SOURCE: Cygnus eTransactions Group, Inc.

March 30, 2007 09:53 ET

Cygnus Announces Record Fourth Quarter Results, Posts First Ever Annual Profit

ORLANDO, FL -- (MARKET WIRE) -- March 30, 2007 -- Cygnus eTransactions Group Inc. (PINKSHEETS: CYGT) today announced the Company achieved a third consecutive record profit in the fourth quarter of 2006, posting earnings of $129,546 compared to a loss of $258,672 for the fourth quarter of 2005. Fourth quarter revenues were $1,065,285 in 2006 compared to $839,014 in 2005, an increase of 27%, and SG&A expenses were down from $564,965 in 2005 to $459,957 in 2006, a decrease of 19%.

"We are extremely please to be announcing not only a record fourth quarter profit, but the first profitable year in our history," said Rick Crowley, chief executive officer at Cygnus. "After a disappointing first quarter, the Company has performed exceptionally well with three straight profitable quarters. Revenues increased significantly over the fourth quarter of 2005, and the costs have continued to stay much lower than in previous years."

Mr. Crowley also said, "We have completed the move to our new corporate offices in Maitland, Florida, which will reduce operating expenses starting in the second quarter of this year. Historically, we post a loss in the first quarter of each year due to the seasonal nature of our largest clients, however the loss in the first quarter of 2007 will be significantly less than last year. I fully expect that by the end of the second quarter we will be profitable for the year overall. We are marketing heavily to the live events market which will provide new revenue opportunities on a year round basis. Sales prospects are already looking promising and combined with reduced expenses, 2007 should continue to set records for profitability at Cygnus."

Presented below is selected financial data from Cygnus'
 fourth quarter results.

                     For the Three Month Periods Ending December 31,
                                2006                2005
                             ----------         ----------
Sales                        $1,065,285         $  839,014
Cost of sales                   275,359            287,962
                             ----------         ----------

Gross Profit                    789,926            551,052

General & Administrative
 Expenses                       459,957            564,965
Other Expenses                  200,423            244,759
                             ----------         ----------

Net Income (Loss)            $  129,546         $ (258,672)
                             ==========         ==========


Presented below is selected financial data from Cygnus'
 year end results.

                     For the Twelve Month Periods Ending December 31,
                                2006                2005
                             ----------         ----------
Sales                        $3,703,974         $4,285,370
Cost of sales                 1,060,688          1,165,332
                             ----------         ----------

Gross Profit                  2,643,286          3,120,038

General & Administrative
 Expenses                     1,804,635          2,922,937
Other Expenses                  773,543            725,216
                             ----------         ----------

Net Income (Loss)            $   65,108         $ (528,115)
                             ==========         ==========
About Cygnus

Cygnus is a leading provider of ticketing and financial processing solutions for the recreation and entertainment industry. Cygnus offers a proven technology platform that seamlessly integrates e-commerce, point-of-sale solutions, kiosks, admission control and payment card processing. Payment card processing is provided with all Cygnus sales applications and is also available as a standalone solution. Additional services such as application hosting, a 24/7 call center and a fulfillment center for shipping tickets and season passes are also provided. Fore more information, please visit www.cygnus.com.

Forward-Looking Statements

Some of the statements contained in this news release constitute forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including changes in general economic, political and business conditions, actions of current and potential competitors, ability to attract new and retain existing customers, and other factors could cause actual results to differ materially from the Company's expectations and these forward-looking statements.

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