SOURCE: FTS Group, Inc.

January 23, 2007 10:04 ET

FTS Group Makes $1,000,000 Acquisition Related Cash Payment; Company Also Restructures Some of Its Debt

Company Finishes 2006 With Record Revenue and Earnings

TAMPA, FL -- (MARKET WIRE) -- January 23, 2007 -- FTS Group, Inc. (OTCBB: FLIP), an acquisition and development Company operating in the wireless, technology and Internet space, today announced that it has made a $1,000,000 US cash acquisition related payment. The payment was related to the 2006 acquisition of See World Satellites, Inc. The Company also announced that it has restructured $250,000 of Debt to be paid over the next 45 days.

FTS Group Chairman and Chief Executive Officer Scott Gallagher commented, "2006 was an unbelievable year for FTS. We grew our Company from $1.3 million in total sales during 2005 with almost $2,000,000 in losses and turned it into a record setting top line of more then $6,000,000 and record setting EBITDA well in excess of $300,000 for 2006. We also made acquisition related payments of more than $1.9 million in cash and $1,000,000 in stock. We are proud to report that even in this challenging environment we have made our contractually required additional $1,000,000 cash payment as of yesterday. Bringing the total trailing twelve month cash payments to nearly $3 Million US." Gallagher continued, "I appreciate the tremendous support of our stock holders, especially the ones who have supported FTS and I since the early days of 2002 when we had no revenue at all to today's $7 Million Company. We've made a lot of progress in 2006 but we have a long way to go if we are to achieve our goals. During 2007 we expect to dramatically reduce or eliminate our debt, increase our profit margins and free cash flow and add some $2,000,000 or more in assets."

FTS Group Operational Goals for 2007

--  Reduce Debt by 80% or more
--  Post EBITDA of $1,000,000 or more
--  Post top line sales of $10,000,000 or more
--  Generate assets of at least $4,000,000 at year end
"2007 is off to a great start. We've named the first full time CEO in the history of FTS Wireless, Inc. The Company finished 2006 with the second best month in its four-year history, in terms of handset sales. We expect to close our first acquisition of the year sometime next week. The employees at See World Satellites have proved to be some of the best in the nation. The Company is posting all time high connect percentages of 90% or more thus proving to be the best of all 23 or so RSPs in our space in the US." Gallagher continued, "We've developed a clear path for success in 2007 that should benefit every shareholder of the Company. As usual success will ultimately depend on our ability to execute on our business plan. We expect to announce and release a business update and host a shareholder conference call reviewing and outlining 2006 and 2007 within the next 30 days." Gallagher went on to say, "Due to my confidence in the Company and the fact that our stock today trades at well less then one time trailing 2006 profitable sales, I plan to acquire another $100,000 worth of FTS common shares over the course of the year. Although at the moment insider buying is prohibited."

About FTS Group, Inc.

FTS Group, Inc. (OTCBB: FLIP) is a publicly traded holding company operating in the wireless industry through its wholly owned subsidiaries FTS Wireless, Inc. and See World Satellites, Inc. The Company operates through retail locations in Florida and Pennsylvania and globally over the Internet through its web sites,, and For additional information about FTS Group, Inc. or any of its wholly owned subsidiaries please review the Company's quarterly, annual and other filings with the Securities and Exchange Commission at or contact the Company at the e-mail or phone number below.

Forward-Looking Statements

Included in this release are certain "forward-looking'' statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K and 10-K/A as filed with the Securities and Exchange Commission. Readers are cautioned not to place reliance on these forward-looking statements, which speak only as of the date hereof.

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