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For Immediate Release
 CONTACTS:
 Tony Rossi
    
    Julia FrancisFinancial Relations Board
    
    Mobility Electronics, Inc310-854-8317
    
    480-596-0061, ext. 386trossi@financialrelationsboard.com
    
    jfrancis@mobl.com
 Mobility Electronics Settles Portsmith Litigation




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Mobility Electronics
Page 2 of 5


About Mobility Electronics, Inc.
 i ® i
  www.igo.com www.mobilityelectronics.com
 Mobility Electronics and iGo are registered trademarks, and ...improving your mobile
experience is a trademark of Mobility Electronics, Inc. All other trademarks or registered
trademarks are the property of their respective owners.
 This release contains forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, including, in particular, the anticipated after-tax charge to the
Companys fourth quarter results as a result of the litigation settlement. These forward-looking
statements are based on managements current expectations and beliefs and are subject to risks and
uncertainties that could cause actual results to differ materially from those described in the
forward-looking statements. In particular, factors that could cause actual results to differ
materially from those in the forward-looking statements include a change in the accounting
treatment for the costs associated with the settlement; unanticipated future expenses or litigation
arising out of, or related to, the settlement agreement or the matters covered by the settlement
agreement; and other factors detailed in our filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date made and are not guarantees of future
performance. We undertake no obligation to publicly update or revise any forward-looking
statements.




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Mobility Electronics
Page 3 of 5
 Mobility Electronics, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(000s except per share data)
 Three months ended
    
    
    Year endedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004(restated)
    
    
    
    
    
    
    (restated)Net revenue
    
    $
    23,611
    
    
    $
    20,559
    
    
    $
    85,501
    
    
    $
    70,213Gross profit
    
    
    6,534
    
    
    
    6,104
    
    
    
    25,847
    
    
    
    20,919Selling, engineering and administrative expenses
    
    
    7,966
    
    
    
    5,445
    
    
    
    28,711
    
    
    
    22,617Income (loss) from operations
    
    
    (1,432
    )
    
    
    659
    
    
    
    (2,864
    )
    
    
    (1,698
    )Interest income (expense), net
    
    
    330
    
    
    
    21
    
    
    
    813
    
    
    
    (72
    )Other income (expense), net
    
    
    (4,289
    )
    
    
    20
    
    
    
    7,343
    
    
    
    36Provision for income tax
    
    
    
    
    
    
    
    
    
    
    285
    
    
    
    Income (loss) from continuing operations
    
    
    (5,391
    )
    
    
    700
    
    
    
    5,007
    
    
    
    (1,734
    )Discontinued operationsLoss from discontinued operations of handheld software product line
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (466
    )Net income (loss)
    
    $
    (5,391
    )
    
    $
    700
    
    
    $
    5,007
    
    
    $
    (2,200
    )Net income (loss) per share:Basic
    
    $
    (0.18
    )
    
    $
    0.02
    
    
    $
    0.17
    
    
    $
    (0.08
    )Diluted
    
    $
    (0.18
    )
    
    $
    0.02
    
    
    $
    0.16
    
    
    $
    (0.08
    )Weighted avg common shares outstanding:Basic
    
    
    30,778
    
    
    
    28,404
    
    
    
    30,004
    
    
    
    28,027Diluted
    
    
    30,778
    
    
    
    29,916
    
    
    
    32,003
    
    
    
    28,027




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Mobility Electronics
Page 4 of 5
 Mobility Electronics, Inc. and Subsidiaries
Selected Other Data
  Three months ended
    
    
    Year endedDecember 31,
    
    
    December 31,2005
    
    
    2004
    
    
    2005
    
    
    2004(restated)
    
    
    
    
    
    
    (restated)Net income (loss)
    
    $
    (5,391
    )
    
    $
    700
    
    
    $
    5,007
    
    
    $
    (2,200
    )Gain on sale of intellectual property assets
    
    
    
    
    
    
    
    
    
    
    (11,632
    )
    
    
    Settlement of litigation
    
    
    4,283
    
    
    
    
    
    
    
    4,283
    
    
    
    Provision for income tax
    
    
    
    
    
    
    
    
    
    
    285
    
    
    
    Non-cash equity compensation
    
    
    387
    
    
    
    79
    
    
    
    1,498
    
    
    
    184Net income (loss) before gain on sale of
intellectual property assets, provision
for income tax, and non-cash equity
compensation
    
    $
    (721
    )
    
    $
    779
    
    
    $
    (559
    )
    
    $
    (2,016
    )Diluted net income (loss) before gain on
sale of intellectual property assets,
provision for income tax, and non-cash
equity compensation per share
    
    $
    (0.02
    )
    
    $
    0.03
    
    
    $
    (0.02
    )
    
    $
    (0.07
    )Reconciliation of non-GAAP Financial
Measure  net income (loss) to earnings
before interest, taxes, depreciation and
amortization (EBITDA):Net income (loss)
    
    $
    (5,391
    )
    
    $
    700
    
    
    $
    5,007
    
    
    $
    (2,200
    )Interest (income) expense, net
    
    
    (330
    )
    
    
    (21
    )
    
    
    (813
    )
    
    
    72Provision for income tax
    
    
    
    
    
    
    
    
    
    
    285
    
    
    
    Depreciation and amortization
    
    
    438
    
    
    
    451
    
    
    
    1,978
    
    
    
    1,952Non-cash equity compensation
    
    
    387
    
    
    
    79
    
    
    
    1,498
    
    
    
    184EBITDA
    
    $
    (4,896
    )
    
    $
    1,209
    
    
    $
    7,955
    
    
    $
    8




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Mobility Electronics
Page 5 of 5
 Mobility Electronics, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(000s)
 December 31,
    
    
    December 31,2005
    
    
    2004(unaudited)
    
    
    (restated)ASSETSCash and cash equivalents
    
    $
    13,637
    
    
    $
    12,768Short-term investments
    
    
    20,286
    
    
    
    Accounts receivable, net
    
    
    18,778
    
    
    
    16,905Inventories
    
    
    13,373
    
    
    
    7,513Prepaid expenses and other current assets
    
    
    565
    
    
    
    443Total current assets
    
    
    66,639
    
    
    
    37,629Other assets, net
    
    
    17,271
    
    
    
    17,788Total assets
    
    $
    83,910
    
    
    $
    55,417LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities
    
    $
    23,737
    
    
    $
    14,253Long-term liabilities
    
    
    824
    
    
    
    463Total liabilities
    
    
    24,561
    
    
    
    14,716Total stockholders equity
    
    
    59,349
    
    
    
    40,701Total liabilities and stockholders equity
    
    $
    83,910
    
    
    $
    55,417