HERNDON, VA – October 9, 2007 – ePlus inc. (OTC: PLUS - news), today announced financial results for its second quarter of fiscal year 2007, which ended September 30, 2006 (“the Quarter”). Revenues for the Quarter increased 14.1% to $198.7 million as compared to revenues of $174.2 million during the three months ended September 30, 2005 (“the Prior Quarter”). Net earnings for the Quarter decreased 44.1% to $978 thousand from $1.75 million the Prior Quarter, and fully diluted earnings per share decreased 36.8% to $0.12 from $0.19. For the six months ended September 30, 2006 as compared to the six months ended September 30, 2005, total revenues increased 19.8% to $388.3 million from $324.0 million; net earnings remained at $3.0 million; and fully diluted earnings per share increased 2.9% to $0.35 from $0.34.

The decline in net earnings for the Quarter is primarily attributable to a higher professional and other fees incurred by the Company. These expenses increased $3.0 million or 168.2%, to $4.8 million during the Quarter from $1.8 million the Prior Quarter. The increases were due to the costs of litigation related to the bankruptcy of one of the Company’s customers, and expenses relating a review of accounting guidance regarding stock option grants since the Company’s IPO in 1996.

For the Quarter, sales of product and services increased 13.1% to $180.3 million compared to $159.4 million generated the Prior Quarter, and represented 90.7% and 91.5% of total revenue, respectively. The cost of sales, product and services increased 11.7% to $160.6 million as compared to $143.7 million the Prior Quarter. The gross margin on sales of product and services was 10.9% in the Quarter as compared to 9.8% the Prior Quarter.

Lease revenues increased 13.5% to $13.5 million in the Quarter, and the net investment in leased assets was $223.2 million as of September 30, 2006, a 7.0% increase from $208.6 million as of September 30, 2005. Direct lease costs increased 46.7% to $5.6 million in the Quarter. Fee and other income was $3.1 million in the Quarter, an increase of 6.0% over the Prior Quarter.

Salaries and benefits expenses increased 15.9% to $17.7 million in the Quarter. The Company employed 671 people as of September 30, 2006, as compared to 649 people as of September 30, 2005. General and administrative expenses decreased 11.9% to $4.4 million in the Quarter.

Interest and financing costs increased 55.2% to $2.7 million in the Quarter. This is primarily due to an increasing lease portfolio, the related non-recourse debt financings, and increasing debt rates on new financings. Non-recourse notes payable increased 25.4% to $160.5 million as of September 30, 2006 as compared to March 31, 2006.

Basic and fully diluted earnings per common share were both $0.12 for the Quarter, as compared to $0.21 and $0.19, respectively, for the Prior Quarter. Basic and diluted weighted average common shares outstanding for the Quarter were 8,228,823 and 8,424,903, respectively, as compared to 8,474,301 and 9,071,470, respectively, the Prior Quarter.

For the six months ended September 30, 2006 as compared to the six months ended September 30, 2005, basic and fully diluted earnings per common share were $0.37 and $0.35 as compared to $0.36 and $0.34, respectively, and basic and diluted weighted average common shares outstanding were 8,218,154 and 8,586,866 as compared to 8,509,827 and 9,071,092, respectively.

During the six months ended September 30, 2006, the Company repurchased 209,000 shares of our outstanding common stock for $2.9 million, as compared to a repurchase of 170,300 shares for $2.1 million the prior year’s period. Since the inception of the initial repurchase program on September 20, 2001, as of September 30, 2006, the Company repurchased a total of 2,978,990 shares of outstanding common stock at an average cost of $11.04 per share for a total of $32.9 million.

The Company’s cash and cash equivalents balance as of September 30, 2006 was $23.7 million as compared to $20.7 million as of March 31, 2006.

Restatements

The Form 10-Q for the quarter ended September 30, 2006 contains restatements of the Consolidated Statements of Operations and Cash Flows for the Prior Quarter and the six months ended September 30, 2005 for the effects of errors in accounting for stock options and other items. More information about the Company’s accounting restatement is contained in its Form 10-K for the fiscal year ended March 31, 2006 and its Form 10-Q for the quarter ended September 30, 2006.

The financial results presented herein are unaudited. Investors are encouraged to review the Company’s Form 10-Q and to review other SEC filings including the Company’s audited financial statements contained in the fiscal year 2006 Form 10-K.

About ePlus inc.

ePlus is a leading provider of technology solutions. ePlus enables organizations to optimize their IT infrastructure and supply chain processes by delivering world-class IT products from top manufacturers, professional services, flexible lease financing, proprietary software, and patented business methods. Founded in 1990, ePlus has more than 650 associates in 30+ offices serving more than 2,500 customers. The Company is headquartered in Herndon, VA. For more information, visit http://www.eplus.com/, call 888-482-1122, or email info@eplus.com. 

ePlus® and/or other ePlus products referenced herein are either registered trademarks or trademarks of ePlus inc.

Note: Statements in this press release, which are not historical facts, may be deemed to be "forward-looking statements.” Actual and anticipated future results may vary due to certain risks and uncertainties, including, without limitation, the effects of the delisting of the Company’s common stock from The Nasdaq Global Market and the quotation of the Company’s common stock in the “Pink Sheets,” including any adverse effects relating to the trading of the stock due to, among other things, the absence of market makers; the timing of our ability to re-apply to list our shares of common stock on The Nasdaq Global Market; the effects of any lawsuits or governmental investigations alleging, among other things, violations of federal securities laws, by the Company or any of its directors or executive officers; the existence of demand for, and acceptance of, our services; our ability to hire and retain sufficient personnel; our ability to protect our intellectual property; the creditworthiness of our customers; our ability to raise capital and obtain non-recourse financing for our transactions; our ability to realize our investment in leased equipment; our ability to reserve adequately for credit losses; fluctuations in our operating results; and other risks or uncertainties detailed in our SEC filings.

All information set forth in this release and its attachments is as of October 9, 2007. ePlus inc. undertakes no duty to update this information. More information about potential factors that could affect ePlus inc.’s business and financial results is included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2006 under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” which is on file with the SEC and available at the SEC’s website at http://www.sec.gov/.