Forward Event Stocks

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WPCS .39/.40 March 15 2005(approx):

WPCS Reports Record Revenue For 2nd Quarter
Wednesday December 15, 9:52 am ET


EXTON, Pa., Dec. 15 /PRNewswire-FirstCall/ -- WPCS International Incorporated (OTC Bulletin Board: WPCS - News) has reported its financial results for the FY2005 second quarter ended October 31, 2004. For the second quarter of FY2005, WPCS reported record revenue of approximately $10.3 million compared to $6.2 million for the same period a year ago which represents an increase of 65%. In regards to the increase in reported quarterly revenue, $2.2 million was attributed to organic growth and the balance from past acquisitions. For the six months of FY2005 ended October 31, 2004, WPCS reported total revenue of approximately $17.6 million compared to $9.3 million for the same period a year ago which represents an increase of 89%. In regards to reported revenue for the six months ended October 31, 2004, $4.2 million was attributed to organic growth and the balance from past acquisitions.
For the second quarter of FY2005, the reported net income was $31,000 or $0.00 per share, which includes income taxes of $5,000 and depreciation and amortization of $125,000. For the same period last year, the reported net income was $11,000 or $0.00 per share, which included income taxes of $50,000 and depreciation and amortization of $91,000. For the six months of FY2005, the reported net income was $108,000 or $0.00 per share, which includes income taxes of $72,000 and depreciation and amortization of $247,000. For the same period last year, the reported net loss was $112,000 or $0.01 per share, which included income taxes of $91,000 and depreciation and amortization of $154,000.

Andrew Hidalgo, CEO of WPCS International Incorporated, commented: "We are pleased to report record revenue in our second quarter. In addition, this revenue generation does not include the contributions to be made from our recently announced acquisition, Quality Communications, which was acquired on November 24, 2004. The new acquisition will contribute both revenue and earnings in the third and fourth quarters of our current fiscal year, which will enhance our financial performance. WPCS is continuing to create operational efficiencies with the assimilation of subsidiaries and our primary focus is to improve earnings. In the second quarter, there was an increase in costs incurred on certain contracts that have since been completed. Other than the increase in costs on these projects, WPCS had a productive second quarter announcing $9.3 million in new major contracts. The current backlog is $21 million, which we expect to recognize over the next eight months. Also, for projects pending, the company has approximately $40 million of submitted bids. The business climate remains favorable for WPCS. With the addition of our new subsidiary Quality Communications and with our growing backlog and bid activity, we anticipate a strong FY2005 third and fourth quarter."

About WPCS International Incorporated:

WPCS International Incorporated is an engineering company that focuses on the implementation requirements of wireless technology and specialty communications systems. The company provides a range of services including site design, product integration, security, structured cabling, construction and project management. 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 http://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 Litigation Reform Act of 1995. 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.

Contact:
Carol Lindley / Investor Relations
WPCS International Incorporated
610-903-0400 x-100
[e-mail]




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Source: WPCS International Incorporated