WAYTRONX REPORTS FIRST QUARTER REVENUE OF $7,660,000

Company reports new sales orders up 80% quarter-to-quarter year-over-year

TUALATIN, Ore. – May 11, 2010 – Waytronx, Inc. (OTCBB: WYNX), a platform company dedicated to the acquisition, development, and commercialization of new, innovative technologies along with its wholly owned subsidiaries, CUI, INC., a provider of electromechanical components and CUI-Japan, its Japanese subsidiary, and Comex Electronics, a partially owned (49%) Japanese subsidiary, today announced that it posted first quarter results for the three months ended March 31, 2010.

Waytronx produced consolidated revenues of $7,668,805 and EBIDTA of $141,127 for the three months ended March 31, 2010.  These numbers represent a 25% quarter-to-quarter year-over-year increase in revenues, while the company maintained 37% gross margins and continued to focus on operational efficiencies.  

The company reports that First Quarter 2010 new sales orders increased 38% quarter-to-quarter – from $7,420,000 in Fourth Quarter 2009 to $10,210,000 (not including Japan subsidiaries) in First Quarter 2010.  The year-to-year growth is even more dramatic.  The company went from $5,680,000 in new orders in First Quarter 2009 to $10,210,000 in new orders in First Quarter 2010 (not including Japan subsidiaries) – or an increase of 80%.

 This continuing growth is due to several factors, including the re-structuring of the company’s sales department, wherein it placed 74 manufacturer’s representatives in the field selling its products.  As explained by the company’s president & CEO, William Clough, “That sales restructure has allowed us to get into the design cycle much earlier and much more effectively.  The result is clearly evidenced by the fact that we have seen this increase in revenues and new orders, while handling fewer actual sales orders.  We are now taking not just any business, but the right business.”

Specifically, the company reports that the 80% increase in orders for First Quarter 2010 was accomplished with 15% fewer sales orders than in First Quarter 2009.  The 38% increase quarter-to-quarter was accomplished with only one additional sales order – 1,277 sales orders for Fourth Quarter 2009 ($7.42 mm) compared to 1,278 sales orders in First Quarter 2010 ($10.21 mm).  “Clearly, we are receiving fewer orders for larger dollar values than ever before,” Clough stated.

The company reports that the above analysis does not take into account any revenue or sales associated with its Novum Digital Power Line, its new power products built on the California Power Research (CPR) technology platform, and/or its soon to be introduced GASPT2 device, all of which will be in the market later this year.  Moreover, the analysis regarding sales orders above is exclusive of the Japanese subsidiaries CUI Japan and Comex Electronics.  In short, the above analysis and the growth described therein include only the company’s core, legacy business.

“These results and this quarter-to-quarter year-over-year growth rate demonstrate the effectiveness of our new technology/licensing model,” continued Clough.  “The acquisitions of CUI-Japan and Comex Electronics, along with our signing of specific, targeted licensing agreements, have all contributed to our ability to expand and grow even in this difficult economic environment.”

Recent Waytronx highlights include:

• expansion within the Asian marketplace through the CUI Japan and Comex Electronics acquisitions;
• signing of licensing agreements with Power-One, Inc. (Nasdaq: PWER), California Power Research (CPR), and GL Industrial Services;
• introduction of Novum digital power modules;
• elimination of $7,200,000 in acquisition and “Angel” debt, along with associated carrying costs effective April 1, 2010; and,
• the continued expansion of its sales force to 74 sales representatives including seven manufacturing representative organizations, giving Waytronx comprehensive sales coverage of North America including parts of Canada and into Mexico, with two exclusive representatives in Europe.

“We are confident that the initiatives that we have implemented since our acquisition of CUI will continue to produce positive results in both revenue growth and increased shareholder value through 2010,” concluded Clough.

About Waytronx, Inc.
Waytronx, Inc. has pioneered and is developing innovative thermal management solutions capable of revolutionizing the semiconductor, solar and electronic packaging industries, among others, utilizing its patented WayCool™/WayFast™ hybrid mesh architecture.  In addition, through its acquisition of CUI in May 2008, Waytronx has developed the infrastructure, expertise, and platform necessary to acquire, develop, and commercialize new technologies.  For its part, CUI is a solutions provider of electromechanical components and industrial controls for OEM manufacturing. Since its inception in 1989, CUI has been delivering quality products, extensive application solutions, and superior personal service.  CUI’s solid customer commitment and honest corporate message are a hallmark in the industry. 

Waytronx also holds CUI-Japan as a wholly owned subsidiary and Comex Electronics as a partially owned subsidiary (49%).  CUI-Japan and Comex are Japanese solutions provider of electromechanical components and industrial controls for OEM manufacturing.  For more information, please visit www.waytronx.com and www.cui.com.
 
 EBITDA is a non-GAAP financial measure and is reconciled as follows:

EBITDA does not represent funds available for management's discretionary use and is not intended to represent cash flow from operations. EBITDA should not be construed as a substitute for net loss or as a better measure of liquidity than cash flow from operating activities, which is determined in accordance with United States generally accepted accounting principles ("GAAP"). EBITDA excludes components that are significant in understanding and assessing our results of operations and cash flows. In addition, EBITDA is not a term defined by GAAP and as a result our measure of EBITDA might not be comparable to similarly titled measures used by other companies.

However, EBITDA is used by management to evaluate, assess and benchmark the Company’s operational results and the Company believes that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our industry. Accordingly, the Company is disclosing this information to permit a more comprehensive analysis of its operating performance, to provide an additional measure of performance and liquidity and to provide additional information with respect to the Company’s ability to meet future debt service, capital expenditure and working capital requirements.

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements.  The company may experience significant fluctuations in future operating results due to a number of economic, competitive, and other factors, including, among other things, our reliance on third-party manufacturers and suppliers, government agency budgetary and political constraints, new or increased competition, changes in market demand, and the performance or reliability of our products.  These factors and others could cause operating results to vary significantly from those in prior periods, and those projected in forward-looking statements.  Additional information with respect to these and other factors, which could materially affect the company and its operations, are included in certain forms the company has filed with the Securities and Exchange Commission.

# # #