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PRESS RELEASE 08.14.06
ZUNICOM, INC.. ANNOUNCES RESULTS FOR SECOND QUARTER 2006

CARROLLTON, TX – (Business Wire) – August 14, 2006 – Zunicom, Inc. (OTCBB:ZNCM), parent company to Universal Power Group, Inc. (“UPG”) and AlphaNet Hospitality Systems, Inc. (“AlphaNet”), today announced its financial results for the three and six-month periods, ended June 30, 2006.

Financial highlights for the Three-Month Period Ended June 30, 2006 Compared to the Three-Month Period Ended June 30, 2005 :

  • Consolidated revenues increased 14% or $3,000,795 to $23,956,711 in the 2006 period from $20,955,916 in the 2005 period.
  • Combined net income attributable to common shareholders for the 2006 period was $613,118, or $0.07 basic and $0.06 diluted income per share compared to $474,689, or $0.06 basic and $0.05 diluted income per share attributable to common shareholders for the comparable 2005 period.
  • Revenue contribution from UPG in the 2006 period was $23,505,352, a 15% increase over the 2005 contribution of $20,446,237. The increase is mainly attributable to increased sales of battery, battery related and battery powered products, sales to new customers, sales to existing accounts and sales to an existing security and third party logistics account.
  • AlphaNet’s revenues decreased 11% to $451,359 in the 2006 from $509,679 in the 2005 period. The decrease is attributable to the continued decline in customer usage of the InnFax™ product due to de-installations of Innfax™ product from hotel properties, and a higher percentage of revenue sharing with hotels on The Office™ product.

Financial highlights for the Six-Month Period Ended June 30, 2005 Compared to Six-Month Period Ended June 30, 2004:

  • Consolidated revenues increased 16% to $45,153,932 in the 2006 period from $38,784,314 in the 2005 period.
  • Combined net income attributable to common shareholders for the 2006 period was $1,065,396, or $0.12 basic and $0.11 diluted income per share, compared to net income attributable to common shareholders for the 2005 period of $706,774, or $0.08 basic and diluted income per share.
  • UPG’s revenues in the 2006 period increased 17% to $44,245,976 from $37,848,809 in the 2005 period.
  • AlphaNet’s revenues decreased 3% to $907,956 in the 2006 period from $935,505 in the 2005 period.

“We are pleased to see continued growth in UPG’s overall business in the sale of batteries, and related portable power products to existing and new accounts,” said Ian Edmonds, Zunicom’s Executive Vice Pre sident. “Many facets of AphaNet’s performance have been affected by transitions in our marketplace. However, the AlphaNet team continues to pursue business all iances through direct marketing efforts.”

About Zunicom, Inc.

Headquartered in Carrollton , T exas , Zunicom ( www.zunicom.com) manages two wholly owned sub sid iaries, Universal Power Group, Inc. and AlphaNet Hospitality Systems, Inc. T he Zunicom Group of Companies currently has approximately 70 employees.

Zunicom's operations through Universal Power Group ( www.universalpowergroup.com) encompass the importation, sale and distribution of portable power and related portable-powered products packaged with third- party fulfillment, procurement and logistics support services to multiple industries including medical, security, mobility, consumer, industrial and more. Universal is one of the leading distributors of sealed lead acid batteries in the nation, and Universal's products are sold to original equipment manufacturers (OEMs) and distributors for use in the manufacture and sale of high-technology products such as computers, oil field equipment, medical instrumentation, uninterruptible power supply systems and security equipment. Universal also provides value-added custom battery pack assembly and custom kitting services. Some of Universal's customers include Brink’s Home Security, Home Depot Supply, Radio Shack, The Scooter Store, Cabela’s, Academy and Pride Mobility.

DOWNLOAD SECOND QUARTER RESULTS FOR 2006 (WITH FINANCIAL CHARTS)

FOR MORE INFORMATION, PLEASE CONTACT :
ZUNICOM, INC.
Mimi T an
469.892.1200
mtan@zunicom.com