Broadband Learning Corporation

Broadband Learning Corporation

August 29, 2007 19:43 ET

Broadband Learning Corporation Reports 2007 Q2 Results and First Half 2007 and Announces Major Project

SALT LAKE CITY, UTAH--(Marketwire - Aug. 29, 2007) - Broadband Learning Corporation ("Broadband Learning") (TSX VENTURE:BLC), a participant in the rapidly expanding distance learning market, today reported its un-audited financial results for the three months and six months ended June 30, 2007.

Three months ended June 30: 2007 2006
(C$000s, except per share amounts)
Sales 561 569
Gross Profit 205 275
Loss from continuing operations (619) (455)
Net income (loss) (613) (455)
Earnings (loss) per share (0.02) (0.02)

Six months ended June 30: 2006 2005
Sales 1,139 1,277
Gross Profit 427 538
Loss from continuing operations (1,111) (807)
Net income (loss) (1,098) (207)
Earnings (loss) per share (0.04) (0.03)

Sales for the three and six month periods were significantly below expectation and year-over-year and were flat compared with 2006, however the awarding of a contract to Broadband Learning worth more than US$4.0 million in the near term, rising to over US$10 million in subsequent phases, was announced by the company in a separate press release issued today. This contract represents a significant achievement for the company and will have a positive long term effect on earnings growth.

"While we had been concerned that revenue growth continued to take longer than had been expected, we are thrilled that this major project with i-vu has finally begun. It reinforces our belief in the outstanding growth potential that exists for Broadband Learning. With our new management team in place and a signed contract with i-vu USA, we believe the company has turned an important corner in its development", said John Yarnell, Chairman of Broadband Learning.

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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