Pipeline Data Reports Record Financial Results and Profitability

Gross profit for the three months ended March 31, 2005 grew 148.9% to $1,297,071 from $521,199 for the three months ended March 31, 2004 and 36.6% from $949,873 for the three months ended December 31, 2004. Gross revenues for the three months ended March 31, 2005 grew 58% to $4.5 million from $2.9 million for the three months ended March 31, 2004. Gross revenues for the first quarter ended March 31, 2005, historically our slowest quarter, exceeded gross revenues for the fourth quarter ended December 31, 2004 by 1% or $65,707, historically our strongest quarter. Gross margin grew 58% for the three months ended March 31, 2005 to 28.8% from 18.2% for the three months ended March 31, 2004. In addition, gross margin for the three months ended March 31, 2005 grew 34.6% to 28.8% from 21.4% for the three months ended December 31, 2004. We attribute our improved gross margin to our increased monthly account volume and resulting ability to renegotiate pricing provisions with one of our key vendors. Net profit grew to $82,860 for the three months ended March 31, 2005 from a net loss of $52,233 in the three months ended March 31, 2004 and grew from a net loss of $246,295 in the fourth quarter of 2004. Our EBITDA for the three months ended March 31, 2005 was $184,216, which surpassed EBITDA of negative $2,293 for the three months ended March 31, 2004 and, in fact, surpassed EBITDA of $132,763 for the entire year ended December 31, 2004.