Newsletter

November 23, 2004

Volume V, Issue 115

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To OTC Journal Members:

NeWave (OTC BB: NWAV) Delivers Record Quarter

NeWave delivered its September quarterly report today, and the results broke all previous records. NeWave generated $2.1 million in revenues for the quarter, up from a mere $334,000 in the same quarter one year ago. The comparison is not really fair, as the company began operations in August of 2003. Nevertheless, this top line number represents a 529% growth rate year over year.

During 2004 NeWave has continued to deliver extraordinary sequential quarter over quarter growth. Looking back, here's how the year has gone:

Q1 '04: $1 million
Q2 '04: $1.8 million
Q3 '04: $2.1 million

The cash flow numbers are equally impressive. For the entire year, NeWave has only generated about $750,000 in negative cash flow from operations. Most companies must spend considerably more money to get anywhere near the $10 million in annualized revenues NWAV should achieve by next quarter. At this clip, the company should turn cash flow positive in the near future.

For those who need a refresher course, NeWave owns and operates www.onlinesupplier.com. They have a turn key solution for putting individuals in business on the internet for a nominal fee. A mere $9.95 gets you started, and an ongoing monthly fee of $29.95 keeps you going.

NeWave has clearly hit a sweet spot with consumers, and the proof is in the numbers. The company is delivering unbelievable growth, especially when you consider it was a zero revenue start up last August.

As disclosed in previous news release, NeWave is focused on the roll out of their new subsidiary "Auction Liquidators". They are putting together a nationwide network of drop off centers for selling goods on eBay. Once fully implemented, NWAV will use its current base of over 100,000 individuals serviced to drive business to the eBay drop off centers. This could turn out to be a very prolific area of growth for the company.

The word that comes to mind when I look at this chart is "schizophrenic". Aside from saying the stock doesn't want to trade below $3 or above $4.5, there is not much to talk about.

NWAV is still very thinly traded, and therefore subject to fairly large price movements on very little volume. Higher volume levels need to materialize in this stock to establish a track able trading pattern.

Volume will probably increase next year as the company rolls out its Auction Liquidators program and corporate spokesperson Bob Eubanks starts to get the word out through the media.

Today's quarterly earnings report showed substantial increases in revenues and minimal cash losses. All in all, a company moving in the right direction with great upside potential.

Here is the complete text of today's news release for your review:

NeWave Posts Record Revenues For Quarter Ended September 30, 2004

Long Beach, CA – November 23 / PR Newswire / NeWave, Inc. (OTC Bulletin Board NWAV - News) today announced record revenue of $2,105,183 for the quarter ended September 30, 2004 vs. $334,267 for the quarter ended September 30, 2003. Net loss was ($515,029) for the quarter ended September 30, 2004 vs. a net loss of ($123,833) for the quarter ended September 30, 2003. NeWave commenced operations in August 2003. The Company's financial complete results are available on its Form 10Q-SB for the period ending September 30, 2004.

NeWave Chairman Michael Novielli stated, "Our top line continues to grow sequentially quarter over quarter as a result of our increased marketing efforts and recent expansion. We will continue focusing on accelerating revenue growth as well the diversification of our business model that now includes Auction Liquidator.”

NeWave CEO Michael Hill commented, "We’ve now experienced three consecutive quarters of record sales. In order to continue with the next phase of our business plan, we are concentrating our efforts on the full scale launch of our eBay drop off store unit, Auction Liquidator. Our fulfillment center in Long Beach, California is now operational and we are currently working to finalize our national distribution channels. He added, “We plan to leverage the current membership base of Online Supplier to drive sales to Auction Liquidator, which is in lock step with our mission to provide a fully integrated e-commerce solution to our customers.”

About NeWave, Inc.

NeWave is a direct marketing company which utilizes the internet to maximize the income potential of its customers, by offering a fully integrated turnkey ecommerce solution. NeWave’s wholly-owned subsidiary OnlineSupplier.com, offers a comprehensive line of products and services at wholesale prices through its online club membership. Additionally, NeWave’s technology allows both large complex organizations and small stand-alone businesses to create, manage, and maintain effective website solutions for e-commerce. To find out more about NeWave (OTCBB: NWAV), visit our websites at www.newave-inc.com, www.onlinesupplier.com and www.auctionliquidator.com. The Company’s public financial information and filings can be viewed at www.sec.gov.

Forward Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products and services or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.

Contact: Michael Novielli
Chairman, NeWave, Inc.
mnovielli@newave-inc.com
ph (203)791-3838

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