WidePoint Announces Q2 Revenue of $4.8M

Market Wire, August, 2006

WidePoint Corporation (OTCBB: WDPT), a technology-based provider of products and services to the government sector and commercial markets, today announced financial results for the second quarter ended June 30, 2006.

Revenue for the quarter was approximately $4,840,000, or a 66% increase when compared with approximately $2,920,000 for the comparable quarter ended June 30, 2005. During the quarter WidePoint achieved a new threshold of positive cash flow from operations, generating positive flows of approximately $454,000. The increase in revenue was primarily attributable to the sale of software in support of the Department of Defense preparation for the wide-scale launch of the External Certificate Authority (ECA) program. Revenue growth in the company's Public Key Infrastructure (PKI) credentialing and managed services segment increased 70% to $201,000, from $118,000 a year ago as early adoption by federal agencies continued ahead of the deadlines issued under Homeland Security Presidential Directive No. 12 (HSPD-12).

The operating loss for the quarter narrowed to $229,600, which included increased sales and marketing expenses associated with PKI credentialing and managed services, stock option expense of approximately $92,000 and expenses associated with an annual audit of the company's digital certificate services. In the comparable period in 2005, the company realized an operating loss of approximately $500,000. The company also realized an increase in deferred revenues during the quarter, resulting in approximately $469,000 of such revenues that should be recognized during the third quarter of 2006. Due substantially to the above the net loss for the quarter was approximately $229,601 or $0.01 per diluted share, compared to a net loss of approximately $1,019,00 or $0.04 per diluted share in Q2 '05.

WidePoint CEO Steve Komar said, "We remain optimistic about the third and fourth quarters of this year. Our most notable accomplishment this quarter was that our subsidiary, Operational Research Consultants (ORC), became the first and only company to meet GSA end-to-end requirements for HSPD-12, which puts us distinctly ahead of our competitors when competing for related government contracts. Our consulting services segment also increased revenues significantly as a result of the sale of software in support of the DOD ECA program. We anticipate that we will continue to have opportunities in the third and fourth quarters of 2006 to provide additional engineering services and software sales, in addition to ECA certificate issuance services, to assist the DOD in meeting its identity assurance program needs."

WidePoint CFO Jim McCubbin said, "We are pleased with the continuing developments within our PKI business segment as we approach the launch of HSPD-12. Excluding amortization and stock option expense, we continue to manage the business around a neutral income level with positive operating income in the credentialing segment as we make significant investments in support of expected growth."

The company will hold a conference call at 4:30 p.m. EDT, Wednesday, August 16 to discuss the second quarter financial results and the company's future activities. To participate, call (913) 981-4913 any time after 4:20 p.m. EDT on August 16. A webcast of the call will be available at http://hawkassociates.com/widepoint/company.htm .

About WidePoint

WidePoint is an innovative technology-based provider of products and services to the government sector and commercial markets. WidePoint presently specializes in providing systems engineering and information technology services as well as PKI e-Authentication and credentialing services. WidePoint's wholly owned subsidiary, Operational Research Consultants, Inc. (ORC) is at the forefront of implementing PKI, e-Authentication and credentialing services. The company's identity management and e-Authentication services have received three major U.S. federal government certifications. WidePoint's profile of customers encompasses U.S. federal government agencies such as the Department of Defense, the Department of Homeland Security, the U.S Treasury Department and the Department of Justice as well as major transnational corporations such as Boeing Aerospace, Northrop Grumman and several major pharmaceutical companies. For more information, visit http://www.widepoint.com .

An investment profile for WidePoint may be found at http://www.hawkassociates.com/widepoint/profile.php .

For investor relations or more information regarding WidePoint, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com . An online investor relations kit including copies of WidePoint press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com.

Safe-Harbor Statement: Under the Private Securities Litigation Reform Act of 1995. This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), including all statements that are not statements of historical fact regarding the intent, belief or current expectations of the company, its directors or its officers with respect to, among other things: (i) the company's financing plans; (ii) trends affecting the company's financial condition or results of operations; (iii) the company's growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words "may," "would," "will," "expect," "estimate," "anticipate," "believe," "intend" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the company's ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.