PowerLinx Consolidates Operating Divisions with St. Petersburg Headquarters

  
    
  
  
    
      PowerLinx, Inc. (OTCBB: PWNX) a developer, manufacturer, and seller of 
      power line communication products, today announced they are relocating 
      their existing Distribution Operations and their SeaView Brand 
      Manufacturing Operations with their Corporate Headquarters.
    
    
      “In 2006, we established our Headquarters in a 
      mixed use facility with the long term goal of reducing overall operating 
      expenses and setting up a base of operations where many of our key 
      Managers can work under one roof,” said 
      PowerLinx CEO and Chairman Michael Tomlinson. “Integrating 
      the manufacturing of our industry leading SeaView product line and our 
      overall Distribution Network into our existing Headquarters has allowed 
      us to make great strides toward achieving these goals.”
    
    
      Consolidating operating units into the St. Petersburg Headquarters is 
      another example of the cost-reduction track record that PowerLinx is 
      establishing since the implementation of the restructuring plan under 
      new management in May of 2005.
    
    
      For the previously reported quarterly results under the direction of new 
      management, operating expenses decreased 27% and 58% for the three 
      months ended March 31, 2007 compared to operating expenses for the three 
      months ended March 31, 2006, and March 31, 2005, respectively. On a full 
      fiscal year reporting basis, operating expenses decreased 18% for the 
      year ended December 31, 2006 compared to operating expenses for the year 
      ended December 31, 2005.
    
    
      Future operating expense reductions related to consolidating existing 
      operating units will include: 1) reduced rent and facility operations 
      overhead; 2) a reduction in overall headcount; and 3) a reduction in 
      overall general and administrative expenses. Past and current operating 
      expense reduction, coupled with an the current revenue growth trend and 
      a pipeline of recently announced new Power Line products is a clear 
      indication that the Senior Management changes in enacted in 2005 are 
      providing the ground work for long term revenue and income growth.
    
    
      “Since assuming its current role in May 2005, 
      our Executive Management Team has been successful in achieving its 
      operating expense reduction goals,” added 
      Tomlinson. “We will continue to identify 
      opportunities for further operating cost reduction while striving to 
      grow revenue. Doing this, plus pushing key Power Line R&D projects to 
      market, will help us achieve our ultimate goal – 
      increasing shareholder value.”
    
    
      About PowerLinx, Inc.: PowerLinx, Inc., www.power-linx.com, 
      develops, manufactures, and markets products and applications that 
      transmit voice, video, audio and data either individually or in any and 
      all combinations over power lines, twisted-pair wires and coax in AC and 
      DC power environments, on any and all power grids. The Company has also 
      developed, manufactured, and marketed different kinds of underwater 
      video cameras, lights and accessories for the marine, commercial and 
      consumer retail markets as well as accident avoidance systems for small 
      and large vehicles.
    
    
      This press release may contain "forward-looking statements" that involve 
      risks, uncertainties and statements regarding our plans, future events, 
      objectives, expectations, forecasts, or assumptions. statement in this 
      press release that is not a statement of historical fact is a 
      forward-looking statement, and in some cases, words such as "believe," 
      "estimate," "project," "expect," "intend," "may," "anticipate," "plans," 
      "seeks," and similar expressions identify forward-looking statements. 
      PowerLinx, Inc. disclaims any intention or obligation to update or 
      revise any forward-looking statements, whether as a result of new 
      information, future events, or otherwise.