HyperFeed Reports Year End 2005 Results

CHICAGO, March 10  /PRNewswire-FirstCall/ -- HyperFeed Technologies, Inc. (OTC:HYPR) (BULLETIN BOARD: HYPR) , a provider of ticker plant technologies, data distribution, smart order routing, and managed data services to the financial community, today reported results for the year ended December 31, 2005. The audit of the HyperFeed's financial statements is still in process and, as a result, the results contained in this press release should be considered preliminary.

HyperFeed's revenue in 2005 was $4.3 million versus $6.0 million in 2004, representing a decrease of 28% year over year. Due to Moneyline Telerate's acquisition by Reuters, Telerate terminated their contract with HyperFeed at the end of 2004. HyperFeed had recognized $3.6 million of revenue from Telerate in 2004 and no revenue in 2005. The Company reported a net loss of $9.2 million in 2005, or $2.40 per share, versus net loss of $5.0 million, or $1.62 per share, in 2004. During 2005, HyperFeed acquired the assets of Focus Technology Group LLC, including its Smart Order Routing Technology for Traders, and entered into an agreement to license Telerate's TRS and Active8 technology.

Net cash and cash equivalents of $0.3 million at December 31, 2005 increased $0.1 million from $0.2 million at December 31, 2004. The Company's majority stockholder, PICO Holdings, Inc. ("PICO"), has committed to lend the Company $5.0 million under a secured convertible promissory note, which it expects to issue in March 2006. HyperFeed has had preliminary discussions with PICO to provide additional financing, which HyperFeed believes is necessary to continue to fund its business plan over the next twelve months. Management believes that this additional funding will be adequate for HyperFeed to continue as a going concern; however, there is no assurance that the funding will be obtained or at an adequate level for HyperFeed to continue as a going concern. Any additional financing will be subject to HyperFeed's Board approval.

Since January 2004, HyperFeed has signed contracts valued at an aggregate of $11.7 million in payments to HyperFeed during their initial terms, of which $4.3 million was recognized in 2004, $2.5 million was recognized in 2005, and $2.4 million is expected to be recognized in 2006. Under HyperFeed's current business model, it has entered into renewable license agreements that provide for subscription-based payment terms; that is, periodic rather than up-front payments of license fees, which we believe has the effect of building a less volatile revenue base that provides consistent growth with the addition of each new customer.

In May 2005, HyperFeed Technologies entered into an exclusive agreement with Moneyline Telerate and Reuters Limited to license globally in perpetuity the source code for both Telerate's Trading Room System ("TRS") and Active8 technology. Under the terms of the license, HyperFeed is entitled to use and further develop the TRS technology and the Active8 technology to offer its own market data platform and associated data display workstation worldwide. In August 2005, HyperFeed entered into a $1.5 million exclusive, multi-year distributor agreement with MarketXS, a leading European provider of real-time market data technology and trading solutions, that gives MarketXS the right to license, distribute, and support HyperFeed's HMDP and OCC products in Europe, the Middle East, and Africa. HyperFeed plans to provide software upgrades, maintenance and second level support, while MarketXS is expected to provide European development, technical sales, and first level maintenance support. In January 2006, HyperFeed expanded its global presence by opening an office in London, England.

Mr. Paul Pluschkell, President and CEO of HyperFeed, said, "We have continued expanding into new markets with our subscription-based business model. We are making inroads into European markets with our HMDP and OCC products, while our extremely low latency HSOURCE product is already in use with several hedge funds. With our current suite of products, we believe we can penetrate all levels of the market, providing everything from a fully managed ticker plant to an ultra low latency feed handler to data distribution to market snapshot software for REG-NMS compliance. We believe there are vast opportunities open for the global and open trading environment we can provide."

Mr. Pluschkell adds, "As a PICO subsidiary, we have more management and financial support available for our business model. This year we have signed thirty additional contracts valued at $4.2 million, of which we could recognize $1.5 million of revenue in 2006. We have made significant advances in number of customers with a total of 55 contracts through December 31, 2005. This is a 90% increase over the 29 contracts we had at the end of 2004."

               HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY

  Consolidated Balance Sheets

  December 31                                        2005            2004
                                                  (Unaudited)      (Audited)
                                  ASSETS
  Current assets:
    Cash and cash equivalents                       $302,171       $193,702
    Accounts receivable, less allowance
     for doubtful accounts of:
     2005: $101,309; 2004: $34,031                   191,656        576,092
    Notes receivable, less allowance of:
     2005: $10,830; 2004: $60,830                     90,493         93,798
    Prepaid expenses and other current assets         64,351        125,890
    Assets related to discontinued operations         57,094         72,270
            Total current assets                     705,765      1,061,752

  Property and equipment
    Computer equipment                             1,511,660      1,627,021
    Communication equipment                          737,993      1,031,370
    Furniture and fixtures                            74,853        106,559
    Leasehold improvements                             9,260        531,809
                                                   2,333,766      3,296,759
    Less: accumulated depreciation
     and amortization                             (1,798,168)    (2,457,645)
  Property and equipment, net                        535,598        839,114

  Other intangible assets, net of accumulated
   amortization of: 2005: $432,917;
   2004: $229,167                                    224,583         78,333
  Software development costs, net of accumulated
   amortization of: 2005: $2,709,165;
   2004: $3,016,799                                3,102,182      1,686,975
  Deposits and other assets                           47,390         46,472
  Total assets                                    $4,615,518     $3,712,646

                   LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Line of credit                               $$1,310,000       $465,000
    Accounts payable                               1,423,756        634,299
    Accrued expenses                                 272,342        170,547
    Accrued professional fees                        189,975        158,225
    Accrued compensation                              80,279         77,763
    Income taxes payable                              12,014         27,270
    Unearned revenue                                 245,774        268,042
    Liabilities related to
     discontinued operations                         533,548        849,172
            Total current liabilities              4,067,688      2,650,318

  Noncurrent liabilities
    Accounts payable, less current portion           815,625              -
    Accrued expenses, less current portion           287,347        297,164
         Total current liabilities                 1,102,972        297,164
  Total liabilities                                5,170,660      2,947,482

  Stockholders' Equity
  Preferred stock, $.001 par value;
   authorized 5,000,000 shares; issued
   and outstanding: Series A and B 5%
   convertible: 0 shares at December 31,
   2005 and 2004                                           -              -
  Common stock, $.001 par value;
   authorized 50,000,000 shares; issued and
   outstanding: 7,641,889 shares at December 31,
   2005 and 3,064,493 shares at December 31, 2004      7,642          3,065
  Additional paid-in capital                      54,004,205     46,111,516
  Accumulated deficit                            (54,566,989)   (45,349,417)
            Total stockholders' equity              (555,142)       765,164
  Total liabilities and stockholders' equity      $4,615,518      3,712,646



               HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY

  Consolidated Statements of Operations

  For the following years ended
   December 31                    2005             2004             2003
                               (Unaudited)      (Audited)         (Audited)

  Revenue
    HyperFeed                  $3,918,162     $5,512,172        $1,029,340
    HYPRWare                      351,456        454,916           570,623
  Total revenue                 4,269,618      5,967,088         1,599,963

  Direct costs of revenue       1,443,084      1,585,129         1,537,323

  Gross margin                  2,826,534      4,381,959            62,640

  Operating expenses
    Sales and marketing         1,773,026      1,827,304           614,845
    General and administrative  3,106,668      3,021,341         3,121,500
    Research and development    1,779,386      1,441,472         1,827,975
    Operations                  2,745,599      2,236,969           186,706
    Depreciation and amortization 756,881        870,330           997,729
  Total operating expenses     10,161,560      9,397,416         6,748,755

  Loss from operations         (7,335,026)    (5,015,457)       (6,686,115)

  Other income (expense)
    Interest income                 1,297          9,427            20,381
    Interest expense           (1,921,095)        (4,151)           (1,636)
  Net other income             (1,919,798)         5,276            18,745

  Loss from continuing operations
   before income taxes         (9,254,824)    (5,010,181)       (6,667,370)
    Income tax benefit           (207,000)       (12,000)       (2,612,000)

  Loss from continuing
   operations                  (9,047,824)    (4,998,181)       (4,055,370)

  Discontinued operations
    Income (loss) from
     discontinued operations,
     net of taxes (benefit) of
     2005: $(3,000);
     2004: $(180,000);
     2003: $(29,000)             (504,748)      (266,780)        1,329,343
    Gain on disposition of
     discontinued operations,
     net of taxes of 2005:
     $210,000, 2004: $192,000;
     2003: $2,681,000             335,000        308,000         4,326,845
  Income from discontinued
   operations                    (169,748)        41,220         5,656,188

  Net income (loss) available
   for common stockholders    $(9,217,572)   $(4,956,961)       $1,600,818

  Basic and diluted net income
   (loss) per share available
   for common stockholders:
    Continuing operations          $(2.36)        $(1.63)           $(1.43)
    Discontinued operations         (0.04)          0.01              1.99
  Basic net income (loss) per share
   available for common
   stockholders                    $(2.40)        $(1.62)            $0.56

  Basic and diluted
   weighted-average common
   shares outstanding           3,835,902      3,059,176         2,844,751


DATASOURCE: HyperFeed Technologies, Inc.



CONTACT:  Tom Wojciechowski of HyperFeed, [phone], or

; or Media, Thor Harris of Artin Arts,

[phone], or , for HyperFeed Technologies, Inc.



Web site:  http://www.picoholdings.com/ 

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