PRESS RELEASE 08.16.05
ZUNICOM, INC.. ANNOUNCES RESULTS FOR SECOND QUARTER 2005

CARROLLTON, TX – (Business Wire) – August 16, 2005 – Zunicom, Inc. (OTCBB:ZNCM), parent company to Universal Power Group, Inc. and AlphaNet Hospitality Systems, Inc., today announced its financial results for the three and six-month periods, ended June 30, 2005.

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

• Consolidated revenues increased 26% to $20,955,916 from $16,692,334;
• Combined net income attributable to common shareholders was $474,689, or $0.06 basic and $0.05 diluted income per share compared to net loss attributable to common shareholders of $380,595, or $0.05 basic and diluted loss per share;
• Revenue contribution from Universal Power Group was $20,446,237, a 26% increase over $16,167,901; and
• AlphaNet’s revenues decreased 3% to $509,679 from $524,433. The decrease is attributable to the continued decline in usage of the InnFax product due to de-installations of Innfax product from hotel properties. This has been partially offset by the installation and usage of “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 24% to $38,784,314 from $31,309,962;
• Combined net income attributable to common shareholders was $706,774, or $0.08 basic and diluted income per share, compared to net loss attributable to common shareholders of $761,328, or $0.09 basic and diluted loss per share;
• Universal Power Group’s revenues increased 25% to $37,848,809 from $30,243,565; and
• AlphaNet’s revenues decreased 12% to $935,505 from $1,066,397.

“We are pleased to see continued growth of Universal’s business with Brink’s Home Security,” said Ian Edmonds , Zunicom Executive Vice Pre sid ent. “Additionally, we are beginning to see results of our cost-cutting efforts from renegotiation of freight costs, close monitoring of raw material costs, and diversification in the sales of various product lines including 12-volt automotive accessories, battery chargers and security products. Our focus is to manage and create a balance between protecting and improving our bottom line, and continuing to enhance the value of our products and services for our customers“, stated Ian Edmonds .

Universal’s Pre sid ent & CEO, Randy Hardin added, “Universal continues to aggressively expand its product offerings to include exclusive distribution rights to certain patented products, portable powered consumer and security products. Since gaining entry into mass retail marketers, including two of the Nation’s leading sporting goods retailers – Cabela’s and Academy Sports & Outdoors, Universal continues to pursue other large automotive retailers. We are now also shipping to United Kingdom and Australia and plan to continue to expand our channels globally. We are most excited about our plans to expand our distribution and anticipate opening up several more distribution centers in the very near future.”

Edmonds continued, “On the AlphaNet front, as of the end of the second quarter, we have further reduced the remaining principal balance owed on notes payable from $675,128 to $525,128,” added Edmonds . “We anticipate retiring this indebtedness in the near future. AlphaNet continues to install The Office unattended business center product line at a variety of hotel brands including Hilton where AlphaNet enjoys preferred vendor status. Recent contracts include the prestigious Waldorf Astoria in New York City where 3 full systems will be operational at the end of August. Other Hilton hotels are coming on-line at a fast pace as part of the Hilton directive to have business centers available at all Hilton branded properties.”

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.

Zunicom's operations through AlphaNet ( www.alphanet.net) consist of the sale of business communication, productivity, connectivity and wireless internet solutions to the hospitality industry through licensing agreements. AlphaNet's product offerings include T he InnRoom Business Center™, a private in-room facsimile and printing service, and T he Office™, a 24-hour unattended self-serve credit card activated hotel business center providing hotel guests with 24-hour convenient access to various business office services. Laptop Connect™ allows hotel guests the ability to connect their laptops to high-speed internet access points located within the hotel by connecting a supplied cable. Laptop Connect™also offers a hotspot for users wishing to access the internet through the wireless network feature on their laptop. Similarly, AlphaNet's WaveLan™ solution essentially enables hotels to provide their guests with public area wireless internet access in any number of locations including lobbies, meeting rooms, lounges, bars and restaurants.

DOWNLOAD SECOND QUARTER RESULTS FOR 2005 (WITH FINANCIAL CHARTS)

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