Broadband Learning Corporation

Broadband Learning Corporation

November 29, 2006 17:43 ET

Broadband Learning Corporation Reports 2006 Q3 Results-Sales Down, Gross Profit Steady, Management Changes Pending

SALT LAKE CITY, UTAH--(CCNMatthews - Nov. 29, 2006) - Broadband Learning Corporation ("Broadband Learning") (TSX VENTURE:BLC), a participant in the rapidly expanding distance learning market, today reported its financial results for the three and nine months ended September 30, 2006.

Three months ended September 30, 2006 2005
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($000s, except per share amounts)
Sales $ 413 $ 701
Gross Profit 251 253
Loss from continuing operations (682) (189)
Net income (loss) $ (682) $ (224)
Earnings (loss) per share $ (0.02) $ (0.01)

Nine months ended September 30, 2006 2005
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Sales $ 1,691 $ 1,666
Gross Profit 789 555
Loss from continuing operations (1,492) (634)
Net income (loss) $ (1,490) $ (683)
Earnings (loss) per share $ (0.05) $ (0.05)

Sales for the three and nine month periods have been significantly below expectation. Significant projects totaling more than $2 million were delayed due to changes in customer timelines. The anticipated timeframe for these projects has shifted from the third and fourth quarters of 2006 to first and second quarters of 2007. Gross Profit margins continue to improve as the proportion of Broadband University products sales increases against traditional satellite network revenues.

Operating loss and Net loss for the three and nine month periods in 2006 increased over the same periods in 2005 due to increases of costs associated with public operations of Broadband Learning Corporation and the addition of sales personnel. There were significant investments of time and effort in the pursuit of new sales initiatives that are expected to start being reflected in BLC's operating results in the next six to twelve months.

On November 27th, Broadband Learning's board of directors met to review Broadband Learning's performance against expectations. "While we are troubled that revenues are taking longer to develop than had been expected, we continue to believe in the outstanding growth potential that exists for Broadband Learning," said John Yarnell, Chairman of Broadband Learning. "A number of changes, including changes at the management level, are being examined and undertaken to refocus the company on profitable revenue generation. We hope to be able to definitively announce some of these significant changes in the near future."

Revenue guidance that was published on July 5, 2006 must be updated at this time to a range of C$2.2 million to C$2.4 million for 2006. These revenue projections reflect Broadband Learning's current sales pipeline, its recent contract announcements and previous operational initiatives implemented over the last two years. The projections are based on assumptions that in the opinion of BLC management are reasonable for the time period indicated given the company's performance against its business plan. As these revenue projections are based on Broadband Learning's current sales pipeline and there is a risk that sales currently in this pipeline may not be fulfilled, actual results will vary, perhaps materially, from the revenues projected. Because of the management and other operating changes that are currently pending, Broadband Learning cannot currently present what it considers to be a reliable update of guidance for 2007 revenues, and must now withdraw that guidance.

During the quarter, Broadband Learning also terminated its relationship with Investor Cubed Business Development Corp., its former Investor Relations agent.

About Broadband Learning Corporation

Broadband Learning Corporation produces, delivers, supports and manages distance-learning content needed by professionals, corporations and, ultimately, consumers. The distance learning market is experiencing rapid expansion; particularly in the area of continuing education for licensed professionals where Broadband Learning has a particular focus. Using 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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