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ECOtality Announces Revenue of $2.9 Million for Third Quarter 2008

^{Published on 2008-11-19 06:14:22 - Market Wire}
 

SCOTTSDALE, Ariz.--([ BUSINESS WIRE ])--ECOtality, Inc. (OTCBB: [ ETLY ]), a leader in clean electric transportation and storage technologies, today announced revenue for the third quarter ended September 30, 2008 of $2.9 million. This matches ECOtality's highest quarter of revenue. ECOtality's subsidiaries, which include Electric Transportation Engineering Corporation (eTec), Innergy Power Corporation, and Fuel Cell Store, have all reported positive operating income for the year to date.

"Maintaining our revenue levels throughout an economically difficult time proves ECOtality has a stable revenue base derived from a well diversified product and service portfolio that is founded upon growing sectors of established industries," said Jonathan Read, president and CEO, ECOtality. "As the Company has established relationships with all major automotive manufacturers that have announced North American plug-in hybrid or battery electric vehicle programs, ECOtality is well positioned to be a leading infrastructure provider for electric transportation."

2008 KEY OPERATIONAL HIGHLIGHTS

• eTec launched the Plug-in Hybrid Electric Vehicle (PHEV) Grid Interaction Project. Working with V2Green/Gridpoint and the U.S. Department of Energy (DoE), the project will demonstrate eTec's ability to fast-charge a PHEV in 10 minutes and to analyze the effects of using the energy storage capabilities of PHEVs to provide energy back to smart-metered electric grid systems.
• eTec launched the new Minit-Charger SC line of fast-charge systems for material handling equipment applications. The Minit-Charger SC is a lighter, compact and more cost-effective fast-charging system that can recharge battery systems four times faster than conventional chargers and has a variety of applications in other industries, including on-road electric vehicles.
• eTec launched the Bridge Power Manager (BPM) for electric ground support equipment (eGSE). The BPM significantly reduces infrastructure transition and conversion costs by allowing eTec Minit-Charger fast-charge systems to share and distribute power with existing power supply circuits at airport terminals.

2008 3rd QUARTER & 9 MONTH RESULTS

In line with the successful transition from a development stage to a revenue-generating company, ECOtality's revenue for the third quarter ended September 30, 2008 was $2,900,819, compared to $235,237 for the quarter ended September 30, 2007. Gross profit for the third quarter 2008 was $1,028,879, compared to $61,880 in the previous year. Operating loss for the quarter ended September 30, 2008 was $847,421, a 52% improvement over the operating loss of $1,752,656 for the same period in 2007.

Financial results for the third quarter ended September 30, 2008 when compared to the second quarter ended June 30, 2008 show maintenance of revenue and overall gross profit. Revenue for the third quarter was $2,900,819 versus $2,936,150 in the prior quarter. Total expenses for the third quarter ended September 30, 2008 were $1,876,300, an increase of approximately 11% when compared to total expenses of $1,695,635 for the second quarter ended June 30, 2008. Of total expenses, general and administrative expenses decreased to $1,534,492 in the third quarter from $1,539,570 in the second quarter. The increase in total expenses is attributable to an increase in depreciation to $203,655 and an increase in research and development expenditures to $138,143 when compared to the second quarter.

For the nine months ended September 30, 2008, revenue rose to $8,654,868, compared to $270,701 during the same period in the prior fiscal year. The Company reported gross profit of $3,498,628 for the first nine months of 2008, compared to $77,018 during the same period in 2007. Net loss for the nine month period ended September 30, 2008 was $4,466,242 or $(.04) per diluted share, compared with a net loss of $6,848,297, or $(.06) per diluted share, for the first nine months of 2007.

"With a solid revenue platform from existing operations, ECOtality anticipates substantial growth opportunities as we provide the private and public infrastructure to support the pending electric transportation market," continued Mr. Read. "We are confident we will continue to expand our positions in current markets and expect all subsidiaries to be cash-flow positive for 2008. As ECOtality strives to expand our market footprint, achieve profitability and improve overall shareholder value, we are advantageously positioned to meet these objectives as we expect substantial bottom-line growth in tandem with the emergence of plug-in hybrid and battery electric vehicles."

SHAREHOLDER CONFERENCE CALL

Management will host a conference call with the investment community on Tuesday, November 25, 2008 at 4:30 p.m. Eastern time. Interested parties may participate in the conference call by dialing 1-800-762-8795 or 1-480-248-5085for international callers. Please call 5 to 10 minutes prior to 4:30 p.m. When prompted, ask for the "ECOtality Third Quarter Earnings Conference Call." A telephonic replay may be accessed approximately two hours after the call through November 27, 2008, by dialing 1-800-406-7325 or 1-303-590-3030 for international callers and entering the replay access code 3944663. The teleconference will be webcast simultaneously on the ECOtality website at [ www.ecotality.com/investors ].

About ECOtality, Inc.

ECOtality, Inc. (OTCBB: ETLY), headquartered in Scottsdale, Arizona, is a leader in clean electric transportation and storage technologies. Through innovation, acquisitions, and strategic partnerships, ECOtality accelerates the market applicability of advanced electric technologies to replace carbon-based fuels. For more information about ECOtality, Inc., please visit [ www.ecotality.com ].

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. In evaluating such statements, prospective investors should review carefully various risks and uncertainties identified in this release and matters set in the company's SEC filings. These risks and uncertainties could cause the Company's actual results to differ materially from those indicated in the forward-looking statements.