XA Files 10KSB Annual Report -- Company's Annual Revenue Increases 56.2% to $8.5 Million CHICAGO, Feb. 25 /PRNewswire-FirstCall/ -- XA, Inc., (XA) (OTC BB: XAIN), a major national event marketing firm that serves many Fortune 500 companies, today filed its annual report for the fiscal year ended December 31, 2004. Highlights -- Revenue for the fiscal year ended December 31, 2004 rose 56.2% to $8.5 million from $5.4 million in the previous fiscal year; -- Completed $2.5 million funding through a private placement to institutional investors; -- Completed two strategic acquisitions; Alice's Garden, one of Chicago's most prestigious providers of floral and event decor, and Musters & Co., a high-profile New York-based event design and production firm. The two acquisitions are expected to add a combined $3.5 million to XA's gross revenues in 2005. -- Appoints new Chief Executive Officer Revenue for the fiscal year ended December 31, 2004 rose 56.2% to $8.5 million from $5.4 million in the same period a year ago. The Company reported a net loss of ($838,017) or (0.28) per share, compared to a net income of $14,284 or .01 per share for the same period in 2003. Gross profit rose 12% to $2,338,405 from $2,080,079 for the same period last year. As of December 31, 2004, cash reserves on the balance sheet rose 238.3% to $1.03 million from $306,500 in 2003. Net loss was principally attributed to costs associated with a capital campaign, the addition of key personnel, acquisition costs, platform development integral to the Company's business plan, and accounting and legal professional fees. Currently, the number of shares outstanding is 3,516,250 with 755,918 shares in the public float. On February 17, 2005, the Company's Board of Directors accepted the resignation of Frank Goldstin as the Company's Chief Executive Officer. Mr. Goldstin remains the Company's Chairman of the Board and the Company continues to rely upon Mr. Goldstin's strategic guidance and creative direction. At the same time, the Board of Directors appointed Joseph Wagner as the Company's Chief Executive Officer to fill the vacancy left by Mr. Goldstin and appointed Jean Wilson as the Company's Chief Operating Officer to fill the vacancy left by Mr. Wagner. CEO Joseph Wagner of XA said, "This has been a tremendous year of growth for the Company and we are excited about the opportunities for our continued expansion through organic growth and additional strategic acquisitions. We have an outstanding team of industry professionals that provide our clients with award winning event marketing, design and production services, and we look forward to the further expansion of XA's vertically integrated agency platform in 2005." Marketers spent $152 billion in event marketing in 2003, up about 15% since 2002. In 2003, budgets for event marketing reached an average of $901,935, according to PROMO's 2004 Event Marketing Study. (Source: PROMO Magazine, January 1, 2005) Investors may view the Company's 10KSB filing at http://www.sec.gov/ . About XA XA has offices in Chicago, New York and Los Angeles from which it provides corporations and highly visible brands with comprehensive event marketing, design and production services. Since 1989, the XA team have been the creative force behind prestigious, national projects for such clients as The NBA, Disney, McDonald's, British Telecom, Song Airlines, Eurex, Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and Emirates Airline. In 2003 and 2004, Special Events Magazine ranked XA as one of the "Top 50 Powerhouse Event Companies in the World." Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. XA, Inc. (OTC BB: XAIN) takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company. For more information, please contact: Company: Amanda Puck XA 312-239-2370 Investors: Art Batson, President Arthur Douglas and Associates (407) 478-1120 DATASOURCE: XA, Inc. CONTACT: Amanda Puck of XA, +1-312-239-2370, , or Investors, Art Batson, President, of Arthur Douglas and Associates, +1-407-478-1120 Web site: http://www.expagency.com/

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