APPLIED GLOBAL TECHNOLOGIES REPORTS RECORD SECOND QUARTER 2005 GROWTH
AGT products account for more than 20% of revenue during the quarter

Rockledge, FL - August 9, 2005 - Applied Global Technologies, proven experts in IP collaboration technologies and solutions, reports a 25% year-over-year increase in net revenue contribution for the quarter ending June 30, 2005. Net income increased nearly three fold over the same period.

"Our proprietary technology and solutions distinguish AGT from other managed service providers, many of whom offer only remote help desk support or bodies on site with little to no added value," stated Mike Valletutti, chairman and chief executive officer, Applied Global Technologies. "We are the only managed services provider that delivers High Touch services as well as On Demand video conferencing services with VIDEO PRESENTER."

AGT's products accounted for more than 20% of revenue in the quarter, driven by orders for its' Blended Learning solution. This solution combines the multi-classroom video and data presentation application of VIDEO PRESENTER™ with Encompass™, a tool that allows teachers to observe student advancement through a single user interface. Encompass also empowers the teacher to take control of student PCs for the purpose of leading them through an exercise and identifying student problem areas for timely correction. Revenue from Blended Learning exceeded $1.2 million for the quarter.

One component of AGT's Managed Services, known as VNMS, combines award-winning on-site and remote technical support with AGT's proprietary technology. This area of the business grew 27% year-over-year, accounting for approximately 20% of total revenue in the second quarter. In addition, Applied Global's AV business, which designs and integrates world-class conference rooms, training rooms and auditoriums, more than doubled in size, to $2.3 million for the quarter.

"AGT has shown solid growth in all key business areas for the first half of 2005," reported Harry Ericson, chief financial officer, Applied Global Technologies. "These businesses each contributed to improved gross margin, allowing the company to invest in strategic growth areas - research & development and sales & marketing - and still produce a strong bottom line. The Company is positioned for increased growth in revenue and profitability as our recently-introduced products go mainstream and new products are poised for release."

AGT continued to invest over 5% of revenue in R&D in the second quarter, advancing the capabilities of its products. They include VIDEO PRESENTER™, FATHOM™ (named Communications Solutions Product of the Year for 2004), VIDEO EVENTS™, VIDEO ANALYST™ and the NEXUS Collaboration Reporter™. AGT's Research & Development team are working on some new conferencing products which will be announced this quarter.

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.

AGT also offers ON DEMAND video conferencing, presentation, recording and streaming services featuring VIDEO PRESENTER^TM and VIDEO EVENTS^TM. Supplemental solutions include engineering and A/V integration, IP video migration and analysis using FATHOM^TM, and billing and utilization management software with NEXUS c/R^TM.

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 is 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, Global Crossing, VCON, and BellSouth.

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