PowerLinx, Inc. Announces Consolidated Results for the Quarter Ended September 30, 2006

  
    
  
  
    
      PowerLinx, Inc. (OTCBB:PWNX), today reported its September 30, 2006 
      quarter ended consolidated results.
    
    
      Net revenues of $1,004,600 for the quarter ended September 30, 2006 
      exceeded revenues for the same period in 2005 by $780,600 or 349%. The 
      growth in revenue was directly attributable to increases in revenue from 
      the SecureView PowerLinx Video Surveillance Camera.
    
    
      Net loss for the quarter ended September 30, 2006 was $584,800 or $.12 
      per share, including discontinued operations, compared to a loss of 
      $941,000 or $.24 per share for the same period ended 2005.
    
    
      Gross profit increased 436% from $87,400 for the quarter ended September 
      30, 2005 to $272,900 for the quarter ended September 30, 2006. Operating 
      expenses decreased 21% from $1,011,600 for the quarter ended September 
      30, 2005 to $797,800 for the quarter ended September 30, 2006. Loss from 
      operations decreased 43% from $924,200 for the quarter ended September 
      30, 2005 to $524,900 for the quarter ended September 30, 2006.
    
    
      Attaining net revenues of $1,004,600 for the quarter ended September 30, 
      2006 represented the largest single quarterly revenue total in the 
      Company’s history; a 99% increase in net 
      revenues, compared to the previous largest single quarterly revenue 
      total for the quarter ended June 30, 2005.
    
    
      “There are three key elements to the PowerLinx 
      business plan as we move forward: grow revenue on existing products, 
      reduce expenses, and complete development of new technologies and the 
      products currently in the pipeline,” stated 
      Mike Tomlinson, President & Chief Executive Officer of PowerLinx. “We 
      are very proud of the significant progress we’ve 
      made in all three areas this past quarter. The financial results for the 
      third quarter reflect the Company’s focus on 
      growing revenue on existing products and reducing overall expenses. In 
      addition, we recently announced the readiness for launch of two new 
      technologies/products; Power Line Audio and Power Line IP Cameras. 
      Consistent with our business plan, the Company is in the early stages of 
      bringing to market these exciting new technologies and products, through 
      both direct sales and licensing opportunities, to fuel anticipated 
      future revenue growth.”
    
    
      As reported in the Company’s 10-KSB filed on 
      April 14, 2005, the Company discontinued the operations of its Hotel/MDU 
      products segment and operating results for the discontinued segment have 
      been reported separately as discontinued operations in the consolidated 
      statements of operations for all periods presented in accordance with 
      Statement of Financial Accounting Standards (“SFAS”) 
      No. 144, “Accounting for the Impairment 
      or Disposal of Long-Lived Assets.” 
      Accordingly, for all comparative reporting periods, revenue and expense 
      amounts have been reclassified to reflect this accounting.
    
    
      
        
          POWERLINX, INC.
        
      
      
        
          CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
        
      
      
        
          THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
        
      
      
        
          (unaudited)
        
      
      
        
           
        
      
      
        
        
        
        
        
          2006 
        
        
        
        
          2005 
        
      
      
        
          Product sales, net
        
        
          $
        
        
          1,004,564 
        
        
          $
        
        
          223,945 
        
      
      
        
          Cost of goods sold
        
        
        
        
          731,688 
        
        
        
        
          136,529 
        
      
      
        
          Gross profit
        
        
        
        
          272,876 
        
        
        
        
          87,416 
        
      
      
        
          Operating expenses
        
        
        
        
          797,806 
        
        
        
        
          1,011,645 
        
      
      
        
          Loss from operations
        
        
        
        
          ( 524,930)
        
        
        
        
          ( 924,229)
        
      
      
        
          Interest expense, net
        
        
        
        
          22,133 
        
        
        
        
          6,156 
        
      
      
        
          Gain (loss) on extinguishment of debt
        
        
          - 
        
        
          - 
        
      
      
        
          Derivative gain (loss)
        
        
        
        
          ( 37,718)
        
        
          - 
        
      
      
        
          Loss before discontinued operations
        
        
        
        
          ( 584,781)
        
        
        
        
          ( 930,385)
        
      
      
        
          Loss from discontinued operations
        
        
        
        
          ( - )
        
        
        
        
          ( 10,638)
        
      
      
        
          Net loss
        
        
        
        
          ($ 584,781)
        
        
        
        
          ($ 941,023)
        
      
      
        
          Loss per common share
        
        
          $
        
        
          (0.12)
        
        
          $
        
        
          (0.24)
        
      
    
    
      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.
    
    
      Web site: www.power-linx.com
    
    
      E-mail: [e-mail]
    
    
      This press release may contain "forward-looking statements" within the 
      meaning of Section 27A of the Securities Act of 1933 and Section 21E of 
      the Securities Exchange Act of 1934, including those that involve 
      PowerLinx’s risks and uncertainties and 
      statements regarding our plans, future events, objectives, expectations, 
      forecasts, or assumptions. All statements contained herein are based 
      upon information available to PowerLinx’s 
      management as of the date hereof, and actual results may vary based upon 
      future events, both within and without PowerLinx’s 
      management’s control. Any 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. 
      These statements are only predictions. Actual events or results may 
      differ materially from those in the forward-looking statements as a 
      result of various important factors, including those described in the 
      Company's most recent filings with the SEC. Although we believe that the 
      expectations reflected in the forward-looking statements are reasonable, 
      such statements should not be regarded as a representation by the 
      Company, or any other person, that such forward-looking statements will 
      be achieved. The business and operations of the Company are subject to 
      substantial risks which increase the uncertainty inherent in 
      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. In light of 
      the foregoing, readers are cautioned not to place undue reliance on such 
      forward-looking statements.
    
  
PowerLinx, Inc. (OTCBB:PWNX), today reported its September 30,
2006 quarter ended consolidated results.

   Net revenues of $1,004,600 for the quarter ended September 30,
2006 exceeded revenues for the same period in 2005 by $780,600 or
349%. The growth in revenue was directly attributable to increases in
revenue from the SecureView PowerLinx Video Surveillance Camera.

   Net loss for the quarter ended September 30, 2006 was $584,800 or
$.12 per share, including discontinued operations, compared to a loss
of $941,000 or $.24 per share for the same period ended 2005.

   Gross profit increased 436% from $87,400 for the quarter ended
September 30, 2005 to $272,900 for the quarter ended September 30,
2006. Operating expenses decreased 21% from $1,011,600 for the quarter
ended September 30, 2005 to $797,800 for the quarter ended September
30, 2006. Loss from operations decreased 43% from $924,200 for the
quarter ended September 30, 2005 to $524,900 for the quarter ended
September 30, 2006.

   Attaining net revenues of $1,004,600 for the quarter ended
September 30, 2006 represented the largest single quarterly revenue
total in the Company's history; a 99% increase in net revenues,
compared to the previous largest single quarterly revenue total for
the quarter ended June 30, 2005.

   "There are three key elements to the PowerLinx business plan as we
move forward: grow revenue on existing products, reduce expenses, and
complete development of new technologies and the products currently in
the pipeline," stated Mike Tomlinson, President & Chief Executive
Officer of PowerLinx. "We are very proud of the significant progress
we've made in all three areas this past quarter. The financial results
for the third quarter reflect the Company's focus on growing revenue
on existing products and reducing overall expenses. In addition, we
recently announced the readiness for launch of two new
technologies/products; Power Line Audio and Power Line IP Cameras.
Consistent with our business plan, the Company is in the early stages
of bringing to market these exciting new technologies and products,
through both direct sales and licensing opportunities, to fuel
anticipated future revenue growth."

   As reported in the Company's 10-KSB filed on April 14, 2005, the
Company discontinued the operations of its Hotel/MDU products segment
and operating results for the discontinued segment have been reported
separately as discontinued operations in the consolidated statements
of operations for all periods presented in accordance with Statement
of Financial Accounting Standards ("SFAS") No. 144, "Accounting for
the Impairment or Disposal of Long-Lived Assets." Accordingly, for all
comparative reporting periods, revenue and expense amounts have been
reclassified to reflect this accounting.

-0-
*T
                           POWERLINX, INC.
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            THREE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
                             (unaudited)


                                                  2006        2005
                                               ----------- -----------
Product sales, net                            $ 1,004,564 $   223,945
Cost of goods sold                                731,688     136,529
                                               ----------- -----------
    Gross profit                                  272,876      87,416
Operating expenses                                797,806   1,011,645
                                               ----------- -----------
Loss from operations                            ( 524,930)  ( 924,229)
Interest expense, net                              22,133       6,156
Gain (loss) on extinguishment of debt                   -           -
Derivative gain (loss)                           ( 37,718)          -
Loss before discontinued operations             ( 584,781)  ( 930,385)
Loss from discontinued operations                    ( - )   ( 10,638)
                                               ----------- -----------
Net loss                                       ($ 584,781) ($ 941,023)
                                               =========== ===========
Loss per common share                         $     (0.12)$     (0.24)
*T

   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.

   Web site: www.power-linx.com

   E-mail: [e-mail]

   This press release may contain "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934, including those that
involve PowerLinx's risks and uncertainties and statements regarding
our plans, future events, objectives, expectations, forecasts, or
assumptions. All statements contained herein are based upon
information available to PowerLinx's management as of the date hereof,
and actual results may vary based upon future events, both within and
without PowerLinx's management's control. Any 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. These statements are only predictions. Actual events or
results may differ materially from those in the forward-looking
statements as a result of various important factors, including those
described in the Company's most recent filings with the SEC. Although
we believe that the expectations reflected in the forward-looking
statements are reasonable, such statements should not be regarded as a
representation by the Company, or any other person, that such
forward-looking statements will be achieved. The business and
operations of the Company are subject to substantial risks which
increase the uncertainty inherent in 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. In light of the foregoing,
readers are cautioned not to place undue reliance on such
forward-looking statements.