IBSS Reports Results for Third Quarter 2005

Positive Momentum Continues 


COLUMBIA, S.C., Nov. 14  /PRNewswire-FirstCall/ -- Integrated Business Systems and Services, Inc. (IBSS) (OTC:IBSS) (BULLETIN BOARD: IBSS)  today announced its third quarter financial results for the three- and nine-month periods ended September 30, 2005.

Highlights for the three months ended September 30, 2005 compared to the three months ended September 30, 2004:

* Revenues were $868,676, representing a 122% increase over revenues of $391,584. 

  * Services revenues grew 7.2% to $362,223 from $337,754.
  * Revenue from Licenses was $17,282 compared to $0.


* Maintenance and Support Revenues increased 125.6% to $64,135 from $28,428.

* Authorized re-sales of products purchased from third parties (Product resales) jumped 1573% to $425,036 from $25,402. 

  * Operating expenses dropped 36.6% to $483,288 from $762,019.
  * Loss from operations decreased 68.4% to $196,852 from $623,828.


* Net loss declined 63.3% to $241,318, or $0.01 loss per basic and diluted share, from a net loss of $657,459, or $0.02 loss per basic and diluted share.

Highlights for the nine months ended September 30, 2005 compared to the nine months ended September 30, 2004:

  * Revenues increased 22% to $2,016,955, up from $1,655,103.
  * Services revenues declined 16% to $1,216,865 from $1,447,739.
  * Revenue from Licenses rose 940% to $166,548 from $16,000.


* Maintenance and Support Revenues improved 94.4% to $165,806 from $85,283.

* Authorized re-sales of products purchased from third parties (Product resales) increased 341% to $467,736 from $106,081. 

  * Operating expenses fell 25.6% to $1,694,246 from $2,277,299.
  * Loss from operations decreased 51.1% to $701,731 from $1,434,900.


* Net loss improved 47% to $825,356 or $0.03 loss per basic and diluted share, from a net loss of $1,557,656, or $0.05 loss per basic and diluted share.

Commenting on the results, George Mendenhall, Chief Executive Officer of IBSS, stated, "This is the third consecutive quarter of positive growth and movement of IBSS towards its goals of both profitability and significant penetration of our target markets.  Industry acceptance and demand for comprehensive RFID and mobile-computing solutions is fast approaching a fever pitch.  IBSS continues to educate the market, and demonstrate and deploy our Synapse(TM)-based technologies to help enable new vertical market opportunities for clients and channel partners."

Dr. Mendenhall continued, "Each new vertical enablement may require the creation of new application software, modification of existing software or the private branding of existing software along with engineering design and support services.  All of our solutions are based upon our powerful development and on-line operating environment, Synapse(TM).  We also mix in other technologies from our strategic partners, as required, bringing our focused expertise and technical capabilities to bear to create winning relationships with everyone associated with IBSS. Our industry knowledge and independence from any particular hardware or wireless technology allows us to evaluate all technology choices that may apply to a unique situation and then help integrate and support the best solution to achieve our collective goals."

"Our creation of the PDS (Prospect Dispatch System) Express for channel partner Prospect Airport Services, Inc.; our creation and release of SynTrack(TM) Mobile Asset Management, our mobile asset tracking solutions that include SynTrack(TM) for Healthcare; and our SynTrack(TM) Returnable Container Management for use with returnable containers and other mobile assets, are excellent examples of the IBSS strategy of directly or indirectly enabling niche vertical markets with our technology and expertise.  As we assist Prospect and our other clients and channel partners to successfully penetrate their respective target markets, IBSS will continue to evaluate new vertical enablement opportunities for our expertise and technology.  IBSS is intent on being recognized as the preferred business partner for engineering, technology, and specialized support to a new vertical market or differentiated market segment," concluded Dr. Mendenhall.

               Integrated Business Systems and Services, Inc.
                          Condensed Balance Sheets
                               (Unaudited)
                                             September 30,     December 31,
                                                2005              2004
  ASSETS:
  Current assets:
        Cash and cash equivalents                $16,341         $105,084
        Accounts receivable, trade               129,547           66,637
        Interest receivable                           --            3,065
        Notes receivable                              --           75,000
        Prepaid expenses                          56,277           19,646
              Total current assets               202,165          269,432

  Capitalized software costs, net                  2,737           10,948
  Property and equipment, net                    185,853          256,911
  Interest receivable, non current                42,978           37,331
  Other assets                                    50,000           50,000

              Total assets                      $483,733         $624,622

  LIABILITIES AND SHAREHOLDERS'
   DEFICIENCY:
  Current liabilities:
        Convertible notes payable, net of
         discount                               $647,184         $558,439
        Shareholder advances                   1,151,000          601,000
        Current portion of long-term debt        309,872          309,131
        Accounts payable                         143,360           52,510
        Accrued liabilities:
              Accrued compensation and
               benefits                          128,663          160,166
              Accrued payroll taxes                4,905           29,649
              Accrued professional fees          382,068          326,241
              Accrued interest                    72,265           55,857
              Accrued rent                         8,000           15,000
              Other                                9,101            7,090
        Deferred revenue                          66,597          134,873
              Total current liabilities        2,923,015        2,249,956

  Long-term debt, net of current portion       2,864,421        2,872,251

              Total liabilities                5,787,436        5,122,207

  Shareholders' deficiency:
  Preferred stock, undesignated par value,
   10,000,000 shares, none authorized
   or issued                                          --               --
  Common stock, no par value, 200,000,000
   shares authorized, 32,544,202 and
   32,506,144 shares outstanding at
   September 30, 2005 and December 31,
   2004, respectively                         21,702,733       21,683,495
  Notes receivable officers/directors           (131,080)        (131,080)
  Accumulated deficit                        (26,875,356)     (26,050,000)
      Total shareholders' deficiency          (5,303,703)      (4,497,585)

  Total liabilities and shareholders'
   deficiency                                   $483,733         $624,622


              Integrated Business Systems and Services, Inc.
              Condensed Statements of Operations (Unaudited)



                                Three Months              Nine Months
                             Ended September 30,       Ended September 30,
                              2005         2004         2005         2004
  Revenues

  Services                  $362,223     $337,754   $1,216,865   $1,447,739
  Licenses                    17,282           --      166,548       16,000
  Maintenance and support     64,135       28,428      165,806       85,283
  Product resales            425,036       25,402      467,736      106,081

      Total revenues         868,676      391,584    2,016,955    1,655,103

  Cost of revenues           582,240      253,393    1,024,440      812,704

  Gross profit               286,436      138,191      992,515      842,399

  Operating expenses

  General and
   administrative            293,173      438,485      974,582    1,213,184
  Sales and marketing         90,484      182,824      390,345      616,645
  Product development         99,631      140,710      329,319      447,470

      Total operating costs  483,288      762,019    1,694,246    2,277,299

  Loss from operations      (196,852)    (623,828)    (701,731)  (1,434,900)

  Other income (loss and
  expenses)

  Other income (expenses)      1,987        4,767        6,022       (5,731)
  Interest expense           (46,453)     (38,398)    (129,647)    (117,025)

      Total other expenses   (44,466)     (33,631)    (123,625)    (122,756)

  Net Loss                 $(241,318)   $(657,459)   $(825,356) $(1,557,656)

  Loss per share

      Basic and diluted       $(0.01)      $(0.02)      $(0.03)      $(0.05)

      Diluted weighted
       average shares
       outstanding        32,544,202   31,555,204   32,526,942   29,318,504


  About IBSS


IBSS is the creator of Synapse(TM), a groundbreaking software technology. Synapse(TM) is a complete framework and methodology used to create, implement and manage a wide variety of dynamic, distributed, networked, and real-time enterprise applications including RFID, quickly and efficiently.  Global enterprises utilizing Synapse(TM) leverage the power of its single, flexible framework to enjoy tremendous time and cost advantages, in the development, deployment and on-going management of customized applications.

Enabled by Synapse(TM) to take competitive advantage of cutting-edge technologies such as wireless networking, mobile computing and RFID, IBSS and its strategic partners bring solutions to customers for mission-critical applications in manufacturing, distribution, healthcare, finance, insurance, retail, education, and government.  IBSS is headquartered in Columbia, South Carolina.  For more information about IBSS and its Synapse(TM) technologies and services, call 803-736-5595 or 800-553-1038, or visit http://www.ibss.net/ .

Except for historical information, the matters discussed in this news release include forward-looking statements that involve a number of risks and uncertainties. Actual results may vary significantly as a result of a number of factors, including, but not limited to, risks associated with the Company's ability to satisfy its obligations incurred in recent private placements of secured debt, risks in product and technology development and integration, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, and other risk factors detailed in Exhibit 99.1 of our Annual Report on Form 10-KSB for the year ended December 31, 2004 and in other filings the Company makes with the Securities and Exchange Commission. Copies of these filings may be obtained from the Securities and Exchange Commission at its principal office in Washington, DC at prescribed rates by calling 1-800-SEC-0330. These filings are also available electronically through the Internet World Wide Web site maintained by the Securities and Exchange Commission at the Internet address: http://www.sec.gov/ .

               At Elite Financial Communications Group, LLC
               Stephanie Noiseux, Executive Vice President
                      407-585-1080 or 

DATASOURCE: Integrated Business Systems and Services, Inc.



CONTACT:  Stephanie Noiseux, Executive Vice President, Elite Financial

Communications Group, [phone], or , for IBBS



Web site:  http://www.ibss.net/ 

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