VANCOUVER, British Columbia, April 16 /PRNewswire/ --

GPS Industries, Inc. (GPSI) (OTC Bulletin Board: GPSN), the only provider of Wi-Fi powered, advertising enhanced GPS systems for golf facilities, resorts and residential communities, today announced its audited Financial and Operating Results for the Year Ended December 31, 2007 and its restated quarters ending March 31, June 30 and September 30, 2007.

Inclusive of its restated quarters, revenues for 2007 increased to US$7.3 million or 11% over 2006 revenues of US$6.6 million. Net operating loss for 2007 was US$11.6 million as compared to US$5.4 million in 2006. Excluding the one time non cash gain on derivative liabilities in 2006, the operating loss improved by US$1.7 million from 2006.

The net loss for 2007 was US$24.1 million after charges for a non-cash deemed preferred stock dividend of US$12.5 million as compared to the net loss of US$17.0 million in 2006 after charges for a non-cash deemed preferred stock dividend of US$11.5 million.

As a result of an in-depth review of certain sales and installation agreements and course installations that occurred in the first three quarters of 2007, the company determined that because of the nature of the recourse obligations on certain leased systems, the commitment to upgrade certain installed systems and commitments of system warranties, it had incorrectly accounted for the related revenues, cost of goods sold, course assets, accrued liabilities and deferred revenues. The Company's financial statements presented in the Annual Report on Form 10-KSB includes these restatements. Although there was no change to the Company's cash flow, overall revenues deferred into future years were US$1.6 million and the impact on net loss was an increase of US$697,000.

(All Amounts in US Dollars unless otherwise noted) 2007 Restatement of Financial Results (amounts in thousands) Increase (decrease) Condensed Income Statements Q1 Q2 Q3 2007 Revenue $(164) $(1,454) $61 $(1,557) Expense $148 $(1,032) $24 $(860) Operating Income $(312) $(422) $37 $(697) Condensed Balance Sheets Assets $- $(217) $996 $779 Liabilities $312 $205 $959 $1,476 Accumulated Deficit $(312) $(422) $37 $(697) 2007 Operating and Financial Highlights and Recent Events - System installations during 2007 increased to 37 18-hole equivalents from 29.5 for 2006, an increase of 30%. - GPSI acquired Direct Golf Services and Golf Academies (GPSI Europe) for total consideration of $1.2 million in cash and common shares to enhance our ability to sell and support the Inforemer product internationally. - GPSI closed the Uplink Asset Purchase Agreement on January 18, 2008 and paid approximately $11.8 million including notes payable of $1.5 million, 142.1 million Common Shares valued at $7.8 million, Series B Preferred Shares with a par value of $1.2 million and 4.9 million common stock warrants at an exercise price of $0.122 per share valued at $0.2 million. With the acquisition GPSI acquired an installed base of over 230 courses, a strong patent portfolio and a dedicated and experienced group of employees. - In November 2007, Robert Silzer Sr., resigned as the CEO and was replaced by Douglas Wood on an interim basis. The Board of Directors engaged the Carl Marks Advisory Group to assist in resizing and restructuring the company to accommodate its current level of operations. Subsequently, Douglas Wood passed away unexpectedly on March 30, 2007. - As part of the restructuring and refocus of the business, GPSI reduced non-core activities and rescinded and terminated the Asset Purchase Agreement related to the acquisition of Golf IT. - GPSI established a new long term debt facility totaling $3.0 million in February 2008 to replace and increase existing revolving credit lines; however, with the unexpected death of Doug Wood, the guarantor of $1.5 million of the loan, GPSI has triggered an event of default on that portion of the loan. Currently, Silicon Valley Bank is forbearing such demand as it negotiates with the estate of Mr. Wood.

"2007 was clearly a difficult year for GPSI. We faced a number of challenges that contributed to the financial performance including an ineffective pricing strategy which ultimately confused the market place, the delay in our new products and the delay in closing the UpLink acquisition which we believe slowed down orders in the 2nd half of 2007. Our job now is to redouble our efforts to deliver the best GPS system in the industry to our customers while focusing on profitable sales that will ultimately bring shareholder value," stated Bart Collins, member of the Board of Directors of GPSI. "GPSI has invested significant amounts in the development of the new HDX Inforemer System that stands well ahead of the competition in terms of technological and advertising capabilities that will satisfy our customers well into the future."

ABOUT GPS INDUSTRIES, INC.

GPS Industries, Inc. (GPSI) develops and markets GPS and Wi-Fi multimedia solutions to enable managers of golf facilities, resorts, and residential communities to improve operational efficiencies and generate new revenue streams. The Company's Inforemer(R) Management Solutions product line provides integrated software applications and a high-resolution 10.4-inch cart mounted "HDX" display panel. The HDX panels vividly illustrate each hole, providing precise distance measurement information, strategic playing tips and targeted advertising messages. The patented system is seamlessly connected via a high-speed Wi-Fi network that enables the entire facility into a wireless hot spot. GPSI in combination with the Uplink Inova product, has in excess of 320 course installations worldwide. For additional information, please visit http://www.gpsindustries.com

Forward-Looking Statements

This news release contains forward-looking statements within the safe harbor provisions of the Private Securities Litigation Report Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as "expect," "anticipate," "believe," "estimate," "intend," "plan," "potential" and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding expected materiality or significance, the quantitative effects thereof, and any anticipated conclusions of the company, the Audit Committee or management.

Because these forward-looking statements involve risks and und uncertainties, there are important factors that could cause our actual results, as well as our expectations regarding materiality or significance, the quantitative effects thereof, the effectiveness of our disclosure controls and procedures, and our deficiencies in internal control over financial reporting to differ materially from those in the forward-looking statements. These factors include the risk that additional information may arise or other subsequent events that would require us to make additional adjustments, as well as inherent limitations in internal controls over financial reporting.

Condensed Consolidated Income Statements (thousands of dollars, except per share amounts) For the Year Ended December 31, 2007 2006 Gross Revenues $7,266 $6,576 Cost of Sales 6,339 4,288 Gross Profit 927 2,288 Operating Expenses 12,707 10,812 Depreciation and Amortization 527 332 Operating Loss (12,307) (8,856) Other Income (Expense) 714 3,415 Net Loss Before Deemed Preferred Stock Dividend $(11,593) $(5,441) Deemed Preferred Stock Dividend (12,500) (11,509) Net Loss $(24,093) $(16,950) Loss per common share - basic and diluted $(0.06) $(0.06) Condensed Consolidated Balance Sheets (thousands of dollars) As at December 31, 2007 2006 Current Assets $7,368 $10,171 Long-term accounts receivable 224 274 Property and equipment, net 1,447 109 Patents 1,054 1,266 Capitalized Production, Implementation and Acquisition Costs 538 116 Goodwill 1,359 - Total Assets $11,990 $11,936 Current Liabilities $11,252 $17,509 Deferred Revenue 1,252 - Stockholders' Deficit (514) (5,573) Total Liabilities and Stockholders's Deficit $11,990 $11,936

Web site: http://www.gpsindustries.com

Joe Miller, Chief Financial Officer of GPS Industries, Inc., +1-604-576-7442, Joe.miller@gpsindustries.com