SOURCE: Cygnus eTransactions Group, Inc.

August 27, 2007 11:42 ET

Cygnus Announces Record Profit in 2007 Second Quarter

ORLANDO, FL--(Marketwire - August 27, 2007) - Cygnus eTransactions Group, Inc. (PINKSHEETS: CYGT), a leader in ticketing and electronic commerce, today announced a record profit in the second quarter ending June 30, 2007 of $1,054,845 compared to a profit of $178,543 for the second quarter in the previous year and a loss of $378,285 for the first quarter this year. These results include a recognized gain of $800,000 from a legal dispute settled during the quarter. Second quarter revenues were $1,232,317 in 2007 compared to $1,052,251 in 2006, an increase of 17%. Year to date revenues are up 32% compared 2006.

Rick Crowley, Cygnus chief executive officer, said that there has been a significant increase in revenue and profitability through the first six months of the year and he expects the trend to continue. "Now is an exciting time to be in this market, especially the entertainment sector. The ticketing industry is changing and people are looking for new technology and business models. That means there is an incredible amount of opportunity in front of us."

Crowley added, "We plan to expand into new markets and we are working on major software upgrades that add new functionality for concert and live event ticketing, as well as enhancements for theme park and attraction ticketing. Several upgraded products have already been released and we expect to have everything completed and in use by the end of the year."

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

                                                    For the Three Month
                                                  Periods Ending June 30,
                                                      2007         2006
                                                  -----------  ------------

Sales                                             $ 1,232,317  $  1,052,251
Cost of sales                                         354,389       280,301
                                                  -----------  ------------

Gross Profit                                          877,928       771,950

General & Administrative Expenses                     423,159       406,737
Other Expenses                                        199,924       186,670
Legal Settlement                                     (800,000)            -
                                                  -----------  ------------

Net Income                                        $ 1,054,845  $    178,543
                                                  ===========  ============

About Cygnus

Cygnus delivers powerful ticketing, mobile and e-commerce solutions that help its customers increase sales without adding expensive infrastructure costs. Cygnus' products are aimed at a broad range of paid admission businesses ranging from theme parks and attractions to live events and concerts, broadly defined as the arts, entertainment and recreation industry.

Key solutions for ticket and merchandise sales include mobile commerce, e-commerce, front gate/box office point-of-sale and self-service kiosks. Integrated payment card processing is provided by Cygnus' own payment card processing system, which is also available as a standalone service for easy integration with 3rd party software. For 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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