Ionosphere Revenues Ramp

GREENVILLE, S.C. -- iOnosphere, Inc. today announced greatly improved results for its second full year of operations. CFO James Bailey stated, "Revenues increased from $35 million in 2001 to $48 million in 2002. Gross profit improved from $3.2 to $8.1 million and operating expenses decreased from $11.4 to $8.4 million. The resulting EBITDA improved from a loss of $8.2 million in 2001 to a loss of less than $300 thousand in 2002. Net loss decreased from $15.5 to $1.2 million. Stockholders' Equity is over $5.5 million." CEO Leighton Cubbage added, "iOnosphere doesn't look or act like today's typical telecom company. We have cash, positive working capital, no debt, and significant equity. But, the greatest difference is the team of determined owner/employees that know iOnosphere can and will 'survive and ultimately prosper' in this tough but huge international telecom market." COO Derrell Hunter explained, "Getting profitable was the focus in 2002. We're close. Sustaining and increasing profitability will always be the first priority, but we also have the team, the network, and the systems to run far, far more traffic. More and bigger customers are asking us to deliver their calls. Groups that control routes are partnering with us in greater numbers to fill up those routes. The iOnosphere team says to bring it on." VP of Development Ivan Avila says, "iOnosphere is progressive with leading-edge VoIP technology, and our team of highly qualified telecom engineers implements it worldwide, using both the public internet and dedicated satellite transmission. We're very good at working with PTTs and other telecom companies in developing countries to create efficient termination and origination solutions and to help develop and manage in-country infrastructure, as well as to support, or partner in, other telecom services such as prepaid calling card businesses." Ionosphere Inc.