Mti Wireless Regulatory News (MWE)

8 May 2006 07:00

FOR IMMEDIATE RELEASE 8 May 2006 TRADING UPDATE: FIRST QUARTER 2006 MTI Wireless Edge Ltd., (ticker: MWE) ('MTI' or 'the Company'), a market leaderin the manufacture of flat panel antennas for fixed wireless broadband, todayannounced its summary unaudited results for the three months ended 31 March2006, its thirteenth consecutive quarter of revenue growth.Highlights * Revenues up 31% year on year to US$ 3.4 million (US$ 2.6 million) * Gross profit up 37% year on year to US$ 1.5 million (US$ 1.1 million) with gross margin of 43.7% (41.8%) * Net profits up 46% year on year to US$ 0.6 million (US$ 0.4 million) with increased net margin of 17.1% (15.4%) * Basic earnings per share up 31% * Positive outlook for remainder of 2006 with healthy order book and opportunity pipeline * Successful initial public offering and admission to AIM in March 2006 with offering oversubscribed and raising net proceeds of GB ‚£5 million * Net cash position of US$ 11.7 million as at 31 March 2006 Financial Summary(US$ `000s) 1 Jan - 31 March 1 Jan - 31 March 2006 2005 Turnover 3,404 2,592 Gross Profit 1,486 1,084 Operating Profit 600 406 Net Profit 583 398 Basic earnings per 1.65 1.26share (US Cents) Dov Feiner, Chief Executive Officer, commented: "MTI continued its strong topline and earnings momentum in the first three months of the year, with improvedmargins at all levels. Our contracted but as yet unfulfilled order book is veryhealthy with US$ 3.8 million of committed revenues for the remainder of 2006,compared to US$ 2.6 million at this stage last year. US$ 3 million of thiscurrent order book is due for completion during the second quarter. We have wonsignificant new contracts and our forward opportunity pipeline is encouraging.We sell our products to the world's leading original equipment manufacturers ofwireless broadband systems, and our antennas are now installed in over 130countries, worldwide."The fixed wireless broadband equipment market is estimated to be growing bymore than 40% per year, according to Skylight Research, and therefore presentsan enormous potential for MTI as the world leader in the provision of fixedbroadband wireless antennas. We continue to work hard to develop long-termbusiness relationships with key partners and customers around the world, aswell as to leverage our market leading position by developing additionalemerging applications such as Radio Frequency Identification (`RFID') antennasfor use in inventory tracking and supply chain management in large warehouses."The successful completion of our IPO is a major step for the Company,providing us with additional capital to pursue our strategic internationalexpansion and product development whilst, at the same time, helping to raiseour international profile."For further information, please visit www.mtiwe.com or contact:Dov Feiner (CEO) / Moni Borovitz (CFO) Tel: +972 3 900 8900Luke Ahern / David Seal - Corporate Synergy Plc Tel: +44 20 7448 4400Rob Newman - Shared Value Tel: +44 20 7321 5029About MTI Wireless EdgeMTI designs and manufactures flat panel antennas, largely supplied tointernational OEMs of fixed broadband wireless access systems. With over 30years of technical `know-how', flexible high volume manufacturing capabilitiesand low failure rates, MTI's antennas now comprise approximately 25% of theglobal fixed broadband wireless antenna market. In addition, the Company hassuccessfully developed products for new commercial applications as wirelesssystems become increasingly prevalent in new markets.ENDMTI WIRELESS EDGE LTD