Time Spot Press Releases

Time Spot ANNOUNCES RECORD FISCAL FIRST QUARTER REVENUE
Revenue increases 29% over prior year quarter

TEMPE, Ariz, November 3, 2004 - Time Spot, Inc. (OTCBB: TMAM), a leading developer and marketer of time and labor management solutions, today announced unaudited financial results for its fiscal first quarter ended September 30, 2004.

Revenue for the quarter ended September 30, 2004 was $1,453,825, a 29% increase over revenue of $1,126,397 in the year-ago quarter. The net loss from operations for the quarter ended September 30, 2004 was $99,582, compared to a net loss from operations of $141,755 for the year-ago quarter and a net loss from operations of $304,644 for the sequential quarter ended June 30, 2004. The net loss for the quarter ended September 30, 2004 was $192,331, or $.01 per basic and diluted share, compared to a net loss of $161,573, or $.01 per basic and diluted share for the year-ago quarter, and a net loss of $396,463 or $.03 per basic and diluted share for the quarter ended June 30, 2004.

The Company experienced a gross profit in the quarter of 61% versus 54% in the prior year's quarter. The gross profit on professional services was 63% in the quarter versus 41% in the year-ago quarter, fueled by services performed for a Fortune 100 account. The revenue breakdown in the quarter was 54% generated from channel partners and 46% generated by corporate sales. This breakdown compares to 62% from channel partners and 38% from corporate sales in the year-ago quarter.

"We targeted our organic revenue growth at 20% - 30% compared to the same periods last year. I am pleased that we achieved the high end of that range in our first fiscal quarter. Deferred revenue increased by $331,000 in the quarter which, when combined with the increase in revenue in the quarter, resulted in a 40% increase in sales activity versus the quarter ended June 30, 2004. We also reduced the net loss by 51% versus the quarter ended June 30, 2004, which is a significant achievement, "stated Thomas Bednarik, President and CEO.

"More and more of our clients are opting for the hosted version of our web-based solution, NETtime® as evidenced by the revenue growth in this area of 46% over the same period last year. A large part of this growth is as a result of the strategy we have implemented relative to the private branding and co-branding of our NETtime solution. We now have over 50 partner companies that represent our solution to their base of customers. Recently, we have made investments in both hardware and software to support this service at the AT&T data center which hosts NETtime. These investments will provide us with increased capacity to support our growth and faster response times to our clientele." added Bednarik.

"We closed some significant orders in the quarter, most notably, an approximate $200,000 contract with the Phoenix Elementary School District for ExtendTime, which is the Cisco Certified version of our NETtime solution that runs on the client's Cisco IP Phones and VoIP network. This is a prime example of improving the ROI of a client's VoIP system purchase as we are adding our workforce management application on top of the client's existing infrastructure. The implementation of this system should be completed by calendar year-end.

On the partner side, we entered into agreements with 16 new resellers during the quarter and one large Human Resource Outsourcer (HRO). We believe our product suite is an excellent fit with the needs of the HRO's customers as they scale from small up to enterprise businesses. Additionally, our partner relationship with Intuit continues to move forward as we have closed eight new joint accounts in fiscal Q1," continued Bednarik.

The Company will hold a conference call today at 4:30 p.m. EST to discuss its first fiscal quarter results. To participate, call 800-865-4425 five minutes prior to the start of the call, or log on to www.kcsa.com for a live webcast of the call. There will also be a replay of the call available until November 10, 2004 by dialing 877-519-4471 and entering the access code 5341603.

About Time Spot, Inc.
Time Spot, Inc. (TMAM.OB) has been providing innovative time and labor management solutions for over 17 years. By leveraging innovative technology, our family of software and hardware solutions helps organizations track and transform basic labor data into strategic information that improves workforce productivity and the utilization of labor resources. Time Spot solutions are used by more than 20,000 companies worldwide including ARAMARK Corporation, the University of Southern California, Thrifty Rental Car, the Texas Legislative Council and the Mesa Air Group. The Deloitte Technology Fast 500 honored Time Spot as one of the 500 fastest growing technology companies in North America for 2004 and 2003.

Safe Harbor Statement
Certain information and comments contained in this press release may be forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Factors set forth in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2004, together with other factors that appear in this press release or in the Company's other Securities and Exchange Commission filings could affect the Company's actual results and could cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company, in this press release.

NETtime is a registered trademark of Time Spot, Inc. All other names are the property of their respective owners.

COMPANY CONTACT:
Craig Smith, Chief Financial Officer
(480) 296-0442

TIMEAMERICA, INC.
CONSOLIDATED BALANCE SHEETS

			September 30,		June 30,
			2004		2004
			(Unaudited)
ASSETS
Current Assets:
	Cash and cash equivalents		$   1,840,826		$       2,058,929
	Accounts receivable ? trade, net		1,339,294		1,028,850
	Inventory		443,187		370,784
	Prepaid expenses and other current assets		203,363		290,546
		Total Current Assets	3,826,670		3,749,109
Property and equipment, net			204,372		203,309
Other Assets			212,665		234,641
		Total Assets	$ 4,243,707		$ 4,187,059
LIABILITIES AND STOCKHOLDERS? EQUITY (DEFICIT)
Current Liabilities:			$		$
	Current portion of long-term debt		788,032		756,353
	Accounts payable		320,315		368,230
	Accrued liabilities		289,690		187,385
	Deferred revenue		747,310		416,514
		Total Current Liabilities	2,145,347		1,728,482
Long-term debt, less current portion			2,169,098		2,337,345
		Total Liabilities	4,314,445		4,065,827
Commitments:			-		-
Stockholders? Equity (Deficit):
	Common stock, $.005 par value, 50,000,000 shares authorized,
	13,571,052 and 10,656,057 shares issued and outstanding		68,006		67,998
	Contributed capital		8,027,474		8,027,121
	Accumulated deficit		(8,166,218)		(7,973,887)
		Total Stockholders? Equity (Deficit)	(70,738)		121,232
		Total Liabilities and Stockholders? Equity (Deficit)	$      4,243,707		$    4,187,059

 

Time Spot, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

			September
			2004		2003
Revenues:
	Product sales		$   998,930		$     898,328
	Services revenue		454,895		228,069
		Total Revenues	1,453,825		1,126,397
Cost of Revenues:
	Product		398,732		386,024
	Services		167,221		135,554
		Total Cost of Revenues	565,953		521,578
Gross Profit			887,872		604,819
Costs and Expenses:
	Sales and marketing		464,103		390,293
	Research and development		287,772		171,632
	General and administrative		235,579		184,649
		Total Costs and Expenses	987,454		746,574
Net Loss from Operations			(99,582)		(141,755)
Other Income (Expense):
	Interest expense		(98,511)		(19,811)
	Other		-		(7)
	Interest income		5,762		-
			(92,749)		(19,818)
Net Loss			$    (192,331)		$    (161,573)
Basic Loss per Share			$          (0.01		$          (0.01)
Weighted Average Number of
	Shares Outstanding		13,600,188		11,476,709