Speedus Announces Third Quarter 2005 Results

NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ: SPDE) today announced a net loss of $3.2 million, or $0.20 per share on a fully diluted basis, for the nine months ended September 30, 2005 compared to net earnings of $7.9 million, or $0.47 per share on a fully diluted basis, for the nine months ended September 30, 2004. The loss before depreciation and amortization was $2.6 million for the nine months ended September 30, 2005 compared to earnings before depreciation and amortization of $8.8 million for the nine months ended September 30, 2004.

The results for the nine months ended September 30, 2004 were primarily driven by a gain from technology settlement in the amount of $15 million. In connection with this settlement, the Company incurred $2.9 million in technology settlement expenses.

For the quarter ended September 30, 2005, the Company reported a net loss of $0.9 million, or $0.06 per share on a fully diluted basis, compared to a net loss of $1.1 million, or $0.07 per share on a fully diluted basis, for the quarter ended September 30, 2004. The loss before depreciation and amortization was $0.7 million for the quarter ended September 30, 2005 compared to $0.9 million for the quarter ended September 30, 2004.

For the nine months ended September 30, 2005, total operating expenses, before depreciation and amortization and technology settlement expenses, amounted to $4.3 million compared to $4.5 million for the nine months ended September 30, 2004. Net of an increase in the amount of $0.1 million as a result of the opening of a second F&B Gudtfood store in the second quarter of 2004, this $0.3 million decrease is primarily a result of the continuation of personnel reductions and cost-saving measures.

About Speedus Corp.

Speedus Corp. is a holding company with controlling interests in Zargis Medical Corp. and F&B Gudtfood Holdings, Inc. Speedus Corp also owns broadband intellectual property and controls licensed wireless frequencies. Additional information on Speedus Corp. and its services may be obtained at http://www.speedus.com/ or by contacting John Kallassy at 888-773-3669 (ext. 22) or jkallassy@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 2004 audited consolidated financial statements and notes thereto on Form 10-K and quarterly reports on Form 10-Q. Operating results for the three and nine months ended September 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005.

                              SPEEDUS CORP.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (unaudited)

                           Three months ended        Nine months ended
                              September 30,            September 30,
                             2005         2004         2005        2004

  Revenues              $   293,768  $   308,600  $   803,494  $  659,843

  Expenses:
    Selling, general and
     administrative         981,196      998,249    2,921,117   3,160,531
    Research and
     development            389,238      378,143    1,085,507   1,117,137
    Depreciation and
     amortization           229,473      278,833      692,849     871,079
    Cost of sales            92,819       66,098      263,680     194,609
    Technology
     settlement expenses        ---          ---          ---   2,928,583
    Total operating
     expenses             1,692,726    1,721,323    4,963,153   8,271,939

  Operating loss         (1,398,958)  (1,412,723)  (4,159,659) (7,612,096)

  Investment
   income/(loss)            151,467      135,518      432,720      32,337
  Minority interest          35,681      144,688      159,294     476,900
  Gain from technology
   settlement                   ---          ---          ---  15,000,000

  Earnings/(loss) before
   benefit
    from income taxes    (1,211,810)  (1,132,517)  (3,567,645)  7,897,141

  Benefit from income
   taxes                    321,539          ---      321,539         ---

  Net earnings/(loss)   $  (890,271) $(1,132,517) $(3,246,106) $7,897,141

  Per share:
  Basic earnings/(loss)
   per common share     $     (0.06) $     (0.07) $     (0.20) $     0.49
  Weighted average
   common shares
      outstanding -
       basic             16,164,823   16,219,742   16,203,146  16,254,198

  Diluted
   earnings/(loss) per
   common share         $     (0.06) $     (0.07) $     (0.20) $     0.47
  Weighted average
   common shares
      outstanding -
       diluted           16,164,823   16,219,742   16,203,146  16,816,636



                                SPEEDUS CORP.
                         CONSOLIDATED BALANCE SHEETS
                                 (unaudited)

                                            September 30,       December 31,
                                                2005               2004
                    ASSETS
  Current assets:
    Cash and cash equivalents                $15,995,636        $17,740,865
    United States Treasury bills               3,969,400          5,977,200
    Marketable securities                      1,806,779          1,060,592
    Prepaid expenses and other                   127,916            173,979
    Accounts and other receivables                 1,100             49,134
    Total current assets                      21,900,831         25,001,770
  Property and equipment, net of
   accumulated depreciation of $272,144
   and $175,457                                  528,311            609,840
  Other intangible assets, net of
   accumulated amortization of
   $2,408,412 and $1,812,249                     821,632          1,417,795
  Other investments                              800,000            900,000
  Other assets                                   778,528            752,869
    Total assets                             $24,829,302        $28,682,274


    LIABILITIES AND STOCKHOLDERS' EQUITY
  Current liabilities:
    Accounts payable                         $   152,357        $   315,742
    Accrued liabilities                        1,265,243          1,357,720
    Total current liabilities                  1,417,600          1,673,462

  Minority interest                                  ---            159,294

  Commitments and Contingencies

  Stockholders' equity:
    Common stock ($.01 par value;
     50,000,000 shares authorized;
     21,750,174 and 21,587,674                   217,502            215,877
     shares issued)
    Preferred stock ($.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                90,719,740         90,546,583
    Treasury stock (at cost;
     5,618,780 and 5,368,949 shares)          (5,866,176)        (5,499,684)
    Accumulated deficit                      (61,659,364)       (58,413,258)
    Stockholders' equity                      23,411,702         26,849,518
    Total liabilities and
     stockholders' equity                    $24,829,302        $28,682,274