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National Energy Services Company Reports Results for First Six Months of Fiscal 2008

Posted on: Wednesday, 2 July 2008, 18:00 CDT

EGG HARBOR TOWNSHIP, N.J., July 2 /PRNewswire-FirstCall/ -- National Energy Services Company, Inc. (BULLETIN BOARD: NEGS) , an energy conservation product and management company providing cost effective solutions for long term care, hospitality, commercial and industrial facilities, announces financial results for the first six months of fiscal year 2008.

Second Quarter and Six Months 2008 Financial Performance

During the six months ended April 30, 2008, National Energy Services reported net revenue of $935,439, down approximately 6% from $1,004,346 recorded in the first six months of fiscal 2007. The shortfall occurred in the second quarter in which revenues were down substantially from the second quarter of 2007. As a result of lower revenue in the second quarter of fiscal 2008, the Company reported a net loss of $(396,691) compared to a profit of $24,431 for first six months of 2007.

Commenting on the Company's results for the first six months of fiscal 2008, President John Grillo said, "Several factors contributed to the disappointing revenues in the second quarter of this fiscal year. The downturn in the economy has caused our potential customers to be increasingly hesitant in making buying decisions. To help alleviate that situation, we have developed several new financing options and redoubled our efforts to educate potential customers on the impact of higher energy costs over the short and long term and the immediate benefits of lowering energy consumption."

During the past several months, the Company's personnel and financial resources were focused on developing the necessary processes, marketing materials and staffing to expand the Company's reach into new markets and take advantage of the signed vendor agreement with a major hotel chain. "Formalizing our agreement and meeting the documentation and other requirements has taken several months of preparation. But we believe, given the size of the opportunity, it was well worth the investment," continued Mr. Grillo. "Based on our sales effort in the last several weeks, we have delivered written quotes to potential clients in the hospitality industry totaling over $2.6 million. Sales are recognized as revenue when installed, however we are pleased with the response we are seeing on this initial push." The hospitality industry has an addressable market of approximately 30,000 out of 60,000 hotels/motels nationwide and represents a $600 million opportunity for NEGS.

About National Energy Services Company, Inc.

National Energy Services Company is engaged in the business of providing state-of-the-art, comprehensive and cost-driven energy products and management aimed at lowering energy consumption and helping its customers buy the energy they need more efficiently. Our services are designed to bring our customer minimal or no out of pocket cost. Our services include the Ozone Laundry System (OLS), Lighting Upgrades, Mechanical Systems (HVAC), Water/Sewer Conservation Methods and Energy Management. These aggregated energy management services are primarily marketed to commercial, industrial, hospitality and long term care facilities.

This release may contain projections or other forward-looking statements regarding future events or the future financial performance of National Energy Services Company. These statements are only predictions and reflect the current beliefs and expectations of National Energy Services Company. Actual events or results may differ materially from those contained in the projections or forward-looking statements. Some of the factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation, (i) National Energy Services Company's unproven business model and limited operating history, (ii) National Energy Services Company's history of losses, (iii) the significant fluctuation to which National Energy Services Company's quarterly revenues and operating results are subject, (iv) other factors detailed in documents National Energy Services Company files from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

Contact: Vicki Weiner VMW Corporate & Investor Relations 212-616-6161 info@vmwcom.com Statement of Operations SIX MONTHS ENDED THREE MONTHS ENDED APRIL 30, APRIL 30, APRIL 30, APRIL 30, 2008 2007 2008 2007 OPERATING REVENUES Equipment sales $894,404 $950,601 $210,314 $559,902 Management revenue 9,485 10,768 4,245 4,176 Energy management revenue 31,550 42,977 17,350 23,445 Total Operating Revenues 935,439 1,004,346 231,910 587,523 COST OF SALES 482,954 485,072 100,898 283,801 GROSS PROFIT 452,485 519,274 131,012 303,722 OPERATING EXPENSES Selling expenses 225,996 99,679 115,460 58,223 General and administrative expenses 608,515 375,993 295,776 214,553 Depreciation and amortization 4,804 1,417 2,310 734 Total Operating Expenses 839,315 477,089 413,546 273,510 INCOME BEFORE OTHER INCOME (EXPENSE) (386,830) 42,185 (282,534) 30,212 OTHER (EXPENSE) Interest income 2,189 - 210 - Interest expense (12,050) (17,754) (5,294) (9,056) INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES (396,691) 24,431 $(287,617) 21,156 Provision for Income Taxes - - - - NET INCOME (LOSS) APPLICABLE TO COMMON SHARES $(369,691) $24,431 $(287,617) $21,156 NET INCOME (LOSS) PER BASIC SHARES $(0.01) $0.00 $(0.01) $0.00 NET INCOME (LOSS) PER DILUTED SHARES $(0.01) $0.00 $(0.01) $0.00 WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING 29,656,982 24,860,187 29,786,214 24,860,187 WEIGHTED AVERAGE NUMBER OF DILUTED SHARES OUTSTANDING 29,656,982 24,860,187 29,786,214 24,860,187

National Energy Services Company, Inc.

CONTACT: Vicki Weiner, VMW Corporate & Investor Relations,+1-212-616-6161, info@vmwcom.com, for National Energy Services Company, Inc.

Source: PRNewswire-FirstCall

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