SOURCE: Market Pulse

November 15, 2005 08:30 ET

Market Pulse Breaking News Alert for Tuesday, Nov. 15, 2005: TLPE: TelePlus Q3 Results -- Turns a Profit From Operations; Sales Climb 104% to $6.81M; YTD Sales Now Reach $13.2M (62% increase)!

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Market Pulse.

ATLANTA, GA -- (MARKET WIRE) -- November 15, 2005 -- Market Pulse News Alert for this AM, Stocks to Watch are: TelePlus Enterprises, Inc. (OTC BB: TLPE), Georgia Pacific Corp. (NYSE: GP), Level 3 Communications Inc. (NASDAQ: LVLT) and Google Inc. (NASDAQ: GOOG).

Investors need to be watching TelePlus Enterprises, Inc. (OTCBB: TLPE) this AM! TelePlus is a vertically integrated provider of wireless and landline products and services across North America. The Company's retail division -- TelePlus Retail Services, Inc. -- owns and operates a national chain of TelePlus branded stores in major shopping malls, selling a comprehensive line of wireless and portable communication devices. TelePlus Wireless, Corp. operates a virtual wireless network selling cellular network access to distributors in the United States. TelePlus Connect, Corp. is a reseller of landline and long distance services including Internet services. TLPE has had several excellent news announcements out lately and one again after Monday's bell announcing their results for the 3rd quarter and YTD 2005! Investors should be watching this one closely!

TelePlus Enterprises, Inc. (OTC BB: TLPE) (http://www.teleplus.ca) is pleased to announce its results for the 3rd quarter and YTD 2005.

TELECOM RESULTS -- PULLS OVER $557,785 IN EARNINGS

Telecom sales for the 3rd quarter reached $3,704,267. Telecom EBITDA (defined as earnings before depreciation, amortization, interest expenses and taxes) was positive $597,642 and net profit (before corporate overhead) was $557,785 (which is 15% of sales) as compared to no EBITDA and no net earnings contribution for the same period a year ago. Total number of subscriber lines at the end of the quarter reached 25,500. Telecom results include full quarter of operations of Freedom Phone Lines, Avenue Reconnect, Inc and Telizon, Inc.

WIRELESS RESULTS -- IMPROVES OPERATIONAL EFFICIENCY

Wireless sales for the 3rd quarter reached $3,101,927 as compared to $3,339,948 for the same period a year ago. The decrease in wireless sales results from the recent consolidation in the number of TelePlus stores which was done to increase operational efficiency of the retail division. Wireless EBITDA was negative $173,058 and net loss (before corporate overhead) was $270,380 as compared to a negative EBITDA of $165,434 and a net loss of $222,986 for the same period a year ago. Total number of wireless handset sales for the 3rd quarter reached 10,921 handsets, an increase of 2.5%, compared to 10,652 handsets for the same period a year ago. On the other side, same-store-count handset sales increased by 8.8% for the quarter reflecting the increased efficiency generated through the recent store count consolidation.

CONSOLIDATED RESULTS -- EARNINGS (FROM OPERATIONS) REACH $287,058 FOR Q3

Sales for the 3rd quarter increased by $3,465,884 (or 104%) to $6,805,832 as compared to $3,339,948 for the same period a year ago. Gross profit remained unchanged for the 3rd quarter at 29.6%. Removing Corporate costs(1) which equaled $485,753 for the quarter the Company had a positive EBITDA from Operations of $424,217 (including Corporate costs, EBITDA was positive $83,877) and net profit from Operations of $287,058 (including Corporate costs net loss was $198,695) for the 3rd quarter as compared to a negative EBITDA of $162,434 and a net loss of $222,986 for the same period a year ago.

Sales revenues for the year to date ended September 30th, 2005 increased by $5,040,597 (or 62%) to $13,224,633 as compared to $8,184,034 for the same period a year ago. Gross profit as a percentage of sales increased to 30.2% versus 26.6% for the same period a year ago. The Company had a negative EBITDA of $823,572 and net loss of $1,524,545 for the year to date, as compared to a negative EBITDA of $684,523 and net loss of $836,472 for the same period a year ago. The Company's EBITDA loss as a percentage of sales decreased to 6.2% from 8.4% a year ago. The Company also generated $294,570 in positive Cash Flow from operating activities versus using $710,061 in cash for the same period a year ago.

Q3 A TURNING POINT

"Third quarter results are a turning point for our company as we successfully achieved a positive EBITDA for the company overall and achieved positive earnings from operations for the first time in over two years. It is important to note that all expenses not included in EBITDA results (which equaled $282,572 for the third quarter) are all non-cash items and do not affect or relate to our operations. In particular amortization and interest expenses which equaled $143,227 for the third quarter are related to the debt we raised to finance our acquisitions. As we pay our debt off, these non-cash expenses will not reoccur and therefore improve our results in future quarters," stated Robert Krebs, Company CFO. "Another important indication of the strength of our operation is the generation of positive cash flow from operations. On this I am pleased to announce that we generated a positive cash flow from operations of over $294,570 as of the third quarter of 2005 as compared to using $710,061 in cash flow for the same period a year ago. This is the second quarter in a row that we generate positive cash flow from operations," added Krebs.

For more Q3 analysis and description of the Company's business investors may download the latest CEO letter from the following address: http://www.teleplus.ca/download/CEO_news%20letter_Q3%2005.pdf

(1) Corporate costs include certain executive compensation, lease cost for the corporate office, corporate travel and entertainment, accounting, certain legal and Investor Relations related costs.

About TelePlus http://www.teleplus.ca

TelePlus Enterprises, Inc. ("TelePlus") is a provider of Wireless and Telecom products and services across North America. TelePlus Connect, Corp. -- is a reseller of a variety of Telecom services including landline, long distance and internet services. TelePlus Wireless, Corp. -- operates a virtual wireless network selling cellular network access to distributors in the United States. TelePlus Retail Services, Inc. -- owns and operates a national chain of TelePlus branded stores in major shopping malls, selling a comprehensive line of wireless and portable communication devices.

Stocks in the news and acting well as of late include: Georgia Pacific Corp. (NYSE: GP), Level 3 Communications Inc. (NASDAQ: LVLT) and Google Inc. (NASDAQ: GOOG).

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