PlanGraphics Files Annual Report for Sep 30, 2004 and Quarterly Reports Through June 30, 2005

PlanGraphics, Inc. (OTC: PGRA) announced it has filed its annual report for the period ended September 30, 2004 on Form 10-KSB and the three subsequent quarterly reports through the quarter ended June 30, 2005 on Forms 10-QSB with the Securities and Exchange Commission.

PlanGraphics' president and CEO, John Antenucci noted that while the annual report on Form 10-KSB for the year ended September 30, 2004 is audited and includes a current year auditor's report, the filing does not contain an auditor's report for the prior fiscal year ended September 30, 2003. While the financial statements for 2003 were previously audited, PlanGraphics has not received consent to include the prior auditor's report in this filing; therefore, the prior year results, which have been included without change, should be considered as unaudited. PlanGraphics determined to file the Form 10-KSB without a prior year audit opinion in order to provide current financial information to shareholders and investors. PlanGraphics has retained Sherb & Co., its current auditors, to perform an audit of FY 2003. The audit is underway and, when the audit is completed, PlanGraphics will promptly amend the current filing to include the auditor's report for 2003.

PlanGraphics has also retained Sherb & Co. to audit the year ended September 30, 2005. Both the amendment to the Form 10-KSB for September 30, 2004 and the annual report for September 30, 2005 are expected to be completed and filed around the end of January 2006.

Consolidated results for fiscal year 2004. For the twelve months ended September 30, 2004 PlanGraphics reported revenue of approximately $7.8 million versus $7.9 million for the period ended September 30, 2003. While revenue decreased slightly, the Company incurred an operating loss of $746,576 for 2004 versus the operating loss of $2.6 million reported for FY 2003, which included goodwill impairment expense of $2.1 million. PlanGraphics reported a net loss of approximately $961,056 for the twelve months of 2004 as compared to a net loss of $2.8 million a year prior.

Net loss per share amounted to about $0.01 for the year ended 2004 as compared to the net loss of $0.03 reported for 2003.

Consolidated results for June 30, 2005. Although PlanGraphics continued to experience very constrained cashflows that adversely impacted the Company and revenue generation, its operations were more efficient for the nine months ended June 30, 2005 than in the prior year period due to increased higher margin software and integration services. The Company reported operating income of $76,569 on consolidated revenue of $5.4 million versus an operating loss of $556,109 on $6.3 million of revenue for the period ended June 30, 2004. The current year operating income included approximately $374,000 of one-time income from changes to the Company's Frankfort facility lease. Revenue decreased by approximately $950,000 as a result of delays in project activity in the US due to insufficient resources to service projects and client delays in China. In particular delays in the startup of Guanzhou project and delays due to reorganization of the municipal governments participating in the Liao River project adversely impacted revenue generation. PlanGraphics reported a small net loss of $38,615 for the nine month period as compared to a net loss of $710,553 a year prior. Prior to recognizing the income from the lease termination the net loss would have been $371,660 for the nine months ended June 30, 2005. The new operating lease is expected to reduce future cash outflows by approximately $197,000 annually.

For the nine months ended June 30, 2005 PlanGraphics reported a net loss per share of less than 4/100 of a cent versus a net loss of 7/10 cent per share for the nine months ended June 30, 2004.

Expected consolidated results for September 30, 2005. The information provided below related to the year ended September 30, 2005 is a reflection of PlanGraphics' present unaudited financial records and analyses, and is based upon, among other things, PlanGraphics' financial records, reporting summaries and assumptions, beliefs and expectations. PlanGraphics may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors or upon final audit by its independent registered accounting firm which may result in changes to the summarized data. The cautionary statements contained or referred to in this release should be regarded as forward looking statements and considered in connection with any subsequent written or oral forward-looking statements that PlanGraphics may issue.

Higher margin software sales and integration services allowed PlanGraphics' operations to be more efficient for the year ended September 30, 2005 than in the prior year and accounted for about $817,500 of its FY 2005 revenue. The Company expects to report operating income of about $148,000 on consolidated revenue anticipated to be $7.3 million versus an operating loss of $746,576 on $7.8 million of revenue reported for the period ended September 30, 2004. Revenue decreased by approximately $500,000 as a result of the winding down of certain projects while the startup of other projects was delayed by unavailable resources due to cash constraints and the delays in China noted above.

The Company expects to report operating income of about $148,000 versus an operating loss in the prior year of $746,576. The operating income includes gains of $333,144 on the lease termination for the Frankfort facility. A net income of $149,000 is expected for the year ended September 30, 2005 which also includes a gain of $198,250 on the sale of the minority interest in Jobview.com. For the prior year the Company reported a net loss of $961,056.

Net income per share for 2005 is expected to be slightly less than 2/10 cents per share versus a loss of one cent per share reported for 2004.

The Company's estimated backlog and assignments as of October 31, 2005 amount to $14 million of which approximately $11 million is funded.

The financial information presented above is considered representative of the company's fiscal year 2005 financial performance. However, it omits substantially all disclosures and details required by generally accepted accounting principles. If the omitted disclosures and statement of cash flows were included, they might influence the readers' conclusions about the Company's financial position and its results of operations.

About forward-looking statements (as defined in the Securities Litigation Reform Act of 1995) appearing in this press release. The unaudited results provided above for the period ended September 30, 2005 are subject to changes as a result of audit and management review.

PlanGraphics, founded in 1979, is a full life-cycle systems integration and implementation firm providing a broad range of services in the design and implementation of information technology in the public and commercial sectors. PlanGraphics' experience with spatial information systems and e-services capabilities provides a critical discriminator among other IT consulting and integration firms. PlanGraphics has headquarters in Frankfort, Ky., and regional offices in Maryland, Colorado and New York. On the Web: www.plangraphics.com.

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