FTS Revenue Surges 556% During 2004

2004 Revenue Comes in At $712,282 vs. 2003 Revenue of $108,655


TAMPA, Fla., April 6, 2005 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP), a publicly traded holding company focused on developing, investing in and acquiring cash-flow positive businesses and viable business projects, today announced financial results for the year ended December 31, 2004.

FTS Chairman and Chief Executive Officer Scott Gallagher commented, "We had an exceptional year building and streamlining our wireless distribution channel. We exited 2004 with record revenue growth and significantly lower debt exposure. We then exited the first quarter of 2005 by fully eliminating our convertible debt and achieving a new Company wireless activation record, setting the stage for continued growth. Although we posted a loss for 2004, we believe our company has achieved the critical mass necessary to support our organization going forward. To that end we will be aggressively reducing operating expenses during 2005 as attempt to grow both earnings and top-line revenue, putting our company on the road to profitability."


                          FTS GROUP, INC. AND SUBSIDIARY
                           CONSOLIDATED BALANCE SHEETS
                           DECEMBER 31, 2004 AND 2003

                                          2004           2003
                                      -----------    -----------
 ASSETS

 CURRENT ASSETS
 Cash                                 $     7,949    $     6,887
 Accounts receivable                       87,485          3,905
 Inventory                                 44,998          7,759
 Prepaid Expenses                          35,430          1,512
                                      -----------    -----------
 Total current assets                     175,862         20,063
                                      -----------    -----------

 PROPERTY AND EQUIPMENT, NET              124,555         50,577
                                      -----------    -----------

 OTHER ASSETS
 Investment in private entity               7,500         15,000
 Deposits                                  19,489         17,650
                                      -----------    -----------
 Total other assets                        26,989         32,650
                                      -----------    -----------
                                      $   327,406    $   103,290
                                      ===========    ===========

 LIABILITIES AND STOCKHOLDERS'
  DEFICIT
 CURRENT LIABILITIES
 Accounts payable and accrued
  expenses                            $   259,723    $   229,862
 Notes payable -- individuals              37,250             --
 Notes payable related parties,
  net of debt discount
 49,931 and $0 at December 31, 2004
  and 2003, respectively                  111,751         29,416
 Note payable-Dutchess Advisors           240,000             --
                                      -----------    -----------

 Total current liabilities                648,724        259,278
                                      -----------    -----------

 CONVERTIBLE DEBENTURES                   100,493        450,586
                                      -----------    -----------

 STOCKHOLDERS' DEFICIT
 10% Convertible preferred stock,
  Series A, $0.01 par value,
  150,000 shares authorized, 0
  shares issued and outstanding                --             --
 Preferred stock, $0.01 par value,
  4,850,000 undesignated
  shares authorized, none issued               --             --
 Common stock, $0.001 par value,
  150,000,000 shares authorized,
  37,882,183 and 18,141,564 shares
  issued and outstanding at
  December 31, 2004 and 2003               37,882         18,142

 Additional paid in capital             7,848,833      5,465,030
 Accumulated deficit                   (8,308,526)    (5,943,196)
 Deferred compensation                         --       (146,550)
                                      -----------    -----------
 Total stockholders' deficit             (421,811)      (606,574)
                                      -----------    -----------
                                      $   327,406    $   103,290
                                      ===========    ===========


                         FTS GROUP, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                  FOR THE YEARS ENDED DECEMBER 31, 2004 AND 2003

                                      2004            2003
                                  ------------    ------------
 REVENUES Sales, Net              $    712,282    $    108,655
 COST OF GOODS SOLD                    521,660          90,058
                                  ------------    ------------
 GROSS PROFIT                          190,622          18,597
                                  ------------    ------------
 SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES
 Selling, general and
  administrative expenses            2,191,837         844,117
                                  ------------    ------------
                                     2,191,837         844,117
                                  ------------    ------------
 LOSS FROM OPERATIONS               (2,001,215)       (825,520)
                                  ------------    ------------
 OTHER INCOME (EXPENSE)
 Impairment of long-lived
  assets                              (107,000)             --
 Interest Expense                     (212,638)        (48,121)
                                  ------------    ------------
                                      (319,638)        (48,121)
                                  ------------    ------------
 NET LOSS FROM OPERATIONS           (2,320,853)       (873,641)
 UNREALIZED LOSS ON
  INVESTMENT                            (7,500)             --
                                  ------------    ------------
 NET LOSS                         $ (2,328,353)   $   (873,641)
                                  ============    ============


 PER SHARE INFORMATION:
 WEIGHTED AVERAGE SHARES
  OUTSTANDING
 (BASIC AND DILUTED)                27,459,250      17,388,519
                                  ============    ============
 NET LOSS PER COMMON SHARE
  (BASIC AND DILUTED)             $      (0.08)   $      (0.05)
                                  ============    ============

About FTS Wireless, Inc.

FTS Wireless Inc., a wholly owned subsidiary of FTS Group, Inc. (OTCBB:FLIP) is an emerging regional operator of retail wireless locations that market and sell next generation wireless products and services and operate Wi-Fi HotSpot's. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region and the Philadelphia suburban market. The company markets and sells products worldwide through its e-commerce site's www.CellularDeals.com and www.CellChannel.com . For additional information about FTS Group, Inc. or its subsidiary, please visit our website at www.FTSWireless.com or review our periodic filings with the Securities and Exchange Commission at http://www.sec.gov.

Forward-Looking Statements

Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.



            

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