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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