Applied Global Technologies Reports Record Fourth Quarter with Growth in Revenue of 88% over Prior Year; 40% Growth for the Year.

Business Editors

ROCKLEDGE, Fla.--(BUSINESS WIRE)--Feb. 18, 2004

Managed Services and A/V Integration Propels Private

Communications Company in 2003

Applied Global Technologies, an innovative technologies company offering reliable and worry-free managed services for IP audio, data and video communications, announces both a record fourth quarter and a stellar 2003. Revenues in fourth quarter were $7.5M, an 88% increase over Q4 2002, while 2003 annual revenues came in at $25.5M - exceeding 2002 by 40%. EBITDA (Earnings before interest, taxes, depreciation and amortization) was $3.1M for the year, up from $1M in 2002, and net income improved from $200K in 2002 to $1.5M in 2003.

AGT successfully expanded its managed service engagements from four in 2002 to 13 in 2003. Nearly 50% of the company's employees are now deployed under managed service agreements.

"I am extremely pleased with the success of our managed services business and the performance of our high-value integration services in 2003," stated Michael Valletutti, Chairman & CEO, Applied Global Technologies. "The expansion in the number of managed service accounts evidences the successful execution of our strategy to provide a high level of touch and value innovation to our customers. We are directly involved in identifying opportunities to improve our customers' video experience while assisting them in obtaining a higher return on their investment."

While strong in the federal marketplace, AGT expanded its reach in 2003. The company added Johnson & Johnson, Ericsson, the states of North Carolina and South Carolina, in addition to the California university system. AGT also opened AGT-Canada in 2003. These and other accounts increased AGT's commercial and state business from less than 5% of revenue in 2002 to over 15% in 2003.

"Our increase in services, from approximately 25% of revenue in 2002 to over 30% in 2003, along with revenue from sales of internally-developed technology, resulted in a significant increase in gross margin, EBITDA and net income," commented Harry Ericson, Chief Financial Officer, Applied Global Technologies. "This return also provided the ability to make increased investment in research and development along with sales and marketing to the commercial and state markets. Research and development expenses alone were 5.6% of revenue in 2003 and are expected to exceed 8% in 2004. These investments in technology and market development will allow the company to diversify its markets and product offerings, while providing the foundation for future growth and return on investment."

"One high growth area for the company, our integration services, accounted for over $1.4M of AGT revenue in Q4, demonstrating AGT's ability to deliver complex voice, video and data solutions," added Valletutti. "In 2003, we also succeeded in making major advancements in technology development, including beta testing of our PERSPECTIVE video, voice and data collaboration software and a soon-to-be-announced network analysis tool that will dramatically improve the quality of video communications."

"These and other technical advancements by AGT in 2003 further distanced us from our competition," stated Valletutti. "We are providing our customers with a partnership that not only offers the highest quality of service to fulfill their current needs, but one that anticipates industry changes and develops the technical solutions for the next generation of communication."

About Applied Global Technologies(R)

Applied Global Technologies(R) offers the world's most reliable and worry-free portal to effective video communications with divisions in hardware, custom A/V integration, managed services, engineering and software development. Applied Global takes the enterprise vision of fully integrated IP networks and applies it as an effective, ROI-centered solution for today's progressive and agile businesses.

As a one-of-a-kind managed services solution, AGT activates its wealth of experience and skill base to develop solutions that are unique to each customer. In doing so, its customers are able to utilize technology to enhance business objectives without distraction or disruption to core business priorities.

In addition to its work in the commercial marketplace, the ten-year old private corporation provides conferencing solutions to the Pentagon, branches of the US Military and civilian agencies, as well as numerous federal and state government facilities. The company's continued advancement in communications is being felt around the world.

AGT partners with those companies that bring value to its customers. Applied Global's current partners include: Anteon, Booz Allen Hamilton, EDS, Infonet, Lockheed Martin, Polycom, Radvision, Raytheon, SAIC, Sprint, SRA International, TANDBERG, VCON, and Verizon.

The company also offers a new service known as PERSPECTIVE(TM). It is a multimedia gateway - an interactive video and web interface service which allows you to centrally access workplace tools available on any IP network and share those tools in real-time with anyone you want regardless of communication device. It is the ultimate collaboration service.

Applied Global's international headquarters is located in Rockledge, FL with field support offices in Atlanta, Chicago, Dallas, Honolulu, Okinawa, Ottawa, Seattle, San Francisco, Virginia Beach, and Washington, DC.