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Advant-e Corporation Announces Record Revenue
and Net Income for 2005

Company Reports 24% Increase in Revenue, 28% Increase in Net Income over Prior Year


DAYTON, Ohio, Thursday February 16, 2006
-- Advant-e Corporation (OTC Bulletin Board: ADVC - News), a provider of Internet-based business-to-business electronic commerce services, today announced financial and operating results for the year ending December 31, 2005.

In 2005 the Company reported record revenues of $4,462, 702 compared to $3,600,732 for 2004. The 24% increase in revenue is attributed to the continued expansion and market acceptance of the Company's Internet-based business-to-business electronic commerce subscription services. Net income for 2005 was a record $600,318 or $.09 per share compared to $469,323 or $.08 per share ($.07 per share fully diluted) in 2004.

For the fourth quarter of 2005 the Company reported revenue of $1,203,771 and net income of $209,994 or $.03 per share, compared to revenue of $990,077 and net income of $127,111 or $.02 per share ($.01 per share fully diluted) in the fourth quarter of 2004.

Highlights of 2005 financial and operating results include:

Commenting on the year-end results., Mr. Jason K. Wadzinski, CEO of Advant-e stated, "Our primary goal in 2005 was to achieve 20% pre-tax profit while growing revenue at an acceptable level. I would like to thank the dedicated Edict Systems team for exceeding this goal. Our secondary goal for 2005 was to diverisfy the markets we serve. Our entry into the Automotive supply chain with our Web EDI services for suppliers to large OEM's along with our suite of trading community ramping services is proving to be successful. We hope to continue to grow this segment of our business as well as expand into other industries."

"We are very excited about our future opportunities" continued Mr. Wadzinski. "Now that our financial base is solid, our top priority for the coming years is accelerated revenue growth through expansion of existing offerings, new products and services, and increased sales and marketing efforts. In support of this goal, we plan on increasing our investment in infrastructure, new product development, and sales and marketing related costs. While this will likely reduce our short-term profitability, we are confident that we can leverage our industry-leading position to bring new value-added services to our existing and new customers."

As a result, the Company's management offers the following guidance:

 

                     ADVANT-E CORPORATION AND SUBSIDIARY
           CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited)
                       
                                 Three Months Ended         Year Ended
                                   December 31,            December 31,
                                  2005       2004        2005         2004

    Revenue                  $ 1,203,771    990,077    4,462,702    3,600,732
    Cost of revenue              368,486    325,474    1,511,007    1,239,179 

    Gross margin                 835,285    664,603    2,951,695    2,631,553
    Marketing, general and
     administrative expenses     539,793    440,492    2,010,911    1,562,621

    Operating income             295,492    224,111      940,784      798,932
    Other income (expense)         4,602        ---        9,734      (2,209)

    Income before taxes          300,094    224,111      950,518      796,723
    Income tax expense            90,100     97,000      350,200      327,400

    Net income                 $ 209,994    127,111      600,318      469,323

    Basic earnings per share      $ 0.03       0.02         0.09         0.08

    Diluted earnings per share    $ 0.03       0.01         0.09         0.07

    Weighted average shares
     outstanding                6,403,174  6,244,917    6,325,218    6,244,917

    Weighted average shares
     outstanding, assuming
     dilution                  6,408,788  6,461,143    6,340,851    6,587,285



                     ADVANT-E CORPORATION AND SUBSIDIARY
                    CONSOLIDATED CONDENSED BALANCE SHEETS

                                                  December 31,   December 31,
                                                      2005           2004
                                                   (Unaudited)
    Assets

    Current Assets
       Cash and cash equivalents                  $ 1,763,435        944,892
       Short-term investments                         225,902            ---
       Accounts receivable, net                       351,482        290,394
       Prepaid expenses and deposit                    25,128         26,420

    Total current assets                            2,365,947      1,261,706

    Software development costs, net                   160,656        298,809

    Property and equipment, net                       262,523        271,604

          Total assets                            $ 2,789,126      1,832,119

    Liabilities and Shareholders' Equity

    Current liabilities
       Accounts payable                              $ 44,838         39,681
       Accrued salaries and other expenses            115,510         99,810
       Income taxes payable                           375,652         26,000
       Deferred income taxes                           26,00            ---
       Deferred revenue                                76,173        142,788

    Total current liabilities                         638,173        308,279

    Deferred income taxes                             136,000        191,000

          Total liabilities                           774,173        499,279

    Shareholders' equity
       Common stock, $.001 par value; 20,000,000
        shares authorized; 6,403,714 outstanding
        at September 30, 2005 and 6,244,917
        outstanding at December  31, 2004               6,403          6,245
       Paid-in capital                              1,551,606      1,475,584
       Accumulated other comprehensive income           5,615            ---
       Retained earnings (deficit)                    451,329       (148,989)

          Total shareholders' equity                2,014,953      1,332,840

          Total liabilities and shareholders'
           equity                                 $ 2,789,126      1,832,119




                     ADVANT-E CORPORATION AND SUBSIDIARY
         CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)

                                                            Year Ended
                                                           December 31,
                                                         2005          2004
    Cash flows from operating activities:
       Net income                                     $ 600,318      469,323
       Adjustments to reconcile net income to net
        cash flows from operating activities:
          Depreciation                                  110,721       80,637
          Amortization of software development costs    217,780      332,430
          Deferred income taxes                         (32,800)     301,400
		  Net realized losses on available
		   for-sale investments                           2,222        ---
          Increase (decrease) in cash arising from
           changes in assets and liabilities:
            Accounts receivable                         (61,087)     (74,499)
            Prepaid expenses                             (1,291)     (10,233)
            Accounts payable                              5,157      (32,491)
            Accrued salaries, interest and other
             expenses                                    15,700       27,943
            Income taxes payable                        349,652       26,000
            Deferred revenue                            (66,615)      51,857
            Net cash flows from operating activities  1,142,339   1,172,367

    Cash flows from investing activities:
       Purchases of available-for-sale investments     (253,877)         ---
       Proceeds from sale of available-for-sale
        investments                                      35,168          ---
       Purchases of equipment                          (101,640)    (183,5547)
       Software development costs                       (79,627)    (149,561)
            Net cash flows from investing activities   (339,976)    (333,115)

    Cash flows from financing activities:
       Issuance of common stock                          91,500          ---
       Payments on notes                                    ---      (94,965)
       Payments of direct costs of securities
        registration                                    (15,320)     (15,843)
            Net cash flows from financing activities     76,180     (110,808)

    Net increase in cash and cash equivalents           818,543      728,444

    Cash and cash equivalents, beginning of period      944,892      216,448

    Cash and cash equivalents, end of period        $ 1,763,435      944,892

    Supplemental disclosures of cash flow items:
       Interest paid                                      $ ---        3,042
       Income taxes paid                               $ 33,348          ---

                    
About Advant-e

Advant-e, via its wholly owned and sole operating subsidiary Edict Systems, Inc., is a provider of Business-to-Business electronic commerce software and Internet-based applications specializing in Electronic Data Interchange (EDI) and XML-based solutions for recurring transactions. Advant-e specializes in horizontal transaction services via EnterpriseEC®, an Internet-based Trading Community Connectivity, Management, and Integration solution, and within specific industries via web-based EDI services including www.GroceryEC.com, www.RetailEC.com, www.AutomotiveEC.com, www.CPGSupplier.com, and www.WebEDI.com.

Additional information about Advant-e Corporation can be found at www.Advant-e.com and www.edictsystems.com or by contacting investor relations at (937) 429-4288. The company's email is info@edictsystems.com.

Copyright © 2000-2009 Advant-e Corporation
All Rights Reserved
Phone: (800) 443-3428
Fax: (937) 429-4309
Please send comments on this page to info@edictsystems.com


The information in this news release includes certain forward looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the company. Although the company believes that the expectations reflected on its forward looking statements are reasonable, it can give no assurance that such expectations or any or its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.