Emtec Announces Correction to Previously Reported Net Income for the Quarter Ended June 30, 2003

    MT. LAUREL, N.J., Aug. 18 /PRNewswire-FirstCall/ -- Emtec, Inc.
 (OTC Bulletin Board:   ETEC) announced today that its net income for the quarter
 ended June 30, 2003 had increased by 213% to $357,891 or $0.05 per share, as
 contrasted with the comparable 2002 period. It had previously reported an
 increase of 364%, to $530,539 or $.07 per share.
     Emtec also announced that its sales, general and administrative expenses
 increased by 7.78%, or $231,328, to $3.21 million for the quarter ended June
 30, 2003 rather than by 1.19%. or $35,343 to $3.01 million, as previously
 reported. Without the acquisitions of certain assets of Acentra Technologies,
 Inc. and Turnkey Computer Systems, Inc., the Company's sales, general and
 administrative expenses would have been decreased by approximately 18.49%, or
 $549,000, rather than the previously reported increase of 18.37% or $540,000.
     Commenting on the foregoing, Sam Bhatt, Emtec's Vice President of Finance,
 stated that these corrections were attributable to management's failure to
 take into account increased EBITDA of Emtec's government division for this
 period, which augmented potential bonus compensation for three prior owners of
 Acentra Technologies, Inc., one of them is an employee of Emtec.
 
     About Emtec
     Emtec, Inc. established in 1981, provides high-end computer systems and
 services to Fortune 1000 clients ranging in size from $50 million to
 $500 million in revenues.  The Company specializes in evaluating and providing
 solutions for data management including Enterprise Management, Managed
 Services (monitoring/maintenance/helpdesk), and Data Management (storage and
 protection of data). With the recent acquisitions of Intellispan (Help Desk),
 Accentra (systems and services) and Turnkey Computer Systems (managed building
 services), Emtec has broadened its engineering and services capabilities.  For
 additional information please contact Consulting For Strategic Growth 1, Ltd,
 at 800-625-2236.
 
     Certain statements in this document constitute "forward-looking
 statements" within the meaning of the Private Securities Litigation Reform Act
 of 1995.  Such forward-looking statements involve known and unknown risks,
 uncertainties and other factors, which may cause the actual results,
 performance or achievements of Emtec, Inc. ("the Company"), or industry
 results, to be materially different from any future results, performance, or
 achievements expressed or implied by such forward-looking statements.  The
 Company's future operating results are dependent upon many factors, including
 but not limited to the Company's ability to: (i) obtain sufficient capital or
 a strategic business arrangement to fund its plan of operations when needed;
 (ii) build the management and human resources and infrastructure necessary to
 support the growth of its business; (iii) competitive factors and developments
 beyond the Company's control; and (iv) other risk factors discussed in the
 Company's periodic filings with the Securities and Exchange Commission which
 are available for review at www.sec.gov under "Search for Company Filings."
 Consulting For Strategic Growth I, Ltd. ("CFSG") has a November 2002 agreement
 with Emtec, Inc. to provide consulting, business advisory, investor relations,
 public relations and corporate development services to the Company for a one-
 year period.  In connection with these services, CFSG prepares press releases,
 corporate profiles, and other publications on behalf of and regarding the
 Company. In accordance with this agreement, the Company is required to pay
 CFSG $3,500 per month for the duration of the contract.  Independent of CFSG's
 receipt of cash compensation from Emtec, CFSG may choose to purchase the
 common stock of Emtec and thereafter liquidate those securities at any time it
 deems appropriate to do so.
 
 
                                  EMTEC, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                                  (unaudited)
 
 
                                            Three Months Ended:
                                 June 30, 2003             June 30, 2002
     Revenues
 
     Procurement services        $23,730,729                $15,980,546
     Service and consulting       $4,702,026                 $3,683,209
     Geothermal                      $47,585                   $ 45,349
 
     Total Revenues              $28,480,340                $19,709,104
 
     Cost of Sales
 
     Cost of procurement
      services                   $21,691,493                $14,061,661
     Service and consulting       $3,067,780                 $2,514,540
     Geothermal                      $17,484                   $ 17,598
 
     Total Cost of Sales         $24,776,757                $16,593,799
 
     Gross Profit
 
     Procurement services         $2,039,236                 $1,918,885
     Service and consulting       $1,634,246                 $1,168,669
     Geothermal                      $30,101                    $27,751
 
     Total Gross Profit           $3,703,583                 $3,115,305
 
     Operating Expenses
 
     Sales, General &
      Administrative Expenses     $3,205,245                 $2,973,914
     Interest Expense                $99,166                    $27,136
 
     Total Operating Expenses     $3,304,411                 $3,001,050
 
     Income Before Income
      Tax Expense                   $399,172                   $114,255
 
     Income Tax Expense              $41,281                         $-
 
 
     Net Income                     $357,891                   $114,255
 
     Net Income Per Share
      {Basic and Diluted}             $ 0.05                      $0.02
 
     Weighed Average Number
      of Shares Outstanding
      {Basic and Diluted}          7,080,498                  7,080,498
 
      Contacts:
      Stanley Wunderlich
      Consulting For Strategic Growth 1, Ltd.
      Public Relations
      Corporate Development Consultants
      Tel: 800-625-2236
      Fax: 212-697-0910
      Email: cfsg@consultant.com
 
      John Howlett
      Chief Executive Officer
      Emtec, Inc.
      Tel: 856-235-8787
      Fax: 856-235-2932
      Email:john_howlett@emtecinc.com
      Website: www.emtecinc.com
 
 

SOURCE Emtec, Inc.

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