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SpatialNews Press Release

E-City Software Reports June 30, 2002 Quarterly Results -- E-City Announces Disappointing 1st Quarter Results; Liquidity Problems Cause the Seattle Based Computer Mapping Company to Substantially Curtail Operations

  • www.ecitysoftware.com
    SEATTLE, Aug 14, 2002 - E-City Software Inc. (OTC Bulletin Board: ECTY) announced today its financial results for the three month period ending June 30, 2002. E-City made no sales during the period and reported revenues of $0, as compared with $500,000 for the comparable period ending June 30, 2001. Operating expenses for the period ending June 30, 2002 were $149,407 as compared with $133,797 for the comparable period ending June 30, 2001. E-City reported a loss for the period ending June 30, 2002 of $148,930 or $(0.01) per share as compared with net earnings of $138,685 or $0.01 per share for the comparable period ending June 30, 2001.

    The company attributed the significant decline in revenues and earnings to a combination of continued softness in the airline industry, a major source of potential customers for E-City, a longer than anticipated sales cycle with potential clients of its computer mapping services and a cessation of sales and marketing efforts due to the liquidity crisis that the company experienced during the period ending June 30, 2002.

    Presently, the company has ceased production of its computer mapping services and on July 1, 2002, laid off all of its employees with the exception of chief executive officer, Anis Jessa, who has agreed to serve without a salary. The company closed its offices in Vancouver, Canada on July 5, 2002 and maintains one office in Seattle, Washington.

    E-City anticipates that its sources of revenue in the future will be very limited due to its current inability to pursue active marketing and distribution of its computer mapping services. Until E-City's funding situation improves, most likely through receipt of payment on its accounts receivable, E-City does not anticipate any revenues except by virtue of sales through E-City's website where potential customers are willing to finance development of computer mapping services in advance or desire to license E-City's existing computer map services. There can be no assurance that any such customer will be forthcoming on terms acceptable to E-City.

    CEO Anis Jessa announced, "E-City and our main target markets in travel and technology have continued to worsen or remain moribund in terms of growth, earnings and expenditures. This market slowdown combined with our liquidity situation makes it very difficult for us to compete effectively for new business. If we collect on some of our outstanding accounts receivable or if we are able to find a customer willing to finance computer mapping production, we would eagerly resume production and sales and marketing activities. In the interim, I am attempting to respond to customer inquiries with the limited resources at our disposal."

    E-City is owed approximately $400,000 in outstanding accounts receivable. Management has serious concerns about the collectability of these receivables, especially given E-City's present inability to provide continued upgrades or customer support. E-City management will keep investors and customers apprised of developments in the operational, liquidity or sales segments of E-City's business.

    E-City Software, Inc. is a developer of interactive maps for cities around the world. E-City has traditionally sold products to customers on the basis of both annual licensing fees and revenue share arrangements. E-City distributes its products directly to its customers through its Internet website at www.ecitysoftware.com.

    For more information about E-City Software or its products, please visit our website at www.ecitysoftware.com.

    NOTE: Information contained in this press release, other than historical information, should be considered forward-looking in nature and is subject to various risks or uncertainties and assumptions. The risks and uncertainties include, but are not limited to the impact of competitive products and pricing, product demand and market acceptance, reliance on key strategic alliances, fluctuations in operating results, the potential unavailability of financing sources and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. E-City Software assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting such forward-looking statements. Forward- looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.


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