Synergx Systems Inc. (Nasdaq Small Cap-SYNX) Announces First Quarter Results SYOSSET, N.Y., Feb. 11 /PRNewswire-FirstCall/ -- Synergx Systems Inc. reported the following for its first quarter ended December 31, 2004: THREE MONTHS 2004 2003 Revenues $4,467,000 $4,202,000 (Loss) Before Equity Investment and Tax Benefit (241,000) (194,000) (Loss) from Equity Investment (10,000) (20,000) (Loss) Before Tax Benefit (251,000) (214,000) Net (Loss) (155,000) (126,000) Basic (Loss) per share ($.03) ($.03) Diluted (Loss) per share ($.03) ($.03) Weighted Average Common and Potential Dilutive Common Share Equivalents Outstanding 5,136,862 4,166,103 The 6% increase in revenues reflected increased shipments with respect to New York City Transit projects compared to last year when Synergx experienced delays in securing approvals for production and shipment. Partially offsetting this increase were lower product revenues in our Dallas Texas market area, which declined significantly from 2003. Management expects revenues to increase in Dallas for the balance of the year. The increase in loss before income taxes was consistent with budget due to the decrease in gross profit caused by a change in mix of product revenue and from unabsorbed fixed overhead in Dallas. For the three month period ended December 31, 2004, the Company also recorded a loss of $10,000 on its equity in the operating loss of Secure 724 LP compared to a loss of $20,000 in 2003. Management noted the Company is aggressively marketing its products and services and seeking additional sales representatives in order to maintain and increase revenues. Management also commented that the Company is continuing to evaluate acquisitions and/or investments and explore opportunities relating to its 25% investment and license relationship with Secure 724 L.P., including applications for commercial facilities and on-board transit communication. Synergx is engaged in the design, manufacture, marketing and service of a variety of data communication products and systems with applications in the fire alarm, life safety, security and communication industries. "Safe Harbor" statement under the Private Securities Reform Act of 1995: This release contains forward-looking statements, which reflect management's current views of future events and operations. These forward-looking statements are based on assumptions and external factors, including assumptions relating to product pricing, competitive market conditions, financial data, and other risks or uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's judgment as of the date of this release and any changes in the assumptions of external factors could produce significantly different results. DATASOURCE: Synergx Systems Inc. CONTACT: John Poserina, Chief Financial Officer, Synergx Systems Inc., +1-516-433-4700

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