Spantel Posts Q2 Profit

FUENGIROLA, Spain -- Spantel Communications, Inc. (OTC Bulletin Board: SPAL), a provider of telecommunication services in Spain, reported today record financial results for the second quarter and six months ended June 30, 2003.

Spantel Communications cited strong improvement in operating margins as it reported its second consecutive profitable quarter. Spantel earned $319,534 (Euro 279,460), or $0.015 cents a share, for the three months ended June 30 compared to a loss of $888,847 (Euro 777,372), or $0.04 cents a share, in the same period a year ago. Revenue for the quarter was $4,136,533 (Euro 3,617,748), from $2,812,102 (Euro 2,459,421) a year ago.

The operating margin for the second quarter was 46%, compared with 30% for the previous year's quarter. For the six months, the operating margin increased to 44% in 2003 from 30% in 2002. The increases reflect productivity and efficiency improvements implemented this year along with continued incremental margin improvement, one of Spantelís key financial objectives.

"We're extremely pleased with our results this quarter, Spantelís strong results were marked by continued revenue and earnings growth, and margin improvement as all areas met our expectations," said chief financial officer Cesar Martinez. ìWhile we are actively investing in talent and products for current and future growth, we believe that our full year results will easily meet our key long-term goal of growth."

Spantel Communications Inc.