Speedus Announces Fourth Quarter and Fiscal 2007 Results

NEW YORK, March 31 /PRNewswire-FirstCall/ -- Speedus Corp. (Nasdaq: SPDE)
today announced a net loss of $4.4 million, or $1.11 per share on a fully
diluted basis, for the twelve months ended December 31, 2007 compared to a net
loss of $5.6 million, or $1.40 per share on a fully diluted basis, for the
twelve months ended December 31, 2006. The loss before depreciation and
amortization for the twelve months ended December 31, 2007 was $4.2 million
compared to a loss before depreciation and amortization of $4.9 million for
the twelve months ended December 31, 2006.
For 2007, total operating expenses before depreciation and amortization
amounted to $5.7 million compared to $6.3 million in 2006. This decrease is
primarily a result of a decrease in non-cash stock based compensation.
In October 2007, Zargis and the 3M Company entered into an exclusive
multi-year marketing alliance involving Zargis' heart sound analysis software
and 3M Littmann's next-generation electronic stethoscope. Under the agreement,
Zargis will support 3M in its efforts to develop a next-generation stethoscope
that will be compatible with Zargis' heart sound analysis software. In
addition, the alliance provides Zargis with a wide-range of marketing and
promotional opportunities along with exclusive rights to sell its heart sound
analysis software through the global distribution network of the Littmann
brand. The agreement grants 3M a 10% minority equity position in Zargis, 5%
following the first sale of Zargis' software through the 3M distribution
channel and 5% in the event the agreement is renewed after an initial two year
term and certain other conditions are met, and a seat on Zargis' board of
directors.
About Speedus Corp
Additional information on Speedus Corp. may be obtained at www.speedus.com
or by contacting Peter Hodge at 888-773-3669 (ext. 23) or phodge@speedus.com.
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. Operating results for the year ended December 31, 2007 are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2008.

CONTACT: Peter Hodge of Speedus Corp., 888-773-3669 (ext. 23) or
phodge@speedus.com

SPEEDUS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS

Quarters ended Years ended
December 31, December 31,
2007 2006 2007 2006
(unaudited) (unaudited)

Revenues $155,285 $208,024 $733,213 $846,342

Expenses:
Selling, general and
administrative 1,022,009 1,157,638 3,828,009 4,319,554
Research and
development 354,315 293,793 1,612,872 1,678,139
Depreciation and
amortization 109,201 139,888 265,634 757,553
Cost of sales 65,825 76,717 297,439 306,932
Total operating
expenses 1,551,350 1,668,036 6,003,954 7,062,178

Operating loss (1,396,065) (1,460,012) (5,270,741) (6,215,836)

Investment
income/(loss) (10,148) 332,532 852,691 600,641

Net loss $(1,406,213) $(1,127,480) $(4,418,050) $(5,615,195)

Per share:
Loss per common share
- basic and diluted $(0.35) $(0.28) $(1.11) $(1.40)
Weighted average
common shares
outstanding - basic
and diluted 3,991,910 4,004,279 3,992,044 4,012,927

SPEEDUS CORP.
CONSOLIDATED BALANCE SHEETS

December 31,
2007 2006

ASSETS
Current assets:
Cash and cash equivalents $8,845,358 $10,204,167
United States Treasury bills 2,996,700 4,990,250
Assets held for sale 342,000 ---
Marketable securities 92,190 354,011
Prepaid expenses and other 79,623 143,654
Total current assets 12,355,871 15,692,082
Property and equipment, net of
accumulated depreciation of
$112,353 and $444,972 50,569 527,828
Other intangible assets, net of
accumulated amortization of
$1,125,928 in 2006 --- 34,116
Other investments 800,000 800,000
Other assets 83,127 81,737
Total assets $13,289,567 $17,135,763

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $46,413 $62,805
Accrued liabilities 1,390,803 971,055
Total current liabilities 1,437,216 1,033,860

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 91,797,457 91,627,241
Treasury stock (at cost;
1,445,634 and 1,445,221 shares) (6,085,078) (6,083,360)
Accumulated deficit (73,914,408) (69,496,358)
Stockholders' equity 11,852,351 16,101,903
Total liabilities and
stockholders' equity $13,289,567 $17,135,763

SOURCE Speedus Corp.

Peter Hodge of Speedus Corp., 1-888-773-3669 ext. 23, phodge@speedus.com