SANGOMA TECHNOLOGIES CORPORATION
TSX VENTURE : STC

SANGOMA TECHNOLOGIES CORPORATION

October 20, 2005 16:35 ET

Sangoma Releases Highlights Of Its Audited Results For The Financial Year 2004-2005

MARKHAM, ONTARIO--(CCNMatthews - Oct. 20, 2005) -

Sales of $3,438,132 yields net income of $661,980 for the year ended June 30, 2005

Sangoma Technologies Corporation (TSX VENTURE:STC) (www.sangoma.com), a leading provider of connectivity hardware and software products for VoIP, TDM voice, WANs and Internet infrastructure, today released highlights of its audited results for the financial year ended June 30, 2005.

Sales for the year ended June 30, 2005 were $3,438,132, as compared with $2,551,729 for the financial year ended June 30, 2004, an increase of 35 per cent. Gross profit for the year 2004-2005 was $2,521,520 as compared to $1,862,721 for the previous year.

Net income before provision for income taxes for the year 2004-2005 was $958,615 as compared with net income before provision for income taxes for the previous year of $365,825. After provision for income taxes, net income for the year 2004-2005 was $661,980 ($0.02 per share) as compared to $232,574 ($0.01 per share) for the previous year, and increase of 187 per cent. Cash flow from operations before change in non-cash working capital balances was $1,125,927 ($0.04 per share) in 2004-2005 as compared to $ 712,188 ($0.03 per share) for the previous year, an increase of 58 per cent.

The company finished the financial year with working capital of $1,791,957 as compared to working capital of $1,373,900 for the year ended June 30, 2004.

Mr. Gideon Hack, who was CTO at Sangoma prior to relocating to Israel, will not be working full time for Sangoma as originally planned but will be providing services to the Corporation as an independent contractor on a part-time basis.

About Sangoma Technologies Corporation

Founded in 1984, Sangoma develops and manufactures wide area network (WAN) communication hardware and software products, with an emphasis on the PC platform. The communications solutions, voice, data and video gateways support all popular WAN networks, line protocols and all standard PC operating systems and platforms including Linux, Windows, FreeBSD, Sun Solaris, NetWare and DOS. Sangoma Technologies Corporation is publicly traded on the TSX Venture Exchange (TSXV:STC - News).

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