The Experiential Agency Reports Revenue Rises 109.6% to $2.88 Million in Second Quarter of 2004 Financial Highlights CHICAGO, Aug. 16 /PRNewswire-FirstCall/ -- The Experiential Agency, Inc. (XA) (OTCBB: EXAG), a major national event marketing firm that serves many Fortune 500 companies, today reported strong financial results for the second quarter of 2004, ended June 30. Revenue in the quarter rose 109.6% to $2.88 million from $1.38 million in the same period a year ago. Net income for the quarter was $3,743 versus $156,384 for the same quarter in 2003. Gross profit rose 34% to $870,034 from $646,243 during the same period last year. For the first half of 2004, ended June 30, XA reported that revenue climbed 130.4% to $5.46 million from $2.37 million in the first half of last year. Net income for the period gained 93.7% to $309,150, or $0.01 a share, from $159,583 for the same period last year. There is no EPS number for the first half of 2003 since the Company was privately held at the time. Gross profit for the period climbed 123% to $2.2 million from $986,725 for the same period last year. As of June 30, 2004, cash reserves on the balance sheet rose 603.9% to $1.6 million from $221,716 in 2003. Chairman and CEO Frank Goldstin of XA, said, "We are proud of the progress XA has made this year. We are gaining market share in a vibrant event marketing industry and proving that our strategy of providing Corporate America with imaginative and exciting events and conference environments is fulfilling a real and growing need." "In the past six months, we have made some giant strides," Goldstin added. "Our strong performance during the first half of the year has proven the value of our expansion strategy. With the opening of the design center in Chicago and creative momentum of XA's new design team, we expect that our business will continue to grow strongly in the months ahead." In the first half, the company made significant investments in its expansion program: -- Opened new offices in landmark building in Chicago's prestigious Hancock Center; -- Named new creative director, Darren Andereck, an award-winning designer and former co-owner of Alice's Garden; and -- Subsequent to June 30, XA closed on its acquisition of Alice's Garden, a Chicago floral and event decor firm. The event marketing industry generates nearly $80 billion a year in direct spending, according to a study by Deloitte & Touche LLP. Moreover, corporate spending on event marketing has been growing; it rose 15% in 2003 and it is predicted to generate an additional 15%-to-20% growth in 2004. (Source: PROMO Magazine) About The Experiential Agency, Inc. The Experiential Agency, Inc. (XA) has full service 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, Chairman and CEO Frank Goldstin and his team have been the creative force behind prestigious, national projects for such clients as The NBA, McDonald's Corporation, Song Airlines, Eurex, Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and Emirates Airline. In 2003, Special Events magazine ranked XA as one of the "Top 50 Powerhouse Event Companies in the World." 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. The Experiential Agency, Inc. (OTCBB: EXAG) 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. Company Investor Relations Media Relations Lara Shipp Truc N. Nguyen Stan Froelich XA Stern & Co. Stern & Co. 312-397-9100 ext. 2399 VP, Investor Relations VP, Media Relations 212-888-0044 212-888-0044 DATASOURCE: Experiential Agency, Inc. CONTACT: Lara Shipp of XA, +1-312-397-9100 ext. 2399, ; or Investor Relations, Truc N. Nguyen, VP, Investor Relations, +1-212-888-0044, , or Media Relations, Stan Froelich, VP, Media Relations, +1-212-888-0044, , both of Stern & Co. Web site: http://www.expagency.com/

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