Applied Global Technologies® reports another year of record revenue and profitability

Innovative Technology Company completes ninth consecutive year of profitability
 


Rockledge, FL - February 8, 2005 - Applied Global Technologies, proven experts in IP collaboration technologies and solutions, announces revenue for the year ended December 31, 2004 increased 20% over prior year operating revenue, to a record $26.6 million. The twelve year old private company's commitment to innovation continues to set it apart.

AGT invested 5.7% of revenue in Research and Development in 2004, resulting in the recently released VIDEO PRESENTER^TM service, the FATHOM^TM video network analysis product and the NEXUS c/R^TM reporting software. Initial revenue from these products contributed to a 50% increase in gross margins from the first half to the second half of 2004. In addition, the Company decreased operating expenses as a percent of operating revenue by 23%. These factors resulted in AGT's ninth consecutive year of profitability.

"Our fully dedicated R&D staff, comprised of 14 research scientists, is one of the things that makes AGT unique," stated Mike Valletutti, chief executive officer, Applied Global Technologies. "We have invested $3M in R&D over the past two years. That investment has allowed us to create products and services that significantly improve conferencing and collaboration options for customers. We are excited about the marketplace reaction to these new innovative technologies."

In 2004, the Company increased its A/V business from $1.4M to $6.0M and added several new services contracts. The 2004 additions were highlighted by two new State agreements and a support contract for 54 locations of the U.S. National Guard. The year also brought forth contracts with the 20,000 member MiCTA/ATAlliance, as well as several high profile commercial customers.

In addition, AGT was awarded contracts that incorporate AGT technology into three mission-critical programs within the Federal Government. Applicability of our technology to various areas of "Command and Control" provide opportunity to replicate AGT technology into other similar federal programs.

"The Company finished 2004 with over $12M of backlog, the majority in high-value managed service contracts and in federal programs with substantial follow-on opportunity," added Harry Ericson, chief financial officer, Applied Global Technologies. "This backlog and three other multi-million dollar variable contracts that have not been included in backlog, provide a base of recurring revenue that will support continued growth in revenue and profitability in 2005. Our success in AV, AGT-technology programs and the introduction of our new products will contribute to growth in company value and return on investment."

About Applied Global Technologies®

Applied Global Technologies® offers its customers proven expertise in IP collaboration with the mission to transform companies from buyers of technology into users of technology. As a dedicated collaboration managed service provider, AGT takes the enterprise vision of fully integrated IP networks and applies it as an effective, ROI-centered solution for today's progressive and agile businesses.

In addition to its work in the commercial marketplace, the eleven-year old private corporation provides conferencing solutions to the Pentagon, branches of the US Military and civilian agencies, as well as numerous federal and state government facilities. The Company's continued advancement in communications is being felt around the world. The company was recently listed among the fastest growing private companies in America (Inc 500).

AGT partners with those companies that bring value to its customers. Applied Global's current partners include: Anteon, AT Alliance, EDS, Glowpoint, Infonet, MiCTA, Polycom, Radvision, SAIC, Sprint, SRA International, TANDBERG, VCON, and Verizon.

AGT is the creator of a series of innovative solutions in the Collaboration industry including: FATHOM^TM c/A - an IP video analysis tool (FATHOM collaboration Analyzer), NEXUS c/R^TM - a billing and utilization management tool (NEXUS collaboration Reporter), and PERSPECTIVE^TM c/P - a multimedia gateway to seamless communication between group and desktop systems (PERSPECTIVE collaboration Portal). These are available through AGT's managed services.

Applied Global Technologies' international headquarters is located in Rockledge, FL with field support offices in Atlanta, Chicago, Dallas, Honolulu, Okinawa, Ottawa, Phoenix, Seattle, San Francisco, Virginia Beach, and Washington, DC.