BluePoint Data Storage, Inc.
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BluePoint Data Storage, Inc.

December 01, 2006 18:30 ET

BluePoint Data Storage, Inc. Reports 140% Increase in Q3 2006 Revenue and 119% Increase in Gross Profits

BOCA RATON, FLORIDA--(CCNMatthews - Dec. 1, 2006) - BluePoint Data Storage, Inc. (TSX VENTURE:BLP)(PINK SHEETS:BLPDF), an established provider of Managed Storage, Availability and Data Protection Services, announced 140% growth in third quarter 2006 revenue versus the same period in 2005, and increased gross profits by 119% for the same year-over-year comparison.

Third Quarter 2006 Revenue Growth of 140%

Net Sales increased 140% from $530,110 in Q3 2005, to $1,271,569 for the quarter ended September 30, 2006. The increase in revenue was attributed collectively to the acquisition of Champion Managed Services, new customer installations, additional services ordered from existing customers, organic growth associated with contract renewals, and capacity increases. Approximately half of Q3 2006 revenue comes from what were originally Champion Managed Services customers. The Company has successfully completed the integration of the two businesses.

Third Quarter Gross Profits Increase 119%

Gross Profit of $676,996 for the quarter ended September 30, 2006 marked a 119% increase over $309,209 for the same period in the prior year. Gross Profit Margin percentages on revenue decreased slightly from 58% in Q3 2005 to 53% as a result of higher energy and data center costs associated with service delivery. The increase volume of business versus the prior year has allowed gross profit dollars to more than double despite the slight decline in percentage.

Third Quarter Net Income & EBITDA Continue Positive Trend

Net Income for the quarter ended September 30, 2006 nearly quadrupled to $171,027 versus $44,326 for same period in 2005. This amounts to less than $0.01/share, or a per share "break even" on a basis of 44,423,406 BLP common shares issued and outstanding. Net income of $171,027 for the third quarter includes 195,000 in non-cash depreciation and $8,296 in interest expense. Therefore, EBITDA for the Q3 2006 totaled $374,323. The majority of this cash generated by the business was used to reduce term loans, capital leases and credit lines; and to continue investment in infrastructure and technology to deliver on existing contracts.

About BluePoint Data Storage

BluePoint delivers server management, monitoring, primary storage & back-up, e-vaulting and archiving, system availability, and recovery solutions that ensure the availability and protection of corporate data and information technology systems, while reducing overall costs to the customer. BluePoint manages these systems with unparalleled storage, network, and server management expertise, guarantees high performance and availability, and ensures systems are on par with the most current, proven technology.

Safe Harbor

This release may contain forward-looking statements that involve risks and uncertainties. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of BluePoint or industry results to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. Such factors include, among others, the following: general economic and business conditions, demographic changes, regulation, major technology changes, timing of product introductions, competition and the ability of BluePoint to attract and retain key employees.

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