Comtex Reports Earnings for 1st Quarter Fiscal 2005 ALEXANDRIA, Va., Nov. 15 /PRNewswire-FirstCall/ -- Comtex News Network, Inc., (OTC:CMTX) (BULLETIN BOARD: CMTX) , a leading provider of economically useful electronic real-time news and content, today announced earnings for the first quarter of its 2005 fiscal year. For the quarter ended September 30, 2004, the Company reported operating income of $131,000 and net income of $96,000, or $0.01 per share, versus last year's first quarter operating loss of $228,000 and net loss of $252,000, or $0.02 loss per share. For the first quarter of fiscal 2005, revenues were $2 million compared to $2.1 million for the first quarter of fiscal 2004. The return to profitability was largely due to decreased operating expenses, particularly in the areas of general / administrative costs and technical operations costs, partially offset by increased sales and marketing expenses and decreased revenues. The decline in revenues resulted primarily from business closures and continuing consolidation among clients. C.W. Gilluly, Comtex's Chairman and Interim CEO, stated, "We are pleased Comtex has returned to profitability. Our top priority now is to develop new business and create new, economically useful news and information products for our clients." About Comtex Comtex (http://www.comtex.com/) provides real-time news and economically useful information to businesses whose customers need more than just facts. Customers receive categorized content compiled from thousands of sources which is further enhanced with stock tickers and an extended lexicon of relevant terms. With a specialization in the financial news and content marketplace, Comtex receives, enhances, combines and filters news and content received from thousands of national and international news bureaus, agencies and publications, and distributes more than one million total stories per day. Comtex's state-of-the-art technology delivers this relevant content and reliable service in real-time. Comtex has offices in New York City and Alexandria, Virginia. Comtex News Network, Inc. Selected Financial Data (unaudited) (amounts in thousands, except per share amounts) Three Months Ended September 30 2004 2003 Revenues $1,987 $2,173 Operating Income (Loss) 131 (228) Net Income (Loss) $96 $(252) Basic Earnings (Loss) Per Share $0.01 $(0.02) Diluted Earnings (Loss) Per Share $0.01 $(0.02) Weighted Avg. # Shares: Basic 13,599 13,508 Diluted 14,707 13,508 Reconciliation to EBITDA: Net Income (Loss) $96 $(252) Stock-based compensation -- 28 Depreciation & Amortization 180 252 Interest/Other Expense 35 23 Income Taxes -- -- EBITDA $311 $ 51 Please Note: EBITDA is not a term defined by generally accepted accounting principles, and as a result, our measure of EBITDA might not be comparable to similarly titled measures used by other companies. However, we believe that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our industry. Accordingly, we are disclosing this information to permit a more comprehensive analysis of our operating performance. Also note, except for the historical information contained herein, this press release contains forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, that involve a number of risks and uncertainties. These forward-looking statements may be identified by reference to a future period by use of forward-looking terminology such as "anticipate," "expect," "could," "intend," "may" and other words of a similar nature. These statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein, including the occurrence of unanticipated events or circumstances relating to the fact that Comtex is in a highly competitive industry subject to rapid technological, product and price changes. Other factors include the possibility that demand for the Company's products may not occur or continue at sufficient levels, changing global economic and competitive conditions, technological risks and other risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Comtex undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. DATASOURCE: Comtex News Network, Inc. CONTACT: Amber Gordon of Comtex News Network, Inc., +1-703-820-2000, ext. 8011, Web site: http://www.comtexnews.com/

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