Route1 Reports Q2 Fiscal 2005 Financial Results

TORONTO, Aug. 25 /CNW/ - Route1 Inc. (TSX-V:ROI) today reported its
second quarter financial results for the period ended June 30, 2005. The
results reflect initial sales of the Company's innovative remote computing
solution which was released June 29th. The sales represent successful
conversions from the Company's demonstrator program to actual sales. This
program permits purchasers to test the Mobi Solution prior to purchase.
The Company achieved revenues of $19,337 for the three months ended
June 30, 2005 versus nil for the comparable period in fiscal 2004. The Company
also booked MobiNET service revenue of $4,608 that has been recorded as
deferred revenue reflecting the service Route1 will provide its customers over
the next twelve months.
Net loss was $1,469,354 or $0.01 per share for the quarter ended June 30,
2005 versus loss of $368,912 or $0.006 per share for the comparable period in
fiscal 2004. For the six months ended June 30, 2005 net loss was $2,508,943 or
$0.02 per share versus $562,489 or $0.009 per share for the comparable period.
Current assets were $5,108,044 which included $4,043,853 in cash and cash
equivalents. Current liabilities were $113,803. The Company had weighted
average number of 124,986,775 common shares outstanding as at June 30, 2005.
For complete financial statements please visit www.sedar.com.
"Our solution offers customers an easy to use, lower cost and secure
method of enabling remote and mobile workers to connect to and use corporate
IT resources," said Andrew White, Route1 CEO. "We are experiencing interest
from both large and small companies for a wide variety of mobility and secure
applications. They are completing their testing and a number have indicated a
desire to implement the first stage of a corporate pilot and rollout. Over the
next several quarters we anticipate that a number of these potential customers
will acquire our product and subscribe to our MobiNET service."

Teleconference Webcast
Route1 will host an investor teleconference webcast today at 4:30 pm ET.
Andrew White, Chairman and CEO, and John Denham, VP Finance and CFO, will lead
a presentation and answer questions about the Company's progress. Participants
are invited to call 416-640-4127 or visit
http://www.route1.com/investors/investor_webcasts.htm at least 5 minutes prior
to the start of the conference. The audio webcast will replay for 30 days.

About Route1
Route1 is a developer and marketer of innovative remote computing
solutions. Its flagship Mobi Solution allows users to work outside like they
do inside, wirelessly, seamlessly and securely. The solution delivers all
their office computing and network resources on demand, anywhere there is an
Internet connection, but without having to carry any office applications or
data with them. The Company is listed on the TSX Venture Exchange and is
headquartered in Toronto, Ontario with offices in New York, NY. For more
information, visit www.route1.com.

(C) 2005 Route1 Inc. All rights reserved. All other trademarks used are
owned by their respective owners.

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