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RUSS(3.6) - RUSS Whitney Information Network, Inc. Reports Net Income of $4.1 Million for First Quarter 2005
Business Wire - May 16, 2005 9:49 AM (EDT)

CAPE CORAL, Fla., May 16, 2005 (BUSINESS WIRE) -- Whitney Information Network, Inc. (OTCBB:RUSS), a provider of post-secondary career training programs, today reported net income of $4.1 million for the first quarter ending March 31, 2005, or $0.48 per share (basic) and $0.43 (fully diluted) compared to net income of $208,000 in the first quarter of 2004 or $0.02 per share (basic and fully diluted). Sales revenue for the period was $40.2 million, an increase of $1.7 million over the comparable period in 2004.

Earnings of $4.1 million in the first quarter were reduced by the net increase of $6 million in deferred revenue for the quarter, which will be recognized as income in future periods.

At March 31, 2005, the Company's operating cash position increased to $13.3 million. The Company's long term debt of $11.7 million at March 31, 2005 pertains exclusively to its real estate holdings, property and equipment which total $25.7 million, net, at March 31, 2005.

"The significant increase in our profitability is the direct result of our concentrated focus on our core brands, coupled with an overall improvement in marketing efficiency and productivity that resulted from our business restructuring in the latter half of last year," said Russ Whitney, Company founder and CEO. "Clearly, these efforts have positioned Whitney Information Network for a sustained period of growth and profitability."

The Company's strong performance is attributed to a combination of factors, including:

-- Implementation of new marketing strategies that focused on those geographic markets which historically have been the most responsive to the Company's product offerings.

-- Optimization of pricing that resulted in increased attendance at the Company's 3-Day Basic Training Courses for real estate and stock investing, as well as greater interest in advanced training curriculum.

-- Increased concentration on alternative methods of delivering advanced training, including on-line education delivery.

-- A comprehensive business restructuring and implementation of new cost reduction measures.

The Company expanded its implementation of online and on-demand training to students over the Internet in order to meet the increased demand for its advanced training. The success of this effort will have a continuing positive impact on the Company's revenues and earnings.

Improved market-by-market execution of media investments and price point optimization resulted in attendance at the Company's 3-Day Basic Trainings more than tripling during the three month period ending March 31, 2005, reaching 17,007 students compared with 5,467 students during the same period in 2004. Increases were also realized in the number of students attending advanced trainings. This trend is expected to continue.

About Whitney Information Network

Whitney Information Network, Inc. (OTCBB:RUSS) is a leading provider of post-secondary education focused on individual wealth creation and personal success. Through its wholly-owned subsidiary, Wealth Intelligence Academy, Whitney Information Network provides its students with comprehensive instruction and mentorship in real estate investment, stock trading, business development and individual investment strategies. Additional information can be found at http://www.russwhitney.com.

Information included in this news release contains forward-looking statements made pursuant to the Private Securities Litigation Reform Act of 1995 ("Reform Act"). Such statements are based on current expectations and involve a number of known and unknown risks and uncertainties that could cause the actual results and performance of the Company to differ materially from any expected future result or performance, expressed on implied, by the forward-looking statements. In connection with the safe harbor provisions of the Reform Act, the Company has identified important factors that could cause actual results to differ materially from such expectations, including operating uncertainties, uncertainties relating to economic issues and competition. Reference is made to all the Company's SEC filings, including the Company's Reports on Forms 10K, 10Q and other periodic reports.

SOURCE: Whitney Information Network, Inc.

Whitney Information Network, Inc., Cape Coral
Ron Simon or Nick Maturo, 239-542-0643

Copyright Business Wire 2005