Broadband Learning Corporation

Broadband Learning Corporation

November 27, 2007 08:00 ET

Broadband Learning Corporation Annouces Third Quarter and Year to Date Results

SALT LAKE CITY, UTAH--(Marketwire - Nov. 27, 2007) - Broadband Learning Corporation ("Broadband Learning") (TSX VENTURE:BLC), a participant in the rapidly expanding distance learning market, today reported its unaudited financial results for the three and nine months ended September 30, 2007.

Three months ended September 30: 2007 2006
(C$000, except per share amounts)
Sales 1,044 413
Gross Profit 326 251
Loss from continuing operations (421) (715)
Net income (loss) (410) (682)
Earnings (loss) per share (0.01) (0.03)

Nine months ended September 30:
Sales 2,183 1,691
Gross Profit 753 789
Loss from continuing operations (1,532) (1,544)
Net income (loss) (1,508) (1,490)
Earnings (loss) per share (0.05) (0.06)

Sales, Operating loss, and Net loss for 2007 improved over 2006. In September, 2007, i3CME, one of the Company's major customers, gave notice that it was terminating its contract with the Company early. Under the contract i3CME had made prepayments toward the installation of a satellite network. The Company had purchased equipment to be used in the installation and had expended in excess of $500,000 in telemarketing efforts to secure users of the network. As a result of i3CME's notification, as of September 30, 2007 the Company recognized as revenue $487,000 that had previously been deferred. The Company also recognized $192,000 in material costs related to the inventory purchased for the installation. The telemarketing costs were expensed as incurred.

In Q2 and Q3 the Company completed a $500,000 sale of equipment to i-vu UK which was similar to that used in the i-vu USA installations.

Robert Dameron, CEO of Broadband Learning said, "While Sales and Operating Results have improved they continue to be below expectations. However, the Company has a firmer foundation than it has ever had. The implementation of the project under the previously announced contract with i-vu, USA, Inc. as described in the Press Release dated August 29, 2007 and the announcement on November 6, 2007 that it had closed on a sale of $1.5 million in convertible debentures puts the Company in a sound position for growth."

About Broadband Learning Corporation

Broadband Learning Corporation produces, distributes, supports and manages distance-learning content needed by professionals, corporations and, ultimately, consumers. Broadband Learning uses proprietary technology and nationwide distribution capabilities. Broadband Learning provides the professional development market with a patented Internet-based learning system with on demand flexibility, rich multimedia educational resources, and administrative management capabilities. This enables training companies, instructors and content providers to protect their intellectual properties and realize a significant expansion of their reach. Broadband Learning serves North America and many points around the world from its offices in Salt Lake City, Utah. Many of Broadband Learning's products are delivered under the "Broadband University" trade name.

This press release may contain forward-looking statements relating to, among other things, Broadband Learning's expectations concerning future product demand and growth opportunities and customer acceptance of its products. These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements. Broadband Learning disclaims any obligation to publicly update or revise any such statements.

This news release will not constitute an offer to sell or the solicitation of any offer to buy the securities in any jurisdiction. The securities offered will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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