SOURCE: Franklin Wireless Corporation

May 14, 2008 13:28 ET

Franklin Wireless Continues Strong Sales Trend in Fiscal Third Quarter 2008

SAN DIEGO, CA--(Marketwire - May 14, 2008) - Franklin Wireless Corp. (OTCBB: FKWL), a developer and marketer of wireless broadband communications devices, announced strong sales and an increase in profit for the third quarter fiscal year of 2008, driven by demand for the company's USB modem products.

The company reported net sales increased 129.2 percent to $7.4 million for the quarter ended March 31, 2008, compared with $3.2 million in sales during the corresponding period of 2007. Sales during the quarter were driven by strong demand CDMA USB products -- namely the CDU-680, CDU-650 and CDX-650 USB modem products that were introduced during mid-2007. The overall sales increase was also due to a continual surge in sales volume in the U.S. as well as the Caribbean and South American markets. Sales in the U.S. reached $1.4 million while the Caribbean and South American markets attributed $6 million in sales during the quarter.

Gross profit increased 82.4 percent to $1.8 million for the three months ended March 31, 2008, compared with $973,375 for the same period in 2007. Gross profit was 24 percent of net sales for the quarter compared with 30.2 percent in the fiscal third quarter 2007. The overall decrease in gross profit as a percent of net sales was primarily attributed to competitive pricing pressures in the USB modem market.

"Our strong position in the CDMA USB market continues to fuel our tremendous growth quarter after quarter," said Franklin Wireless President O.C. Kim. "We continue to bode well in a market that is characterized by extremely competitive pricing practices. We are also making significant headway in the WCDMA/HSDPA market with high-end solutions."

Franklin Wireless products are marketed through operators and distributors. The company offers a full range of mobile broadband solutions for CDMA 1xEV-DO Rev.0 and Rev. A operators as well as WCDMA solutions that include HSDPA/HSUPA for worldwide broadband carriers.

About Franklin Wireless

Franklin Wireless Corp. (OTCBB: FKWL) designs and markets wireless broadband high speed data communication products such as 3rd generation ("3G") wireless broadband modules and modems to operators and distributors in North and South American countries. The company was founded in 1982 and is headquartered in San Diego, California. For more information about Franklin Wireless, please visit www.franklin-wireless.com.

Certain statements in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements.