DataLogic International Reports Financial Results for the First Quarter 2005

DataLogic International Reports Financial Results for the First
Quarter 2005 


IRVINE, Calif., May 23  /PRNewswire-FirstCall/ -- DataLogic International,
Inc., (OTC Bulletin Board: DLGI; Berlin, Frankfurt Stock Exchange: 779612) a
provider of consulting services and communication solutions including VoIP, GPS
based mobile asset tracking, and secured mobile communications, today announced
its financial results for the quarter ended March 31, 2005.

In the first quarter of 2005, the Company achieved significant strategic
milestones, such as:

   * Hiring of a new CEO, Keith Moore, who has built several successful
     technology companies;

   * Acquisition of the assets of New Mexico-based IS Solutions, LLC (ISS),
     now DataLogic New Mexico, Inc.;

   * Shipments of Panther Trak(TM), the Company's GPS-based mobile asset
     tracking device, which provides a complete range of customer-defined
     options for keeping track of valuable vehicular assets;

   * The market launch of EncrypTAC(TM), a next-generation encryption and
     two-factor authentication product that provides law enforcement agents
     using mobile communications efficient access to FBI databases without
     compromising security;

   * An April 20, 2005 award win in the Device category for Panther Trak
     from the Orange County Chapter of the AeA, the nation's largest
     technology trade organization;

   * Formation of the Company's Communications Group, which includes VoIP
    (Voice over Internet Protocol) equipment and services, GPS vehicle and
     asset management products and services, secured mobile communications
     and video communications solutions;

   * Reducing notes payable by over $250,000 in the quarter ended
     March 31, 2005.

   Financial Results


DataLogic International's net sales for the quarter ended March 31, 2005 were
$3,368,268 million as compared to net sales of $4,001,587 million for the
quarter ended March 31, 2004.  The 16% decrease in net sales was primarily due
to decreased VoIP sales in the quarter compared to the same period in the prior
year.

Gross profit for the quarter ended March 31, 2005 was $434,768, or 13% of net
sales, as compared to gross profit of $997,263, or 25% of net sales, for the
same period in the prior year.  The decrease in the Company's gross profit
margin was primarily due to decreased VoIP license sales.

Operating expenses for the quarter ended March 31, 2005 were $674,561 as
compared to $272,756 for the same period in the prior year.  The increase is
attributable to financing fees, financing related legal fees, general R & D
investments, product development costs, and increases in operational,
administrative and marketing costs.

Interest and factoring expense for the quarter ended March 31, 2005 was
$146,913, as compared to $78,195 for the same period in the prior year.  The
increase in interest expense was primarily attributable to the Company's notes,
debt issuance, and beneficial conversion factor expenses related to the Laurus
Master Fund financing facility established in June, 2004.

As a result of the above, the Company's net loss for the quarter ended March
31, 2005 was $389,906, or a loss of $0.01 per share, as compared to a net
profit of $479,532, or earnings of $0.01 per share in the same period of the
prior year.

For the quarter ended March 31, 2005 the Company's assets consisted of cash and
cash equivalents of $377,468, $1,712,401 in accounts receivable, $7,500 in
marketable securities, and $231,862 in inventory, as compared with $514,653 in
cash and cash equivalents, $2,226,853 in accounts receivable, $61,000 in
marketable securities and $61,986 in inventory in the same period in the prior
year.  For the quarter ended March 31, 2005 the Company's current liabilities
consisted of $1,688,742 in accounts payable and accrued expenses and $1,133,516
in short-term debts, as compared with $1,180,117 in accounts payable and
accrued expenses and $1,293,454 short-term debts in the same quarter in the
prior year.

Management Analysis

"For the remaining of fiscal 2005, we have exciting plans for the
commercialization and marketing of our innovative communications technologies.
The fulfillment of our $3M Panther Trak order has begun.  We are expanding our
marketing efforts of our cost-effective VoIP telephony solutions in populous
developing nations.  We have also enhanced our sales and marketing team for
supporting EncrypTAC, our secured mobile communications technology.  We are
also briefing our current and past clients with expanded service offerings.
Finally, we will continue to explore acquisition opportunities that show the
potential to increase our market share in target markets and provide recurring
revenues streams," commented Keith Moore, DataLogic International's Chairman
and CEO.

About DataLogic International, Inc.

DataLogic International, Inc. is a technology and professional services company
providing a wide range of consulting services and communication solutions such
as VoIP, GPS based mobile asset tracking, and secured mobile communications. 
The company also provides Information Technology outsourcing and private label
communication solutions.  DataLogic's customers include U.S. and international
governmental agencies as well as a variety of international commercial
organizations.  For more information about DataLogic International, please
visit http://www.dlgi.com/.

This news release includes 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, as amended, regarding, among other things, our plans,
strategies and prospects, both business and financial.  Although we believe
that our plans, intentions and expectations reflected in or suggested by these
forward-looking statements are reasonable, we cannot assure you that we will
achieve or realize these plans, intentions or expectations. Forward-looking
statements are inherently subject to risks, uncertainties and assumptions. Many
of the forward-looking statements contained in this news release may be
identified by the use of forward-looking words such as: believe, expect,
anticipate, should, planned, will, may, intend, estimated, and potential, among
others.  Important factors that could cause actual results to differ materially
from the forward-looking statements we make in this news release include market
conditions and those set forth in reports or documents that we file from time
to time with the United States Securities and Exchange Commission.  All
forward-looking statements attributable to DataLogic International or a person
acting on its behalf are expressly qualified in their entirety by this
cautionary language.

   Contact Information:
   Keith C. Moore, Chairman and CEO
   DataLogic International, Inc.
   949-260-0120, ext. 106

   Sean Collins, Partner
   CCG Investor Relations and Strategic Communications
   310-231-8600, ext. 202


DATASOURCE: DataLogic International, Inc.



CONTACT:  Keith C. Moore, Chairman and CEO of DataLogic International,

Inc., [phone], ext. 106; or Sean Collins, Partner, of CCG Investor

Relations and Strategic Communications, [phone], ext. 202, for

DataLogic International, Inc.



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

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