ICOA Reports Record Revenue, 25% Quarterly Increase and 344% Gain in Gross Margin WARWICK, R.I., May 17 /PRNewswire-FirstCall/ -- ICOA, Inc. (OTC:ICOA) (BULLETIN BOARD: ICOA) , a national provider of neutral-host wireless broadband Internet networks and managed services in high-traffic public locations, today reported its full financial results for its first quarter ended March 31, 2005. The company's revenue in the first quarter of 2005 was $489,915, a 25% increase over the prior quarter's revenue of $392,106 and a 250% increase over revenue of $140,040 for the comparable quarter a year earlier. In relation to the same period a year earlier, the company's recurring revenues increased 210%. Additionally, the company reported its highest and second consecutive gross margin of $101,064, a 344% improvement over the prior quarter's gross margin of $22,740 and a gross loss of ($46,542) for the three months ended March 31, 2004. The company also reported a net loss of ($1,896,092) for the quarter ended March 31, 2005 as compared to a net loss of ($1,747,748) for the prior quarter and a net loss of ($521,228) for the quarter ended March 31, 2004. Of the present quarter's net loss, $751,539 or 40% was due to interest expense, of which $522,835 or 27.5% were one-time charges related to balance sheet restructuring and debt conversion. ICOA CEO Rick Schiffmann said, "We are very pleased with this quarter's financial results, which operationally also included the addition of 380 new high-traffic public locations including three new airports to our nationally owned or operated footprint as we crossed the 1,000 location milestone and expanded into the higher education category." About ICOA, Inc. ICOA, Inc. is a national provider of neutral-host wireless and wired broadband Internet networks in high-traffic public locations. ICOA provides design, installation, operations, maintenance and management of neutral, common-use 802.11x standard WLAN Wi-Fi hot spot and hot zone infrastructure throughout airport facilities, quick-service restaurants, marinas, hospitality and hot zone locations. ICOA currently owns or operates over 1,050 broadband access installations in high-traffic locations across 44 states. For additional information, visit http://www.icoacorp.com/ . An investment profile about ICOA may be found online at http://www.hawkassociates.com/icoa/profile.htm . For additional information, contact ICOA VP of Corporate Development John Balbach at (401) 451-1888 or . For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 852-2383, e-mail: . Detailed information about ICOA, Inc. can be found on the website http://www.icoacorp.com/ . An online investor kit containing ICOA press releases, SEC filings, current price Level II quotes, interactive Java stock charts and other useful information for investors can be found at http://www.hawkassociates.com/ and http://www.hawkmicrocaps.com/ . The foregoing contains "forward-looking statements," which are based on management's beliefs, as well as on a number of assumptions concerning future events and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside ICOA's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see ICOA's filings with the Securities and Exchange Commission. ICOA disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of ICOA. DATASOURCE: ICOA, Inc. CONTACT: John Balbach, ICOA, Inc., +1-401-352-2368 or ; or Investor Relations, Frank Hawkins or Julie Marshall, both of Hawk Associates, +1-305-451-1888, or , for ICOA, Inc. Web site: http://www.icoacorp.com/ http://www.hawkassociates.com/ http://www.hawkmicrocaps.com/ http://www.hawkassociates.com/icoa/profile.htm

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