EMTA Holdings, Inc. Files Its 2008 10-Q Quarterly Report

Company Reports 175% Increase in Net Sales

SCOTTSDALE, Ariz., Aug. 20, 2008 -- EMTA Holdings, Inc., (BULLETIN BOARD: EMHD) , maker of XenTx(TM), Synergyn(TM) and other engine treatment and fuel efficiency products, today reported that they had filed the Company's first quarter FY 2009 10-Q report. The report detailed an overall positive quarter in both operations and sales. Net Sales increased from $666,724 in 2007 to $1,836,421 in 2008 or an increase of $1,169,697 or 175%. This increase was the result of improved XenTx sales to the commercial/industrial market and an increase in foreign sales. The cost of sales for the three months ended June 30, 2008 was $726,776 or 40% of net sales, compared to $293,176 or 44% of net sales for the prior year. The decrease in the cost of sales was primarily due to both reduced raw materials and manufacturing costs. Gross profit increased to $1,109,645 as compared to $373,547 or an increase of 197%.

SGA expenses were reduced to $681,703 from $728,871 from the prior year which had a positive impact on operating expenses which were also reduced from $839,534 to $743,669. Income from operations for the three months ended June 30, 2008 was $365,976 verses a loss of $465,986 from the previous year.

Interest and Other expenses were $198,834 compared to $266,822 for the same period last year. This was due primarily to the lower cost of the cashless warrant conversion adjustment of $37,815 as opposed to $145,070 in the earlier period.

Net Income for this period was $167,517 verses a loss of $732,808 from the same period last year. Before non-cash allocations, income for the quarter was $596,545.

EMTA Holdings, Inc. CEO Edmond L. Lonergan stated, "The quarter that just ended was the first profitable quarter in the Company's history and is the foundation for continuing success in Fiscal Year 2009."