Speedus Announces Second Quarter 2005 Results

NEW YORK, Aug. 15  /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $2.4 million, or $0.15 per share on a fully diluted basis, for the six months ended June 30, 2005 compared to net earnings of $9.0 million, or $0.54 per share on a fully diluted basis, for the six months ended June 30, 2004. The loss before depreciation and amortization was $1.9 million for the six months ended June 30, 2005 compared to earnings before depreciation and amortization of $9.6 million for the six months ended June 30, 2004.

The results for the six months ended June 30, 2004 were primarily driven by a gain from technology settlement in the amount of $15 million. In connection with this settlement, the Company incurred $2.9 million in technology settlement expenses.

For the quarters ended June 30, 2005 and 2004, the Company reported a net loss of $1.4 million, or $0.09 per share on a fully diluted basis, in each period. The loss before depreciation and amortization for the quarters ended June 30, 2005 and 2004 was $1.1 million in each period.

For the six months ended June 30, 2005, total operating expenses, before depreciation and amortization and technology settlement expenses, amounted to $2.8 million compared to $3.0 million for the six months ended June 30, 2004. Net of an increase in the amount of $0.1 million as a result of the opening of a second F&B Gudtfood store in the second quarter of 2004, this $0.3 million decrease is primarily a result of the continuation of personnel reductions and cost-saving measures.

About Speedus Corp.

Speedus Corp. is a holding company with controlling interests in Zargis Medical Corp. and F&B Gudtfood Holdings, Inc. Speedus Corp also owns broadband intellectual property and controls licensed wireless frequencies. Additional information on Speedus Corp. and its services may be obtained at http://www.speedus.com/ or by contacting John Kallassy at 888-773-3669 (ext. 22) 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 2004 audited consolidated financial statements and notes thereto on Form 10-K and quarterly reports on Form 10-Q. Operating results for the three and six months ended June 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005.

                              SPEEDUS CORP.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (unaudited)

                                 Three months               Six months
                                 ended June 30,           ended June 30,
                               2005         2004         2005         2004

  Revenues                   $282,947     $200,228     $509,726    $351,243

  Expenses:
    Selling, general and
     administrative           964,939    1,169,568    1,939,921   2,162,282
    Research and
     development              369,637      368,249      696,269     738,994
    Depreciation and
     amortization             233,299      306,770      463,376     592,246
    Cost of sales              93,674       83,567      170,861     128,511
    Technology settlement
     expenses                     ---          ---          ---   2,928,583
    Total operating
     expenses               1,661,549    1,928,154    3,270,427   6,550,616

  Operating loss           (1,378,602)  (1,727,926)  (2,760,701) (6,199,373)

  Investment
   income/(loss)                 (612)     154,941      281,253    (103,181)
  Minority interest            (1,466)     190,841      123,613     332,212
  Gain from technology
   settlement                     ---          ---          ---  15,000,000

  Net earnings/(loss)     $(1,380,680) $(1,382,144) $(2,355,835) $9,029,658


  Per share:
  Basic earnings/(loss)
   per common share            $(0.09)      $(0.09)      $(0.15)      $0.55
  Weighted average common
   shares
    outstanding -- basic   16,226,482   16,255,244   16,222,625  16,271,615

  Diluted earnings/(loss)
   per common share            $(0.09)      $(0.09)      $(0.15)      $0.54
  Weighted average common
   shares outstanding --
   diluted                 16,226,482   16,255,244   16,222,625  16,832,814


                              SPEEDUS CORP.
                       CONSOLIDATED BALANCE SHEETS

                                               June 30,         December 31,
                                                 2005               2004
                                              (unaudited)

                    ASSETS
  Current assets:
    Cash and cash equivalents                $15,793,908       $17,740,865
    United States Treasury bills               4,964,850         5,977,200
    Marketable securities                      1,869,688         1,060,592
    Prepaid expenses and other                   167,062           173,979
    Due from broker                               12,455               ---
    Accounts and other receivables                 1,600            49,134
    Total current assets                      22,809,563        25,001,770
  Property and equipment, net of
   accumulated depreciation of
   $241,391 and $175,457                         557,368           609,840
  Other intangible assets, net of
   accumulated amortization of
   $2,209,691 and $1,812,249                   1,020,353         1,417,795
  Other investments                              800,000           900,000
  Other assets                                   782,278           752,869
    Total assets                             $25,969,562       $28,682,274

   LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                            $199,789          $315,742
    Accrued liabilities                        1,225,320         1,357,720
    Securities sold and not purchased             35,586               ---
    Total current liabilities                  1,460,695         1,673,462

  Minority interest                               35,681           159,294

  Commitments and Contingencies

  Stockholders' equity:
    Common stock ($.01 par value;
     50,000,000 shares authorized;
     21,633,674 and 21,587,674                   216,337           215,877
     shares issued)
    Preferred stock ($.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                90,601,289         90,546,583
    Treasury stock (at cost;
     5,421,549 and 5,368,949 shares)          (5,575,347)        (5,499,684)
    Accumulated deficit                      (60,769,093)       (58,413,258)
    Stockholders' equity                      24,473,186         26,849,518
    Total liabilities and
    stockholders' equity                     $25,969,562        $28,682,274


DATASOURCE: Speedus Corp.



CONTACT:  John Kallassy of Speedus Corp., 1-888-773-3669, ext. 22,





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

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