WPCS Reports 1st Quarter FY2005 Results.

EXTON, Pa. -- WPCS International Incorporated (OTCBB:WPCS) has reported its financial results for the FY2005 first quarter ended July 31, 2004. For the first quarter of FY2005, WPCS reported revenue of approximately $7.3 million compared to $3.1 million for the same period a year ago which represents an increase of 135%. In regards to the reported quarterly revenue, $2 million was attributed to organic growth and the balance from former acquisitions.

For the first quarter of FY2005, the reported net income was $76,000 or $0.00 per share, which includes income taxes of $67,000, depreciation and amortization of $122,000 and non-cash charges of $13,000 relating to the grant of stock options. For the same period last year, the reported net loss was $123,000 or $0.01 per share, which included income taxes of $41,000, depreciation and amortization of $64,000 and non-cash charges of $130,000 relating to the grant of stock options.

Andrew Hidalgo, CEO of WPCS International Incorporated, commented: "In our first quarter, WPCS announced $6.7 million in new contract awards that included projects for Nextel, Bechtel, Caltrans and the Sacramento Municipal Utility District. The company also successfully completed many projects. Currently, our backlog stands at $17.9 million over an anticipated completion range of eight months. The bid activity remains high and we feel that the business opportunities continue to expand as more and more corporations and entities are developing their future wireless network strategy for voice and data. Another significant milestone achieved in the first quarter was the transition from four independent subsidiary accounting systems to one networked accounting system for all subsidiaries. The conversion to one accounting system was costly and time consuming, however, the future benefit of managing finances and resources for all subsidiaries at the corporate level is expected to far exceed the cost and time to implement. This is the first step in truly integrating our subsidiaries so that we can service our customers specialty communication system and wireless infrastructure needs in a seamless fashion."

About WPCS International Incorporated:

WPCS and its subsidiary companies offer project engineering services for specialty communication systems, wireless fidelity (WiFi) and fixed wireless applications. WPCS offers the ability to integrate superior solutions across the vast majority of communication requirements. The company has an extensive customer base that includes many major corporations, government entities and educational institutions. For more information, please visit our website at www.wpcs.com.

Statements about the company's future expectations, including future revenue and earnings and all other statements in this press release, other than historical facts, are "forward-looking" statements and are made pursuant to safe harbor provisions of the Securities Exchange Act of 1934. Such forward-looking statements involve risks and uncertainties and are subject to change at any time. The company's actual results could differ materially from expected results. In reflecting subsequent events or circumstances, the company undertakes no obligation to update forward-looking statements.