Ptek Holdings Reports Fourth Quarter 2003 Revenue Of $101.1 Million And Diluted EPS From Continuing Operations Of $0.11
Income from Continuing Operations for the Year Totals $26.9 Million on Revenue of $381.3 Million; Company Raises 2004 Financial Outlook

ATLANTA, GA, February 19, 2004 - Ptek Holdings, Inc. (NASDAQ: PTEK), a leading provider of innovative business communications services, today announced results for the fourth quarter and fiscal year ended December 31, 2003. Revenue was $101.1 million for the quarter, a 19.6% increase from fourth quarter 2002 revenue of $84.5 million. Income from continuing operations increased to $7.3 million in the fourth quarter of 2003 from $6.7 million in the comparable prior year period. Diluted EPS from continuing operations totaled $0.11 in the fourth quarter of 2003 compared to $0.12 in the fourth quarter of 2002. Diluted shares outstanding averaged 72.4 million for the quarter, a 29.8% increase from the fourth quarter of 2002.

During the quarter, the Company recorded a charge of $1.3 million resulting from a reduction in workforce and real estate consolidation. Management does not anticipate any further restructuring charges associated with headcount reductions during 2004.

Total revenue in 2003 was $381.3 million compared to $341.3 million in 2002. Income from continuing operations increased to $26.9 million in 2003 from $14.4 million in 2002. Diluted EPS from continuing operations in 2003 was $0.45 compared to $0.26 in the prior year.

Balance Sheet Improvements

During the quarter, the Company redeemed $35 million principal amount of its convertible notes due July 2004, bringing the outstanding balance of these notes to $15 million on December 31, 2003, down from $172.5 million on March 31, 2003. The Company intends to retire the remainder of these notes upon maturity.

Ptek continued to improve certain leverage measurements during the quarter, as net debt to equity decreased to 0.6 to 1.0 on December 31, 2003, down from 1.3 to 1.0 on December 31, 2002 (see table attached for a calculation of this non-GAAP financial measure).

"Solid revenue growth, substantial bottom line improvement, increasing cash flow and an improved balance sheet made for a very successful 2003," said Boland T. Jones, Founder, Chairman and CEO of Ptek Holdings, Inc. "With new product innovations coming on stream in 2004, we look forward to another year of solid performance."

Business Unit Performance

Revenue at Premiere Conferencing ( grew 17.0% in the fourth quarter 2003, totalling $41.0 million versus $35.1 million in the comparable prior year period. Premiere Conferencing revenue increased to $157.7 million in 2003 from $138.5 million in 2002.

Revenue at Xpedite ( grew 21.5% during the fourth quarter of 2003, totalling $60.1 million versus $49.5 million in the same period last year. Xpedite revenue increased to $223.8 million in 2003 from $202.9 million in 2002.

2003 Accomplishments

Delivered 3.8 billion messages in 2003, a 33% increase from 2002
Hosted more than 1.3 billion conferencing minutes in 2003, a 40% increase from 2002
Doubled international revenue at Premiere Conferencing in 2003 compared to 2002
Designed, developed and deployed innovative services, such as fax2mail, secureMAIL and ReadyConference® Plus
Streamlined management team and improved operating efficiency
Increased operating cash flow by more than 87% from 2002 to $58.8 million
Repurchased and refinanced $157.5 million of convertible notes due July 2004
Completed offering of $85.0 million of five-year 5.0% convertible notes
Secured a $60 million, three-year line of credit with LaSalle Bank National Association and Bank of America, N.A.

Other Announcements

William E. Franklin, who has served as the Company's Chief Financial Officer since October 2001, has accepted a similar position with a public company in his home state of California. Mr. Franklin will transition his duties as Chief Financial Officer to Jeffrey A. Allred, President and Chief Operating Officer, to whom he currently reports. Mr. Franklin will be starting his new position in late March after assisting Ptek with its year-end matters and the filing of its Form 10-K, including the certification of its financial statements.

Financial Outlook

The following statements are based on Ptek's current expectations as of February 19, 2004. These statements are forward-looking statements and actual results may differ materially. The Company assumes no duty to update any forward-looking statements made in this press release. A discussion concerning forward-looking statements is included at the end of this press release and in the Company's filings with the Securities and Exchange Commission.

The Company believes revenue in the first quarter of 2004 will be in the range of $102 million to $103 million. Diluted EPS from continuing operations for the first quarter of 2004 is expected to be approximately $0.12. The Company estimates revenue for 2004 will be in the range of $410 million to $420 million and diluted EPS from continuing operations for 2004 will be in the range of $0.48 to $0.52. Average diluted shares outstanding in 2004 are estimated to be approximately 75 million, and the Company assumes an effective tax rate for the year between 38% and 39%.

Conference Call

The Company will hold a conference call at 4:30 p.m. ET this afternoon to discuss these results. To participate in the call, please dial-in to the appropriate number below 5-10 minutes prior to the scheduled start time: (800) 810-0924 (US & Canada) or (913) 981-4900 (International). The conference call will be simultaneously broadcast over the Internet via SoundCast®, a Premiere Conferencing service, and can be found at You may also follow this link for details on the Internet replay and for the text of the earnings release, including the financial and statistical information to be presented in the call.

A replay will be available following the call at 7:30 p.m. ET, through midnight February 27, 2004, and may be accessed by calling (888) 203-1112 (US & Canada) or (719) 457-0820 (International). The confirmation code is 759796. The Webcast of this call will be archived on the Company's Website at

About Ptek Holdings, Inc.

Ptek Holdings, Inc. is a leading provider of innovative business, data and group communications services for global enterprises. Companies use our audio and data conferencing solutions to conduct group meetings and presentations over the phone or Web. We also enable our customers to process and deliver large quantities of individualized, business critical information, such as electronic statements and invoices, financial transaction and travel confirmations, and drug prescriptions, via our global ASP platform. Ptek serves companies in nearly every business sector, including healthcare, technology, publishing, financial services, travel and hospitality. Our services are marketed under the Premiere Conferencing and Xpedite® brand names.

Ptek Holdings' corporate headquarters is located at 3399 Peachtree Road NE, Suite 700, Atlanta, GA 30326. Additional information can be found at

Forward-looking and cautionary statements

Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. A variety of factors could cause actual results to differ materially from those anticipated in Ptek's forward-looking statements, including, but not limited to, the following factors: technological change; the development of alternatives to our services; our ability to manage our growth; integration of acquired companies; possible adverse effects on our financial condition if we are unable to retain IBM as a customer at the levels currently forecasted; possible adverse results of pending or future litigation or infringement claims; service interruptions; competitive pressures, including pricing pressures; general domestic and international economic, business or political conditions; legislative or regulatory changes; increased financial leverage; our dependence on our subsidiaries for cash flow; and other factors described from time to time in our press releases, reports and other filings with the SEC, including but not limited the "Risk Factors Affecting Future Pecember 31, 2003. All forward-looking statements attributable to us or a person acting on our behalf are expressly qualified in their entirety by this cautionary statement.