WIRX Wireless Xcessories Group Inc (CE)

The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced fourth quarter and 2011 year end results ending December 31, 2011.

SALES

The Company reported fourth quarter revenue of $6,417,450 compared to $5,706,847 for the same period in 2010, or an increase of 12.5%. Full year comparisons were revenue of $22,351,300 compared to $ 20,691,300 for 2010, an increase of approximately 8%.

Net Income (Loss) Comparison

The Company had a 2011 fourth quarter net Income of $204,342 or $ 0.05 per share, compared to net loss of $(178,163) or $(0.04) per share in the same period for 2010. Full year comparisons were a net income of $202,094 or $.05 per share, compared to a net loss of $10,751 or $0.00 per share in the same period for 2010.

Income from Operations

12 month (loss) from operations was $(46,157) for fiscal year 2011 vs. $(56,271) for 2010.

Fourth quarter Income from operations were $103,411 for fiscal 2011 vs. $33,338 in 2010.

A major difference between Income from operations and reported Net Income in the December 2011 quarter was caused by realized gains from sale of the Company's investment in Marketable Securities in 2011 of $196,000. For the same period in 2010 there were realized losses of $17,000 and an adjustment of approximately $200,000 due to a change in our accounting treatment of unrealized gains.

Key Financial Comparisons

The Company had working capital of approximately $7.3 million, at both December 31, 2011 and 2010. The Company has no debt, and total equity is approximately $7,839,000 as of December 31, 2011.

Management Comments

Steve Rade, CEO, stated, "We continue to achieve our objective of increasing our sales base and market share in a highly competitive industry environment, with increasing carrier restrictions. In the fourth quarter and for the year, we increased our sales by 12.5 and 8% respectively, compared to the prior year. However, our gross margin percentage did not keep pace due mainly to competitive pricing pressure and the change in our sales mix to lower margin OEM product to keep pace with industry trends and demands."

During 2011, we determined that the growth potential of the Smartphone market was a major opportunity for the Company. As Smartphones have evolved into a multi-purpose audio and visual entertainment device, the demand for higher quality supporting accessories will increase.

We see the growth potential with traditional cell phone dealers and enterprise markets such as business to business applications, government agencies and municipalities.

To take advantage of this opportunity, we have improved our product offerings by opening up new and enhanced supplier relationships and are developing our own product line to be marketed to our traditional channels and through a separate division that will focus on other enterprise markets.

Additionally, our investment in value added services which include Vendor Managed Inventory, a new B2C web site program, and Retailer sales training programs is having the desired effect of opening new sales opportunities and bringing in new customers.

About Wireless Xcessories Group

Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 3,500 items that include batteries; hands free devices, car and travel chargers, as well as a variety of carrying cases. The Company sells to dealers and distributors through an in-house sales force and directly from its website, http://www.wirexgroup.com.

CONTACT: Wireless Xcessories Group, Inc.
         Dan Kenderdine
         800-233-0013 ext. 1404