ICOA Reports Q305 Results; 158% Revenue Gain Over Q304 and 22% Gross Profit Improvement

Nov 14, 2005, 00:00 ET from ICOA, Inc.

    WARWICK, R.I., Nov. 14 /PRNewswire-FirstCall/ -- ICOA, Inc. (OTC Bulletin
 Board: ICOA), a national provider of wireless broadband Internet networks,
 today announced financial and operational results for the three and nine
 months ended September 30, 2005.
     In the third quarter of 2005, ICOA reported record quarterly revenue of
 $776,212, a 158% increase over $300,184 for the third quarter of 2004.  Gross
 profit for the third quarter of 2005 was a quarterly record of $106,762 or
 14%, compared to negative ($24,323) or negative (8%) for the same period in
 2004.  The gross profit improvement was an overall 22% for the third quarter
 of 2005 over the same period in 2004.
     For the first nine months of 2005, ICOA recorded revenue of $1,704,876, a
 119% increase over $778,614 reported for the same period in 2004.  Gross
 profit for the first nine months of 2005 was a record $131,931 or 8%, compared
 to ($53,407) or negative (7%) for the same period in 2004, an improvement of
 15% year over year.
     In the third quarter of 2005, the operating loss was ($893,827), and
 included increased SG&A expenses connected with the company's growth.  For the
 same period of 2004, the operating loss was ($788,474).  Net loss for the
 third quarter of 2005 was ($3,215,847), with 59% or $1,913,213 comprised of
 one time non-cash restructuring charges connected with the settlement of
 various loans, accrued interest and beneficial conversion feature on
 convertible debentures issued.  Net loss for the third quarter of 2004 was
     For the first nine months of 2005, the company reported a net loss of
 ($6,829,055) compared to a net loss of ($2,197,899) for the same period in
 2004.  Interest expense of $3,623,902 in 2005 compared to $360,872 in 2004
 with 53% of the net loss in 2005 attributable to the company's recognition of
 one time non-cash restructuring charges connected with the settlement of
 various loans, accrued interest and beneficial conversion feature on
 convertible debentures issued.
     "Over the last twenty-four months, our primary focus has been the
 strategic, financial and operational transitioning of ICOA from a kiosk-
 focused business to a scalable national broadband wireless service provider,"
 said ICOA CEO Rick Schiffmann. "Our success is reflected in this quarter's
 financial results, including a 158% increase in year over year revenues and a
 significant improvement in gross margin.  Operationally, ICOA has reached the
 point where we are able to begin realizing improved economies of scale."
     "To build on this momentum," continued Schiffmann, "ICOA is now focused on
 forging a new era of growth in broadband wireless services through the
 continued expansion of our owned and managed national footprint, entering
 promising high-margin verticals via continued acquisitions of accretive
 assets, driving additional revenue across our existing assets through
 increased usage and ancillary services and reducing relative operational costs
 from our business as we strive to achieve greater national scale."
     CFO Stephen Cummings added, "During this quarter, the company made
 significant strides in reducing its cost structures relative to revenue
 resulting in increased EBITDA.  Additionally, in the third quarter of 2005,
 recurring revenue accounted for 69% of ICOA's total revenue, an improvement
 over last year's third quarter when recurring revenue accounted for 38% of
 revenue.  The company's record revenue growth this quarter, combined with our
 focus on expense management, yielded significant improvements to gross margin
 performance and we are looking to a continuation of this trend."
     Cummings continued, "As we look to capitalize on opportunities in our
 existing sales pipelines and the broader opportunities presented by the rapid
 growth across the broadband wireless industry as a whole, capital formation
 under more favorable terms and continued adherence to conservative capital
 management remain a priority."
     Operational highlights for the third quarter included:
     *  ICOA's owned and managed footprint increased to 1,400 locations, a 215%
        increase from a year earlier.
     *  Customer demand defined as total user sessions increased 135% since
        January 2005, while the number of unique customers increased by 155%
        over the same period.
     *  ICOA's airport footprint expanded from 7 to 25 facilities, a 258%
        increase from a year earlier while network coverage of airport facility
        annual passengers increased 205% from 20 million to over 61 million.
     *  ICOA's managed services customer base increased by 88% since January of
     Detailed operating results will be provided in the company's Form 10-QSB
 that will be filed with the Securities and Exchange Commission today and can
 be accessed via http://www.icoacorp.com/investors.html.
     About ICOA, Inc.
     ICOA, Inc. 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, marinas, hospitality and municipal/hot zone locations.  ICOA owns or
 operates over 1,400 broadband access installations in high-traffic locations
 across 45 states.  For additional information, visit http://www.icoacorp.com.
 To subscribe to ICOA's email alert system, please send an email to:  news-
     For more information, contact ICOA Vice President of Corporate Development
 John Balbach at (401) 352-2368 or email jbalbach@icoacorp.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.