SOURCE: CTI Group (Holdings) Inc.

November 14, 2006 16:50 ET

CTI Group Reports a Profit in Third Quarter 2006

INDIANAPOLIS, IN -- (MARKET WIRE) -- November 14, 2006 -- CTI Group (Holdings) Inc. (OTCBB: CTIG), an international provider of intelligent electronic invoice processing, VOIP applications and enterprise communications management software and services, reported revenues for the three and nine months ended September 30, 2006 of $3,175,944 and $9,543,815, respectively, compared to revenue for the three and nine months ended September 30, 2005 of $4,080,013 and $10,889,499, respectively. The decrease in revenues for the three and nine months ended September 30, 2006 of 22% and 12%, respectively, was primarily the result of a decrease in revenues derived from the licensing of intellectual property during each respective period due the volatility in the size and timing of such revenues. The Company reported a net income for the three months ended September 30, 2006 of $113,150 compared to a net income of $10,545 for the three months ended September 30, 2005. The Company recorded a net loss for the nine months ended September 30, 2006 of $969,273 compared to a net income for the nine months ended September 30, 2005 of $157,163. The net loss for the nine months ended September 30, 2006 was primarily due to a decrease in intellectual property license revenue combined with a decrease in software sales, service fee, and license fee revenue.

John Birbeck, CTI President and CEO, stated, "I am pleased to announce CTI's return to profitability. We have taken several steps over the last quarters that will help enable us to reach a sustainable profit. We will continue to invest in product development initiatives that both advance our existing products and that add exciting new products to be offered through our channels to market. In just the past six months alone, we have released two new products that have opened significant opportunities within the rapidly growing voice-over-internet-protocol ('VOIP') applications market. This is a market expected to grow significantly in the future."

John Birbeck further commented, "Feedback from our new VOIP channel partners tell us that our SmartRecord IP and emPulse products are essential to the expansion of their VOIP customer base as they strive to displace traditional premises based PBX systems that historically offer similar tools. SmartRecord IP is unique in its ability to provide both on-demand and blanket Voice Recording in IP Centrex platforms that concurrently serve thousands of subscribers. Our patent-pending technology allows hosted VOIP service providers to deploy a mission-critical application cost-effectively through the use of web services. Similarly, our emPulse product gives enterprise users of hosted VOIP services the complete management, optimization and reporting systems they need to control enterprise-wide communications. Call Centers are especially drawn to the ACD management reporting emPulse offers across multiple sites. In all cases, our products are designed to be deployed price-effectively with control delivered directly to the customer via exposed web services. We also continue to enhance our SmartBill® Connect product to better serve the thousands of enterprises that rely on the tool to manage their telecommunications service invoice. Whether a user of traditional telephony, VOIP services, a small enterprise, or a thousand-agent Call Center, SmartBill provides enterprise customers with customized access to their provider's eBusiness portal and a tool to help manage their complex service invoices. With SmartBill® Connect as a component of the complete service offering, communications providers will better leverage existing investments in technology -- preserving the full functionality of current systems -- while allowing them to more profitably service and support current and future customers."

The Proteus™ suite of products is used by companies, financial institutions and government agencies to track communications activity and to control and optimize costs associated with operating communications networks. Proteus™ performs functions of call recording, call accounting, cost allocation, client bill-back, analyses of trunk traffic and calling and usage patterns, toll fraud detection, directory services and integration with other private branch exchange peripheral products. Proteus now also integrates Internet, e-mail and mobile data analysis and reporting with its traditional voice capabilities.

About CTI Group -- CTI Group (Holdings) Inc. is an international provider of intelligent electronic invoice processing and enterprise communications management software and services. CTI Group's SmartBill® and Proteus™ product suites offer a full array of solutions for traffic analysis, post-billing call analysis, and customer care. CTI Group's products are used by some of the top service providers in North America and the United Kingdom, and play a trusted role in managing telephony costs at major corporations internationally. Headquartered in Indianapolis, CTI Group maintains an overseas office in London. For more information, please visit CTI Group's website at

Safe Harbor Statement This release may contain "forward-looking" statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenue, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of CTI Group or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about CTI Group and its business relating to the future; and (e) any statements using the words "could," "should," "anticipate," "expect," "may," "project," "intend," "will" or similar expressions. CTI Group's ability to predict projected results or the effect of events on CTI Group's operating results is inherently uncertain. Therefore, CTI Group wishes to caution each reader of this press release to carefully consider the risk factors stated in the CTI Group's Annual Report on Form 10-KSB for the fiscal year ended December 31, 2005, any or all of which have in the past and could in the future affect the ability of CTI Group to achieve its anticipated results and could cause actual results to differ materially from those discussed herein, including, but not limited to: ability to attract and retain customers to purchase its products, ability to develop or launch new software products, technological advances by third parties and competition, ability to protect CTI Group's patented technology, ability to obtain settlements in connection with its patent enforcement activities. You should not place any undue reliance on any forward-looking statements. CTI Group disclaims any intent or obligations to update forward-looking statements contained in this press release.

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