345       638,173
    Deferred income taxes                              165,784       136,000

        Total liabilities                              666,129       774,173

    Shareholders' equity:
      Common stock, $.001 par value; 20,000,000 shares
       authorized; 6,478,714 outstanding at December 31,
       2006 and 6,403,714 outstanding at
       December 31, 2005                                 6,478         6,403
      Paid-in capital                                1,641,906     1,551,606
      Accumulated other comprehensive income               ---         5,615
      Retained earnings                              1,309,999       451,329

        Total shareholders' equity                   2,958,383     2,014,953

        Total liabilities and shareholders' equity  $3,624,512     2,789,126



                     ADVANT-E CORPORATION AND SUBSIDIARY
                    CONSOLIDATED STATEMENTS OF CASH FLOWS


                                                      Year Ended December 31,
                                                          2006         2005

    Cash flows from operating activities:
      Net income                                       $858,670      600,318
      Adjustments to reconcile net income to net
       cash flows from operating activities:
        Depreciation                                    153,113      110,721
        Amortization of software development costs      124,498      217,780
        Loss on disposal of assets                       41,922          ---
        Deferred income taxes                            60,703      (32,800)
        Purchases of trading investments                (31,541)         ---
        Proceeds from sale of trading investments        28,393          ---
        Net realized (gains) losses on short-term
         investments                                     (9,701)       2,222
        Net unrealized gains on trading investments     (27,218)         ---
      Increase (decrease) in cash arising from changes
       in assets and liabilities:
        Accounts receivable                            (126,157)     (61,088)
        Prepaid expenses                                 (3,211)       1,292
        Accounts payable                                 22,098        5,157
        Accrued salaries and other expenses              42,292       15,700
        Income taxes payable                           (266,010)     349,652
        Deferred revenue                                 36,673      (66,615)

        Net cash flows from operating activities        904,524    1,142,339

    Cash flows from investing activities:
        Purchases of available-for-sale investments    (107,966)    (253,877)
        Proceeds from sale of available-for-sale
         investments                                     90,086       35,168
        Purchases of equipment                         (311,654)    (101,640)
        Software development costs                     (219,018)     (79,627)

    Net cash flows from investing activities           (548,552)    (399,976)

    Cash flows from financing activities:
    Issuance of common stock                             90,375       91,500
    Payments of direct costs of securities
     registration                                           ---      (15,320)

    Net cash flows from financing activities             90,375       76,180

    Net increase in cash and cash equivalents           446,347      818,543

    Cash and cash equivalents, beginning of year      1,763,435      944,892

    Cash and cash equivalents, end of year           $2,209,782    1,763,435

    Supplemental disclosures of cash flow items:
        Income taxes paid                              $706,311       33,348


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.