Cognigen Hires Sgroi

SEATTLE -- Cognigen Networks, Inc. (OTC Bulletin Board: CGNW), the Seattle based Internet-enabled marketer of communications services, reseller and facilities based carrier, today announced that its board of directors has appointed Tony Sgroi as president of Cognigen Resale Division ("CRD"). Mr. Sgroi was formerly president of Global Crossing's North American Carrier Division. Darrell H. Hughes, Cognigen's chairman and CEO said, "The appointment of Tony Sgroi as president of CRD is a major enhancement of our senior management team. His experience with facilities based carriers, and understanding of underlying costs, coupled with his marketing and sales vision will intelligently drive both growth and profitability of Cognigen." Mr. Hughes continued, "Cognigen's board has redesigned our corporate architecture through the creation of a division dedicated to transition a substantial portion of our sales production from master agency to proprietary reseller status. This is the mission of the CRD, and we are convinced Tony Sgroi is the leader we need for this effort. We expect the CRD to have a significant impact by increasing our top line revenue and net earnings. Cognigen's non-carrier sales channels generated approximately $46 million of sales revenue in our last fiscal year. However, we could only record $9 million of that as our own revenue because Cognigen did not bill or own those accounts. As a fully qualified reseller, Cognigen can now gather proprietary accounts thereby generating greater revenue for its own account. This does not mean that Cognigen will reduce the variety of services and products offered on behalf of its valued vendors, but rather that we will augment that variety and competitive pricing for the benefit of our customers." Cognigen Networks Inc.