Oryx Technology Corp. (OTCBB:ORYX), a technology licensing, investment and management services company, today announced a net loss of $132,000, or $0.05 per share, on revenues of $57,000 for its second quarter ended August 31, 2005. This compares to a net loss of $333,000, or $0.12 per share, on revenues of $58,000 for its second quarter ended August 31, 2004. The net loss for the second quarter of last fiscal year included a $198,000 loss related to Oryx's investment in S2 Technologies. Oryx did not report a loss for its investment in S2 Technologies during this quarter since the carrying value of Oryx's investment was completely depleted by the end of fiscal 2005. For the six months ended August 31, 2005, Oryx reported a net loss of $267,000, or $0.09 per share, on revenues of $162,000. This compares to a net loss of $619,000, or $0.22 per share, on revenues of $152,000 for the six months ended August 31, 2004. The net loss for the six months ended August 31, 2004 includes a loss of $379,000 related to Oryx's investment in S2 Technologies. Oryx did not report a loss on its investment in S2 for the six months ended August 31, 2005. Phil Micciche, President and Chief Executive Officer of Oryx, said, "Despite the increase in demand from prior years of products incorporating our SurgX technology, royalty income from our licensees is not at a level to support our ongoing operations. Consistent with our beliefs in the value of our investment in S2 Technologies we continue to take actions to reduce costs and raise funds to keep Oryx viable. We still maintain a 29.8% ownership position in S2 Technologies and we will look at different alternatives to maintain this ownership position as we remain very bullish about S2 Technologies prospects. S2 Technologies continues to gain broader adoption of its technology, Stride, in two large multinational companies and has consistently seen its sales increase over the last three quarters." Company Profile Headquartered in San Jose, California, Oryx Technology Corp. is a technology licensing, investment and management service company with a proprietary portfolio of high technology products in surge protection. Oryx also provides management services to its portfolio company S2 Technologies through its affiliate, Oryx Ventures, LLC. As previously announced, Oryx Technology Corp. filed Form 15 with the Securities and Exchange Commission (the "SEC") on October 14, 2005, which will result in a voluntary deregistration of its common stock and suspend its reporting obligations under Section 13 and 15(d) of the Securities Exchange Act of 1934, as amended. As a result of this deregistration, the Company's common stock will no longer be eligible for trading on the Over-The-Counter Bulletin Board. The Company's shares are expected to continue being quoted on the Pink Sheets, but the Company can make no assurance that any broker will continue to make a market in the Company's common stock. The Pink Sheets is a centralized quotation service that collects and publishes market maker quotes in real time, primarily through its web site, http://www.pinksheets.com. Forward-Looking Statements Certain of the matters discussed in this release are forward-looking and involve a number of risks and uncertainties. Oryx's actual results could differ materially from those described for a variety of factors. Such factors include, but are not limited to, those discussed in "Risk Factors" and "Management's Discussion and Analysis" in Oryx's Annual Report on Form 10-KSB, as well as those discussed elsewhere in other public filings made by Oryx with the Securities and Exchange Commission. Among the factors that could cause actual results to differ materially are the following: adverse changes in the specific markets for Oryx products, adverse business conditions, dependence on licensees of Oryx technology for the commercial success of new products, lack of success in technological advancement, management of cost controls and cash resources, need for additional financing and other factors. -0- *T ORYX TECHNOLOGY CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended Six Months Ended August 31, August 31, 2005 2004 2005 2004 Revenue: Royalty $ 42,000 $ 49,000 $ 132,000 $ 134,000 Services to affiliates 15,000 9,000 30,000 18,000 ---------- ---------- ---------- ---------- 57,000 58,000 162,000 152,000 ---------- ---------- ---------- ---------- Cost of revenue: Services to affiliates 15,000 14,000 34,000 29,000 ---------- ---------- ---------- ---------- 15,000 14,000 34,000 29,000 ---------- ---------- ---------- ---------- Gross profit 42,000 44,000 128,000 123,000 ---------- ---------- ---------- ---------- Operating expenses: General and administrative 170,000 161,000 376,000 335,000 Research and development 5,000 14,000 25,000 28,000 ---------- ---------- ---------- ---------- Total operating expenses 175,000 175,000 401,000 363,000 ---------- ---------- ---------- ---------- Loss from operations (133,000) (131,000) (273,000) (240,000) Interest income 1,000 - 2,000 1,000 Equity in net loss of affiliates - (198,000) - (379,000) Other income - - 4,000 7,000 ---------- ---------- ---------- ---------- Loss before income tax (132,000) (329,000) (267,000) (611,000) Income tax expense - (4,000) - (8,000) ---------- ---------- ---------- ---------- Net loss $ (132,000)$ (333,000)$ (267,000)$ (619,000) ========== ========== ========== ========== Basic and diluted net loss per share $ (0.05)$ (0.12)$ (0.09)$ (0.22) ========== ========== ========== ========== Weighted average common shares used to compute basic and diluted net loss per share 2,873,933 2,821,335 2,848,070 2,821,335 ========== ========== ========== ========== ORYX TECHNOLOGY CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) Assets August 31, February 28, 2005 2005 ------------ ------------ Current assets: Cash and cash equivalents $ 170,000 $ 223,000 Receivable from affiliate 5,000 5,000 Other current assets 13,000 31,000 ------------ ------------ Total current assets 188,000 259,000 ------------ ------------ Total assets $ 188,000 $ 259,000 ============ ============ Liabilities, Mandatorily Redeemable Convertible Preferred Stock and Stockholders' Deficit Current liabilities: Accounts payable $ 84,000 $ 21,000 Accrued liabilities 285,000 333,000 Deferred revenue 50,000 - ------------ ------------ Total current liabilities 419,000 354,000 Long-term deferred revenue - 50,000 ------------ ------------ Total liabilities 419,000 404,000 ------------ ------------ Series A 2% mandatorily redeemable convertible preferred stock $0.001 par value; 3,000,000 shares authorized; 750 shares issued and outstanding 18,000 18,000 ------------ ------------ Stockholders' deficit: Common stock, $0.001 par value; 25,000,000 shares authorized; 2,942,310 and 2,821,335 issued and oustanding at August 31, 2005 and February 28, 2005, respectively 3,000 3,000 Additional paid-in capital 27,987,000 27,806,000 Accumulated deficit (28,239,000) (27,972,000) ------------ ------------ Total stockholders' deficit (249,000) (163,000) ------------ ------------ $ 188,000 $ 259,000 ============ ============ *T