CTI Group Reports a 27% Increase in Revenues for the Six Months Ended June 30, 2004.

INDIANAPOLIS -- CTI Group (Holdings) Inc., (OTCBB:CTIG), an international provider of billing management and transaction analysis software for the communications industry, reported revenues of approximately $7.6 million for the six months ended June 30, 2004 an increase of approximately $1.6 million or 27% from $5.9 million for the six months ended June 30, 2003. Revenues for the 3 months ended June 30, 2004 were approximately $3.7 million compared to approximately $3.2 million for the same period last year; an improvement of 16%. The increase in revenue was primarily the result of patent license fee revenue combined with increased revenues derived from new customers and the existing customer base.

The Company reported a net loss for the six months ended June 30, 2004 of approximately $426 thousand or two cents per share as compared to the approximately $496 thousand loss for the six months ended June 30, 2003. The improvement in reported net loss was primarily related to increased revenues for the six months ended June 30, 2004 offset by increased legal costs associated with patent enforcement activities combined with reduced recognized tax benefits. The Company reported a net loss of approximately $430 thousand or two cents a share in the second quarter 2004 compared to a net loss of approximately $13 thousand or zero cents a share in the second quarter 2003. The increased loss in the second quarter was primarily attributable to increased legal costs associated with patent enforcement activities.

Commenting on the results, Brad Houlberg, President and CEO, stated, "We are encouraged by the continued increase in revenues for the year. The five consecutive quarterly increases in revenues when compared to the similar periods in the prior years are indicative of the Company gaining momentum. Although we incurred greater patent enforcement costs in the second quarter, we believe those efforts will yield favorable results in subsequent quarters."

About CTI Group

CTI Group (Holdings) Inc. is a premier, international provider of next-generation billing management, telemanagement and data management software and services for telecommunications service providers and their corporate customers. CTI Group's SmartBill(R), Proteus(TM) and MagnaFlex(R) offer a full array of solutions for traffic analysis, mediation, post-billing call analysis, and customer care and billing. CTI Group's products are in daily use by some of the top service providers in North America and the United Kingdom, and play a trusted role in managing telephony costs at major corporations around the world. Headquartered in Indianapolis, CTI Group maintains an overseas office in London. For more information, please visit CTI Group's website at www.ctigroup.com.

Safe Harbor Statement

This release may contain "forward-looking" statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenue, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of the Company or its management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about the Company and its business relating to the future; and (e) any statements using the words "could", "should", "anticipate", "expect", "may", "project", "intend" "will" or similar expressions. The Company's ability to predict projected results or the effect of events on the Company's operating results is inherently uncertain. Forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those discussed in this document. In addition to information provided elsewhere in this document, shareholders should consider the following: the risk that the Company will not be able to attract and retain customers to purchase its products, the risk that the Company will not be able to commercialize and market products; litigation, including patent enforcement litigation, is inherently uncertain and results of litigation are unpredictable; results of research and development; technological advances by third parties; competition; future capital needs of the Company; history of operating losses; dependence upon key personnel and general economic and business conditions. Readers are referred to documents filed by CTI Group with the U.S. Securities and Exchange Commission, including the Form 10-KSB for its most recent fiscal year ended December 31, 2003 and Form 10-QSB filed for the quarter ended June 30, 2004.