Total revenue for the three months ended September 30, 2001, was $2,587,986 compared to $1,176,710 for the year-ago quarter

November 16, 2001

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SEATTLE -- Cognigen Networks. Inc. (OTC Bulletin Board: CGNW), a dominant Internet-enabled marketer and carrier of telecommunications services with a worldwide presence, today announced financial results for the first quarter of FY2002, ended September 30, 2001. Total revenue for the three months ended September 30, 2001 was $2,587,986 compared to $1,176,710 for the three months ended September 30, 2000. Total revenue for the 2001 period consisted of $891,789 related to prepaid cards, PINS and call switching services, and $1,616,880 related to commissions earned. The $1,616,880, or 85% increase in commissions was due to an increase of approximately 75,806 new agents and a larger mix of offered products and services. A comprehensive review of all financial data for the subject quarter is available in the 10Q-SB filed by the company on November 14, 2001. Darrell H. Hughes, Chairman and CEO of Cognigen, commenting on the FY2002 first quarter results said, "While significant improvement in all fundamental areas of our business was realized, the final accounting shows a negative EBITDA of ($91,349) for the quarter ended September 30, 2001. We had earlier provided a preliminary estimate that the company would be EBITDA positive for the quarter, but fell short of that mark when the final reported expenses were factored in. Nonetheless there was a marked improvement in the EBITDA loss over the previous quarter. EBITDA loss for the first quarter of FY 2002 was 451% less than the EBITDA loss of ($412,048) for the fourth quarter of FY 2001. First quarter to year EBITDA loss between FY2001 and FY2002 improved dramatically from ($366,131) to ($91,349) for a 75% reduction. Cognigen was cash flow positive by $62,922, for 1Q02."Cognigen Networks Inc.

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