Solomon Technologies

Press Releases and Announcements

Solomon Technologies, Inc. Reports Financial Results For the Year Ended December 31, 2006
TARPON SPRINGS, FL. March 2, 2007 — Solomon Technologies, Inc. (OTCBB:SOLM) a developer and manufacturer of high-efficiency regenerative electric power drive systems as well as high-voltage, high-power direct current power supplies and power supply systems, today announced its operating results for the year ended December 31, 2006. The Company filed its Form 10-KSB with the Securities Exchange Commission (SEC) on April 2, 2007.

Revenue for the year ended December 31, 2006 was $2.3 million, an increase of $2.2 million, or approximately 3,200%, compared with $0.07 million for the year ended December 31, 2005. Revenues in our Power Electronics Division grew $2.2 million to $2.2 million as a direct result of the acquisition of Technipower LLC, which closed August 17, 2006. Revenue in the Motive Power Division was $0.04 million compared with $0.07 million in 2005. This revenue shift reflects the Company's effort to focus on building critical mass of revenue and profitability through product diversification into Power Electronics as a complement to its Motive Power products and technology.

Gross Profit for the year ended December 31, 2006 was $0.6 million, or 27% of revenue, up dramatically compared with the Gross Loss of ($0.01) million, for the year ended December 31, 2005. Net cash used by operating activities was ($1.2) million for the year ended December 31, 2006 compared with ($1.2) million used in the year ended December 31, 2005.

Fourth quarter 2006 financials provide an early indication of the significant impact that the Technipower acquisition will have on the 2007 financial statements. Fourth quarter 2006 revenue was $1.45 million and order backlog as at December 31, 2006 was at an all-time high of approximately $2.5 million.

``Our strategy is taking shape and, with the completion of our 2006 financial statements, we have the first full quarter consolidating the Technipower acquisition -- which provides some early evidence that we will orient our business decisions towards adding incremental revenue on an accretive basis,'' commented Gary Brandt, Chief Executive Officer. ``For the quarter and year ended December 31, 2006, our financial results reveal the profitability inherent in the Power Electronics division and give us confidence that the investment we are making in new product development will contribute to improved profitability. Over the past year, we have made a conscious effort to become more product and market focused versus solely technology driven, and we are seeing the benefits of that in both our revenue and backlog growth.''

Operating loss for the year ended December 31, 2006 increased to $8.9 million compared with an operating loss of $2.9 million for the same period in 2005. The primary contributors to the increased operating loss were: a non-cash goodwill impairment charge of $3.3 million and increased operating expenses associated with both financing activities and the Technipower acquisition, including deferred compensation of $1.8 million. These increases were partially offset by the increased gross profit from Power Electronics. The Company has increased its investment in R&D, on an annualized basis, by over $1.0 million. These R&D investments were steps taken to drive the strategic shift in the Power Electronics business towards industrial high-voltage, high-power electrical energy conversion devices to accelerate future revenue growth. These initiatives are not only expected to drive revenue growth in Power Electronics but also benefit the Motive Power division as it targets new markets.

Net loss for the year ended December 31, 2006 was ($16.3) million, or ($0.60) per share, compared with a net loss of ($6.6) million, or ($1.00) per share, for the same period in 2005. Major contributors to the increase in net loss for the year (as compared with 2005) were non-cash charges of $5.6 million related to the extinguishment of debt, $3.3 million associated with the goodwill impairment, and $1.8 million in deferred compensation.

``We have taken steps to establish a strong platform from which we expect to add revenue on an accretive basis,'' said Gary Brandt. ``With one acquisition pending and others contemplated, we are committed to building a business which not only addresses the growing market demand for high-efficiency power electronics and energy conversion devices, but also delivers positive financial returns. In order to put the Company in a position to consistently achieve positive cash flows we are working to establish a critical mass within our Power Electronics business which is expected to provide sufficient cash flow to support our investment in Motive Power products and technologies.''

CONFERENCE CALL SCHEDULED

The Company has scheduled a conference call with investors on Wednesday April 4, 2007 at 9:00 AM Eastern Time, to discuss the Company's financial results for the year ended December 31, 2006.

Gary G. Brandt, Chief Executive Officer, will be joined by Gary Laskowski, Chairman of the Company's Board of Directors, Michael D'Amelio, Director and Secretary of the Company and Sam Occhipinti, Chief Financial Officer on the call to review the company's financial and operational highlights.

Interested parties should call 1-800-565-5442 (U.S. and Canada) or 1-913-312-1298 (International) five minutes in advance to participate. The call will also be open to all interested investors through a live audio Web broadcast accessible at the Solomon Technologies, Inc. corporate website, http://www.solomontechnologies.com. For those unable to listen to the live broadcast, the call will be archived on the above-mentioned site.

Information about Solomon Technologies, Inc.:
Solomon Technologies, Inc., through its Motive Power and Power Electronics divisions, develops, licenses, manufactures and sells precision electric power drive systems, including those utilizing its patented Electric Wheel(tm), Electric Transaxle(tm) and hybrid and regenerative technologies as well as direct current power supplies and power supply systems requiring high levels of reliability and ruggedness for defense, aerospace, marine, commercial, automotive, 'hybrid-electric' and 'all-electric' vehicle applications.

FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Solomon Technologies, Inc. in this release that are not historical in nature, particularly those that utilize the terminology such as ``may,'' ``will,'' ``should,'' ``likely,'' ``expects,'' ``anticipates,'' ``estimates,'' ``believes,'' or ``plans,'' or comparable terminology, are forward-looking statements based on current expectations about future events, which management has derived from the information currently available to it. It is possible that the assumptions made by management for purposes of such statements may not materialize. Actual results may differ materially from those projected or implied in any forward-looking statements. Important factors known to management that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in the company's filings with the Securities and Exchange Commission. The forward-looking statements contained in this release speak only as of the date hereof, and the company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Solomon Technologies, Inc.
Peter DeVecchis, 727-934-8778

Crescent Communications
David Long, 203-226-5527
www.crescentir.com