Proginet Announces Preliminary First-Quarter Financial Results



    GARDEN CITY, N.Y., November 14 /CNW/ - Proginet Corporation (OTCBB:
PRGF), developer of enterprise security software, today announced preliminary
(unaudited) financial results for the first quarter of fiscal 2008, which
ended October 31, 2007. Proginet expects that total revenues for the quarter
will amount to approximately $2 million, compared to $1.9 million in the
equivalent period last year. With operating expenses for the quarter amounting
to $2.4 million, the Company expects to report a net loss of approximately
$400,000. The Company's cash position remains strong, at approximately $3
million.

    "Proginet has been busy executing according to its 2008 business plan,
which calls for a major expansion in sales, marketing, and communications
activities to help grow the business," stated Kevin M. Kelly, Proginet's
President and CEO. "These initiatives are now fully underway and the
substantial related expenses are reflected in our bottom-line numbers."

    "We've retained a leading public relations agency focused on
high-technology, we've attended several industry conferences, including the IT
ChannelVision event, where Proginet generated many new channel partner
opportunities and received the 'Best Channel Strategy Award', and we've
engaged in new lead generation programs with a number of the industry's
leading syndication services," he continued. "These are critical programs for
the Company. From that perspective, the quarter represents the foundation for
Proginet's long-term growth, and the linchpin for the success of fiscal 2008
overall. As I stated in our recent conference call, the primary metric for
Proginet's performance is the full year's performance, with less emphasis on
quarterly results in isolation."

    "Kevin's statement echoes many of the things outlined in our recent
conference call when we reviewed the 2008 business plan," commented Debra
DiMaria, Proginet's Chief Financial Officer. "Operating expenses for the
quarter are up almost 20% over last year, and will remain higher as we execute
according to the business plan. What also impacted our numbers this quarter
was that we were unable to close any large deals, which our sales team
attribute to the longer sales cycles typical of larger deals. Additionally,
we've established a large reserve for a sale recorded in Q4 of 2007, but not
yet collected on," she concluded.

    "On a final note, I would like to clarify something important but
unrelated," stated Kevin M. Kelly. "Proginet will continue with the expansion
of its sales and sales-support teams in the year ahead, just as we have done
in Q1. This is contrary to an inaccurate article that appeared last week on a
UK technology Web site. Proginet would like to confirm that it is wholly
committed to its direct sales strategy, and that it is, in fact, actively
seeking to expand its direct sales team. In parallel, we will continue
pursuing our channel partner initiatives so that we can better leverage
opportunities in the channel, where we believe we can achieve targeted success
in specific vertical and geographic markets."

    Proginet points out that all estimates are preliminary, and that
differences may arise between estimates and actual results, which will be
available when the Company and its auditors complete their review of the
Company's results for the first quarter of fiscal 2008. The Company will
report first quarter 2008 financial results on November 20, 2007, with an
investor conference call scheduled for the same day (full details below).

    Investor Conference Call

    Proginet will hold an informational investor conference call on Tuesday,
November 20, 2007 at 4:00 p.m. EST to provide investor updates and answer
questions. To listen or participate, investors may call in at the numbers
below immediately prior to the event (you will need all of the following
information).

    
    Toll-free Number: 1 (888) 889-4951
    Toll Number: 1 (210) 839-8500
    Leader: Kevin M. Kelly
    Passcode: Proginet
    

    REMINDER: Annual General Meeting (AGM)

    Proginet's Annual General Meeting (AGM) will be held at 10 a.m. Eastern
Time on Friday, November 30th, 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 were formally notified of the meeting
by mail during the week of November 5, 2007.

    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: John C. Daily
    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

    To receive press releases and other corporate communications directly
from Proginet, please e-mail investor@proginet.com or call (516) 535-3600.

    About Proginet Corporation

    Proginet 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 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, NY, has offices in Toronto, Canada, and is
publicly traded under the symbol (OTCBB: PRGF). Visit the Company online at
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.

    The matters discussed in this press release also involve risks and
uncertainties described from time to time in documents filed with the
Securities and Exchange Commission, including but not limited to Form 10-KSBs,
Form 10-QSBs, Form SB2's and Form 8-Ks (www.sec.gov).




For further information:

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

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PROGINET CORPORATION

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