DealNet Provides Business Update and Organizational Changes

TORONTO, ONTARIO--(Marketwired - April 8, 2015) - DealNet Capital Corp. ("DealNet" or the "Company") (CSE:DLS) is pleased to provide the following business update and organizational changes.

The Company operates under two main divisions, consisting of Consumer Engagement and Consumer Financing. The Consumer Engagement division consists of two wholly owned subsidiaries, OC Communications Group Inc. ("OCCGI") and Impact Mobile Inc. ("Impact Mobile"). This division helps corporate clients 'speak' to their customers the way customers want to be spoken to, utilizing a range of technologies including live voice, chat, text, email and proximity based engagement solutions. By moving live call engagements to other platforms, including mobile messaging engagements, the Company is able to reduce operating costs for its corporate clients, increase consumer satisfaction and drive higher margins from each customer engagement. The Consumer Engagement division has operations in both Canada and the United States.

The Consumer Financing division operates through a wholly owned subsidiary, One Dealer Financial Services Inc. ("ODFSI"). The Company has leveraged OCCGI's Consumer Engagement business to offer home improvement financing solutions to consumers, which offer attractive yields supported by low default rates.

Over the last several months, Management has undertaken a number of initiatives to:

• Align the business for further growth with expanded and integrated services
• Consolidate acquired sales and delivery functions
• Reduce financing and overhead costs
• Strengthen the Company's financial position
• Strengthen board and management with key additions

The Company is pleased to report progress in all areas.

Conversion of Convertible Debentures

On December 16, 2014, the Company announced an incentive plan in an effort to entice holders of the Company's 12% convertible debentures maturing in December 2015 to convert their debentures on or before December 31, 2014. Of the $2,415,000 convertible debentures outstanding prior to the announcement of the incentive plan, $2,140,000 (or 89% of the outstanding debt) was converted. This conversion improves the Company's financial position and eliminates cash interest expenses of approximately $250,000 in the 2015 fiscal year.

Closing of Non-Brokered Private Placement

As announced on November 25, 2014, the Company embarked on a non-brokered private placement to raise up to $5 million in new equity through cash and the settlement of existing debts of the Company. On February 11, 2015 and March 13, 2015, the Company closed the first and second tranches of this offering. To date, the Company has issued $3.1 million of equity, consisting of gross cash proceeds of approximately $1.2 million and the settlement of existing debts of the Company of approximately $1.9 million. The Company expects to complete one more closing in the coming weeks.

Closing of Secured Debenture for HVAC Leasing

On March 12, 2015, the Company announced the closing of a $3,000,000 three year debenture by its wholly owned subsidiary, ODFSI. The closing consisted of a single debenture by the wealth management arm of one of Canada's largest life and health insurance companies. The investor has the option to invest up to $50 million under the offering at their discretion. Management believes this to be a significant closing following a year of discussions and due diligence by this reputable institution.

Changes to Board and Executive Team

On March 23, 2015, Mr. Robert Cariglia, agreed to step down from the position of President and CEO of the Company. Mr. Cariglia will continue to serve as a director of the Company. Pierre G. Gagnon, Chairman of the Company stated "We wish to thank Bob for his dedicated service and contributions to the Company during its formative years and look forward to his continued contributions at the Board level".

Michael Hilmer, Co-Founder, Chief Operating Officer of the Company, will assume the role of Interim President and CEO of the Company.

Also on March 29, 2015, the Board of Director's passed a resolution inviting Dr. Stephen Simms to join the board. Dr. Simms has over 25 years of hands-on experience in the private and public company arena. He has been involved with every aspect of corporate management and growth, from initial start-up to product development, commercialization and sales. He has worked on corporate finance, business and product development, financial management, merger & acquisition reviews, infrastructure projects, financial forecasts, cash flows, budgets, financial analysis, project management and executive management.

On January 15, 2015, Gary Martin joined the Company as Senior Vice President, Sales and Marketing. Gary, who began his career at IBM, brings over two decades of global technology sales and leadership experience to DealNet. He has held senior sales and leadership roles with leading companies in the technology and business process outsourcing industry including: DMR Consulting Group, Changepoint, TELUS, PwC, and most recently Accenture. Throughout his career, he has worked with global clients across a number of industry sectors helping them maximize their return on investments in technology.

Major Contract Wins in Consumer Engagement Division

The Consumer Engagement business continues to thrive with growth from existing customers and new customer engagements:

• In the fall of 2014, OCCGI successfully launched a five-year agreement with a leading Canadian insurance company to provide service desk support with minimum revenues to OCCGI of $1.2M.
  
  
• In the fall of 2014, Impact Mobile entered into a multi-year agreement to provide a mobile marketing platform to a major weather network allowing the network to run self-service mobile engagement programs with its partner brands.
  
  
• In February 2015, OCCGI was successful in renewing and expanding outsourcing support for a strategic North American based energy retailer.
  
  
• In March 2015, OCCGI was successful in renewing a two-year outsourcing contract with a client in the safety regulation industry in Ontario with minimum revenues to OCCGI of $864K over two years.
  
  
• In March 2015 Impact Mobile signed an agreement to provide messaging connectivity into Canada for a major international messaging gateway provider. The gateway provider currently routes millions of SMS messages per month into Canada for banks, consumer brands, mobile marketing corporations, and other enterprise clients. The contract with Impact Mobile includes the migration of this existing messaging as well as future traffic, which is expected to expand to include multimedia messaging (MMS).
  
  
• OCCGI is realizing organic growth within existing contracts. In July 2013, OCCGI announced a five-year, $10 million ($2 million annually) contract with a Fortune 500 financial services client in the United States to provide inbound customer service in English and Spanish. The support went live in September 2013 and revenue for the first year of the contract was in excess of $4.6 million. The client is also entertaining additional proposals from our Consumer Engagement team including products and services provided by Impact Mobile as part of our overall engagement solutions.
  

Enhanced Product Offerings

• The launch of our Proximity and Analytics Engagement Solution is complete and new branding is expected to be launched in the spring of 2015 to simplify the market messaging. New alliances have been forged with best-of-breed networking and infrastructure companies that provide a component of our engagement solution and wish to sell through our solutions to their customers. Formalization of these relationships is expected later in 2015.
  
  
• In November 2014, Impact Mobile expanded mobile marketing operations into Brazil to service the needs of leading international brands. The technical work has been completed to support the launch of a major sports brand by June 2015.
  
  
• In December 2014, Impact Mobile successfully provisioned and launched Canada's first Next Generation 3-1-1 (NG3-1-1) Service with the City of Windsor, Ontario as the anchor municipality allowing residents to have two-way texting communication for a full range of services and informational options across any carrier network nationally.
  
  
• In February 2015, Impact Mobile successfully provisioned and launched Canada's first Next Generation 2-1-1 (NG2-1-1) Service with the BC Services Society call centre allowing residents of the Lower Mainland to access BC2-1-1 services by texting 211 from their mobile device. This allows the public to access free information and referrals regarding social services in BC with a text message.
  

Consumer Financing:

• ODFSI has added over 23 dealers since the soft launch of the business in the second half of 2014 and continues to grow its dealer base selectively and quickly.
  
  
• With new access to institutional financing, ODFSI has accelerated the dealer onboard process in anticipation of increased volume and deal flow including increasing the size and volume of the dealers being added. The Company is in discussions with multiple underwriters to ensure maximum capacity to support anticipated consumer rental contract volumes.
  
  
• Since September 2014, the Company has been processing regular weekly deal flow often with several deals daily and expects to scale that volume significantly in Q2.
  
  
• Loan defaults to date on deals funded in 2014 were less than anticipated and below underwriter requirements.
  
  
• Launched new white label funding program to support dealer supplied equipment and homeowner solutions and received positive feedback on pricing and demand leading to increased interest from the dealer community.
  

Other Corporate News

• In the fall of 2014, the Company launched its new website, www.dealnetcapital.com, which focuses on the Company's two primary verticals, Consumer Engagement and Consumer Financing.
  
  
• Integration of Impact Mobile into Consumer Engagement business is substantially complete. Common functions have been integrated and several joint engagement initiatives are being worked on including various strategic initiatives and partnerships that are significant in value and expected to close in 2015.
  
  
• The Company has built a large sales pipeline of opportunities that have been bid on, shortlisted or are in various stages of discovery, supporting the combined Consumer Engagement messaging in the market. The Company expects to win new business in 2015 under long term contracts.
  

About DealNet Capital Corp.

Dealnet Capital Corp. focuses on two key vertical markets, Consumer Engagement and Consumer Finance. Through acquisitions, the Company has become a leader in the Consumer Engagement space helping their corporate customers 'speak' to their consumers the way they want to be spoken to using live Voice, Chat, Text, Email and Proximity based engagement solutions. The Company has leveraged its engagement business to offer home improvement financing solutions to consumers, which offer attractive yields and low default rates. The Company continues to seek acquisitions in these key markets.

ON BEHALF OF DEALNET CAPITAL CORP.

For additional information please visit www.sedar.com.

The Canadian Securities Exchange does not accept responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect. These statements involve risks and uncertainties including, without limitation, DealNet's ability to successfully develop and market its products, consumer acceptance of such products, competitive pressures relating to price reductions, new product introductions by third parties, technological innovations, and overall market conditions. Consequently, actual events and results in future periods may differ materially from those currently expected.