SAN DIEGO, May 24 /PRNewswire/ -- TomaHawk Corporation (Alberta: TKC) today reported a loss of $1,565,000, or $0.02 per share, for the year ended December 31, 1998. This compares to a loss of $413,000, or $0.01 per share, for the year ended December 31, 1997. Revenues for the year ended December 31, 1998 increased by 45% to $13.5 million from $9.3 million for the comparable 1997 period. The results being reported on herein are based on the Company's financial statements for the years ending December 31, 1998 and 1997 which were prepared in accordance with Generally Accepted Accounting Principles (GAAP) in the United States (U.S.). In previous periods, the Company's financial statements were prepared in accordance with Canadian Generally Accepted Accounting Principles. The report of the Company's independent auditors for the year ended December 31, 1998 includes a qualification relating to the Company's ability to continue as a going concern, as a result of a negative working capital balance at year end of $1.7 million. The Company is actively seeking additional financing from both debt and equity sources to ensure it has sufficient working capital to fund its ongoing operations. Included in the loss for 1998 are non-cash expenses totaling $932,000 related to the valuation of notes receivable, the amortization of debt issue costs and compensation expense recognized in connection with the issuance of stock options below the fair market value, all of which are expenses required under US GAAP that would not have been required under Canadian GAAP. Also included in the 1998 loss are expenses of $316,000 related to the Company's efforts to complete a financing to fund potential acquisitions that were ceased late in the year. As a result of the change to US GAAP the 1997 loss, reported above, is $94,000 higher than the loss previously reported for 1997. This increased loss is due to additional non-cash expenses related to the amortization of debt issue costs and compensation expense recognized in connection with the issuance of stock options below the fair market value that is required under US GAAP. TomaHawk Corporation is a holding company incorporated in Alberta Canada, whose sole operating subsidiary is TomaHawk II, Inc. TomaHawk II, an Illinois corporation, is a full-service engineering company that specializes in document imaging and conversion services, engineering design and manufacturing services to both the federal and commercial marketplaces. TomaHawk II is based in San Diego, California, with offices in Vernon Hills, Illinois; Boston, Massachusetts; Lynnwood, Washington and Washington, D.C. For additional information on TomaHawk II and its services, please contact the investor relations department at (619) 874-7692 or visit the web site at http://www.tomahawk.com.  