SOURCE: Ace Marketing & Promotions, Inc.

May 15, 2007 16:00 ET

Ace Reports on Its Operations Which Includes a 19% Increase in Revenue in Its First Quarter

VALLEY STREAM, NY -- (MARKET WIRE) -- May 15, 2007 --Ace Marketing & Promotions, Inc. (OTCBB: AMKT) announced today the results for its first quarter ended March 31, 2007.

                                    Three Months Ended
                                         March 31,
                                     2007         2006
                                  ---------    ---------

Revenue (A)                       1,282,880    1,075,007

Gross Profit (B)                    417,355      299,834

Operating Expenses (C)              554,523      416,173

Net (Loss) (D)                     (137,168)    (116,339)

Net (Loss) Income per Common Share
Basic and                              (.02)        (.01)
Diluted                                (.02)        (.01)

Weighted Shares Outstanding       8,028,363    6,253,954

(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) The overall increase in operating expenses in 2007 of $138,350 over
    the comparable period of the prior year was primarily due to a $63,000
    increase in salaries, commissions and other compensation paid to our
    employees to sustain our growth, a one time cash fee for public
    awareness/investor relations of approximately $45,000 and a $12,000
    increase in stock based compensation.

(D) The first quarter net loss for 2007 includes stock based payments
    (non-cash) of $25,583 as compared to $13,880 for the comparable period
    of 2006. It also includes a one time cash fee for public
    awareness/investor relations of approximately $45,000.
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