SOURCE: Ace Marketing & Promotions, Inc.

August 09, 2007 16:00 ET

Ace Reports on Its Operations Which Include a 28.7% Increase in Revenue in Its Second Quarter and a 24% Increase in Its Revenue for the First Half of 2007

VALLEY STREAM, NY--(Marketwire - August 9, 2007) - Ace Marketing & Promotions, Inc. (OTCBB: AMKT) announced today the results for its second quarter and first half of June 30, 2007.


Second quarter
                                                      2007        2006
                                                  ------------------------
Revenue (A)                                       $ 1,400,786  $ 1,088,589

Cost of Revenues                                      960,074      754,291
                                                  -----------  -----------
Gross Profit (B)                                      440,712      334,298
Selling, general & Administrative expenses (C)        580,384      454,311
                                                  -----------  -----------
Loss from operations                                 (139,672)    (120,013)
                                                  ===========  ===========
Net Loss                                             (131,720)    (119,889)
                                                  ===========  ===========
Net Loss per common share                               (0.02)       (0.02)
                                                  ===========  ===========
Weighted Average common shares                      8,012,722    6,923,701
                                                  ===========  ===========



First Half
                                                      2007        2006
                                                  ------------------------
Revenue  (A)                                      $ 2,683,666  $ 2,163,596

Cost of Revenues                                    1,825,598    1,529,464
                                                  -----------  -----------
Gross Profit  (B)                                     858,068      634,132
Selling, general & Administrative expenses (C)      1,134,908      870,484
                                                  -----------  -----------
Loss from operations                                 (276,840)    (236,352)
                                                  ===========  ===========
Net Loss                                             (260,546)    (235,481)
                                                  ===========  ===========
Net Loss per common share                               (0.03)       (0.04)
                                                  ===========  ===========
Weighted Average common shares                      8,020,499    6,590,678
                                                  ===========  ===========

(A) The increases in revenues in 2007 were primarily due to Ace utilizing
    additional sales representatives to obtain additional customers and
    Ace's new and existing customers buying products with higher average
    prices.

(B) Gross profits will vary period-to-period depending upon a number of
    factors including the mix of items sold, pricing of the items and the
    volume of product sold.

(C) Selling, general, and administrative expenses include payroll and
    related expenses, commissions, insurance, rents, professional,
    consulting and public awareness fees. For the second quarter of 2007,
    the overall increase of $126,073 was primarily due to a $128,685
    increase in salaries, commissions and other compensation paid to our
    employees to sustain our growth and a $16,726 decrease in stock based
    compensation. For the first half, the overall increase of $264,424
    was primarily due to a $191,148 increase in salaries, commissions
    and other compensation paid to our employees to sustain our growth,
    one time cash fees for public awareness/investor relations of
    approximately $45,000 and a $5,023 decrease in stock based
    compensation.

INTRODUCING ACE

Ace is a full service advertising specialties and promotional products company that distributes items typically with logos to large corporations, schools and universities, financial institutions and not-for-profit organizations. Specific categories of promotional products include advertising specialties, business gifts, incentives and awards, and premiums.

For additional information, a copy of Ace's Form 10-QSB 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.

Contact Information

  • Contact:
    Ace - Valley Stream, NY
    Michael Trepeta
    President
    516-256-7766