Cortex Business Solutions Inc.
TSX VENTURE : CBX

Cortex Business Solutions Inc.

November 27, 2009 16:00 ET

Cortex Announces Annual 2009 Financial Results

Fiscal 2009 Financial & Operational Highlights

CALGARY, ALBERTA--(Marketwire - Nov. 27, 2009) -

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Cortex Business Solutions Inc. (TSX VENTURE:CBX) ("Cortex" or the "Company") has achieved significant milestones during the fiscal year ended July 31, 2009. As Cortex executes its business plan, the Company is starting to gain credibility and traction in the marketplace, particularly in the oil and gas industry. There was a conscious shift in the focus of Cortex from project management revenue to growth of the Cortex Trading Partner Network ("the Network") and recurring access and usage fee revenue. The increased trading partners on the Network increases recurring access and usage fee revenue for Cortex, as well as increases the value of the Network to other potential large procurement organizations.

Some highlights from the year are:

- The Company achieved record recurring access and usage fee revenue of $1.19 million in fiscal year 2009 ($636,642 - 2008), a 76% increase over fiscal year 2008.

- Due to the growth of the Network, acceleration of recurring access and usage fee revenue started to appear in the last two quarters of the July 2009 fiscal year. As a result, recurring access and usage fee revenue increased to $349,908 for the quarter ended July 31, 2009 for an increase of $50,642 over the quarter ended April 30, 2009, a 17% increase. This can be attributed to the increase in suppliers transacting on the Network and an increased number of transactions.

- Integration and Desktop set up fees invoiced in the year increased $521,055, a 540% increase (2009 - $617,555, 2008 -$96,500). Of these fees invoiced, $146,807 was recognized as set up fee revenue in 2009 compared to $76,352 in 2008.

- On October 30, 2009 the Company signed a new long term service agreement with its largest customer. The agreement includes a one year professional services agreement and a new five year service agreement with an option to extend for an additional five years.

- Cortex signed over 2,000 suppliers to the Network and has increased the average number of suppliers transacting monthly.

The steady and continual growth of trading partners signing on to the Cortex Trading Partner Network is encouraging and aligns with the Company's business plan. The recurring access and usage fees from these new users had started to materialize by the end of the third and fourth quarters of 2009. Cost reductions have been implemented until such time as revenue growth is back on target or operational and development demands dictate. Month over month, we have seen record transactions through the Network and record recurring access and usage fees which our three months ended October 31, 2009 results will reflect. This increasing trend in recurring access and usage fee revenue is being translated into a reduction in our quarterly cash burn. This, together with the long term service agreement signed, will move Cortex closer to positive cash flow projected for the three months ended January 31, 2010.

The current economic downtown may encourage companies to focus on cost savings measures. The Company's solution assists companies in this goal by providing them with an automated eProcurement solution which could assist in reducing their internal costs and improving controls.



The following table summarizes the recognized revenue streams, fluctuations
and trends over the last three fiscal years.

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2009 2008 Change % Increase
(Decrease)
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Project management $Nil $ 1,529,419 $ (1,529,419) (100%)
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Access and usage fees 1,119,392 636,642 482,750 76%
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Set-up fees 146,807 76,352 70,455 92%
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Interest income 68,906 641 68,265 10,650%
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Total Revenue 1,335,105 2,243,054 (907,949) (40%)
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2008 2007 Change % Increase
(Decrease)
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Project management $ 1,529,419 $ 1,174,625 $ 354,794 30%
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Access and usage fees 636,642 390,869 245,773 63%
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Set-up fees 76,352 43,839 32,513 74%
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Interest income 641 16,757 (16,116) (96)%
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Total Revenue 2,243,054 1,626,090 616,964 38%
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The following chart reflects recurring Access and Usage fee revenue over the last eight quarters: http://media3.marketwire.com/docs/1127cbx.jpg

About Cortex Business Solutions Inc.

Cortex Business Solutions Inc. is an industry leading service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Trading Partner Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment - evolving business.
Cortex products and services are non-intrusive and allow our customers the freedom to leverage and optimize their existing processes and information technology assets when it makes the best business sense for them. This approach improves the productivity, cash flow and profitability of our customers, while avoiding the risk and delays associated with large information technology or business processes re-engineering initiatives. For more information please visit our website at www.cortex.net.

Forward-Looking Statements

Statements in this release relating to matters that are not historical facts are forward-looking statements. Such forward-looking statements may involve known and unknown risks and uncertainties which may cause the actual results, performances or achievements of the Company to be materially different from any future results implied by such forward-looking statements. Forward-looking statements are often, but not exclusively identified by words such as "anticipate", "may", "expect", "plan", "future", "continue", "intends", "projects", "believes", "seek", "budget", "estimate" ,"forecast", "will", "predict", "potential" ,"target", "could", "might", and other similar expressions.

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