VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

November 24, 2008 17:30 ET

VIQ Solutions Reports Fiscal 2008 Third Quarter Results

MARKHAM, ONTARIO--(Marketwire - Nov. 24, 2008) - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS), a world leader in computer-based digital audio capture and management, today reported its financial results for the three and nine month periods ended September 30, 2008.

Revenues were $2.8 million and $8.9 million for the three and nine month periods ended September 30, 2008 as compared to $2.9 million and $9.5 million for the three and nine month periods ended September 30, 2007. Gross margin was 39% for the three and nine month periods in 2008 as compared to 35% and 37% for the same periods in 2007. Net loss for the three and nine month periods ended September 30, 2008 were $332,068 and $564,822 respectively, as compared to a net loss of $382,040 and $618,815 for the same periods in 2007. Net loss per common share on a basic and diluted basis was $0.00 for the three month period ended September 30, 2008 as compared to a net loss per common share of $0.01 for the same period in 2007. Net loss per share was $0.01 for the nine month period ended September 30, 2008, remaining unchanged from the nine month period ended September 30, 2007.

Revenue from computer products and services has been affected by the reduced government spending in the United States starting in 2007 and continuing into 2008. We have started to re-establish our growth during 2008 in markets outside of the United States as evidenced by our increase in computer products and services revenue for the three month period ended September 30, 2008 as compared to the same three month period in 2007 and we expect this trend to continue in 2009. We anticipate that there will continue to be strong interest in our products globally due to our proven solutions and expertise in high-end digital solutions. We expect that our enterprise Encompass Server solution will continue to represent an increasing portion of our revenue in 2008 and into 2009 as we continue to leverage our existing relationships with system integrators and broaden our global customer base.

Transcription and recording services experienced unusually slow market conditions in the third quarter of 2008. We anticipate that transcription revenue will return to normal levels in subsequent quarters.

Negotiation of Multi-year Contract

The Corporation continues to proceed with late-stage negotiations with a third party respecting a multi-year contract to provide digital audio recording and management software into multiple locations in Europe. If awarded the business, VIQ intends on implementing its enterprise-level Encompass Server solution to provide the digital audio recording and management services required by the customer.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the three month period ended September 30, 2008 will be posted on VIQ Solutions' website (under Investor Relations) at www.viqsolutions.com and on SEDAR's website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2007, including the notes thereto.

About VIQ Solutions Inc.

VIQ Solutions is recognized as a global provider in the digital audio industry with innovative product and service-based solutions for voice-driven systems in the legal, medical, business, and government industries. VIQ Solutions provides an integrated range of digital record workflow solutions, including digital audio and video capture, workflow management software, transcription services, interactive electronic scheduling, and case management integration, all from one central, secure database.

Forward-looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "will," and "would" and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions Inc.'s current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by VIQ Solutions Inc. with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. VIQ Solutions Inc. does not intend and does not assume any obligation to update these forward-looking statements.

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

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