Plaintree Posts Quarterlies

OTTAWA -- Plaintree Systems Inc. (Plaintree, TSE: LAN; OTC BB: LANPF), a developer and manufacturer of Free Space Optical (FSO) communications products, today reported that increasing sales of its new WAVEBRIDGE wireless links resulted in improved product sales and gross margins in its fiscal 2002 first quarter ended June 30, 2001, compared with both the first and forth quarters of fiscal 2001. Product revenue in the fiscal 2002 first quarter of $542,971 was up 25.9 percent from the $431,262 recorded in the fiscal 2001 fourth quarter, and was 66.7 percent higher than the $325,719 reported for the first quarter a year ago. The gross margin on product revenue doubled to 38.2 percent from 19.2 percent reported for the fourth quarter of fiscal 2001, and compared with 26.9 percent in the fiscal 2001 first quarter. "Our sales growth and improved gross margin in the first quarter met our expectations and are further confirmation that Plaintree Systems is on the right track based on our successful introduction and growing demand for the WAVEBRIDGE family of eye-safe optical wireless links," said David Watson, President and Chief Executive Officer. "It is important to understand that $360,000 of this product revenue is an initial order from a company that has just completed an intensive and detailed evaluation of our WAVEBRIDGE product line. The bulk of the remaining sales were single evaluation units for other large potential users. The WAVEBRIDGE line accounted for all but approximately $40,000 of the fiscal 2002 first quarter product revenue." Plaintree Systems Inc.