Chalk Media Corp.

Chalk Media Corp.

April 25, 2008 16:35 ET

Chalk Media Corp. Announces 2007 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 25, 2008) - Chalk Media Corp. ("Chalk" or the "Company") (TSX VENTURE:CKM) today announces its audited consolidated financial results for the year ended December 31, 2007.

2007 Significant Events:

- Completed convertible debenture financing for gross proceeds of US$4,200,000 before launching Mobile chalkboard™.

- Implemented restructuring by reducing content production-related personnel by 27 and reduced content production fixed costs by $162,000 per month.

- Entered Research in Motion Inc.'s BlackBerry® Independent Software Vendor Alliance Program to align the Company's development of Mobile chalkboard™ with Research in Motion's ("RIM") Blackberry® as Mobile chalkboard™ evolves.

- Released the first version of Mobile chalkboard™, a Mobile Content Deployment System ("MCDS"), designed to work on RIM's Blackberry® handheld devices.

- Completed equity financings totaling $15,904,513 in gross proceeds after launch of Mobile chalkboard™.

- Incurred loss of $10,266,959 or $0.11 per share for the year ended December 31, 2007 compared to loss of $7,159,825 or $0.12 per share for the year ended December 31, 2006.

- Earned revenues of $2,559,214 for the year ended December 31, 2007 compared to $3,544,096 for the same period in 2006, a reduction of 28%.

- Convertible debenture holders converted US$3,455,000 of convertible debentures to 23,033,331 common shares of the Company, reducing our long-term debt. The remaining balance of convertible debentures outstanding at December 31, 2007 was US$745,000.

Chalk earned revenues of $2,559,214 for the year ended December 31, 2007, compared to $3,544,096 for the same period in 2006. Chalk earned revenues of $2,095,617 for interactive media and $437,244 for television and airline segment production for the year ended December 31, 2007 and $2,504,674 and $968,383, respectively for the same period in 2006.

The net loss for the year ended December 31, 2007 was $10,266,959, or $0.11 per share, compared to a net loss of $7,159,825, or $0.12 per share, for the same period in 2006. The increase in the net loss was due to the decreased revenues, higher cost of sales from increased production personnel prior to the restructuring and the placement fee for the MSN/Sympatico online video technology program, increased research and development expenses associated with ongoing development of our chalkboard™" software including Mobile chalkboard™, increased legal and other professional fees and travel expenses associated with our issuance of convertible debentures and common shares, preparing additional securities filings and tax work, higher stock-based compensation expense, and the accretion expense associated with the convertible debentures.

"We made a significant transition in our business model in 2007 to focus on our mobile software opportunity," said Stewart Walchli, President and CEO. "The software business model has far superior margins compared to the custom content business. Furthermore, we are delighted by the response to Mobile chalkboard™ by Fortune 500 companies and believe that we can be the leader in deploying media-rich content to mobile devices."

Selected Financial Data (in $'000's, except per share numbers):

Year ended December 31,
2007 2006
---- ----

Revenue $ 2,559 $ 3,544
Gross margin ($ 236) $ 1,291
Operating income / (loss) ($ 9,935) ($ 6,874)
Net income / (loss) ($10,267) ($ 7,160)
Earnings / (loss) per share ($ 0.11) ($ 0.12)

This press release should be read in conjunction with Chalk's audited consolidated financial statements for the year ended December 31, 2007, as well as its management's discussion and analysis ("MD&A") dated April 25, 2008 available at

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Chalk to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the speculative nature of the software industry, which is affected by numerous factors beyond Chalk's control; the existence of present and possible future government regulation; the significant and increasing competition that exists in the software industry; and risks associated with early stage companies such as Chalk, including uncertainty of revenues, markets and profitability and the need to raise additional funding as well as those factors discussed under the heading "Risk Factors" in Chalk's annual MD&A dated April 25, 2008.

Although Chalk has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Chalk does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Further information on Chalk Media Corp. is available at

About Chalk Media Corp.

Chalk is a leading provider of enterprise solutions that help organizations communicate more effectively with their employees, business partners and consumers. Chalk's new Mobile Content Deployment System, Mobile chalkboard™, allows rich media content to be pushed securely to BlackBerry® smartphones and tracked. For more information, please visit

The BlackBerry® and RIM families of related marks, images and symbols are the exclusive properties and trademarks of RIM. RIM assumes no liability and makes no representation, warranty or guarantee in relation to third party products or services.

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