FTS Reports Record Revenue and Activation Levels

Sales Nearly Double from Q2 to Q3; Year over Year sales grow by 825% for 3-month period and 1,185% for Year over Year 9-month period


TAMPA, Fla., Nov. 22, 2004 (PRIMEZONE) -- FTS Group, Inc., a publicly traded holding company operating in the wireless space through its wholly owned subsidiary FTS Wireless, Inc. (OTCBB:FLIP), an emerging regional distributor of wireless, Wi-Fi and VoIP products and services, today announced record operating results for the third quarter of fiscal 2004.

FTS CEO Scott Gallagher commented, "FTS generated record operating results for the third quarter of 2004. During the third quarter FTS grew wireless activation levels by more than 100% when compared to the second quarter of 2004. Top-Line revenue grew by 825% when compared to the third quarter of 2003. For the first 9 months of 2004 FTS grew top line revenue by 1185% from $43,111 in 2003 to $510,991. Although financing and acquisition cost's increased during the first 9-months of 2004, we believe these expenses will be dramatically reduced heading into 2005."

Gallagher went on to say: "With one acquisition already closed for Q4 and a strong deal pipeline in place we fully expect the growth pattern we've established since taking over to continue into 2005 as we charge towards our ultimate goal of operating profitability."



                   FTS GROUP, INC. & SUBSIDIARY
             CONSOLIDATED STATEMENTS OF OPERATIONS
                            (UNAUDITED)

                      THREE MONTHS ENDED         NINE MONTHS ENDED
                    30-Sep-04    30-Sep-03    30-Sep-04    30-Sep-03
                   -----------  -----------  -----------  -----------
 REVENUES          $   221,084  $    26,797  $   510,991  $    43,111
                   -----------  -----------  -----------  -----------

 COST OF GOODS SOLD    137,359       19,018      312,689       29,185
                   -----------  -----------  -----------  -----------
 GROSS PROFIT           83,010        7,779      198,302       13,926
                   -----------  -----------  -----------  -----------
 GENERAL AND
 ADMINISTRATIVE
 EXPENSES
  Non-cash stock
   compensation         52,675       30,650      164,894      224,650
  Purchased
   development
   costs                    --           --           --       23,500
  Selling, general
   and administrative
   expenses            503,960      106,459    1,571,120      303,692
                   -----------  -----------  -----------  -----------
                       556,635      137,109    1,736,014      551,842
                   -----------  -----------  -----------  -----------
 LOSS FROM
  OPERATIONS          (473,625)    (129,330)  (1,537,712)    (537,916)
                   -----------  -----------  -----------  -----------
 OTHER INCOME
 (EXPENSE)
  Interest expense     (58,602)          --      (77,704)      (6,746)
                   -----------  -----------  -----------  -----------
                       (58,602)          --      (77,704)      (6,746)
                   -----------  -----------  -----------  -----------
 NET LOSS          $  (532,227) $  (129,330) $(1,615,416) $  (544,662)
                   ===========  ===========  ===========  ===========
 PER SHARE INFORMATION:
  WEIGHTED AVERAGE
  SHARES OUTSTANDING
  (BASIC AND
  DILUTED)          29,643,160   17,631,910   25,676,509   17,273,721
                   ===========  ===========  ===========  ===========
 NET LOSS PER COMMON
  SHARE (BASIC AND
  DILUTED)         $     (0.02) $     (0.01) $     (0.06) $     (0.03)
                   ===========  ===========  ===========  ===========

About FTS Wireless, Inc.

FTS Wireless Inc., is an emerging regional operator of retail wireless locations that market and sell next generation wireless products and services and operate Wi-Fi HotSpot's. FTS Wireless currently operates a chain of retail wireless locations in the Florida Gulf Coast region and the Philadelphia suburban market. The company markets and sells products worldwide through its e-commerce site's www.CellularDeals.com and www.SatPhoneCenter.com . For additional information about FTS Group, Inc. or its subsidiary, please visit our website at www.FTSWireless.com or review our periodic filings with the Securities and Exchange Commission at http://www.sec.gov.

Forward-Looking Statements

Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important factors that should be considered is contained in the Company's Annual Report on Form 10-K as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.



            

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