SOURCE: CTI Group (Holdings) Inc.

August 14, 2007 17:30 ET

CTI Group Reports Profitable Second Quarter Results

INDIANAPOLIS, IN--(Marketwire - August 14, 2007) - CTI Group (Holdings) Inc. (OTCBB: CTIG), an international provider of electronic invoice processing, enterprise communications management software and services solutions, and carrier class Voice over Internet Protocol ("VoIP") management applications, reported revenues for the three and six months ended June 30, 2007 of $6,101,122 and $11,155,682, respectively, as compared to revenues for the three and six months ended June 30, 2006 of $3,286,704 and $6,367,872, respectively. The increase in revenues for the three and six months ended June 30, 2007 of 86% and 75%, respectively, was primarily the result of operations associated with the acquisition in December 2006 of Ryder Systems, Ltd., located in Blackburn, UK. The Company reported net income of $48,957 for the three months ended June 30, 2007 as compared to a net loss of $297,543 for the comparable period in 2006. The Company reported a net loss of $533,939 for the six months ended June 30, 2007 as compared to a net loss of $1,082,424 for the comparable period in 2006. The improvement in net income/loss was primarily associated with increased profitability from the Company's Electronic Invoice Management segment which includes the accretive earnings associated with the aforementioned acquisition and the increase in patent license fee and enforcement revenues in 2007.

Commenting on the results, John Birbeck, CTI President and CEO, stated, "We are pleased that the operating result of Ryder Systems, Ltd., which we acquired in December 2006, continues to grow and be accretive to earnings. We continue to invest significantly in research and development in anticipation of market demands associated with electronic invoice management and VoIP applications. We remain optimistic that synergistic benefits regarding market, sales and costs will benefit the Company in the future."

Birbeck believes that CTI Group's innovation, founded upon its extensive product development experience within the telephony market, will open new market opportunities for the Company's products: "We continue to develop our VoIP applications to meet new market opportunities. We believe that our unique product offerings, SmartRecord® IP and emPulse, are positioned well to take advantage of the exceptional VoIP growth opportunities. SmartRecord® IP uniquely provides carrier class, integrated call recording options to VoIP service providers for their hosted and managed service customers."

The Company's new hosted voice and video over IP applications are expected to help eliminate customer resistance to conversion to next-generation platforms, while creating new revenue opportunities for service providers through the delivery of compelling value added services. CTI Group's new products include emPulse, a web-based communications traffic analysis solution, and SmartRecord® IP, which enables service providers to selectively intercept and record any communications on behalf of their hosted and managed service customers, are specifically engineered to seamlessly integrate with the service provider's evolving online eBusiness strategy by providing enterprise customers with customized access to their provider's eBusiness portal and their complex service invoices.

The Proteus® suite of products are used by companies, institutions and government agencies to track communications activity and to control 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 electronic invoice management and telemanagement software and services. CTI Group's SmartBill®, Analysis 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 overseas offices in London and Blackburn, England. 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 the Company or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about the Company and its business relating to the future; and (e) any statements using the words "could," "believes," "should," "anticipate," "expect," "may," "project," "intend," "will" or similar expressions. The Company's ability to predict projected results or the effect of events on the Company's operating results is inherently uncertain. Forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those discussed in this document. In addition to information provided elsewhere in this document, shareholders should consider the following: the risk that the Company will not be able to attract and retain customers to purchase its products, the risk that the Company will not be able to commercialize and market products; results of research and development; technological advances by third parties; competition; future capital needs of the Company; history of operating losses; dependence upon key personnel and general economic and business conditions. Readers are referred to documents filed by CTI Group with the U.S. Securities and Exchange Commission, including the Form 10-QSB for its most recent quarter ended June 30, 2007.

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