Proginet Reports First-Quarter Results, Annual General Meeting to Take Place

    GARDEN CITY, N.Y., November 20 /CNW/ - Proginet Corporation (OTCBB:
PRGF), developer of enterprise security software, today announced financial
results for the first quarter, which ended October 31, 2007. Total revenues
for the quarter were $2,002,386, compared to total revenues of $1,924,324 in
the equivalent period of fiscal 2006. Proginet reports a loss of $381,972 for
the quarter, compared to a loss of $98,950 for the equivalent period last

    "As I stated in our press release of November 14, Proginet has incurred
substantial expenses related to major expansions in sales, marketing, and
communications activities," stated Kevin M. Kelly, Proginet's President and
CEO. "These are critical programs for the Company. As such, we continue
building the foundation for long-term growth. As reported in the annual
business plan investor conference call, Proginet has modified our sales model
to have increased dependency on larger deals with greater levels of
unpredictability. We continue to expect that this change will benefit
Proginet's growth model. Proginet currently has several large deals pending;
as we work through this new model, we will take steps to improve the
timeliness of closing such large deals," he concluded.

    Investor Conference Call

    Proginet will hold an informational investor conference call today
Tuesday, November 20, 2007 at 4:00 p.m. Eastern Time 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 10:00 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
were mailed with the Proxy Statement and 2007 10-KSB, or to attend in person
to vote their shares.

    To listen in on the AGM, shareholders should call the numbers below
immediately prior to the meeting (you will need all of the following

           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 come before the meeting, and

    --  Report the results of the meeting

                             FINANCIAL HIGHLIGHTS

              Statement of Operations           Quarter ended October 31,
                                                    2007          2006
                                                ------------- ------------
    New license revenue                               415,155      483,861
    Software maintenance fees and other             1,540,731    1,387,463
    Professional services                              46,500       53,000
                                                ------------- ------------
    Total revenues                                 $2,002,386   $1,924,324
    Total operating expenses, net                   2,384,358    2,023,274
                                                ------------- ------------
    Net loss                                       $(381,972)    $(98,950)
                                                ------------- ------------
    Loss per share                                     ($.03)       ($.01)
                                                ------------- ------------

                Balance Sheets
                                             Quarter ended    Year ended
                                           October 31, 2007  July 31, 2007
                                           ----------------- -------------
    Cash                                          $2,961,853    $3,439,988
    Trade accounts receivable, net                 1,159,653     1,328,326
    Property and equipment, net                      157,934       167,933
    Capitalized software development cost,
     net                                           3,167,880     3,105,982
    Purchased software and other
     intangibles, net                              1,320,795     1,455,840
    Other assets                                      85,462       113,815
                                           ----------------- -------------
    Total assets                                  $8,853,577    $9,611,884
                                           ----------------- -------------

    Accounts payable and accrued expenses            665,316       923,617
    Deferred revenues                              2,274,177     2,406,257
    Deferred rent                                    166,275       166,433
                                           ----------------- -------------
    Total liabilities                              3,105,768     3,496,307
                                           ----------------- -------------
    Total stockholders' equity                     5,747,809     6,115,577
                                           ----------------- -------------
    Total liabilities and stockholders'
     equity                                       $8,853,577    $9,611,884
                                           ----------------- -------------

    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


    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

    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 (

For further information:

For further information: Proginet Corporation Debra DiMaria,
516-535-3681 Chief Financial Officer

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