XA Files 10QSB Quarterly Report -- Company's Quarterly Gross Profit Increases 48 Percent from the Same Period a Year Ago


CHICAGO, Aug. 16, 2005 (PRIMEZONE) -- XA, Inc. (XA) (OTCBB:XAIN), a major national event marketing firm that serves many Fortune 500 companies, today reported financial results for its fiscal second quarter ended June 30, 2005.


 Highlights
     --  Revenue for the second quarter ended June 30, 2005 was
         approximately $2.5 million
     --  Year to date revenue through June 30, 2005 was $5.13 million
     --  Gross profit rose 48% or $310,345 to $949,558 for the three
         months ended June 30, 2005 compared to $639,213 for the three
         months ended June 30, 2004
     --  Unearned revenue of $987,039 was booked on the balance sheet
         as of June 30, 2005

Revenue for the fiscal quarter ended June 30, 2005 was $2.46 million compared to $2.89 million in the same period a year ago. In addition, unearned revenue of $987,039 was booked on the balance sheet as of June 30, 2005. The company reported a net loss of $117,385 or $.03 per share, compared to a net loss of $118,128 or $.03 per share for the same period in 2004. Cash reserves on the balance sheet rose 130% or $596,342 to $1,053,178 compared to $456,836 for the same period last year. Currently, the number of shares outstanding is 3,568,750 with 874,653 shares in the public float.

"I am very proud that XA has once again delivered strong revenue results," said Joseph Wagner, CEO of XA. "I believe that the company will continue to experience annual revenue escalation and greater profitability through organic growth and through additional strategic acquisitions."

Marketers spent $152 billion in event marketing in 2003, up about 15% since 2002. In 2003, budgets for event marketing reached an average of $901,935, according to PROMO's 2004 Event Marketing Study. (Source: PROMO Magazine, January 1, 2005)

Investors may view the Company's 10QSB filing at www.sec.gov.

About XA

XA has offices in Chicago, New York and Los Angeles from which it provides corporations and highly visible brands with comprehensive event marketing, design and production services. Since 1989, the XA team has been the creative force behind prestigious, national projects for such clients as The NBA, Disney, McDonald's, British Telecom, Song Airlines, Eurex, Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and Emirates Airline. In 2003 and 2004, Special Events Magazine ranked XA as one of the "Top 50 Powerhouse Event Companies in the World."

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may" and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. XA, Inc. (OTCBB:XAIN) takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company.



            

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