Adsouth Partners, Inc. Announces Fourth Quarter and Full-Year 2005 Financial Results

Adsouth Partners, Inc. (OTCBB:ASPR):

   --  Full-Year 2005 consolidated revenue of $13.3 million exceeds
        $12 million guidance

   --  Increases first quarter 2006 revenue guidance to be in excess
        of $5.8 million from previously issued $5.5 million

   --  Genco Power Solutions subsidiary's total orders almost double
        since last update on March 1, 2006

   Adsouth Partners, Inc. (OTCBB:ASPR), a vertically integrated
direct response marketing company that generates revenues from the
placement of advertising, the production of advertisements, creative
advertising and public relations consulting services announced today
financial results for the fourth quarter and full-year ended December
31, 2005. All share information and per share amounts are presented as
if the Company's 1-for-15 reverse stock split, which became effective
on March 25, 2005, and was effective for all periods presented.
   The Company reported consolidated revenue for the fourth quarter
of 2005 of $3.6 million, compared to $232,000 for the fourth quarter
last year. Consolidated operating loss for the fourth quarter of 2005
was $212,000, compared to a loss of $2.3 million for the same period
in 2004. Net loss was $254,000 for the fourth quarter of 2005,
compared to a loss of $2.3 million for the fourth quarter 2004. The
net loss attributable to common stockholders for the fourth quarter of
2005 was $254,000, or $0.03 basic and diluted loss per common share,
compared to a net loss available to common stockholders of $2.2
million, or $0.38 basic and diluted loss per common share, for the
same period in 2004. During 2005 the Company shipped products to two
large national retailers on a pay on scan basis. The fourth quarter of
2005 does not include $947,000 of revenue from those retailers for the
items such retailers did not sell to the end use consumers in which
gross margins of approximately $300,000 would be realized. The Company
believes it was important to establish a presence for our products in
such markets and that the ultimate sell through by these retailers
will help the Company achieve its long-term sales objectives.
   For the full-year 2005 consolidated revenue was $13.3 million,
compared to $4.0 million for the 2004 fiscal year. Consolidated
operating income for the full year of 2005 was $171,000, compared to
an operating loss of $5.8 million for the same period in 2004.
Operating expenses for the full year of 2004 included $4.5 million of
non-cash stock-based compensation expense which resulted from the
issuance to the Company's officers and other key employees of common
stock pursuant to stock grants, and stock options that were granted to
consultants. Net loss for the full year 2005 was $669,000, compared to
a loss of $5.8 million in 2004. For 2005, non-cash stock based
compensation expense was $264,000. The net loss for the full year 2005
includes $537,000 of loss on the early extinguishment of the
convertible notes that were issued in February and May of 2005 and
$193,000 of interest expense on the convertible notes that were
extinguished in June 2005. The net loss attributable to common
stockholders for the full-year 2005 was $2.0 million, or ($0.26) per
share, basic and diluted, compared to a net loss of $5.8 million, or
($1.05) per share, basic and diluted, for the full-year 2004. In
connection with a private placement completed on June 17, 2005, the
fair value of the securities issued (including the preferred stock and
warrants to purchase common stock) when compared to the net proceeds
resulted in a beneficial conversion feature that approximated $1.34
million. For purposes of calculating per share amounts attributable to
common stockholders, such beneficial conversion feature is considered
a deemed dividend and is deducted from the net loss for purposes of
calculating basic and diluted loss per share for 2005. Excluding the
non-recurring items related to the 2005 financings, the Company's pro
forma profitability for 2005 would have been $61,000.

   Recent Corporate Highlights

   --  Established a new 66% majority-owned subsidiary, Genco Power
        Solutions which markets, sells, installs and services
        integrated power generator systems to residential homeowners
        and commercial businesses throughout Florida. As of March 20,
        2006 Genco has entered into contracts for 42 orders for
        standby generators an increase of 19 orders since the
        Company's last update on March 1, 2006. Total orders as of
        March 20, 2006 are $915,000 versus approximately $500,000 on
        March 1, 2006. Genco finished its first installation and
        believes it can fully complete 3 to 5 installations during the
        first quarter 2006. Genco operates as an additional product
        category of Adsouth's Product Division.

   --  Launched a new product line Mitsu Products, allowing Adsouth
        to enter a new fast growing consumer category, personal
        intimacy. The majority of Mitsu sales will come from a new
        distribution channel, Convenience Stores also known as C
        Stores, such as Loves, Travel Centers of America and 7-11,
        which has a total market potential of approximately 100,000
        retail outlets. The product line is scheduled to begin
        shipping in April 2006.

   --  Secured retail placement in no less than four major U.S.
        retailers for StarMaker's first product Pearl Anti-Wrinkle
        Moisturizing Mist. The national launch of Pearl Anti-Wrinkle
        Moisturizing Mist is scheduled for approximately 15,000 retail
        locations throughout the country. Additional StarMaker
        products will be distributed domestically and internationally
        under Adsouth's DermaFresh brand.

   --  Initiated four new internal Direct Response campaigns for
        Genco, Pearl Anti-Wrinkle Moisturizing, Hercules Hook and E-70
        to drive brand awareness and sales.

   --  Completed new advertising spots for Stacker 2 products and
        launched them nationally.

   --  Hired a new VP of Product Sales

   John Cammarano, Adsouth's Chief Executive Officer commented, "With
our financial and operational restructuring behind us, Adsouth's new
leadership team is clearly demonstrating the capability of executing
the Company's business strategy and positioning Adsouth for
sustainable growth and profitability related to its currently existing
operations. Our focus is to continue to leverage our business model in
order to build the brands of our existing products and advertising
clients and drive sales growth. However, we are committed to entering
new and exciting product categories, as we have recently accomplished
in both power generator systems, through our new Genco subsidiary, and
the fast growing personal intimacy category via our Mitsu product
line. We believe these new opportunities will provide additional
platforms of growth for the Company and not only increase our size,
but also add an increased level of predictability to our business."

   Products Sector

   Adsouth sells a range of products, both through direct marketing
operations and sales to retail stores. Some of the products are not
related to the others and have different distribution channels. There
is typically a period of several months from the time that Adsouth
acquires the right to distribute a product until it generates revenue
from that product. During this period, Adsouth is engaged in marketing
activities and thus is incurring costs before it can generate any
revenue from a product. Before Adsouth sells products to retail
accounts, it may use its direct marketing capability to introduce the
product to market.
   For the fourth quarter and full year of 2004, all product revenues
were from sales of the DermaFresh line of products. During the fourth
quarter of 2005 the product mix as a percentage of product revenue was
26% from Simon Cosmetics, 32% from e70 product line, 15% from the
DermaFresh line, 13% from the Extreme Beam and the Cliplight product
line, 5% from the Hercules Hook product, 8% from D-Shed and 1% from
other products. For the full-year of 2005 the product mix as a
percentage of product revenue was 43% from Simon Cosmetics, 26% from
e70 product line, 18% from the DermaFresh line, 6% from the Extreme
Beam and the Cliplight product line, 4% from the Hercules Hook
product, 2% from D-Shed and 1% from other products.
   The products sector reported revenue of $1.7 million for the
fourth quarter of 2005, compared to $191,000 for the fourth quarter of
last year. The product sector's operating loss was $324,000 for the
fourth quarter of 2005, compared to $732,000 for same period in 2004.
The product sector's net loss was $352,000 for the fourth quarter of
2005, compared to $754,000 for the fourth quarter of last year.
   For the full-year of 2005 the product sector reported revenue of
$5.6 million, compared to $1.1 million for the full-year of 2004. The
product sector's operating loss for the full-year of 2005 was $88,000,
compared to an operating loss of $1.5 million for the same period last
year, which included $770,000 in expenses related to stock option
grants for 2004 and $123,000 for 2005. The product sector's net loss
for the full-year of 2005 was $669,000, compared to $1.5 million for
the full-year of 2004. The product sector's net loss for the full-year
of 2005 includes $358,000 of loss from the early extinguishment of
convertible notes that were issued in February and May 2005 and
$130,000 of interest expense on the convertible notes that were
extinguished in June 2005. Excluding the non-recurring items related
to the 2005 convertible note financings, the product sector's pro
forma loss for 2005 would have been $181,000.

   Advertising Sector

   The advertising sector includes the placement of advertising in
different media, the production of direct marketing commercials, and
the planning and implementation of direct marketing programs for our
clients. Both revenue and gross margins reflect services in addition
to those of a typical advertising agency since the gross margin on
advertising revenue is typically a percentage of the amount paid for
the advertisement.
   The advertising sector reported revenue of $1.98 million for the
fourth quarter of 2005, compared to $41,000 for the fourth quarter of
last year. Advertising's operating income was $112,000 for the fourth
quarter of 2005, compared to an operating loss of $1.5 million for the
same period last year. Net income for the advertising sector was
$98,000 for the fourth quarter of 2005, compared to a net loss of $1.5
million for the fourth quarter of last year.
   The advertising sector's revenue for the full-year of 2005 was
$7.7 million, compared to $2.9 million for the full-year of last year.
Operating income for the full-year of 2005 was $259,000, compared to
an operating loss of $4.29 million for the full-year of last year,
which included $3.7 million in expenses related to stock option grants
for 2004 and $141,000 for 2005. Advertising was breakeven for the
full-year of 2005 compared to a net loss of $4.3 million for the same
period in 2004. Advertising's 2005 results includes $179,000 of loss
from the early extinguishment of convertible notes that were issued in
February and May 2005 and $63,000 of interest expense on the
convertible notes that were extinguished in June 2005. Excluding the
non-recurring items related to the 2005 convertible note financings,
the advertising sector's pro forma profitability for 2005 would have
been $242,000.

   Balance Sheet

   At December 31, 2005, we had available working capital of
approximately $1.8 million compared to a working capital deficiency of
$916,000 at December 31, 2004. The following table details changes in
components of working capital during 2005.
-0-
*T
As of December 31,                      2005       2004       Change
---------------------------------------------------------------------
Cash                               $1,429,000    $38,000  $1,391,000
Certificate of deposit (restricted)   103,000    100,000       3,000
Accounts receivable - net             967,000     36,000     931,000
Due from factor                       154,000          -     154,000
Inventory                           1,959,000    186,000   1,773,000
Prepaid media                         289,000          -     289,000
Other current assets                  234,000     34,000     200,000
Accounts payable                     (810,000)  (475,000)   (335,000)
Accrued expenses                     (306,000)  (481,000)    175,000
Deferred media revenue             (1,029,000)         -  (1,029,000)
Current debt                       (1,149,000)  (354,000)   (795,000)
---------------------------------------------------------------------
Working capital (deficiency)       $1,841,000  ($916,000) $2,757,000
---------------------------------------------------------------------
*T

   The most significant increases to working capital were inventory,
cash and accounts receivable. At December 31, 2005, $644,000 of
inventory are the costs of products shipped to two large national
retailers on which sales are made on a pay on scan basis, whereby in
2005 we did not recognize sales nor the cost of goods sold, until such
retailers sold the items to consumers. The remaining inventory costs
are related to inventory items on-hand for products including the
DermaFresh line, e-70, Hercules Hook, D-Shed and other products which
are actively marketed.
   During the last three months of 2004 product shipments were not
significant and all but $36,000 of the invoices related to 2004
shipments had been collected as of December 31, 2004. During 2005
product shipments were $5,584,000, of which $1,663,000 was shipped in
December 2005, a significant portion of which are included in
outstanding receivables as of December 31, 2005. The terms that we
have with the retailers for our product shipments range from 30 to 60
days from shipment. During January 2006, approximately $551,000 of the
December 31, 2005 receivables was sold to our factor.
   The increase in cash reflects $500,000 of proceeds from the second
funding of a demand note made in December 2005 plus the net difference
between deferred media revenue received from advertising customers in
advance of media airing dates and prepaid media costs paid to networks
in advance of the media airing dates.
   Current debt increased by $795,000. During 2005, we shipped
products to two large national retailers on a pay on scan basis. In
order to obtain working capital to fund the costs of shipping to these
two retailers, on December 20, 2005, we borrowed $1,000,000 from a
non-affiliated lender. The loan requires quarterly interest payments
and principal payments in an amount equal to collections from the two
pay on scan retailers. In addition, during 2005 we repaid a $250,000
promissory note which was issued in July 2004 and we executed three
vehicle loans and two machinery and equipment loans of which the
current portion is $38,000 as of December 31, 2005. As of December 31,
2005, the outstanding balance on our bank line-of-credit was $100,000.
The bank line-of-credit expired on July 8, 2005 and was renewed by the
bank until July 8, 2006, and is fully collateralized with a $100,000
certificate of deposit held by the bank. In March 2006 we paid-off the
balance on the bank line-of-credit and closed it.

   First Quarter 2006 Guidance and Outlook

   On February 9, 2006, Adsouth announced revenue for the first
quarter 2006 will be in excess of $5.5 million compared to $1.7
million in the first quarter 2005. At this time Adsouth is raising its
revenue guidance for the first quarter 2006 to be in excess of $5.8
million.

   Conference Call Reminder

   The conference call will take place at 11:00 a.m. Eastern, on
Monday, March 20, 2006. Anyone interested in participating should call
800-565-5442 if calling within the United States or 913-312-1298 if
calling internationally approximately 5 to 10 minutes prior to 11:00
a.m. There will be a playback available of the conference until April
20, 2006. To listen to the playback, please call 888-203-1112 within
the United States or 719-457-0820 internationally. The pass code is
8432114 for the replay.
   The call is also being webcast by ViaVid Broadcasting and can be
accessed at AdSouth's website at http://www.adsouthpartners.com. The
webcast can also be accessed at ViaVid's website at
http://www.viavid.net. The webcast may be accessed through June 20,
2006 on either site.

   About Adsouth Partners, Inc.

   Adsouth Partners is a vertically integrated direct response
marketing company that generates revenues from the placement of
advertising, the production of advertisements, creative advertising
and public relations consulting services. Since mid 2004, it has
expanded its activities as it obtained the rights to products that it
markets and sells to retail outlets. Adsouth Partners, through its
product division DermaFresh, has previously announced shipments to
several of the largest retailers in the country. A complete list is
available on our website at http://www.adsouthinc.com and a preview of
the products offered is available at http://www.dermafresh.com.
Information on our websites and any other websites do not constitute a
part of this press release.
   Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under the
Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act
of 1934, and are subject to the Safe Harbor created by those rules.
All statements, other than statements of fact, included in this
release, including, without limitation, statements regarding potential
future plans and objectives of the company, are forward-looking
statements that involve risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Events that may arise could prevent
the implementation of any strategically significant plan(s) outlined
above. The Company cautions that these forward-looking statements are
further qualified by other factors including, but not limited to,
those set forth in the Company's Form 10-KSB filing, its registration
statements and other filings with the United States Securities and
Exchange Commission (available at www.sec.gov). The Company undertakes
no obligation to publicly update or revise any statements in this
release, whether as a result of new information, future events or
otherwise.
-0-
*T

Selected financial information of our operating segments is
presented in the following tables.


                                 Advertising    Products        Total
---------------------------------------------------------------------
Three Months Ended December 31,  
 2005:                           (Unaudited) (Unaudited)
 Revenues                        $1,975,000  $1,663,000   $3,638,000
 Costs and expenses (excluding
  non cash stock based
  compensation expense and non-
  recurring payments)            (1,814,000) (1,968,000)  (3,782,000)
---------------------------------------------------------------------
                                    161,000    (305,000)    (144,000)
 Non cash stock based
  compensation                      (49,000)    (19,000)     (68,000)
---------------------------------------------------------------------
 Operating income (loss)            112,000    (324,000)    (212,000)
 Discount on receivables sold to
  factor                                  -     (17,000)     (17,000)
 Interest expense on line of
  credit and notes payable           (2,000)    (14,000)     (16,000)
 Other income (expense), net        (12,000)      3,000       (9,000)
---------------------------------------------------------------------
 Net income (loss)                   98,000   ($352,000)   ($254,000)
---------------------------------------------------------------------

Three Months Ended December 31,  
 2004:                           (Unaudited) (Unaudited)  (Unaudited)
 Revenues                           $41,000    $191,000     $232,000
 Costs and expenses (excluding
  non cash stock based
  compensation expense)          (1,352,000)   (816,000)  (2,168,000)
---------------------------------------------------------------------
                                 (1,311,000)   (625,000)  (1,936,000)
 Non cash stock based
  compensation                     (215,000)   (107,000)    (322,000)
---------------------------------------------------------------------
 Operating loss                  (1,526,000)   (732,000)  (2,258,000)
 Discount on receivables sold to
  factor                                  -     (15,000)     (15,000)
 Interest expense on line of
  credit and notes payable                -      (7,000)      (7,000)
 Other income (expense), net         (4,000)         --       (4,000)
---------------------------------------------------------------------
 Net loss                       ($1,530,000)  ($754,000) ($2,284,000)
---------------------------------------------------------------------
*T

-0-
*T
                                Advertising     Products        Total
---------------------------------------------------------------------
Year Ended December 31, 2005:
 Revenues                       $7,730,000   $5,584,000  $13,314,000
 Costs and expenses (excluding
  non cash stock based
  compensation expense and non-
  recurring payments)            (7,230,000) (5,524,000) (12,754,000)
---------------------------------------------------------------------
                                   500,000       60,000      560,000
 Payments to settle arbitration
  and litigation matters          (100,000)     (25,000)    (125,000)
 Non cash stock based
  compensation                    (141,000)    (123,000)    (264,000)
---------------------------------------------------------------------
 Operating income (loss)           259,000      (88,000)     171,000
 Discount on receivables sold
  to factor                              -      (70,000)     (70,000)
 Interest expense on line of
  credit and notes payable          (6,000)     (28,000)     (34,000)
 Other income (expense), net       (11,000)       5,000       (6,000)
---------------------------------------------------------------------
                                   242,000     (181,000)      61,000
 Interest expense from on the
  extinguished convertible
  securities                       (63,000)    (130,000)    (193,000)
 Loss on early debt
  extinguishment                 ($179,000)    (358,000)    (537,000)
---------------------------------------------------------------------
 Net loss                                -    ($669,000)   ($669,000)
---------------------------------------------------------------------

Year Ended December 31, 2004:
 Revenues                       $2,925,000   $1,119,000   $4,044,000
 Costs and expenses (excluding
  non cash stock based
  compensation expense)         (3,495,000)  (1,820,000)  (5,315,000)
---------------------------------------------------------------------
                                  (570,000)    (701,000)  (1,271,000)
 Non cash stock based
  compensation                  (3,718,000)    (770,000)  (4,488,000)
---------------------------------------------------------------------
 Operating loss                 (4,288,000)  (1,471,000)  (5,759,000)
 Discount on receivables sold
  to factor                              -      (15,000)     (15,000)
 Interest expense on line of
  credit and notes payable               -      (23,000)     (23,000)
 Other income (expense), net       (14,000)          --      (14,000)
---------------------------------------------------------------------
 Net loss                      ($4,302,000) ($1,509,000) ($5,811,000)
---------------------------------------------------------------------
*T