ICOA Reports Q2 '05 Earnings, 357% Increase in Recurring Revenue and 20% Expansion of Footprint

    WARWICK, R.I., Aug. 23 /PRNewswire-FirstCall/ -- ICOA, Inc.
 (OTC Bulletin Board:   ICOA), a national provider of neutral-host wireless
 broadband Internet networks and managed services in high-traffic public
 locations, today reported its full financial results for the second quarter
 ended June 30, 2005.
     For the first six months of 2005 the company's revenue was $928,664, a 94%
 increase compared to $478,429 for the same period in 2004.  The company's
 revenue in the second quarter of 2005 was $478,749, a 41.5% increase compared
 to $338,389 for the same period in 2004.
     Recurring revenue increased in the second quarter by 357% over Q1 '05 and
 298% over the first six months of 2004.
     Gross margin for the first quarter of 2005 was ($75,896) compared to
 $17,458 in 2004.  However, for the first six months of 2005, gross margin was
 $25,168 compared to ($29,085) in 2004.  During the second quarter of 2005, the
 company had a net loss of ($1,717,128) compared to a net loss of ($711,142) in
 2004, and for the six months of 2005 the net loss was ($3,613,210) compared to
 ($1,232,080) for the first six months of 2004.
     ICOA CEO Rick Schiffmann said, "We are very pleased to report last
 quarter's results, the closing and integration of acquisitions and,
 specifically, the shifting of emphasis from one-time to recurring revenue
 across all of our business lines.  As well, we continued to see substantial
 usage growth across our same-location footprint and a 20% expansion of our
 total national footprint from the previous quarter."
 
     About ICOA, Inc.
     ICOA, Inc. (OTC Bulletin Board:   ICOA) is a national provider of neutral-
 host wireless and wired broadband Internet networks in high-traffic public
 locations.  ICOA provides design, installation, operations, maintenance and
 management of neutral, common-use 802.11x standard WLAN Wi-Fi hot spot and hot
 zone infrastructure throughout airport facilities, quick-service restaurants,
 universities, travel plazas, RV/campgrounds and marinas, and hospitality and
 hot zone locations.  ICOA owns or operates over 1,300 broadband access
 installations in high-traffic locations across 45 states.  For additional
 information, visit http://www.icoacorp.com .
 
     An investment profile about ICOA may be found at
 http://www.hawkassociates.com/icoa/profile.htm .
 
     For more information, contact ICOA VP of Corporate Development John
 Balbach at (401) 352-2368, e-mail: jbalbach@icoacorp.com .  For investor
 relations, contact Frank Hawkins or Julie Marshall, Hawk Associates,
 (305) 451-1888, e-mail: info@hawkassociates.com . An online investor relations
 kit containing ICOA press releases, SEC filings, current Level II price
 quotes, interactive Java stock charts and other useful information for
 investors can be found at http://www.hawkassociates.com and
 http://www.americanmicrocaps.com .
 
     The foregoing contains "forward-looking statements," which are based on
 management's beliefs, as well as on a number of assumptions concerning future
 events and information currently available to management. Readers are
 cautioned not to put undue reliance on such forward-looking statements, which
 are not a guarantee of performance and are subject to a number of
 uncertainties and other factors, many of which are outside ICOA's control,
 that could cause actual results to differ materially from such statements. For
 a more detailed description of the factors that could cause such a difference,
 please see ICOA's filings with the Securities and Exchange Commission. ICOA
 disclaims any intention or obligation to update or revise any forward-looking
 statements, whether as a result of new information, future events or
 otherwise. This information is presented solely to provide additional
 information to further understand the results of ICOA.
 
 

SOURCE  ICOA, Inc.