Elite Logistics Announces Record Revenues

    FREEPORT, Texas--April 11, 2001--Elite Logistics Inc. (OTCBB:ELOG) is a leader in the convergence of the Internet and wireless information technology in the automotive industry for the tracking and management of vehicles and other assets. Elite designs and sells the PageTrack(R) through dealer/distributor channels. Elite Logistics Inc. today announced record revenues for the quarter and nine months ending 28 February.
    Revenues grew 75% to $872,565 in the third quarter, which was an increase of $373,152 over the second quarter revenues of $499,413. Commenting on the revenue increase, Joseph Smith, president and chief executive officer of Elite, said, "The trend of strong sequential quarterly revenue growth is continuing. Despite some tightening in the auto sales market, we expect to show further sequential revenue growth in the fourth quarter."
    The company reported a net loss attributable to common stock of $478,198, or $0.04 per share basic and diluted, for the three months ended Feb. 28, 2001, which compares to a net loss attributable to common stock of $401,454, or $0.04 per share basic and diluted, on revenue of $23,573 for the quarter ended Feb. 29, 2000.
    For the nine months ended Feb. 28, 2001, the company reported a net loss attributable to common stock of $1,418,711, or $0.11 per share basic and diluted, on revenue of $1,544,107. This compares to a net loss attributable to common stock of $977,372, or $0.10 per share basic and diluted, on revenue of $271,776 for the nine months ended Feb. 29, 2000.
    Expressing satisfaction with the progress made in the quarter, Smith said, "In addition to the strong revenue growth, we had a number of other significant milestones. We acquired a valuable telematics patent that covers the simultaneous transmission of voice and GPS location data between a vehicle and a base operator. We believe that this patent significantly boosts our intellectual property portfolio and may provide significant opportunities for licensing revenue. We made progress in resolving the technical issues relating to connecting with two Mexican telemetry network providers. To date we have shipped approximately two hundred units into that country and expect that market to grow strongly."
    Looking ahead, Smith added, "The company remains focused on securing the funding required to support our growth in a difficult capital market. We need to bolster our management team to handle the myriad of opportunities that are presenting themselves. We are exploring acquisition opportunities in areas closely related to our core business that would accelerate our plan to attain profitability. We expect gross margins to continue to improve and monthly recurring revenues from our telematics service plans to become an increasingly important part of our revenue mix."