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CellStar Reports Year-to-Date Results for the First Nine Months and Third Quarter of 2005.

Article Excerpt
* Consolidated revenues of $766.4 million year-to-date and $277.9 million for the third quarter of 2005 * Revenues in the Latin America Region up 65% compared to year-to-date 2004 * Operating income of $8.4 million year-to-date in Latin America and $1.5 million in North America * Results of Asia-Pacific Region reclassified to discontinued operations * Net losses of $21.3 million year-to-date and $7.6 million for the third quarter include losses in the Asia-Pacific Region of $14.2 million and $5.6 million, respectively

CARROLLTON, Texas, Oct. 11 /PRNewswire-FirstCall/ -- CellStar Corporation (OTC Pink Sheets: CLST) today reported revenues of $766.4 million for year-to- date 2005 compared to $587.6 million in 2004. Revenues in Latin America increased $170.1 million and revenues in the U.S. increased $8.6 million compared to year-to-date 2004.

Year-to-date revenues in the North American Region were $336.0 million in 2005, an increase of $8.6 million, compared to $327.4 million in 2004. The increase was due primarily to an increase in the region's regional carrier business as a result of new handset model promotions and an increase in the insurance replacement business. These increases in revenue were partially offset by a decline in the region's indirect channel business as a result of a major carrier customer's decision to change its distribution strategy, and the Company's decision in January of 2004 to discontinue its business with Cricket Communications and its indirect sales channels. The North American Region represented 44% of the Company's total revenue compared to 56% for the nine months ending August 31, 2004. The Company's North American Region generated operating income of $1.5 million for the first nine months of 2005, compared to $3.6 million for the same period of 2004.

The Company's operations in the Latin American Region provided $430.3 million of revenues for the first nine months of 2005, compared to $260.2 million in 2004, a $170.1 million increase. Revenues from the Company's Miami export operations increased to $228.7 million year-to-date 2005, from $113.0 million in 2004 primarily due to increased business with a major carrier customer in Colombia and the Company's expanded relationship with the carrier in support of its technology transition from CDMA to GSM during the first nine months of 2005. Revenues in Mexico increased to $186.4 million year-to-date 2005, from $107.2 million in 2004 primarily due to the Company's efforts to reposition its operations in Mexico and focus on the largest wireless carrier in the country, Telcel. The Latin American Region represented 56% of the Company's total revenue compared to 44% for the nine months ending August 31, 2004. Operating income in the Company's Latin American Region has continued to improve, $8.4 million for year-to-date 2005 compared to $5.6 million in 2004.

"We are pleased with our results so far this year in Latin...