LENCO MOBILE INC. Announces Revenue Growth Of 161% For First Quarter Of 2010, Expands International Operations

Lenco Mobile Inc. (Pink Sheets: LNCM) today announced its financial results for the first quarter of financial 2010, and provided updated information on its international expansion.

Revenue for the three months ended March 31, 2010 was up 161% to $3,784,220 compared to $1,448,720 for the three months ended March 31, 2009. Revenue for the mobile phone business segment was up 29% to $1,099,000 and revenue for the online operations was $2,365,020. The online operations were acquired on March 1, 2009, making first quarter comparatives year-over-year not meaningful.

Announcing the results, Michael Levinsohn, CEO and President of Lenco Mobile Inc., said “The growth in revenue is in line with our budgets for the first quarter. We anticipated making a loss at the net income level because we have invested heavily in new technology platforms and we have high amortization and depreciation charges. We have spent $142,859 on research and development costs which will benefit future revenue streams as we continue to expand internationally. Despite these expenses, our EBITDA remains positive and our net cash provided by operating activities was $292,782 in the first quarter of 2010.” At the net income level, Lenco Mobile posted a loss of $241,611. General and administrative costs were up by 182% to $1,823,090. This was primarily a result of the expansion of the staff and infrastructure necessary to expand operations in South Africa and the United States.

Lenco Mobile also announced that it had restructured its international operations in order to efficiently deliver the group’s products and services to wireless carriers and brand owners. Michael Hill, President of AdMax Media Inc., a Lenco Mobile subsidiary has been appointed to head Lenco Technology Group. Lenco Technology Group provides the technical infrastructure and operational support to Lenco Mobile’s international clients.

Since October 2009, wireless carriers have successfully sent more than 250 million MMS messages using Lenco Mobile’s MMS messaging platform, which is installed in South Africa, Australia, the United Kingdom and the United States. The MMS messaging platform enables wireless carriers to send high volumes of MMS messages in a cost effective and efficient manner. “So far, we have generated the bulk of our revenue from carriers in South Africa and we are only now starting to see progress in the United States and Australia. We believe that during the next three to six months we will start seeing revenue from other regions, including Latin America, Asia and Europe,” said Levinsohn.