Mobility Electronics Provides Preliminary Fourth Quarter 2004 Financial Results

Mobility Electronics Provides Preliminary Fourth Quarter 2004 Financial Results

Company expects to record first profitable quarter in its history

SCOTTSDALE, Ariz., Jan. 10 /PRNewswire-FirstCall/ -- Mobility Electronics, Inc. (NASDAQ:MOBE), a leading provider of innovative portable power and computing solutions for the mobile electronic device user, today provided preliminary financial results for the quarter ended December 31, 2004.

Mobility expects fourth quarter 2004 revenue to be approximately $20.6 million and further expects to report positive net income, representing the first profitable quarter in the Company's history. Portable computer power adapter revenue for the fourth quarter continued its trend of solid sequential quarterly growth with an increase of approximately $2.3 million, or approximately 20%, compared to third quarter 2004 revenue. Fourth quarter revenue for consumer electronics power adapters decreased approximately $600,000 from third quarter 2004 revenue while revenues for connectivity, accessories and other products were relatively flat in the aggregate on a sequential quarterly basis.

End user sell-through of consumer electronics power adapters continued to gain momentum in the fourth quarter, resulting in an increase in unit sales of approximately 60% when compared to the third quarter of 2004. However, gross revenue was lower for this product category compared to the previous quarter because the mix of products shipped included a much higher proportion of the iGo AutoPower(TM) DC-only adapters and iGo WallPower(TM) AC-only adapters, which generate lower revenue for Mobility than the iGo EverywherePower(TM) combination AC/DC adapters.

"We are pleased to reach a major milestone with our first profitable quarter, while also increasing our revenue by more than 50% over the same period of the prior year," said Charlie Mollo, chief executive officer of Mobility Electronics. "We started production on a number of new products and customer programs in the fourth quarter, including our new small form factor AC- and DC-only universal power adapters. While production of certain of these new products and programs began too late in the quarter to have a material impact on our fourth quarter results, we expect them to ramp-up during the first quarter of 2005 and to make strong contributions to our continued growth in revenue and earnings in the future. In addition, in order to complete some additional testing requested by Motorola, we did not begin production of our new Motorola products in the fourth quarter. Those tests have now been completed, however, and the products have been released to production."

Mobility Electronics expects to formally report its fourth quarter 2004 results on or about February 10, 2005.

About Mobility Electronics, Inc.

Mobility Electronics, Inc., based in Scottsdale, Arizona, is a rapidly growing developer and marketer of a broad range of innovative solutions for the mobile electronic device market (e.g., mobile phones, portable computers, smartphones, PDAs, digital cameras, etc.). The company's innovative solutions include power adapters, hardware products for handheld devices, expansion and docking products for servers, desktop and portable computers, and other accessories for the mobile electronic device market.

Mobility Electronics' brands include both the iGo(TM) and MAGMA(TM) product lines. iGo's flagship products include the industry's first combination AC/DC power adapter, Juice(TM), as well as first-to-market handheld accessory products such as Pitch(TM). The company's MAGMA line of patented expansion products enables the industry's only PCI expansion solutions for servers, desktop and mobile computing users.

Mobility Electronics' products are available to mobile electronic device users directly via the company's online store (http://www.igo.com/) as well as through the company's global distribution base of leading resellers, retailers and OEM partners. For additional information on Mobility Electronics' products and services, call 480-596-0061, or visit its Web site at http://www.mobilityelectronics.com/.

Mobility Electronics is a registered trademark, and iGo, Juice, Pitch, MAGMA, iGo AutoPower, iGo WallPower, iGo EverywherePower and . . . improving your mobile experience are trademarks of Mobility Electronics, Inc. All other trademarks or registered trademarks are the property of their respective owners.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to our expected fourth quarter 2004 revenue and profitability, the shipment of products in early 2005 and their impact on future growth in revenue and earnings. These forward-looking statements are based on management's current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In particular, factors that could cause actual results to differ materially from those in the forward-looking statements include review and finalization of quarterly financial results, the loss of, and failure to replace, any significant customers including RadioShack, Dell, Targus and Motorola; the timing and success of new product introductions; the development and introduction of new products by us and our competitors; the performance of suppliers and subcontractors; industry and general economic or business conditions; and other factors detailed in our filings with the Securities and Exchange Commission. Forward-looking statements speak only as of the date made and are not guarantees of future performance. We undertake no obligation to publicly update or revise any forward-looking statements.

CONTACTS:
Tony Rossi Joan Brubacher
FRB for Mobility Electronics Mobility Electronics, Inc.
310-854-8317 480-596-0061, ext. 202
trossi@financialrelationsboard.comjbrubacher@mobl.com


Source: Mobility Electronics, Inc.

CONTACT: Tony Rossi of FRB for Mobility Electronics, +1-310-854-8317, or
trossi@financialrelationsboard.com; or Joan Brubacher of Mobility Electronics,
Inc., +1-480-596-0061, ext. 202, or jbrubacher@mobl.com

Web site: http://www.mobilityelectronics.com/


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