DataLogic International - Press Release

Monday April 17, 2006

News Release

DataLogic International Reports 2005 Financial Results

Revenues Increase 22.9% from 2004

IRVINE, CA, April 17, 2006 – DataLogic International, Inc., (OTC Bulletin Board: DLGI; Berlin, Frankfurt Stock Exchange: 779612), a provider of GPS-based mobile asset tracking, secured mobile communications and network security, today announced its financial results for the year ended December 31, 2005.

Financial Results

DataLogic International net revenues for the year ended December 31, 2005 were $17,522,795 as compared to net revenues of $14,255,054 for the year ended December 31, 2004. The 22.9% increase in revenues year over year was primarily due to the growth of the Company’s communications business segments.

Gross profit for the year ended December 31, 2005 was $2,153,348, or 12% of revenues, as compared to gross profits of $2,661,991, or 19% of revenues, for the prior year. The decrease in gross profit was due primarily to the change in the composition of cost of goods sold as a result of differing types of contracts between 2005 and 2004 and due to the changing composition of costs of goods sold and operating expenses as a result of acquisitions in 2005.

Operating expenses for the year ended December 31, 2005 were $2,764,072 as compared to $3,653,430 for the prior year. The decrease in operating expenses was mainly due to the large bad debt write-offs in 2004 and secondarily due to the changing composition of costs of goods sold and operating expenses as a result of acquisitions in 2005. As noted above, cost of goods sold increased accordingly.

Interest expense for the year ended December 31, 2005 was $899,985 as compared to $538,827 for the prior year. The increase in interest expense was primarily attributable to the inclusion of a full 12 months of cost associated with the Company’s notes and debt issuance related to the Laurus Master Fund financing facility established in June, 2004.

As a result of the above, the Company’s net loss for the year ended December 31, 2005 was $420,271, or a loss of $0.01 per share, as compared to a net loss of $1,482,456, or a loss of $0.04 per share in the prior year.

For the year ended December 31, 2005 the Company’s assets consisted of cash and cash equivalents of $456,780, $1,886,505 in accounts receivable, $7,200 in marketable securities, and $1,068,575 in inventory, as compared with $643,847 in cash and cash equivalents, $1,630,570 in accounts receivable, $16,000 in marketable securities and $53,526 in inventory in the prior year. The increase in inventory levels at December 31, 2005 as compared with December 31, 2004 results primarily from acquisitions in 2005. For the year ended December 31, 2005 Company current liabilities consisted of $2,189,688 in accounts payable and accrued expenses and $1,532,651 in short-term debts, as compared with $1,447,353 in accounts payable and accrued expenses and $1,069,560 short-term debts in the prior year.

In preparing the financial statements for the year ended December 31, 2005 management performed a detailed analysis of the operations, records and estimates used in all business segments and as a result wrote off various non-performing assets and reclassified transactions. This effort was necessary to provide the operating foundation upon which to build and support the Company’s anticipated growth in 2006 and beyond, and return the Company to profitability.

Management Analysis

“We are very pleased with our results for 2005 and the reduction in our net loss for the year. We grew revenues in excess of 22% and made significant gains across both our business segments. We look forward to 2006 and continuing on the path to returning the Company to profitability,” stated Keith Moore, Chairman and CEO. “We are also dedicating more resources to acquisition opportunities to increase market share and provide additional services, revenue and cash flow.”

About DataLogic International, Inc.

DataLogic International, Inc. provides communications solutions and consulting services to a wide range of U.S. and international commercial enterprises and governmental agencies. DataLogic provides complete GPS and location based services to rapidly growing markets such as vehicle and asset tracking, public safety and homeland security. DataLogic also provides secure mobile communications, network security, video communications as well as Information Technology and consulting services. For more information about DataLogic International, please visit www.dlgi.com.

This news release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Many of the forward-looking statements contained in this news release may be identified by the use of forward-looking words such as: believe, expect, anticipate, should, planned, will, may, intend, estimated, and potential, among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include market conditions and those set forth in reports or documents that we file from time to time with the United States Securities and Exchange Commission. All forward-looking statements attributable to DataLogic International or a person acting on its behalf are expressly qualified in their entirety by this cautionary language.

ISIN: US23804Q1022