SYOSSET, N.Y., Feb. 14 /PRNewswire-FirstCall/ -- Synergx Systems Inc. reported the following for its first quarter ended December 31, 2005: THREE MONTHS 2005 2004 Revenues $4,241,000 $4,467,000 (Loss) Before Equity Investment and Tax Benefit (385,000) (241,000) (Loss) from Equity Investment (25,000) (10,000) (Loss) Before Tax Benefit (410,000) (251,000) Net (Loss) (247,000) (155,000) Basic (Loss) per share ($.05) ($.03) Diluted (Loss) per share ($.05) ($.03) Weighted Average Common and Potential Dilutive Common Share Equivalents Outstanding 5,192,327 5,136,862 The 5% decrease in revenues primarily reflected lower shipments with respect to New York City Transit projects compared to last year. First quarter shipments typically are slow due to timing of scheduling and release of orders for school and transit work. The increase in loss before income taxes was consistent with budget due to the decrease in gross profit caused by anticipated lower product revenues. During the current quarter, the Company incurred $56,000 of budgeted severance payments relating to the previously announced work force reduction but only benefited from those reductions for part of the quarter. In addition, selling, general and administrative expenses increased $172,000 or 13% and reflects $106,000 of budgeted costs increases related to additional sales staff to develop and strengthen our sales and marketing and is geared to support higher product revenues, and from a $43,000 increase in recruitment costs to retain such personnel. There will be a lag between the hiring of new sales and marketing staff and the realization of billing objectives. In particular, due to retirement and changes in markets we have had to overhaul and upgrade our transit group. The Company also recorded a loss of $25,000 on its equity in the operating loss of Secure 724 LP compared to a loss of $10,000 in 2004. Management noted the Company is aggressively marketing its products and services in order to 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. First Call Analyst: FCMN Contact: DATASOURCE: Synergx Systems Inc. CONTACT: John Poserina, Chief Financial Officer of Synergx Systems Inc., +1-516-433-4700

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