Proginet Announces FY 2007 Financial Results, Projects 40% New License Revenue Growth for FY 2008



    GARDEN CITY, N.Y., September 18 /CNW/ - Proginet Corporation (OTCBB:
PRGF), developer of enterprise security software, today announced financial
results for the year ended July 31, 2007.

    Total revenues for the year amounted to $9,377,254, up from a total of
$8,498,067 in fiscal 2006. New license revenues (NLR) for the year amounted to
a record $3,441,518, up from a total of $2,365,552 in fiscal 2006. Commenting
on the year's NLR record, Proginet cites a surge in demand for CyberFusion
Integration Suite (CFI)(TM), the Company's flagship solution for advanced
managed file transfer. Net income for the year amounted to $936,852, an
increase of 60% over fiscal 2006, in which the Company earned $584,564.

    These results are in line with preliminary numbers announced in August,
when the Company stated that it would set several new records, including
record total revenues and record profitability.

    The Year Ahead: Fiscal 2008 Projections

    With strong continuing demand for CyberFusion Integration Suite, which
leading companies worldwide use to secure and control business data, Proginet
expects fiscal 2008 to be marked by accelerated growth. The Company estimates
new license revenue growth of approximately 40%, with total revenue growth
anticipated at approximately 20%. The Company expects profit margins to hold
steady at 10%, or thereabouts, as it continues to invest significantly in
sales, marketing, and other critical targeted activities necessary to
accelerate the growth of the business.

    "We are really excited about fiscal 2008," said Kevin M. Kelly,
Proginet's President and CEO. "We're having unprecedented success with CFI,"
he continued. "In addition to seeing more activity in our sales pipeline,
we're closing bigger deals, with bigger types of organizations. We're
determined to capitalize on this real and continuing momentum, and we continue
to make significant investment in terms of new resources and initiatives to
drive us forward."

    
                             FINANCIAL HIGHLIGHTS

                Statement of Operations               Year ended July 31,
                                                     ---------------------
                                                        2007       2006
                                                     ---------- ----------
    Total revenues                                   $9,377,254 $8,498,067
    Total operating expenses, net                     8,440,402  7,913,503
                                                     ---------- ----------
    Net income                                         $936,852   $584,564
                                                     ---------- ----------
    Income per share                                       $.06       $.04
                                                     ---------- ----------
    

    
                     Balance Sheet                      As of July 31,
                                                     ---------------------
                                                        2007       2006
                                                     ---------- ----------
    Cash                                             $3,439,988 $2,501,520
    Trade accounts receivable, net                    1,328,326    599,498
    Property and equipment, net                         167,933    197,276
    Capitalized software development cost, net        3,105,982  3,197,811
    Purchased software and other intangibles, net     1,455,840  1,983,749
    Other assets                                        113,815     73,497
                                                     ---------- ----------
    Total assets                                     $9,611,884 $8,553,351
                                                     ---------- ----------
    Accounts payable and accrued expenses               923,617    702,830
    Deferred revenues                                 2,406,257  2,574,256
    Deferred rent                                       166,433    161,784
                                                     ---------- ----------
    Total liabilities                                $3,496,307  3,438,870
                                                     ---------- ----------
    Total stockholders' equity                       $6,115,577  5,114,481
                                                     ---------- ----------
    Total liabilities and stockholders' equity       $9,611,884 $8,553,351
                                                     ---------- ----------
    

    TODAY: Annual Investor Presentation and Conference Call

    Proginet will hold its Annual Investor Presentation and Conference Call
today Tuesday, September 18, 2007 at 4:00 p.m. Eastern Standard Time (EST).
The call will be an opportunity to review fiscal 2007 financial results and to
discuss the fiscal 2008 Business Plan and financial projections for the year.

    To listen or participate, investors should call in at the numbers below
immediately prior to the event (you will need all of the following
information).

    
             Toll-free Number: 1 (888) 795-2173 (US & Canada)
             Toll Number: 1 (210) 234-0002
             Leader: Kevin M. Kelly
             Passcode: Proginet
    

    There will also be a simultaneous Web presentation. Participants can view
the presentation by clicking on the following link at the start of the call
(you will need a computer with a live Internet connection):

    
             Link: https://e-meetings.verizonbusiness.com/nc/join/
             Conference Number: PA1773933
             Audience Passcode: PROGINET
    

    REMINDER: Annual General Meeting (AGM)

    Proginet's Annual General Meeting (AGM) will be held at 10 a.m. Eastern
Time on Tuesday, November 20th, 2007, at the Company's corporate headquarters
at 200 Garden City Plaza, Garden City, N.Y. 11530. Shareholders of record at
the close of business on October 3, 2007 will be formally notified of the
meeting by mail in October.

    All shareholders are encouraged to vote their shares by proxy card, which
will be mailed with the Proxy Statement and 2007 10-KSB, or to attend in
person to vote their shares.

    To participate in the AGM, shareholders should call in at the numbers
below immediately prior to the event (you will need all of the following
information):

    
            Toll-free Number: 1 (800) 475-0212
            Toll Number: 1 (210) 234-0001
            Leader: Kevin M. Kelly
            Passcode: Proginet
    

    The principal functions of the Annual General Meeting will be to:

    --  Vote on the election of the Board of Directors, approval of auditors,
and other matters that may be on the proxy ballot

    --  Report the results of the proxy voting

    About Proginet Corporation

    Proginet Corporation is a developer of enterprise security software.
Throughout its 20-year history, the company has earned a solid reputation for
its multi-platform expertise and dedication to customer service. Its products,
including CyberFusion(R), CyberFusion Integration Suite (CFI)(TM),
SecurForce(TM), SecurPass(R), and SecurAccess(TM), support all major computing
platforms, from PCs to mainframes. Proginet's global customer base spans more
than 23 countries and includes many Fortune 500 companies. The company is
headquartered in Garden City, N.Y., with offices in Toronto, Canada, and is
publicly traded under the symbol (OTCBB: PRGF). For more information, visit
www.proginet.com.

    Disclaimer

    This press release may contain forward-looking information within the
meaning of Section 29A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, and is subject to the safe harbors under
those sections. In some cases, you can identify forward-looking statements by
terminology such as "expect," "believe," "may," "will," "plans" and
"anticipate," or the negative of such terms or comparable terminology.
Forward-looking statements appearing herein include statements concerning
operating and profitability plans and goals and are based on current
expectations.




For further information:

For further information: Proginet Corporation Chief Financial Officer
Debra DiMaria, 516-535-3681 ddimaria@proginet.com

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PROGINET CORPORATION

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