DataLogic International Reports Record Revenues for Q2 2004 - Revenues Increase 49% - IRVINE, Calif., Aug. 18 /PRNewswire-FirstCall/ -- DataLogic International, Inc., (OTC Bulletin Board: DLGI; Berlin, Frankfurt Stock Exchange: 779612) a technology and professional services company providing a wide range of consulting services and telecommunications products such as VoIP equipment and GPS vehicle tracking devices, today announced its financial results for the second quarter of 2004. Net sales for the second quarter of 2004 increased 49% to $4.0 million, compared to $2.7 million for the same quarter in 2003. Gross profit for the second quarter of 2004 increased over 1000% to $1.2 million compared to $0.1 million in the second quarter of 2003. Gross margin was 30.7% for the second quarter of 2004, up from 4.1% for the second quarter of last year. For the second quarter of 2004, net income grew by $1.2 million to $0.5 million, or $0.01 per diluted share, when compared to a net loss of $0.7 million, or $0.02 per diluted share, for the second quarter a year ago. Derek Nguyen, DataLogic's Chief Executive Officer, commented, "Similar to the first quarter, much of DataLogic's success this quarter was due to the increase in VoIP business we experienced. Particularly pleasing is our gross margin improvement as this business ramps up. We are expecting to incrementally add additional customers in the coming months." For the six months ended June 30, 2004, net sales increased 61% to $8.0 million, compared to $5.0 million for the same period in 2003. Gross profit increased more than 450% to $2.2 million in the first half of 2004 compared to $0.4 million in the first half of 2003. For the first half of 2004, gross margin was 27.8%, up from 7.9% for the same period last year. Net income for the six months ended June 30, 2004 grew by $1.6 million to $1.0 million, or $0.02 per diluted share, when compared to a net loss of $0.6 million, or $0.02 loss per diluted share, for the six months ended June 30, 2003. During the second quarter of 2004 DataLogic received a $3 million financing facility, consisting of a secured convertible term note, from Laurus Master Fund, Ltd. ("Laurus Funds"). The funds were used in part to retire high interest debt. The balance of the funding will be used to support the Company's organic growth and future strategic initiatives. DataLogic's President and CFO, Keith Nguyen, commented, "This financing improved our capital structure and lowered our interest expense, as it allowed us to repay and terminate a factoring agreement that we were using as a major funding source. We are pleased to have Laurus as a partner. With their support, we are now able to consider more aggressive growth plans." About DataLogic International, Inc. DataLogic International, Inc. is a technology and professional services company providing a wide range of consulting services and telecommunications products such as VoIP phones, videophones, communications servers and GPS vehicle tracking devices. The company also provides Information Technology outsourcing and consulting services. DataLogic's customers include U.S. and international governmental agencies as well as a variety of international commercial organizations. For more information, please visit DataLogic International's web site http://www.dlgi.com/. This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as: believe, expect, anticipate, should, planned, will, may, intend, estimated, and potential, among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to DataLogic International or a person acting on its behalf are expressly qualified in their entirety by this cautionary language. For further information, please contact Donna Dolan, Investor Relations of DataLogic International, Inc., +1-949-260-0120, ext. 204, . DATASOURCE: DataLogic International, Inc. CONTACT: Donna Dolan, Investor Relations of DataLogic International, Inc., +1-949-260-0120, ext. 204, Web site: http://www.dlgi.com/

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