Epic Data International Inc.
TSX : EKD

Epic Data International Inc.

December 19, 2007 17:00 ET

Epic Data Announces Year End Results, Provides Business Update

Posts Full Year Profit, Strengthens Board and Management, Successfully Applies for Listing on TSX Venture Exchange

RICHMOND, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2007) - Epic Data International Inc. (TSX:EKD) today announced audited financial results for its fourth quarter and fiscal year ended September 30, 2007. The financial results included the following:

- Q4 revenue of $2.7 million, up from $2.5 million in Q4 2006 and sequentially up from $2.5 million in Q3 2007.

- Q4 operating profit of $78,000, compared to an operating loss in Q4 2006 of $1.1 million and an operating loss in Q3 2007 of $392,000.

- Q4 net income of $1.1 million compared to a net loss in Q4 2006 of $1.9 million. Net income in Q4 2007 includes a non-cash, non-operating gain of $950,000 related to the recent renegotiation of the company's head office lease in which two thirds of its future lease payment obligation is eliminated.

- Full year revenue of $11.1 million compared to 2006 revenue of $12.1 million.

- Full year operating loss of $681,000 compared to an operating loss in 2006 of $3.2 million.

- Full year positive net income of $399,000 compared to a net loss in 2006 of $4.3 million.

- September 30, 2007 cash position of $759,000, up from the quarter's opening position of $292,000.

"These Q4 results have provided a positive finish to a challenging fiscal year," commented Epic Data's CEO, James Dodds. "Our cautious OpEx controls are producing improved results and we will continue to take a measured and balanced approach to these areas as we move into the new fiscal year. Over the past year, our products have evolved and our delivery and support organizations are now well positioned to deliver quality product and service to new and existing customers. Our focus has turned to the building of an effective sales and marketing organization to drive profitable growth."

The company separately announced the appointment of Mr. Mark Sochan to its Board of Directors, effective immediately. Mr. Sochan was Vice-President of Business Development at SAP, a global leader in business application software, where he led the NetWeaver partner program and launched the SAP Developer Network, which he helped grow to 100,000 members. Earlier in his career, he served as Director of Business Development for Seagate Software, managing OEM and channel partner licensing activities, and leading a team that licensed Crystal Reports to more than 150 companies. Mr. Sochan holds a B.A. Sc. from the University of Waterloo.

James Dodds commented: "Mark is an ideal addition to our board of Directors. He has the experience, knowledge and relationship network to deliver great value to Epic Data. With Mark's guidance we expect to accelerate our efforts to leverage the marketing influence of large enterprise software organizations to build sales channels, align our application roadmap, and increase shareholder value. We are very fortunate to have attracted Mark to our organization and we look forward to working with him."

The company also announced the appointment of Mr. Imre Togyi to the position of Vice President, Sales & Marketing. Mr. Togyi is a senior business executive with 17 years of leadership experience working with start-ups, multi-national and global organizations in the wireless data, industrial automation, healthcare and professional services industries. Over the course of his career, he has headed teams in business unit management, sales, marketing, channel management and business development, most recently with Hiredesk, a provider of on-demand recruitment and hiring software solutions for corporations and recruitment firms.

James Dodds continued: "Imre has demonstrated the ability to generate growth and profits in the technology sector throughout his career and we're very pleased with his decision to join Epic Data. Imre will be responsible for the critical role of developing and driving our marketing and sales functions where his leadership skills and industry background provide an excellent fit to help us address the many growth opportunities we face."

The Company further advises that its application for listing on the TSX Venture Exchange (TSX-V) has been approved. The Company's shares will cease trading on the Toronto Stock Exchange (TSX) as of close of business on December 21, 2007, and will commence trading on the TSX-V at open of market on December 24, 2007. The ticker symbol will remain EKD.

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 organizations.

In aerospace and defense, industrial equipment, automotive and technology, our systems are used to increase plant productivity and production velocity while identifying the continuous improvement initiatives vital to winning in today's competitive manufacturing environments.

People and technology make Epic Data a global leader in automated data collection solutions for the extended enterprise.

Information about Epic Data is available at www.epicdata.com.

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

(Thousands of Canadian dollars)
As at
September 30 September 30
2007 2006
----------------------------
Assets:

Current assets
Cash and cash equivalents $ 759 $ 618
Accounts receivable - Net 1,546 2,045
Inventory 180 265
Prepaid expenses 669 233
------------ --------------
Total current assets 3,154 3,161

Cash equivalents pledged as security - 1,600
Long-term prepaid expenses 421 112
Capital assets 271 471

------------ --------------
$ 3,846 $ 5,344
------------ --------------
------------ --------------

Liabilities and Deficiency in Assets

Current liabilities
Accounts payable and accrued liabilities $ 1,362 $ 2,849
Deferred revenue 2,328 1,701
------------ --------------
3,690 4,550
------------ --------------

Related party loan, net of equity portion
of $51 (September 30, 2006 - $46) 949 954
Deferred Revenue 429 573
Provision for unused leased facilities - 969
------------ --------------

Deficiency in assets
Share capital and contributed surplus 58,663 58,664
Contributed surplus 409 327
Deficit (60,294) (60,693)

------------ --------------
(1,222) (1,702)
------------ --------------

$ 3,846 $ 5,344
------------ --------------
------------ --------------

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2007.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Operations, Comprehensive Income (Loss)
and Deficit
For the periods ended September 30

(Thousands of Canadian dollars except per share amounts)

3 months ended 12 months ended
-------------------- --------------------

2007 2006 2007 2006
--------- --------- --------- ---------

Revenue $ 2,677 $ 2,458 $ 11,095 $ 12,099

Cost of sales 1,168 1,512 5,349 6,828

--------- --------- --------- ---------
Gross margin 1,509 946 5,746 5,271

Gross margin percentage 56% 38% 52% 44%

Operating expenses:
Selling, marketing and
administrative 1,180 1,783 5,215 6,866
Product development 251 273 1,235 1,599
--------- --------- --------- ---------
1,431 2,056 6,450 8,465
--------- --------- --------- ---------

Income (loss) before
undernoted items 78 (1,110) (704) (3,194)

Other expenses (income):
Amortization of capital assets 56 96 244 404
Unused leased facilities (1,073) 700 (1,400) 550
Net finance charges 28 28 130 133
Other income 1 - (77) -
--------- --------- --------- ---------
(988) 824 (1,103) 1,087
--------- --------- --------- ---------
Net income (loss) for the
period 1,066 (1,934) 399 (4,281)

Deficit, beginning of period (61,360) (58,759) (60,693) (56,412)

--------- --------- --------- ---------
Deficit, end of period $ (60,294) $ (60,693) $ (60,294) $ (60,693)
--------- --------- --------- ---------
--------- --------- --------- ---------

Weighted average number of
shares 12,897 12,703 12,897 12,586

Earnings (loss) per common
share $ 0.08 $ (0.15) $ 0.03 $ (0.34)

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2007.


EPIC DATA INTERNATIONAL INC.
Consolidated Statements of Cash Flows
For the periods ended September 30

(Thousands of Canadian dollars)
3 months ended 12 months ended
------------------ ------------------
2007 2006 2007 2006
-------- -------- -------- --------
Cash provided by (used in):

Operating:
Loss for the period $ 1,066 $ (1,934) $ 399 $ (4,281)

Items not involving cash:
Amortization of capital assets 56 96 244 404
Impairment loss on leasehold
improvements - 270 0 270
Provision for unused leased
facilities (1,074) 469 (1,400) 319
Accretion of related party loan 8 40 54 91
Stock-based compensation expense
(recovery) 59 18 23 76

Change in non-cash operating
working capital
Accounts receivable 921 44 499 1,641
Inventory 32 (26) 85 186
Prepaid expenses 226 85 (745) 213
Non-revolving credit facility - - - (733)
Accounts payable & accrued
liabilities (588) 456 (1,056) 200
Deferred revenue (230) 532 483 134
-------- -------- -------- --------
476 50 (1,414) (1,480)

Investing:
Net acquisition of capital assets (9) 1 (44) (78)
Cash equivalents pledged as
security - - 1,600 400
-------- -------- -------- --------
(9) 1 1,556 322

Financing:
Repurchase of employee shares - - (1) -
Proceeds on exercise of employee
options - 101 - 101
-------- -------- -------- --------
- 101 (1) 101
-------- -------- -------- --------

Increase (decrease) in cash and
cash equivalents 467 152 141 (1,057)

Cash and cash equivalents,
beginning of period 292 466 618 1,675

-------- -------- -------- --------
Cash and cash equivalents, end of
period $ 759 $ 618 $ 759 $ 618
-------- -------- -------- --------
-------- -------- -------- --------

Certain comparative figures have been reclassified to conform with the
financial statement presentation adopted for Fiscal 2007.


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