Apropos Technology Reports 6% Revenue Growth

Apropos Technology Reports 6% Revenue Growth
Apropos Reports Four Consecutive Quarters of Positive Cash Flows 


OAKBROOK TERRACE, Ill., Oct. 26  /PRNewswire-FirstCall/ -- Apropos Technology
(NASDAQ:APRS), a leading provider of real time multi-channel interaction
management solutions, reported revenues increased 6% to $5.0 million for the
third quarter ended September 30, 2004 from $4.7 million for the third quarter
ended September 30, 2003.  Revenues for the nine months ended September 30,
2004 were $15.1 million compared to $14.5 million for the nine months ended
September 30, 2003.

Net loss for the three months ended September 30, 2004 was $815,000, or a loss
of $0.05 per share, which includes restructuring and other charges of $836,000,
or $0.05 per share.  The restructuring and other charges provision includes
costs associated with the separation agreement with the Company's former Chief
Executive Officer, exit costs related to the relocation of the Company's EMEA
headquarters and adjustment of the reserve for consolidation of the corporate
headquarters.  Net loss for the comparable three months ended September 30,
2003 was $3.0 million, or a loss of  $0.18 per share, which includes a
restructuring and other charge of $2.4 million, or $0.14 per share. The
restructuring and other charges provision includes staff reduction charges,
facility termination costs and an impairment loss for assets providing no
future benefit to the Company.  Net loss for the nine months ended September
30, 2004 was $691,000, or a loss of $0.04 per share, which includes
restructuring and other charges of $1.3 million, or $0.07 per share. Net loss
for the comparable nine months ended September 30, 2003 was $6.4 million, or a
loss of  $0.38 per share, which includes restructuring and other charges of
$2.9 million, or $0.17 per share.

"We have shown that we can fund our existing business from continuing
operations," stated David McCrabb, interim CEO and President.  "The Company has
reported four consecutive quarters of profitability before any restructuring
and other charges.  The Company's cash and investment balances increased from
the prior quarter by $160,000 to $41.1 million at September 30, 2004, marking
the fourth consecutive quarter this goal has been achieved.  As a result, our
balance sheet remains strong and provides a stable environment to enable us to
execute our business plans and meet customer expectations.

"This also was a quarter of transition for Apropos.  While selected key senior
management positions have been replaced or consolidated, the Company managed to
increase revenue by 6% compared to the third quarter of 2003. Going forward, we
plan to refocus our efforts on further improving sales performance by targeting
specific markets in which we already have shown success.

"Apropos customers continue to make notable advances in their customer support.
 One of our customers, Veritas, has worldwide support operations and a major
contact center in Florida. With the hurricanes that hit Florida this summer,
Veritas wanted to make sure they could continue to offer the highest level of
service through their contact centers.  With Apropos V6, Veritas was able to
make an exact duplicate of their Florida site, and in the event of
weather-related issues Veritas was prepared to migrate their entire center --
hundreds of seats -- at the touch of a button. Veritas weathered the four
hurricanes and the failover was never needed; however going forward Veritas has
advanced their robustness and resiliency with Apropos V6."

During the third quarter, the Company received new and add-on customer orders
from Amalgamated Beverages Industries, Ltd. (a subsidiary of SABMiller, Plc);
eBay, Inc.; Everest Connection, L.L.C.; Freightliner, Inc.; Fringe Benefits
Management Company; and GE Fanuc Automation Manufacturing, Inc.

A conference call will be conducted by the Company at 5:00 p.m. Eastern Time
(ET) on Tuesday, October 26, 2004. The conference call will be available to all
interested parties over the Internet.   To listen to the call on the Internet,
go to http://www.apropos.com/ or http://www.fulldisclosure.com/ at least
fifteen minutes early to register, download, and install any necessary audio
software. For those who cannot listen to the live broadcast, a replay will be
available shortly after the call at http://www.apropos.com/ ,
http://www.fulldisclosure.com/ or by dialing 877-519-4471 or 973-341-3080
(international) and providing access code 5260488.  The replay will be
available by phone through November 2, 2004, and over the Internet for 30 days.

About Apropos Technology

Apropos Technology, Inc. (NASDAQ:APRS) develops and markets one of the
industry's leading business communications platforms, providing an open, system
independent application suite for real time, multi-channel interaction
management. This application platform enables companies to personalize and
intelligently manage all of their customer, employee, and vendor interactions,
thereby reducing costs, improving communications and operating efficiency, and
increasing overall revenue opportunities. The application provides timely and
accurate information on communications of all types to those within the
business who need visibility into real time business performance and trends.
This information enables customers to react immediately to changing business
conditions and make informed strategic decisions. The company's award-winning
solution has received seven (7) US patents for call center related technology
inventions, including a patent on the concept of blending multi-channel
communications into a single, universal queuing system. The solution
intelligently classifies, prioritizes, routes and reports on each business
interaction, based on the value of each interaction, across a variety of
communications media, including Voice, E-mail, Web, Fax, and Voice over IP
(VoIP). Apropos Technology serves over 300 clients worldwide from its Corporate
headquarters in Oakbrook Terrace, Ill., and from its European headquarters in
the United Kingdom. Additional information about Apropos and its products can
be found at http://www.apropos.com/ .

Apropos Technology statements contained in this press release that are not
purely historical are forward-looking statements within the meaning of Section
21E of the Securities and Exchange Act of 1934, including statements regarding
Apropos Technology's expectations, anticipations, goals, beliefs, targets,
hopes, intentions or strategies regarding the future.  Forward-looking
statements include statements regarding business model, product introduction
and acceptance, future sales, sales growth and sales channels, profitability
and results of operations, gross margins, operating expenses and financial
stability.  These forward-looking statements are subject to various risks and
uncertainties as more fully set forth under the caption "Risk Factors
Associated with Apropos' Business and Future Operating Results" in Apropos
Technology's Annual Report on Form 10-K for the year ended December 31, 2003,
as filed with the Securities and Exchange Commission.  Apropos Technology's
actual results and the timing of certain events may differ significantly from
the results discussed in the forward-looking statements; Apropos Technology
makes no commitment to disclose any revisions to forward-looking statements, or
any facts, events or circumstances after the date hereof that may bear upon
forward-looking statements.

                         Apropos Technology, Inc.
             Condensed Consolidated Statements of Operations
                 (In thousands, except per share amounts)

                          Three months ended           Nine months ended
                              September 30               September 30
                           2004         2003         2004         2003
  Revenue               (Unaudited)  (Unaudited) (Unaudited)  (Unaudited)
    Software licenses    $ 1,731       $1,677      $ 5,357       $5,326
    Services and other     3,249        3,034        9,751        9,199
  Total revenue            4,980        4,711       15,108       14,525

  Cost of goods and services
    Cost of software         172           91          459          294
    Cost of services and
     other                   897        1,003        2,769        3,336
  Total cost of goods
   and services            1,069        1,094        3,228        3,630

  Gross margin             3,911        3,617       11,880       10,895

  Operating expenses
    Sales and marketing    1,887        1,628        5,320        5,836
    Research and
      development          1,021        1,117        3,105        4,312
    General and
      administrative       1,132        1,475        3,175        4,466
    Stock compensation
     charge                    -           75            -          225
    Restructuring and
     other charges           836        2,427        1,291        2,875
  Total operating expenses 4,876        6,722       12,891       17,714

  Loss from operations      (965)      (3,105)      (1,011)      (6,819)

  Other income (expense)
    Interest income          145           99          347          382
    Other income (expense),
     net                       5            5          (27)           2
  Total other income         150          104          320          384

  Net loss                 $(815)     $(3,001)       $(691)     $(6,435)

  Basic and diluted net
   loss per share         $(0.05)      $(0.18)      $(0.04)      $(0.38)

  Weighted-average number
   of shares outstanding  17,343       16,842       17,240       16,749

  Reconciliation of Non-GAAP financial results to GAAP financial results

  Pro Forma net income (loss)
   (without restructuring
    and other charges)

  Net loss, as reported    $(815)     $(3,001)       $(691)     $(6,435)
  Restructuring and
   other charges             836        2,427        1,291        2,875

  Pro forma net income
   (loss)                   $ 21        $(574)        $600      $(3,560)


                         Apropos Technology, Inc.
                  Condensed Consolidated Balance Sheets
                              (In thousands)

                                                September 30    December 31
                                                    2004           2003
  Assets                                         (Unaudited)
  Current assets:
    Cash and cash equivalents                     $ 38,076        $38,265
    Short-term investments                           3,008          1,000
    Accounts receivable, net                         2,859          2,895
    Inventory                                           81             73
    Prepaid expenses and other current assets          467            588

  Total current assets                              44,491         42,821

  Equipment, net                                       618            921
  Other assets                                          21            199

  Total assets                                     $45,130        $43,941

  Liabilities and shareholders' equity
  Current liabilities:
    Accounts payable                                  $137            $81
    Accrued expenses                                 1,927          1,618
    Deferred revenues                                3,610          3,296
    Other current liabilities                          930            562

  Total current liabilities                          6,604          5,557

  Accrued restructuring, less current portion          390            560

  Shareholders' equity
    Common shares                                      175            173
    Additional paid-in capital                     102,872        102,263
    Treasury stock                                       -           (392)
    Accumulated deficit                            (64,911)       (64,220)

  Total shareholders' equity                        38,136         37,824

  Total liabilities and shareholders' equity       $45,130        $43,941


DATASOURCE: Apropos Technology



CONTACT: Frank Leonard of Apropos Technology, [phone], ext. 7724,

 ; or Apropos Investors Relations, Leslie Loyet of

Financial Relations Board, [phone],





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

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