FTS Generates Record First Quarter Operating Results

Q1 Revenue Jumps 68%, Gross Profit Surges from 21% to 55%, Total Liabilities Drop Nearly $400K


TAMPA, Fla., May 17, 2005 (PRIMEZONE) -- FTS Group, Inc. (OTCBB:FLIP), a publicly traded holding company operating in the wireless industry through its wholly owned subsidiary FTS Wireless, Inc., today announced record operating results for the quarter ending March 31, 2005.

FTS CEO Scott Gallagher commented, "We're proud to report record operating results to the stockholders of our Company and a return to positive stockholders equity. During the first three months of 2005, we increased our top-line sales by some 68% over the prior year and totally eliminated our convertible debt. We reduced total liabilities by nearly $400K and most importantly, gross profit as a percentage of revenue jumped from around 21% in 04 to around 55% this year."

Gallagher went on to say, "We expect these positive trends to continue into 2005 and remain confident that our Company will become profitable during the second half of the year."



                             FTS GROUP, INC. AND SUBSIDIARY
                               CONSOLIDATED BALANCE SHEETS
                                     MARCH 31, 2005

                                                 2005
                                             -----------
 ASSETS

 CURRENT ASSETS
 Cash                                        $       736
 Accounts receivable                              87,485
 Inventory                                       211,819
 Prepaid Expenses                                 54,134
                                             -----------
 Total current assets                            293,961
                                             -----------

 PROPERTY AND EQUIPMENT, NET                     201,542
                                             -----------

 OTHER ASSETS

 Investment in private entity                      7,500
 Deposits                                         20,489
                                             -----------
 Total other assets                               27,989
                                             -----------
                                             $   523,492
                                             ===========

 LIABILITIES AND STOCKHOLDERS' DEFICIT
 CURRENT LIABILITIES
 Accounts payable and accrued
  expenses                                   $   228,040
 Notes payable -- individuals                      3,250
 Notes payable related parties                     1,867
 Note payable-Dutchess Private
  Equities Fund
 Net of debt discount, $7,516 at
  March 31, 2005                                  35,907
                                             -----------

 Total current liabilities                       269,064
                                             -----------

 STOCKHOLDERS' EQUITY 10%
  Convertible preferred stock,
  Series A, $0.01 par value,
  150,000 shares authorized,
  0 shares issued and outstanding
  Preferred stock, $0.01 par
  value, 4,850,000 undesignated
  shares authorized, none issued
  Common stock, $0.001 par value,
  150,000,000 shares authorized,
  54,877,195 issued and
  outstanding at March 31, 2005                   54,877


 Additional paid in capital                    9,335,064
 Accumulated deficit                          (9,079,513)
                                             -----------
 Total stockholders' equity                      310,428
 Less: Stock subscription
  receivable                                     (56,000)
                                             -----------
 Total stockholders' equity                      254,428
                                             $   523,492
                                             ===========


                      FTS GROUP, INC. AND SUBSIDIARY
                  CONSOLIDATED STATEMENTS OF OPERATIONS
              FOR THE THREE MONTHS ENDED MARCH 31, 2005 AND 2004
                               (UNAUDITED)
                               -----------

                                      2005            2004
                                  ------------    ------------
 REVENUES Sales, Net              $    303,970    $    181,335
 COST OF GOODS SOLD                    135,518         143,134
                                  ------------    ------------
 GROSS PROFIT                          168,452          38,201
                                  ------------    ------------
 SELLING, GENERAL AND
  ADMINISTRATIVE EXPENSES              755,327         907,906
                                  ------------    ------------

 LOSS FROM OPERATIONS                 (586,875)       (869,705)
                                  ------------    ------------
 OTHER INCOME (EXPENSE)
 Interest Expense                     (184,000)             --
                                  ------------    ------------

 NET LOSS                         $   (770,987)   $   (869,705)
                                  ============    ============


 PER SHARE INFORMATION:
 WEIGHTED AVERAGE SHARES
  OUTSTANDING (BASIC AND
  DILUTED)                          47,575,884      19,169,673
                                  ============    ============
 NET LOSS PER COMMON SHARE
  (BASIC AND DILUTED)             $      (0.02)   $      (0.05)
                                  ============    ============

About FTS Wireless, Inc.

FTS Wireless Inc., a wholly owned subsidiary of FTS Group, Inc. (OTCBB:FLIP) 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.CellChannel.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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