DataLogic International Reports Profitable Third Quarter on Record Revenues

Fifth Sequential Quarterly Revenue Increase Reflects Initial BounceGPS(TM) Sales and Increased Sales in Both Communications and Consulting Segments 


IRVINE, Calif., Nov. 3  /PRNewswire-FirstCall/ -- DataLogic International, Inc., (OTC Bulletin Board: DLGI; Berlin, Frankfurt Stock Exchange: 779612) a provider of consulting services and communication solutions including GPS-based mobile asset tracking, secured mobile communications and VoIP, today announced its return to profitability among many other significant financial results for the fiscal 2005 third quarter ended September 30, 2005.

DataLogic International's net sales for the third quarter were $4.9 million, a 61.6% increase as compared to net sales of $3.1 million for the quarter ended September 30, 2004.  This marked the highest quarterly revenues in the Company's history, a 10% sequential increase over second-quarter 2005 revenues of $4.5 million, and the fifth consecutive sequential revenue increase quarter over quarter.

Both the Company's Communications and Consulting business segments registered gains, with Communications net revenues increasing by $1.3 million, or over 500%, to $1.6 million, as compared with $258,000 for the third quarter of 2004.  Consulting net revenues increased $556,000, or 19.9%, to $3.3 million versus approximately $2.8 million in the prior-year quarter. Communications segment increases reflected primarily new BounceGPS-related revenues and increased sales of video communications products and services, while the Consulting segment grew on increases in consulting contracts received this year.

Gross profit for the quarter ended September 30, 2005 was $545,000, or 11% of net revenues, as compared to gross profit of $416,000 million, or 13.6% of net revenues, 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 and expenses related to launching new product lines.

Operating expenses for the third quarter were $373,000, a 40.9% decline from $631,000, reflecting adjustments made to re-classify certain operating expenses as cost of goods sold.

The Company recorded net income of $25,000 for the quarter ended September 30, 2005 as compared to a net loss of $338,000 in the prior-year quarter, despite an increase in interest expense to $147,000 from $106,000 in the prior-year quarter.

At September 30, 2005 the Company's assets totaled $5.1 million as compared with $5.7 million at September 30, 2004.

"We are pleased by both the net revenue performance of our two operating segments and also the profitability of the Company overall for the fiscal 2005 third quarter," commented Keith Moore, DataLogic International's Chairman and CEO.  "These results are a testament to the progress we are making in executing our strategic business plan.  Our new BounceGPS mobile asset tracking solution is making exciting market inroads that we believe are just the beginning.  We've also registered new business wins during this year for video communications contracts and in our Consulting segment, adding up to a fifth straight quarterly revenue increase."

"We believe that some significant new business initiatives we've launched this year are beginning to pay off.  We continue to seek and exploit vertical markets in which we can deploy our tracking and communications technology, and remain on alert for additional accretive acquisition opportunities with revenue-enhancing and market-building potential."

About DataLogic International, Inc.

DataLogic International, Inc. provides communications solutions and consulting services to a wide range of U.S. and international commercial enterprises and governmental agencies.  DataLogic provides complete GPS and location based services to rapidly growing markets such as vehicle and asset tracking, public safety and homeland security.  The Company offers a cost-effective, fully integrated tracking system for a wide range of markets. DataLogic also provides secure mobile communications, VoIP and video communications solutions as well as Information Technology and consulting services.  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, the market performance of acquired business entities and assets and other factors such as, but not limited to, 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.

   ISIN: US23804Q1022

   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
   310-477-9800, ext. 202


DATASOURCE: DataLogic International, Inc.



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

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

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

DataLogic International, Inc.



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

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