Speedus Announces First Quarter 2008 Results

NEW YORK, May 15  /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $1.4 million, or $0.34 per share on a fully diluted basis, for the quarter ended March 31, 2008 compared to a net loss of $1.2 million, or $0.30 per share on a fully diluted basis, for the quarter ended March 31, 2007. The loss before depreciation and amortization was $1.1 million for the quarter ended March 31, 2008 compared to a loss before depreciation and amortization of $1.2 million for the quarter ended March 31, 2007.

For the quarters ended March 31, 2008 and 2007, total operating expenses before depreciation and amortization amounted to $1.2 million and $1.5 million, respectively. This decrease is primarily a result of a decrease in legal expenses in connection with litigating patent infringement claims, net of increases in research and development expenses in connection with the Company's wireless initiatives including Wibiki and the continued development of Zargis' medical device.

About Speedus Corp.

Speedus is a pioneer in wireless broadband, owning both wireless spectrum and a portfolio of broadband IP. Speedus also holds controlling interests in Zargis Medical Corp. and F&B Gudtfood Holdings, Inc.

Additional information on Speedus Corp. and its services may be obtained at http://www.speedus.com/ or by contacting Peter Hodge at 888-773-3669 (ext. 23) or .

Statements contained herein that are not historical facts, including but not limited to statements about the Company's product, corporate identity and focus, may be forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, the continuing development of the Company's sales, marketing and support efforts.

These financial statements do not include all information and notes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the Company's 2007 audited consolidated financial statements and notes thereto on Form 10-K and quarterly reports on Form 10-Q. Operating results for the quarter ended March 31, 2008 are not necessarily indicative of the results that may be expected for the year ending December 31, 2008.

                              SPEEDUS CORP.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (unaudited)

                                            For the quarters ended March 31,
                                                2008              2007

        Revenues                              $120,234          $173,319

        Expenses:
          Selling, general and
           administrative                      718,126         1,110,261
          Research and development             494,212           353,620
          Depreciation and amortization        293,697            51,993
          Cost of sales                         36,105            64,829
          Total operating expenses           1,542,140         1,580,703

        Operating loss                      (1,421,906)       (1,407,384)

        Investment income                       55,539           197,115

        Net loss                           $(1,366,367)      $(1,210,269)


        Per share:
        Loss per common share - basic
         and diluted                            $(0.34)           $(0.30)
        Weighted average common shares
            outstanding - basic and
             diluted                         3,991,946         3,992,323



                              SPEEDUS CORP.
                       CONSOLIDATED BALANCE SHEETS
                               (unaudited)

                                              March 31,        December 31,
                                                2008              2007

                    ASSETS
      Current assets:
        Cash and cash equivalents            $10,351,634        $8,845,358
        United States Treasury bills                 ---         2,996,700
        Due from broker                        1,928,650               ---
        Marketable securities                     42,086            92,190
        Accounts receivable and other            321,890            79,623
        Assets held for sale                         ---           342,000
        Total current assets                  12,644,260        12,355,871
      Property and equipment, net of
       accumulated depreciation of
       $120,050 and $112,353                      76,938            50,569
      Other investments                          800,000           800,000
      Other intangible assets                    584,400               ---
      Other assets                               104,524            83,127
        Total assets                         $14,210,122       $13,289,567


        LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities:
        Accounts payable                         $84,506           $46,413
        Accrued liabilities                      959,231         1,390,803
        Securities sold and not yet
         purchased                             1,938,950               ---
        Current portion of redeemable
         preferred stock                         354,700               ---
        Total current liabilities              3,337,387         1,437,216

      Redeemable preferred stock
       ($.0001 par value; 100,000 shares
        authorized; 70,940 shares issued
        and outstanding), net of current
        portion                                  354,700               ---
        Total liabilities                      3,692,087         1,437,216

      Commitments and Contingencies

      Stockholders' equity:
        Common stock ($.01 par value;
         50,000,000 shares authorized;
         5,438,006 shares issued)                 54,380            54,380
        Preferred stock ($.01 par
         value; 20,000,000 shares
         authorized):
             Series A Junior Participating
              ($.01 par value; 4,000 shares
               authorized; no shares issued
               and outstanding)                      ---               ---
        Additional paid-in-capital            91,834,336        91,797,457
        Treasury stock (at cost;
         1,449,201 and 1,445,634 shares)      (6,089,906)       (6,085,078)
        Accumulated deficit                  (75,280,775)      (73,914,408)
        Stockholders' equity                  10,518,035        11,852,351
        Total liabilities and
         stockholders' equity                $14,210,122       $13,289,567





Contact:  Peter Hodge of Speedus Corp., [phone], ext. 23, or  

DATASOURCE: Speedus Corp.



CONTACT:  Peter Hodge of Speedus Corp., [phone], ext. 23, or





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

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