BluePoint Data Storage Reports Record Q2 Results with 86% Revenue Growth and 98% Increase in Gross Profit

BluePoint Data Storage, Inc. (TSX VENTURE: BLP)(PINK SHEETS: BLPDF), an established provider of Managed Storage, Availability and Data Protection Services, announced 86% growth in second quarter 2006 revenue versus the same period in 2005, and increased gross profit by 98% over the prior year.

Second Quarter 2006 Revenue Growth of 86%

Net Sales increased 86% from $463,990 in Q2 2005, to $862,570 for the quarter ended June 30, 2006. The increase in revenue was attributed to new customer installations, additional services ordered from existing customers, and organic growth associated with contract renewals and capacity increases. New orders have come from direct customer inquiries, the IBM reseller agreement, and various other business partners that make up BluePoint's channel.

Second Quarter Gross Profit Increases 98%

Gross Profit of $494,032 for the quarter ended June 30, 2006 marked a 98% increase over $249,958 for the same period in the prior year. Margins on revenue improved from 53.9% in Q2 2005 to 57.3% as a result of economies of scale associated with delivering more services to a larger customer base. The use of new and better technology has also contributed to cost savings as a percentage of net sales.

Second Quarter Net Income & EBITDA Continue Positive Trend

Net Income for the quarter ended June 30, 2006 increased to $110,175 versus $18,921 for same period in 2005. This amounts to less than $0.01/share, or a per share "breakeven" on a basis of 22,211,704 common shares issued and outstanding. Net income of $110,175 for the second quarter includes 195,000 in non-cash depreciation and $11,163 in interest expense. EBITDA for the same period totaled $316,338. The majority of this cash generated by the business was used to reduce term loans, capital leases and credit lines, and continue our investment in technology to support scaleable growth.

About BluePoint Data Storage

BluePoint delivers server management, monitoring, primary storage & back-up, e-vaulting and archiving, system availability, and recovery solutions that ensure the availability and protection of corporate data and information technology systems, while reducing overall costs to the customer. BluePoint manages these systems with unparalleled storage, network, and server management expertise, guarantees high performance and availability, and ensures systems are on par with the most current, proven technology.

Safe Harbor

This release may contain forward-looking statements that involve risks and uncertainties. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of BluePoint or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, demographic changes, regulation, major technology changes, timing of product introductions, competition and the ability of BluePoint to attract and retain key employees.



The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.


Contacts:
BluePoint Data Storage, Inc.
Paul Sachse
CEO and President
(561) 417-0324
psachse@bluepointdata.com

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