XA Files 10QSB Quarterly Report -- Company's Quarterly Revenue Increases 5% to $2.69 Million CHICAGO, May 17 /PRNewswire-FirstCall/ -- XA, Inc., (XA) (Nasdaq OTC BB: XAIN), a major national event marketing firm that serves many Fortune 500 companies, today filed its quarterly report for the fiscal quarter ended March 31, 2005. Highlights * Revenue for the first quarter ended March 31, 2005 rose 5% to $2.69 million from $2.57 million in the same period a year ago * Company generates new client acquisitions and new revenues through its two recent acquisitions; Musters & Company and Fiori (Alice's Garden). * XA appoints Bo Sandine as Director of Business Development for Southern California Revenue for the fiscal quarter ended March 31, 2005 rose 5% to $2.69 million from $2.57 million in the same period a year ago. The Company reported a net income of $44,587 or 0.01 per share, compared to a net income of $305,407 or .01 per share for the same period in 2004. As of March 31, 2005, cash reserves on the balance sheet rose 202.2% to $915,802 from $452,752 in 2004. Currently, the number of shares outstanding is 3,516,250 with 805,703 shares in the public float. CEO Joseph Wagner of XA said, "First quarter results are in line with our expectations. Our revenues continued to increase and the company is profitable. We have significantly increased our cash position in the first quarter and have positive working capital. We anticipate strong second quarter results which will include revenues resulting from the Musters and Fiori acquisitions plus continued organic growth." Marketers spent $152 billion in event marketing in 2003, up about 15% since 2002. In 2003, budgets for event marketing reached an average of $901,935, according to PROMO's 2004 Event Marketing Study. (Source: PROMO Magazine, January 1, 2005) Investors may view the Company's 10QSB filing at http://www.sec.gov/ . About XA XA has offices in Chicago, New York and Los Angeles from which it provides corporations and highly visible brands with comprehensive event marketing, design and production services. Since 1989, the XA team has been the creative force behind prestigious, national projects for such clients as The NBA, Disney, McDonald's, British Telecom, Song Airlines, Eurex, Olympus, Salvatore Ferragamo, Vogue, W Hotels, ABN AMRO and Emirates Airline. In 2003 and 2004, Special Events Magazine ranked XA as one of the "Top 50 Powerhouse Event Companies in the World." Forward Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "believes," "expects," "intends," "will," "anticipated," or "may," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the company's industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company's stock; and the risk factors set forth from time to time in the Company's SEC reports, including but not limited to its annual report on Form 10-KSB; its quarterly reports on Forms 10-QSB; and any reports on Form 8-K. XA, Inc. (OTC BB: XAIN) takes no obligation to update or correct forward-looking statements and also takes no obligation to update or correct information prepared by third parties that is not paid for by the Company. For more information, please contact: Company: Amanda Puck XA 312-239-2370 Investors: Art Batson, President Arthur Douglas and Associates (407) 478-1120 DATASOURCE: XA, Inc. CONTACT: Amanda Puck, XA, +1-312-239-2370, ; Investors, Art Batson, President, Arthur Douglas and Associates, +1-407-478-1120 Web site: http://www.expagency.com/

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