Cortex Business Solutions Inc.

Cortex Business Solutions Inc.

November 03, 2009 09:00 ET

Cortex Announces New Long Term Contract & Surpasses 2000 Customers

CALGARY, ALBERTA--(Marketwire - Nov. 3, 2009) -


Cortex Business Solutions Inc. (TSX VENTURE:CBX) ("Cortex" or the "Company") is pleased to announce that it has 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. In addition, The Company is also pleased to announce that it has connected over 2,000 companies to the Cortex Trading Partner Network ("Network").

"The past four months have been the most active in our Company history" said Ryan D. Lailey, VP Business Development of Cortex. "We are pleased to report the growth of our Network to over 2,000, a 1000% increase over this time last year. Month over month, we have seen record transactions through the Network and record recurring access and usage fees which our first quarter (end October 31) of 2010 results will reflect. This increasing trend in recurring access and usage fee revenue is being translated into a reduction in our quarterly cash burn moving Cortex closer to positive cash flow in the second quarter (end January 31) of fiscal 2010."

Cortex has established itself as the market leader in the next generation of e.procurement and invoicing solutions. The growth of our Network is generating market interest from large organizations seeking to leverage the Network to improve efficiencies and reduce administrative costs. The addition of these companies onto the Network will further accelerate our growth and strengthen our position in the market.

As a result, our capital position remains strong and sufficient to fund operations and the anticipated growth of the Company. Securing this long term agreement further demonstrates the commitment to the Cortex system by one of Canada's largest oil & gas producers. Our solution continues to deliver the expected benefits of improved controls, rate checking, commitment tracking, cost allocations and reduced administration costs, by achieving a 99% first pass invoice approval rate. The scope of the agreement has expanded to cover all service and material suppliers operating in Canada and off the coast of Newfoundland.

In addition, the Company announces that it has issued 383,588 options to certain insiders on November 3rd 2009 in accordance with the 2009 stock option plan approved at the 2008 AGM. This grant is in connection with the Company's performance management program for 2008 approved in June. The stock options are exercisable at $0.20, expire in five years and vest over the next 18 months in three equal intervals.

The Company has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 are available for the grant of these Options. The Options are subject to TSX Venture Exchange acceptance.

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. 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

Forward-Looking Statements
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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