MEMPHIS, Tenn., May 26, 2005 (PRIMEZONE) -- Limelight Media Group, Inc. (OTCBB:LMMG) of Memphis, Tenn. today announced that its 2005 first-quarter results indicate significant achievements in its efforts to reduce costs, decrease liabilities and increase cash flow as the Company ramps up its out-of-home digital media business.
For the three months ended March 31, 2005, Limelight incurred general and administrative expenses of $114,160 as compared to $1,870,414 for three months ended March 31, 2004, a decrease in expenses of $1,756,254, or approximately 93%. Limelight incurred a net loss of $653,526 as compared to a net loss of $2,241,145 for the three months ended March 31, 2004, a decrease in net losses of $1,587,619, or approximately 70%, contributed mostly from payments of accrued interest charges. The Company currently has outstanding liabilities of 1,005,173 as compared to 2,569,170 on Dec 31, 2004, which is a 60% reduction in liabilities. Operationally, the Company improved its net operating cash flow from a negative $475,595 for the three months ending March 31, 2004 to a negative $70,690 for this quarter. At March 31, 2005, the Company had a cash balance of $48,586.
"We marked the beginning of 2005 as the year Limelight would turnaround financially. We have made tremendous strides in the first quarter marked by over 93% reductions in losses and expenses. We significantly improved our balance sheet by a reduction of 60% in liabilities and we are striving to further reduce our liabilities in the second quarter. Of significant importance, we came close to experiencing a positive quarterly operating cash flow for the first time in the company's history," stated David V. Lott, President of Limelight Media Group, Inc.
Limelight Media Group, Inc., headquartered in Memphis, Tenn., is working to create, manage, and support out-of-home digital advertising and promotional networks. The company's digital media management system will enable the simultaneous delivery of video content to a variety of remote audiences in real time, allowing for immediate customization of messages through a centralized network operations center. The company recently began expanding its efforts to include grocery, retail, restaurant, and the hospitality industry. More information can be found at http://www.limelightmedia.com.
This release includes projections of future results and "forward-looking statements" as that term is defined in Section 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"). All statements that are included in this release, other than statements of historical fact, are forward-looking statements. Although management believes that the expectations reflected in these forward-looking statements are reasonable; it can give no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the expectations are disclosed in this release, including, without limitation, in conjunction with those forward-looking statements contained in this release.