ICU Cenuco

Cenuco Announces Fourth Quarter and Year-End Results Year of Transition Positions Company for Growth of Wireless Video Monitoring Business BOCA RATON, Fla., Sept. 28 /PRNewswire-FirstCall/ -- Cenuco, Inc. (AMEX:ICU) today announced its financial results for the fourth quarter and fiscal year ended June 30, 2004. For the fourth quarter ended June 30, 2004 revenues were $497,000 compared to $191,000 in the fourth quarter of 2003. The net loss for the fourth quarter was $2.5 million, or $0.21 per fully diluted share, compared to a net loss of $828,000, or $0.09 per fully diluted share in the fourth quarter of 2003. For the year ended June 30, 2004 revenues were $1.5 million compared to $1.6 million for 2003. The net loss for the year ended June 30, 2004 was $3.6 million, or $0.36 per fully diluted share, as compared to a net loss of $1.3 million, or $0.15 per fully diluted share for 2003. During fiscal 2004 the Company implemented a strategy to expand its wireless video monitoring business and is now uniquely positioned to provide cellular carriers a host of video streaming products, which generate an increase in subscriber adoption of wireless data services, as well as monthly service revenue for carriers. Cenuco's wireless video monitoring solutions allow users to view real-time streaming video of security cameras at their home or place of business from anywhere they receive a cellular connection. The net loss for 2004 includes one-time costs associated with the listing on the American Stock Exchange as well as certain expenses associated with capital-raising activities. Additionally, the net loss includes non-cash expenses of approximately $2.6 million. Although research and development will continue in fiscal 2005, the bulk of the costs related to the development, testing, packaging, and marketing of the wireless products and services were associated with the Company's 2004 capital expenditures. The Company expects strong revenue growth and a positive free cash-flow position during fiscal 2005, as cellular based remote viewing products achieve increased market acceptance and wider distribution. Cenuco is debt free with more than $5 million in cash. Company milestones in 2004 include: * An American Stock Exchange listing in May 2004, trading under the symbol: ICU "I see you." * Closed on a private placement financing raising net proceeds of approximately $5.5 million for working capital purposes, with over $7 million available to the Company through the exercise of warrants. * Key hires on the management team: Robert Picow, Chairman, previously with Brightpoint (NASDAQ:CELL). Jordan Serlin, Chief Operating Officer, previously with United Kingdom based Tenestra, Ltd. Doug McMillan, Director of Business Development and Marketing, previously with IBM (NYSE:IBM) and Tyco (NYSE:TYC). * Developed partnerships and affiliates including: Intel Corporation, Microsoft Corporation, Qualcomm, and Tyco. * Agreed to distribution terms with Cellstar, Infosonics and FCI Associates, and other integrated distribution companies. They represent Cenuco's wireless remote monitoring products and services. Steven Bettinger, President and CEO, commented, "The results for the year are best seen against the background of the milestones we have achieved. We have great expectations for fiscal 2005 and are pleased that the accomplishments in 2004 resulted in a strong foundation for future success. We will continue to sell our products in many vertical markets, as the market for wireless technologies is developing. Our plan calls for us to build subscription base revenue streams for various industries and develop niche vertical markets for our wireless solutions. We intend to pursue marketing opportunities which allow us to develop the market presence needed to support sales goals and to attract developers of new products and services. Cenuco will maintain and strengthen strategic relationships with suppliers and customers as we focus on providing a quality product and support after the sale." The Company previously announced it intends to divest its online education and distance learning business. The divestiture is expected to be completed in the second quarter of fiscal 2005. Proceeds from the divestiture will be used to fund the growth of the wireless video monitoring business. About Cenuco Cenuco, Inc. develops wireless solutions for transmitting live streaming video to PDAs and cell phones. The Company's technology has applications in a variety of markets, including security, education, real estate, insurance, government and retail market segments. Cenuco's wireless video monitoring solutions are the primary focus of its business and allow users to view real- time streaming video of security cameras at their home or place of business from anywhere they receive a cellular connection, regardless of the carrier or user's location. The Company's products address the fast-growing security, surveillance and Homeland Security markets, and some of its monitoring products have been listed on the Federal General Services Administration (GSA) schedule. Please visit http://www.cenuco.com/ for additional information. Certain statements contained herein may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, 21E of the Exchange Act of 1934 and/or the Private Securities Litigation Reform Act of 1995. Such statements include, without limitation, statements regarding business plans, future regulatory environment and approval and, the Company's ability to comply with the rules and policies of independent regulatory agencies. Although the Company believes the statements contained herein to be accurate as of the date they were made, it can give no assurance that such expectations will prove to be correct. The Company undertakes no obligation to update these forward-looking statements. -- financial tables to follow -- CENUCO, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Year Ended Quarter Ended June 30, June 30, 2004 2003 2004 2003 (Unaudited)(Unaudited) NET REVENUES: Tuition and Tuition- related $ 1,337,648 $ 1,181,718 $ 458,576 $ 151,853 Wireless Products and Services 176,701 395,761 38,318 38,805 NET REVENUES 1,514,349 1,577,479 496,894 190,658 COSTS AND EXPENSES: Cost of Equipment Sales -- Wireless Products and Services 27,019 157,656 9,377 2,355 Instructional and Educational Support 114,551 99,956 29,855 15,980 Research and Development 30,163 64,742 4,784 23,249 Bad Debt Expense 162,956 177,357 60,475 (79,817) Selling and Promotion 329,333 353,403 141,156 32,008 Impairment Loss 884,028 -- 884,028 -- General and Administrative 3,610,179 1,879,312 1,833,818 610,740 Total Operating Expenses 5,158,229 2,732,426 2,963,493 604,515 LOSS FROM OPERATIONS (3,643,880) (1,154,947) (2,466,599) (413,857) OTHER INCOME: Interest Income 21,956 18,921 12,546 2,445 LOSS BEFORE INCOME TAXES (3,621,924) (1,136,026) (2,454,053) (411,412) INCOME TAX EXPENSE: Deferred Income Tax -- (153,156) -- (416,100) Total Income Tax Expense -- (153,156) -- (416,100) NET LOSS $(3,621,924) $(1,289,182) $(2,454,053) $(827,512) BASIC AND DILUTED: Net Loss Per Common Share -- Basic and Diluted $ (0.36) $ (0.15) $ (0.21) $ (0.09) Weighted Common Shares Outstanding -- Basic and Diluted 10,047,698 8,767,481 11,805,018 8,948,870 DATASOURCE: Cenuco, Inc. CONTACT: Steve M. Bettinger, President, Cenuco, Inc., +1-561-997-2602; or Vincent Daniels, VP - Investor Relations, or Margarerit Drgos, VP - Media Relations, or Jeff Myhre, VP - Editorial, all of Porter, Le Vay & Rose, Inc., +1-212-564-4700 Web site: http://www.cenuco.com/

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