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Astrata Group, Inc. News

Astrata Group Reports Record Revenue Results for the Three and Nine-Month Periods, Ended November 30, 2007

COSTA MESA, Calif., Jan. 22 PRNewswire-FirstCall — Astrata Group (OTC Bulletin Board: ATTG) reported net sales from continuing operations rose to $4.7 million for the three-month period, ended November 30, 2007, a 522% increase, from the $0.8 million reported in the same period a year earlier. For the nine-month period of 2008 fiscal year, ended November 2007, net sales climbed 394% to $10.4 million from $2.1 million, reported in the prior fiscal year period.

The company said that the revenue growth for the three- and nine-month periods, ended November 30, 2007, stemmed from an overall increase in sales and the effect of the company's recently announced change in revenue recognition policy in connection with its large, multi-year sales contracts.

Gross profit for the three months, ended November 30, 2007, gained 264% to $1.2 million from $0.3 million for the third quarter of the prior fiscal year. The gross profit margin declined, however, to 26% from 44% from the comparable period as a result of the disproportionate size of the company's homeland security business in the current product mix. For the same reason, the company said that SG&A expenses declined for the three-month period to $1.5 million from $2.1 million in the comparable fiscal period because lower profit margins in the homeland security business are typically offset by reduced operating costs.

Astrata's net loss for the three-month period, ended November 30, 2007, was $1.1 million, or $0.04 per common share, down significantly from $6.3 million loss, or $0.59 per share, reported in the third quarter of the prior fiscal year.

Astrata CEO Martin Euler said, "The results of this quarter demonstrate the positive strides that our company has achieved.

"The execution and delivery of our $93.5 million contract is moving forward as planned. We expect our losses to be eliminated as we progress through this contract," he added.

"The company continues to work aggressively on new contracts and anticipates realizing revenue growth in the future. Our entire management team is focused and determined to deliver continued improved results that should translate to increased shareholder value," he concluded.

ASTRATA GROUP INCORPORATED AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE AND NINE MONTHS ENDED NOVEMBER 30, 2007 AND 2006 (UNAUDITED) THREE MONTHS NINE MONTHS 2007 2006 2007 2006 Net sales $4,718,503 $758,035 $10,350,895 $2,097,241 Cost of goods sold 3,502,922 423,667 7,446,564 1,399,243 Gross profit 1,215,581 334,368 2,904,331 697,998 Selling, general and administrative expenses 1,529,072 2,106,828 7,776,890 6,073,663 Research and development - 119,331 - 119,331 Operating loss (313,491) (1,891,791) (4,872,559) (5,494,996) Other income (expense) (667,954) (4,476,541) (881,124) (4,574,376) Income tax provision 677 - 500,677 - Loss before minority interest (982,122) (6,368,332) (6,254,360)(10,069,372) Equity in net loss of affiliate - 9,025 - (9,803) Loss from continuing operations (982,122) (6,359,307) (6,254,360)(10,079,175) Gain (loss) on discontinued operations, net of tax (106,964) 72,803 (288,284) 561,999 Net loss $(1,089,086)$(6,286,504) $(6,542,644)$(9,517,176) Basic and diluted earnings (loss) per common share: Continuing operations applicable to common stockholders $(0.04) $(0.60) $(0.27) $ (0.89) Discontinued operations - 0.01 (0.01) 0.04 $(0.04) $(0.59) $(0.28) $(0.85) Weighted average common shares outstanding: Basic and diluted 24,002,951 13,877,950 23,989,717 13,563,893

About Astrata Group, Inc.

Astrata Group, Inc., (OTC Bulletin Board: ATTG) is a US publicly listed company. Astrata is focused on advanced location-based IT services and solutions (telematics) that combine GPS positioning, wireless communications (satellite or terrestrial) and geographical information technology, which together enable businesses and institutions to monitor, trace as well as control the movement and status of machinery, vehicles, personnel or other assets. Astrata has designed, developed, manufactured and currently supports seven generations of telematics systems with units deployed worldwide.

Astrata has offices throughout the world including the United States, Europe and Asia. For further information please visit www.astratagroup.com.

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Astrata Group Incorporated (the "Company") to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to: (i) the Company's ability to obtain sufficient capital or a strategic business arrangement to fund its current operational or expansion plans; (ii) the Company's ability to build and maintain the management and human resources and infrastructure necessary to support the anticipated growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings.

PR/Media Relations Contact: Richard Stern (richstern@sternco.com) Stephanie Stern (sstern@sternco.com) Stern & Co. Tel: 212-888-0044 Financial Advisors: Todd M. DeMatteo DOMINICK AND DOMINICK LLC Tel: 212-558-8809 tdematteo@dominickanddominick.com Investor Relations: Booke & Co. - Tel: 212-490-9095 Email: admin@bookeandco.com

SOURCE Astrata Group, Inc.

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