DLK Semotus Solutions,

For The Three and Nine Months Ended December 31, 2005, Revenue Increased 47% and 36%; Q3 Net Loss Per Share Shrank to $.01 LOS GATOS, Calif., Feb. 14 /PRNewswire-FirstCall/ -- Semotus Solutions (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, reported its third quarter financial results for the three and nine months ended December 31, 2005. Financial Highlights for the Three and Nine Months Ended December 31, 2005 Compared to the Three and Nine Months Ended December 31, 2004: -- Revenue increased 47% to $688,217 from $466,952 for the three month period and increased 36% to $1,851,283 from $1,365,088 for the nine month period; -- Gross profit margin on revenue improved to 88% from 84% in the three month period; -- Net loss for the three month period in 2005 versus 2004 shrank to $0.01 per share verses $0.04 per share, while the net loss for the nine month period in 2005 versus 2004 was up slightly to $0.04 per share versus $0.03 per share; -- The overall cash usage for the three month period declined to $71,600 from $157,900 for the three month period ended September 2005. As of December 31, 2005, the Company had approximately $1.4 million in cash and receivables, working capital of $826,000 and stockholders' equity of $4.3 million. Commenting on the results, Anthony LaPine, Chief Executive Officer of the Company, noted, "The increase in revenue has resulted from the continuing growth of the HipLinkXS family of products, as well as from the addition of the new Expand Beyond and Clickmarks products. The portfolio of Semotus mobility products and services continues to be in demand from major corporate customers, such as Shell Oil, JPMorgan, Cablevision, and a growing number of Fortune 1000 customers. Further, Semotus continues to evolve its resource outsourcing and expects a meaningful reduction in expenses throughout the calendar year as a consequence. The initial investments and expenses related to our two recent acquisitions are now behind us. Looking ahead, we are now concentrating on promoting strong revenue growth and continued reductions in expenses as we continue making marked progress towards achieving our ultimate objective of consistent quarter-over-quarter profitability." The reduced loss in the current three month reporting period versus the same period in 2004 is largely a result of the reversal of the stock compensation expense in the 2005 period. The increase in the loss for the nine month period continues to be from expenses related to the two acquisitions, Expand Beyond and Clickmarks, and from the increased spending and investment in research and development and sales and marketing. To ensure the Company is positioned to meet the demands of the growing mobility software market, Semotus will continue to strategically invest in product improvements and in its global sales and marketing initiatives. "Semotus has continued to execute well and is making good headway in building a strong global sales pipeline for its enterprise mobility solutions," said LaPine. "We're staying focused on delivering the best possible products and services, accelerating market share gains, investing in our people and products and staying on the offense to capitalize on every opportunity to achieve positive cash flow and consistent profitability in the coming quarters. During the last three quarters, Semotus has made significant investments in its two acquisitions, and expect to see those investments deliver strong growth in the coming quarters. Our management philosophy of strict expense discipline coupled with heavy focus on sales and marketing are helping to lead Semotus to consistent profitability." Concluding, LaPine noted, "Aggressive marketing by our sales team has resulted in a number of notable new customer wins for Semotus in a wide range of industries, including healthcare, education, technology, biotechnology, telecom and oil and gas. Moreover, we expect that our new strategic alliance with Redwood in Japan will help to drive further sales growth in the coming quarters." Semotus will host a teleconference this afternoon, February 14, beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progress and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-240-5318 or via the Internet at http://www.semotus.com/. For those unable to participate at that time, a replay of the web cast will be available for 90 days on http://www.semotus.com/. About Semotus Solutions Founded in 1993, Semotus Solutions is the premier provider of software for the mobile enterprise, connecting employees to critical business systems, information and processes. Semotus has a Fortune 1000-installed customer base and hundreds of corporate clients including Lockheed Martin, Blue Cross Blue Shield, Coca-Cola, Hewlett Packard, Nextel Communications, JP Morgan Chase and The United Nations. Semotus Solutions' software provides mobility, convenience, efficiency and profitability in the areas of workforce automation, finance, health care and m-commerce. For more information on the Company, please visit the following web sites: http://www.semotus.com/; http://www.hiplinkwireless.com/; http://www.clickmarks.com/; http://www.xb.com/. This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release. CONTACT: Dodi Handy, President and CEO of Elite Financial Communications Group, +1-407-585-1080 or , for Semotus Solutions First Call Analyst: FCMN Contact: DATASOURCE: Semotus Solutions CONTACT: Dodi Handy, President and CEO of Elite Financial Communications Group, +1-407-585-1080 or , for Semotus Solutions Web site: http://www.semotus.com/

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