NTG Clarity Networks Inc.
TSX VENTURE : NCI

NTG Clarity Networks Inc.

August 23, 2005 16:05 ET

NTG Clarity Networks Inc. Announces Second Quarter 2005 Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 23, 2005) - NTG Clarity Networks Inc., (TSX VENTURE:NCI) a leader in delivering network, IT and infrastructure solutions, today announced second quarter 2005 revenues of $1,465,818, a decrease of 28% from the same period last year. (All amounts in Canadian dollars). This decrease was due mainly to the elimination of the Field Services business unit which was not yielding satisfactory results.

The Company reported a net income for the three months ended June 30, 2005 of $74,948 compared to a net income of $4,118 for the comparable period last year.

"The Company continues to look for opportunities to align operating costs with current revenue levels."

"The reorganization of our business into three business units (Professional Services, Software Products, and Training Services) has positioned us to capitalize on opportunities as we move forward."

"As we look ahead, we are intent on increasing our market share in the telecom sector, expanding the enterprise, security and wireless areas of the business, and making further progress in the international marketplace", said Ashraf Zaghloul, Chairman and CEO.

Income statement highlights for the three months ended June 30, 2005 and 2004



June 30, 2005 June 30, 2004
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Revenue $ 1,465,818 $ 2,025,876
Cost of revenue 881,373 1,571,297
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584,445 454,579

Expenses 509,497 450,461
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Net Income for the period $ 74,948 $ 4,118
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Balance Sheet Highlights as at June 30, 2005 and December 31, 2004


June 30, 2005 December 31, 2004
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Cash, end of period $ 12,257 $ 29,151
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Bank Overdraft - -
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Shareholder's Equity 141,104 27,924
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Total Assets $ 1,420,636 $ 1,944,708
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ABOUT NTG CLARITY NETWORKS INC

Established in 1992, NTG Clarity has been a leader in delivering network, IT and infrastructure solutions to telecommunications service providers. More than 120 network professionals provide design, documentation and implementation expertise to the industry's leading network service providers. NTG Clarity's services are offered internationally, with offices and operations currently in Toronto, Montreal and Cairo.

The company has maintained a record of consistently high performance, while establishing itself as a company with strong financial, technical and operational capabilities. NTG Clarity is recognized for its outstanding technical and project management skills, innovative use of advanced technologies, low cost operations and exceptional management capability.

FORWARD LOOKING INFORMATION

Certain statements in this release, other than statements of historical fact, are forward looking information that involves various risks and uncertainties. Such statements relating to, among other things, the prospects for the company to enhance operating results, are necessarily subject to risks and uncertainties, some of which are significant in scope and nature.

These uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward looking statements are based on the estimates and opinions of the management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward looking statements should circumstances or management's estimates or opinions change.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release

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