ePlus Reports September 30, 2007 Quarter Results: Revenues Increased 13.2% to $225.0 Million; Net Earnings Increased 396.3% to $4.9 Million

Business Wire, April 16, 2008

HERNDON, Va. -- ePlus inc. (OTC: PLUS), today announced financial results for its second quarter of fiscal year 2008, which ended September 30, 2007 ("the Quarter"). Revenues for the Quarter increased 13.2% to $225.0 million as compared to revenues of $198.7 million during the three months ended September 30, 2006 ("the Prior Year's Quarter"). Net earnings for the Quarter increased 396.3% to $4.9 million from $978 thousand the Prior Year's Quarter.

Basic and fully diluted earnings per common share for the Quarter increased 391.7% to $0.59, as compared to $0.12 for both basic and fully diluted earnings per share the Prior Year's Quarter. Basic and diluted weighted average common shares outstanding for the Quarter are 8,231,741 and 8,331,044, respectively, as compared to 8,228,823 and 8,424,903, respectively, for the Prior Year's Quarter.

For the six months ended September 30, 2007 as compared to the six months ended September, 2006, total revenues increased 19.4% to $463.7 million from $388.3 million; net earnings increased 224.3% to $9.9 million from $3.0 million; and fully diluted earnings per share increased 247.1% to $1.18 from $0.34.

For the Quarter, sales of product and services increased 5.2% to $189.7 million as compared to $180.3 million generated the Prior Year's Quarter, and represented 84.3% and 90.7% of total revenue, respectively. The cost of sales, product and services increased 3.5% to $166.2 million as compared to $160.6 million the Prior Year's Quarter. The gross margin on sales of product and services was 12.4% in the Quarter as compared to 10.9% the Prior Year's Quarter.

Lease revenues decreased 7.8% to $12.5 million in the Quarter, and sale of leased equipment totaled approximately $18.2 million as compared to $1.8 million the Prior Year's Quarter. The net investment in leased assets was $179.2 million as of September 30, 2007, a 19.7% decrease from $223.2 million as of September 30, 2006. This decrease was due to a reduction in our direct financing lease portfolio resulting from a sale of 134 lease schedules. Direct lease costs increased 5.3% to $5.9 million in the Quarter.

For the Quarter, fee and other income was $4.6 million, an increase of 49.7% over the $3.1 million the Prior Year's Quarter, due to an increase in agent fees from manufacturers and an increase in revenue from sales of ePlus software in the technology sales business unit.

Professional and other fees decreased 26.5%, to $3.5 million for the Quarter, due to higher expenses incurred in the Prior Year's Quarter related to a lawsuit against SAP and expenses related to the Audit Committee's review of the Company's historical stock option grants, as previously disclosed in the Company's Form 10-K for the fiscal year ended March 31, 2007.

Salaries and benefits expenses decreased slightly by 2.9% to $17.2 million during the Quarter, due to a reduction in the number of employees. The Company employed 635 people at September 30, 2007, as compared to 671 people at September 30, 2006. General and administrative expenses decreased 11.2% to $3.9 million during Quarter, due to increased efficiency in spending controls and efforts to enhance productivity.

Interest and financing costs decreased 14.6% to $2.3 million during the Quarter, due to a decrease in non-recourse notes payable, which decreased 21.0% to $117.0 million as of September 30, 2007 as compared to March 31, 2007.

The Company's cash and cash equivalents balance as of September 30, 2007 was $52.4 million, as compared to $39.7 million as of March 31, 2007.

The financial results presented herein are unaudited. Investors are encouraged to review the Company's Form 10-Q and to review other SEC filings including the Company's audited financial statements contained in the fiscal year 2007 Form 10-K.

About ePlus inc.

ePlus is a leading provider of technology solutions. ePlus enables organizations to optimize their IT infrastructure and supply chain processes by delivering world-class IT products from top manufacturers, professional services, flexible lease financing, proprietary software, and patented business methods. Founded in 1990, ePlus has approximately 650 associates in 30 offices serving more than 2,500 customers. The Company is headquartered in Herndon, VA. For more information, visit http://www.eplus.com, call 888-482-1122, or email info@eplus.com.

ePlus[R] and/or other ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc.

Note: Statements in this press release, which are not historical facts, may be deemed to be "forward-looking statements." Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation, the effects of the delisting of the Company's common stock from The Nasdaq Global Market and the quotation of the Company's common stock in the "Pink Sheets," including any adverse effects relating to the trading of the stock due to, among other things, the absence of market makers; the timing of our ability to re-apply to list our shares of common stock on The Nasdaq Global Market; the effects of any lawsuits or governmental investigations alleging, among other things, violations of federal securities laws, by the Company or any of its directors or executive officers; the existence of demand for, and acceptance of, our services; our ability to hire and retain sufficient personnel; our ability to protect our intellectual property; the creditworthiness of our customers; a decrease in the capital spending budgets of our customers; our ability to raise capital and obtain non-recourse financing for our transactions; our ability to realize our investment in leased equipment; our ability to reserve adequately for credit losses; fluctuations in our operating results; and other risks or uncertainties detailed in our SEC filings.