Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

January 19, 2006 17:00 ET

Epic Data Announces First Quarter Results for Fiscal Year 2006

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2006) - Epic Data International Inc. (TSX:EKD) today reported results for the first quarter ended December 31, 2005. First quarter revenues of $4.1 million yielded a net loss of $394 thousand, or $0.03 per share. In the first quarter of the prior year, the company reported revenue of $4.8 million and net income of $58 thousand, or nil per share for the quarter. The company reported gross margins of 45% in the quarter, compared to 51% in the first quarter of the prior year. Operating expenses were reduced by $586 thousand, or 24% versus the prior year's first quarter.

The company's total cash position at December 31, 2005 is $3.4 million, a decrease of $291 thousand from September 30, 2005, and the contracted sales backlog stands at $4.5 million.

Peter Murphy, Epic Data's CEO commented: "Although we did not achieve profitability in the quarter, we are encouraged by the sequential improvements in our results. Compared to our performance in the preceding 3rd and 4th quarters of fiscal 2005, our revenue and gross margin were up and operating expenses were down. Additionally, we ended the quarter on positive note, with the finalization of our biggest system order in over 3 years. The $3.2 million TicketManager sale to Toronto Police Services is a strong endorsement of our wireless parking enforcement solution."

Separately, the company reported its Annual General Meeting will be held at its Richmond, BC headquarters on March 8, 2006, at 2 pm.

A comprehensive analysis of Epic Data's financial statements is available at sedar.com and a conference call to discuss these results will be held at 2:30 pm today. Information regarding participation in the call is available on the Investors page of the company's website at www.epicdata.com.

About Epic Data International Inc.

For over 30 years Epic Data has been a leader in automatic identification and data collection solutions for the world's most progressive aerospace, automotive, high technology and heavy machinery manufacturers. We increase plant productivity and velocity while identifying the continuous improvement initiatives vital to winning in today's competitive manufacturing environments. Epic Data's enterprise mobility solutions for parking enforcement and route management increase productivity while improving customer service and worker safety by connecting mobile personnel to central offices in real time. People and technology make Epic Data a global leader in automated data collection solutions for the extended enterprise.

Note: Forward-looking statements in this news release are based on current expectations of management. Epic Data cautions investors that due to risks and uncertainties, actual events may differ materially from current expectations.





EPIC DATA INTERNATIONAL INC.
Consolidated Balance Sheets


(Stated in thousands of
Canadian dollars - unaudited) As at
December 31 September 30
2005 2005
-----------------------------
Assets:

Current Assets
Cash and cash equivalents $ 1,384 $ 1,675
Accounts receivable 5,480 3,686
Inventory 441 451
Prepaid Expenses 390 558
------------- -------------
Total current assets 7,695 6,370

Cash equivalents pledged as security 2,000 2,000

Property and equipment 1,028 1,067

------------- -------------
$ 10,723 $ 9,437
------------- -------------
------------- -------------

Liabilities and Shareholders' Equity:

Current Liabilities
Non-revolving credit facility $ 736 $ 733
Accounts payable and accrued
liabilities 3,376 2,649
Deferred revenue 3,103 2,140
------------- -------------
7,215 5,522
------------- -------------

Long term liabilities
Related party loan, net of equity portion
of $95 (September 30, 2005 - $111) 905 889
Provision for unused leased facilities 600 650
------------- -------------
1,505 1,539
------------- -------------

Shareholders' Equity
Share Capital 58,809 58,788
Deficit (56,806) (56,412)

------------- -------------
2,003 2,376
------------- -------------

$ 10,723 $ 9,437
------------- -------------
------------- -------------

Certain comparative figures have been reclassified to conform with
the financial statement presentation adopted for Fiscal 2006.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Operations
For the three months ended December 31

------------- -------------
(Stated in thousands of First Quarter First Quarter
Canadian dollars - unaudited) 2006 2005
------------- -------------

Revenue $ 4,142 $ 4,804

Cost of sales 2,275 2,351

------------- -------------
Gross margin 1,867 2,453

Gross margin percentage 45% 51%

Operating expenses:
Selling, marketing and administrative 1,717 1,927
Product development 447 406
------------- -------------
2,164 2,333
------------- -------------

Income(Loss) before undernoted items (297) 120

Other expenses (earnings):
Amortization of property and equipment 104 116
Unused leased facilities (50) (50)
Net finance charges 43 (4)
------------- -------------
97 62
------------- -------------

Income(Loss) before income taxes (394) 58

Income taxes (Recovery) - -

------------- -------------
Income(Loss) for the period (394) 58

------------- -------------
Deficit, beginning of period (56,412) (54,690)

Deficit, end of period $ (56,806) $ (54,632)
------------- -------------
------------- -------------

Weighted average of outstanding
common shares (thousands) 12,547 12,488

Income (loss) per common share:
basic & diluted $ (0.03) $ 0.00


Certain comparative figures have been reclassified to conform
with the financial statement presentation adopted for Fiscal 2006.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Cash Flows
For the three months ended December 31

------------- -------------
(Stated in thousands of First Quarter First Quarter
Canadian dollars - unaudited) 2006 2005
------------- -------------

Cash provided by (used in):

Operating:
Net income (loss) $ (394) $ 58

Items not involving cash:
Amortization of capital assets 104 116
Provision for unused lease facilities (50) (50)
Accretion of related party loan 16 -
Stock-based compensation expense 21 26
------------- -------------
Total of items not involving cash 91 92

Change in non-cash operating working
capital
Accounts receivable (1,794) 356
Inventory 10 224
Prepaid expenses 168 130
Non-revolving credit facility 3 -
Accounts payable & accrued liabilities 727 (386)
Deferred revenue 963 348
------------- -------------
Total of non-cash operating working
capital 77 672
------------- -------------
(226) 822
Investing:
Net acquisition of capital assets (65) (47)
Cash equivalents pledged as security - -
------------- -------------
(65) (47)

------------- -------------
Financing: 0 0

Increase (decrease) in cash &
cash equivalents (291) 775

Cash and cash equivalents,
beginning of period 1,675 1,106

------------- -------------
Cash and cash equivalents,
end of period $ 1,384 $ 1,881
------------- -------------
------------- -------------

The Company's cash position consists of:
Cash and cash equivalents $ 1,384 $ 1,881
Cash and cash equivalents
pledged as security 2,000 2,400
------------- -------------
Cash position $ 3,384 $ 4,281
------------- -------------
------------- -------------

Certain comparative figures have been reclassified to conform with
the financial statement presentation adopted for Fiscal 2006.



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