SOURCE: CTI Group (Holdings) Inc.

August 14, 2008 17:01 ET

CTI Group Reports Second Quarter 2008 Results

INDIANAPOLIS, IN--(Marketwire - August 14, 2008) - CTI Group (Holdings) Inc. (OTCBB: CTIG), an international provider of electronic invoice processing and management (EIM), 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, 2008 of $5,035,495 and $10,374,707, respectively, as compared to revenues for the three and six months ended June 30, 2007 of $6,101,122 and $11,155,682, respectively. The Company reported a net loss for the three and six months ended June 30, 2008 of ($553,412) or ($0.02) per share, and ($732,153) or ($0.03) per share, respectively, as compared to net income of $48,957 or $0.00 per share for the three months ended June 30, 2007 and net loss of ($533,939) or ($0.02) per share for the six months ended June 30, 2007. The decrease in revenues and increase in net loss in 2008 was primarily due to the lack of license or settlement agreements from patent enforcement segment activities in the three and six months ended June 30, 2008.

Commenting on the results, John Birbeck, CTI Group's President and CEO, stated, "We continue to work on and have incurred significant patent license and enforcement costs in the first half of 2008 without a new settlement or license agreement being recognized. Although no assurances can be given, we anticipate that we will be able to finalize a settlement agreement during the second half of 2008."

Commenting on product developments, Mr. Birbeck stated, "I believe that the high level of innovation of our people will result in significant new products in E-Billing (EIM) and VoIP applications which positions us well to meet the growing demand of fixed-mobile convergence markets."

The Company's new hosted VoIP 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 real-time web-based communications management and analysis solution, and the award-winning SmartRecord® IP, which enables service providers to selectively intercept and record any communications on behalf of their hosted and managed service customers. Specifically engineered to seamlessly integrate with the service provider's evolving online eBusiness strategy, these business applications provide enterprise customers with customized access to their provider's eBusiness portal and their complex service invoices.

The Proteus® suite of products is 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.

The EIM suite of products includes: Analysis, for complete on-line customer care of mobile, fixed line and data services; SplitBill to enable users to automate Business vs. Personal use; and Dynamic Reports, which is a "push" analysis, billing and advertising medium for mobile, data and fixed line, targeting the consumer and SMB markets.

About CTI Group -- CTI Group (Holdings) Inc. is an international provider of electronic invoice processing, enterprise communications management software and services solutions, and carrier class voice over internet protocol (VoIP) management applications. 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 overseas offices in London and Blackburn, UK. For more information, please visit CTI Group's website at www.ctigroup.com.

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," "believe" 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. 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. These factors include, but are not limited to, the following: the risk that CTI Group will not be able to attract and retain customers to purchase its products, the risk that CTI Group will not be able to commercialize and market products; results of research and development; technological advances by third parties; competition; future capital needs of CTI Group; history of operating losses; dependence upon key personnel and general economic and business conditions; and risks described in CTI Group's annual report on Form 10-KSB for the year ended December 31, 2007. Readers are referred to documents filed by CTI Group with the U.S. Securities and Exchange Commission, including the Form 10-Q for its most recent quarter ended June 30, 2008.

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