Firstwave Reports Third and Fourth Quarters and Year-End Results for 2007

DOWNLOAD THE PDF OF THIS RELEASE WITH ATTACHED SUMMARY SELECTED FINANCIAL INFORMATION FROM WWW.PINKSHEETS.COM UNDER THE FILINGS TAB FOR FSTW.PK For more information, contact: Richard T. Brock Chief Executive Officer rbrock@firstwave.net 678-672-3125 FirstWave Reports Third and Fourth Quarters and Year-End Results for 2007 ATLANTA, January 16, 2008 - FirstWave Technologies, Inc. today announced financial results for the third and fourth quarters and the year 2007. Software license revenues increased 12.5% to $108,000 in the fourth quarter of 2007 from $96,000 in the fourth quarter of 2006. While maintenance revenues decreased 25.7% from $377,000 in the fourth quarter of 2006 to $280,000 in the fourth quarter of 2007, professional services revenues increased 32.1% from $78,000 to $103,000 in the same comparable quarters. For the fourth quarter of 2007, total revenues decreased 11.1% to $491,000 from $554,000 in the fourth quarter of 2006. Net loss applicable to common shareholders was $310,000 in the fourth quarter of 2007 compared to a net loss applicable to common shareholders of $20,000 in the fourth quarter of 2006. Net loss per basic and diluted share was $0.10 in the fourth quarter of 2007 compared to a net loss per basic and diluted share of $0.01 in the fourth quarter of 2006. Software license revenues decreased 44.7% to $411,000 in fiscal year 2007 from $743,000 in 2006. Included in these amounts was a one-time transaction in the amount of $500,000, recorded as software revenues in the second quarter of 2006, in payment for the assignment of its .Net Integrated Development Environment tool. Excluding this one-time license of FirstWave's development platform, software licenses in 2007 grew from $243,000 to $411,000. Professional Services revenues increased 45.0% to $422,000 in fiscal 2007 from $291,000 in 2006. Maintenance revenues decreased 26.7% in fiscal 2007 from $1,651,000 in 2006 to $1,211,000. For fiscal year 2007, total revenues decreased 23.8% to $2,053,000 from $2,694,000 in 2006. Net loss applicable to common shareholders was $1,490,000 in fiscal 2007 compared to a net loss applicable to common shareholders of $111,000 in fiscal 2006. Net loss per basic and diluted share was $0.51 in fiscal 2007 compared to a net loss per basic and diluted share of $0.04 in the fiscal 2006. Included in these 2007 amounts is a non-cash $192,000 stock compensation expense as well as $63,000 in cash costs associated with the deregistration and delisting of the Company's stock from the Nasdaq Stock Market. For the third quarter of 2007, total revenues decreased 12.9% to $508,000 from $583,000 in the third quarter of 2006. Net loss applicable to common shareholders was $442,000, or $0.15 net loss per basic and diluted share, in the third quarter of 2007, compared to a net loss applicable to common shareholders of $114,000, or $0.04 net loss per basic and diluted share, in the third quarter of 2006. The Company's cash and cash equivalents balance was $675,000 at December 31, 2007, compared to $839,000 at September 30, 2007 and $997,000 at December 31, 2006. Since December 31, 2007, the Company has received more than $150,000 from outstanding receivables at that date. Also, in June 2007, the Company received its scheduled $500,000 payment from First Sports, and expects to receive the next scheduled payment of more than $600,000 from FirstSports before June 30, 2008. For more information on the Company's financials, the Annual Report to Shareholders will be released later this year. The Company's Form 10-K for 2006 and Form 10-Q for the second quarter of 2007 filed are available on pinksheets.com. "As previously announced, the Company has been investing in new marketing technologies that front-end our traditional CRM technologies. Our product focus on lead generation and creating revenue transactions built on our CRM technology that records revenue transactions seems the right strategy for us to differentiate the Company," said CEO Richard Brock. Brock noted several other key points: ? The balance sheet is strong. ? The voluntary SEC delisting initiated on September 19, 2007 will significantly reduce our ongoing expenses in 2008 as well as allow management to focus on building the business without the distraction involved with being an SEC reporting company. ? Our recently redesigned website includes seven short videos describing the Company's positioning and offerings that we anticipate will help generate new sources of revenue in 2008. Interested shareholders may want to look at these videos to better understand the Company's offerings. ABOUT FIRSTWAVE FirstWave? Technologies, Inc. is a provider of lead generation, lead nurturing and customer management and tracking solutions built upon a suite of Customer Relationship Management (CRM) products. FirstWave's solutions help customers find new prospects, continuously engage these prospects throughout the sales cycle and maintain contact with customers throughout their lifecycle. With 20 years of sales management software, FirstWave's modular internet marketing, sales lead and customer management solutions, customers achieve results at every opportunity. FirstWave is headquartered in Atlanta, Georgia. For more information, visit the Company's web site at www.firstwave.net or call 1-800-540-6061. ### NOTE: Except for historical information contained herein, the matters set forth in this communication are "forward-looking statements" within the meaning of various provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Such forward-looking statements can generally be identified by words such as will, expect, intends, believe, anticipates, should and words of similar meaning. FirstWave Technologies, Inc. (the "Company") notes that the forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, such as potential fluctuations in quarterly results due to delays in purchase decisions and other adverse market conditions, whether the parties will be able to successfully launch a combined product offering and develop any significant customer following from the transactions described in this release, the Company's dependence on other parties to continue to perform under the agreements described in this release, whether the Company will be able to continue diversification of its revenues, competition and technological developments, the Company's capital requirements and other liquidity concerns, and the size, timing, and contractual terms of orders, and also the risks and uncertainties discussed under the caption "Certain Factors Affecting Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the year ended December 31, 2006, as filed with the Securities and Exchange Commission ("SEC"), which discussions are incorporated herein by this reference. The information set forth herein is provided as of the date hereof. The Company does not assume, and expressly disclaims, any duty or obligation to update any of the information presented herein with respect to its consolidated operations or anticipated performance in 2008 or beyond. DOWNLOAD THE PDF OF THIS RELEASE FROM WWW.PINKSHEETS.COM UNDER THE FILINGS TAB FOR FSTW.PK FirstWave Technologies, Inc. Selected Financial Information (in thousands; except per share data)