SOURCE: Labwire, Inc.

September 08, 2008 17:02 ET

Labwire Announces Financial Results for the Second Quarter of 2008

HOUSTON, TX--(Marketwire - September 8, 2008) - Labwire, Inc. (PINKSHEETS: LBWR), a leading provider of employee screening solutions and canine security and surveillance services, announced that Moore and Associates has completed it's review of the financial records and results for the quarter ending June 30, 2008 and is pleased to report the following results:

     1) Total Revenue of $ 1,019,324 vs. $ 1,009,310 in 2007. The increase
        in revenue is indicative of the first business from the USIS
        Alliance, strong performance of the OTI unit, and additional
        revenue from existing Labwire customers.

     2) Gross Profit improved to $ 522,520 vs. $ 445,379 in 2007. This
        represents a $ 77,141 increase or a 17.32% improvement. Most
        importantly, gross margin improved to 51% from 44% in 2007. This
        encouraging trend is indicative of the addition and growth of the
        OTI business, a swift and successful conversion of the first
        business from the USIS Alliance, and management's focus on adding
        high margin business to its existing contracts and capturing
        revenue for its technology services.

     3) Operating Expense:  Total operating expense was $ 430,694 vs.
        $ 298,988 in 2007. Management continues to focus on controlling
        operating expense. Most areas were flat or down except Payroll
        Expense which increased to $ 225,888 vs. $ 162,402 in 2007. This
        is primarily attributable to the addition of OTI. Management
        expects this to become less of a factor as the company is now set
        up for additional revenue growth in future quarters and the
        restructuring of OTI staffing needs have been addressed.

"The 2nd quarter pre-tax net income of $ 57,235 represents another in a string of profitable quarters for Labwire," stated Marlin Williford, CFO. "Our numbers were in line with our previous management release except a slight difference in net income of about $ 8,000. This was attributable to some additional amortization applied by our auditors. We continue to focus on controlling expense while improving margins and building revenue. We feel we have a good foundation established as we anticipate additional revenue growth in the second half of the year."

Dexter Morris, Labwire Chairman and CEO, provides the following insight into business activity for this year: "We have been working very hard to put everything in place to operate as a fully-reporting public company. This has been very time consuming as we move thru the various steps in the process. With the completion of the audit process thru June, we have cleared an important hurdle to up-listing. We will be aggressively pursuing this agenda in the near term and will keep our shareholders advised of our progress. The 2nd quarter numbers were very encouraging with $1MM+ revenue, increasing margins and profit, and the further growth and development of our OTI acquisition. We are also pleased to see the impact of our first revenue under the USIS Alliance (see press release May 15, 2008). We see great potential in this relationship. We thank our shareholders for their support and we are excited about the future business prospects for Labwire."

About Labwire

Labwire, Inc., headquartered in Houston, TX, provides secure and compliant employee drug screening and background checking services to Fortune 500 corporations via the Labwire™ Platform. Labwire™ is a proprietary, web-based application that streamlines the complex regulatory and record management activities associated with employee screening, delivering accurate timely results while eliminating service calls and paper trails. This comprehensive solution to managing employee screening services is the most efficient and cost-effective platform in the industry.

About USIS

USIS is a worldwide provider of total client solutions in human resources background investigations, pre-employment/drug screenings, insurance information services, due diligence and risk management assessment, and security and related professional services to businesses, federal agencies, and institutions. Formerly the Office of Federal Investigations (a U.S. government agency privatized in 1996), today USIS remains the largest supplier of security investigations to the U.S. government and a major global provider of security support services, training and consulting solutions for government agencies and commercial clients. Headquartered in Falls Church, Va., USIS has approximately 7,000 employees supporting business operations in all 50 states and overseas. For more information, please visit www.usis.com

Safe Harbor Provisions:

Certain oral statements made by management from time to time and certain statements contained in press releases and periodic reports issued by Labwire, Inc., (the "Company"), as well as those contained herein, that are not historical facts are "forward-looking statements" within the meaning of Section 21E of the Securities and Exchange Act of 1934 and, because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements, including those in Management's Discussion and Analysis, are statements regarding the intent, belief or current expectations, estimates or projections of the Company, its Directors or its Officers about the Company and the industry in which it operates, and are based on assumptions made by management. Forward looking statements include without limitation statements regarding: (a) the Company's strategies regarding growth and business expansion, including future acquisitions; (b) the Company's financing plans; (c) trends affecting the Company's financial condition or results of operations; (d) the Company's ability to continue to control costs and to meet its liquidity and other financing needs; (e) the declaration and payment of dividends; and (f) the Company's ability to respond to changes in customer demand and regulations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that the anticipated results will occur. When issued in this report, the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and similar expressions are generally intended to identify forward-looking statements.

Important factors that could cause the actual results to differ materially from those in the forward-looking statements include, among other items, (i) changes in the regulatory and general economic environment; (ii) conditions in the capital markets, including the interest rate environment and the availability of capital; (iii) changes in the competitive marketplace that could affect the Company's revenue and/or cost and expenses, such as increased competition, lack of qualified marketing, management or other personnel, and increased labor and inventory costs; (iv) changes in technology or customer requirements, which could render the Company's technologies noncompetitive or obsolete; (v) new product introductions, product sales mix and the geographic mix of sales.

The Company disclaims any intention or obligation to update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements which are not historical facts contained in this advertisement are forward-looking statements that involve certain risks and uncertainties including but not limited to risks associated with the uncertainty of future financial results, additional financing requirements, development of new products, governmental approval processes, the impact of competitive products or pricing, technological changes, and the effect of economic conditions.

Contact Information