WTT Wireless Telecom

Wireless Telecom Group, Inc. (AMEX Symbol: WTT) announced today results for the third quarter and nine months ended September 30, 2005. Included in the quarter and nine months ended September 30, 2005 are the results of the July 1, 2005 acquisition of Willtek Communications, GmbH. Due to this acquisition, the overall results of WTT are significantly different when compared to the previous year. For the quarter ended September 30, 2005, net sales were $12,463,000 as compared to $5,944,000 recorded in the third quarter of 2004, an increase of 109%. For the nine months ended September 30, 2005, net sales were $24,474,000 as compared to $17,015,000 recorded in the nine months ended in 2004, an increase of 44%. For the nine months ended September 30, 2005, net income was $2,753,000 or $.14 per share (diluted) as compared with $1,619,000 or $.09 per share (diluted) reported for the comparable period of the prior year. Net income for the current quarter ended September 30, 2005 was $624,000 or $.02 per share diluted as compared to net income of $785,000 or $.05 per share diluted, for the comparable period of the prior year. The positive results of the Willtek acquisition are primarily due to the implementation of a realistic cost reduction plan while maintaining the Company's core competencies, effective management collaboration and integration on a global basis, ongoing strategic customer, product and market analysis and the development of several business alliances with key vendors and software development groups. These and other management actions enabled Willtek to report it's first quarterly profit since it's inception over two years ago. Paul Genova, Interim CEO, President and Chief Financial Officer stated, "We are pleased with the quarterly and year to date results. The acquisition of Willtek on July 1, 2005 has provided us with the ability to market additional products, increase revenues and extend our global reach. We will continue to implement plans to improve financial results and achieve further synergistic improvements in the operations of each of our business lines." Wireless Telecom Group, Inc. is a global provider of electronic noise generation equipment in the telecommunications field. Boonton Electronics, a wholly owned subsidiary, is a leader in the manufacture of test equipment dedicated to measuring the power of RF and Microwave systems used in multiple telecommunication markets. Microlab/FXR, a wholly owned subsidiary, is a global provider of passive microwave components including power splitters, directional couplers and filters. These products are employed as system components in commercial applications such as wireless base stations for cellular, paging and private communications, in-building wireless signal distribution, television transmitters and aircraft navigation landing systems. Microlab/FXR products are also used in military systems such as electronic countermeasures and missile guidance. Except for historical information, the matters discussed in this news release may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include declarations regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results. Such risks and uncertainties are identified in the Company's reports and registration statements filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2003 and Forms 10-Q for 2004. -0- *T SELECTED FINANCIAL RESULTS (In thousands, except per share amounts) Three months ended Nine months ended September 30, September 30, (unaudited) (unaudited) 2005 2004 2005 2004 ---- ---- ---- ---- Statement of Operations Data: ---------------------------- Net sales $ 12,463 $ 5,944 $ 24,474 $ 17,015 Gross profit 6,652 3,175 12,997 9,295 Selling, general and administrative expenses 6,015 2,247 9,926 7,293 Other (income) expense (37) (86) (205) (208) Income before income taxes 674 1,015 3,276 2,210 Net income $ 624 $ 785 $ 2,753 $ 1,619 ======== ======== ======== ======== Net income per common share: Basic $ .02 $ .05 $ .14 $ .09 ======== ======== ======== ======== Diluted $ .02 $ .05 $ .14 $ .09 ======== ======== ======== ======== Weighted average shares outstanding: Basic 25,567 17,224 20,202 17,128 Diluted 25,758 17,402 20,367 17,537 September 30, December 31, 2005 2004 ----------- ----------- (unaudited) Balance Sheet Data: ------------------ Cash & cash equivalents $ 12,754 $ 15,784 Working capital 22,803 23,599 Total assets 77,657 35,407 Total liabilities 25,330 5,928 Shareholders' equity $ 52,327 $ 29,479 *T Note: The results for the quarter and nine months ended September 30, 2005 include the July 1, 2005 acquisition of Willtek Communications, GmbH.