SOURCE: Ace Marketing & Promotions, Inc.

November 16, 2009 16:23 ET

Ace Reports Results of Operations for the Third Quarter of 2009

VALLEY STREAM, NY--(Marketwire - November 16, 2009) - Ace Marketing & Promotions, Inc. (OTCBB: AMKT) announced today the results for its third quarter ended September 30, 2009 and the nine months ended September 30, 2009.

Three months Ended September 30,                    2009              2008
                                             -----------       -----------
Revenue (A)                                  $   938,824       $ 1,480,577
Cost of Revenue (B)                              770,028         1,056,082
                                             -----------       -----------
Gross profit (C)                                 168,796           424,495
Selling, General & Administrative
 expenses (D)                                    653,625           763,795
                                             -----------       -----------
Loss from Operations (E)                     $  (484,829)      $  (339,300)
                                             ===========       ===========


Nine months Ended September 30,                     2009              2008
                                             -----------       -----------
Revenue                                      $ 2,235,103       $ 4,706,627
Cost of Revenue                                1,601,245         3,444,777
                                             -----------       -----------
Gross Profit                                     633,858         1,261,850
Selling General & Administrative expenses      1,743,758         2,097,674
                                             -----------       -----------
Loss from Operations                          (1,109,900)         (835,824)
                                             ===========       ===========

(A)  Revenues decreased due to the general state of economy and customers
     choosing to cancel or delay purchases of promotional products and the
     non-reoccurrence of a major one-time order with the New York State
     Troopers of $685,000.

(B)  Cost of revenues decreased directly due to decreases in sales.

(C)  Gross profit percentage for the third quarter was 18% versus 29% for
     the comparable period of the prior year. The gross profit percentage
     for the nine months ended September 30, 2009 was 28% as compared to
     27% for the comparable period of the prior year. Gross profit for the
     third quarter decreased approximately $256,000 and for the nine months
     ended September 30, 2009 decreased by approximately $628,000, as
     compared to the comparable period of the prior year, due to decreasing
     sales.

(D)  Operating expenses for the three months ended September 30, 2009
     decreased by approximately $110,000 and decreased for the nine months
     ended September 30, 2009 by $354,000, respectively, as compared to the
     comparable period of the prior year. Operating expenses for the three
     months ended September 30, 2009 include a decrease in stock based
     payments (non-cash) of approximately $49,000 as compared to the
     comparable period of the prior year.

(E)  Net loss for the three months ended September 30, 2009 increased by
     approximately $146,000 over the comparable period of the prior year.
     Net loss from operations for the nine months ended September 30, 2009
     increased by approximately $274,000 due to substantial decreases in
     sales and an increase in operating expenses (primarily in stock based
     payments) (non-cash).

About Ace Marketing

Ace Marketing & Promotions, Inc., based in New York, is a full-service promotional marketing company offering a wide array of business solutions which include; Branding and Branded Merchandise, Mobile Marketing Solutions, Website Development, ACE CMS Platform, Print Solutions and Fulfillment. Ace Marketing & Promotions Inc. is a leader in Proximity Marketing(SM) with proprietary Bluetooth and Wi-Fi integrated technology that establishes the benchmark for how multimedia messages are being delivered. Established in 1998, the Company has built a successful, scalable business platform. Proximity Marketing(SM), Rockzimity, and Rockzimity Marketing are service marks of Ace Marketing & Promotions Inc. 2009. Ace's Corporate Overview is available at http://www.acemarketing.net on the "About Us" tab. Ace has recently added several new revenue stream models. The long-term strategic plan is for Ace to find new opportunities while leveraging its core competencies. For a demo of Ace's Proximity Marketing you can visit http://www.acemarketingdemo.com or http://www.proximitymarketingus.com. For additional information, a copy of Ace's Form 10-K and other exchange act filings can be obtained on the Internet by going to www.acemarketing.net, clicking on links and then clicking on SEC Filings.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995.

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performances or achievements express or implied by such forward-looking statements. The forward-looking statements are subject to risks and uncertainties including, without limitation, changes in levels of competition, possible loss of customers, and the company's ability to attract and retain key personnel.

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