SOURCE: WidePoint Corporation

November 22, 2005 09:53 ET

WidePoint Q3 Revenue Up Over 300% to $3.6M Supplemented by ORC Acquisition and Continuing PKI Adoption and Growth

OAKBROOK TERRANCE, IL and WASHINGTON, DC -- (MARKET WIRE) -- November 22, 2005 -- WidePoint Corporation (OTC BB: WDPT), a technology-based provider of products and services to both the government sector and commercial markets, today announced financial results for the third quarter ended September 30, 2005.

Third Quarter 2005 Highlights:

--  Revenue up over 300% from $0.9 million to $3.6 million
--  Earnings before interest, taxes, depreciation, amortization, and
    financial instrument (EBITDAF) improves from a loss of approximately
    $105,000 to a gain of $101,000
--  Income from operations up over 100% from a loss of approximately
    $106,000 to a gain of $13,000
--  Net Income up dramatically from a net loss of approximately $105,000
    to a net gain of $723,000
--  Working capital improves as a result of the exercise of warrants by
    Barron Funds, LLP, with gross proceeds of one million dollars
--  WidePoint's Public Key Infrastructure (PKI) offerings continue to
    witness strong growth and continued adoption by U.S. federal agencies and
    federal government contractors
Revenue for the quarter was approximately $3,645,000 compared with approximately $907,000 for the comparable quarter ended September 30, 2004. The increase in revenue was primarily attributable to the impact of revenues derived from the acquisition of Operational Research Consultants, Inc. (ORC) in October 2004. Quarterly net income was approximately $723,000, or $0.01 per diluted share, compared to a loss of $104,873, or $0.01 per diluted share in the comparable quarter a year ago. These results reflected positive contributions from all operations including the acquisition of ORC. The net gain of approximately $723,000 was materially related to a gain from financial instruments of approximately $702,000 during the quarter.

Revenue for the nine months ended September 30, 2005 was approximately $9,236,000 compared with approximately $2,471,000 for same period ended September 30, 2004. Net income for the nine months was approximately $606,000, or $0.01 per diluted share, as compared to a net loss of approximately $812,000, or $0.04 per diluted share for the comparable nine-month period in 2004.

WidePoint Chairman and CEO Steve Komar said, "The acquisition of ORC this past year materially supplemented our revenue growth at WidePoint. As we continue to expand our PKI eAuthentication and credentialing services developed within ORC, we believe this will provide us with exceptional upside potential. Coupling this opportunity in PKI eAuthentication and credentialing services with our plan to acquire strategic technology-based assets enhances our opportunity to build a $100 plus million dollar company over the next three years."

WidePoint Chief Financial Officer Jim McCubbin added, "We are pleased with our financial performance this past quarter and look for continued improvement in future operations. We have a healthy backlog of business, a strong market position and promising growth within the early stages of the PKI eAuthentication and credentialing services life cycle. We can see a strong pipeline of potential new business opportunities. Over the past three quarters, we have witnessed steady sequential improvement within our business operations. As the adoption rate of PKI eAuthentication and credentialing services increases, we expect to be well positioned to benefit from this new and exciting opportunity. We are also pleased with the continued improvement in our balance sheet. The proceeds from the exercise of warrants by Barron Funds enabled us to materially improve our net working capital position and retire a large portion of outstanding debt on our line of credit at RBC-Centura."

An investment profile on WidePoint may be found at

About WidePoint Corporation

WidePoint (OTC BB: WDPT) is a technology-based provider of products and services to both the government sector and commercial markets. WidePoint presently specializes in providing systems engineering and information technology services as well as PKI eAuthentication and credentialing services. WidePoint's wholly owned subsidiary, Operational Research Consultants, Inc. (ORC) is at the forefront of implementing public key infrastructure eAuthentication and credentialing services. The company's identity management and eAuthentication services have received three major U.S. federal government certifications. WidePoint's profile of customers encompasses U.S. federal government agencies such as the Department of Defense, the Department of Homeland Security, the U.S Treasury Department and the Department of Justice as well as major transnational corporations such as Abbott Laboratories, Baxter Healthcare, Conseco, Boeing Aerospace, and Northrup Grumman. For more information including an online investor kit, please visit our investor relations website at

Safe-Harbor Statement: Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.

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