August 06, 2008 13:54 ET

eResearch Issues Initiating Report on Synergex Corporation

TORONTO, ONTARIO--(Marketwire - Aug. 6, 2008) - Synergex Corporation is a Canadian-based international integrated logistics company providing distribution, freight forwarding, and logistics services under its Commercial Gateway business group. It is amongst the largest distributors of video games, game consoles, and accessories in Canada.

Highlights from the report are shown below:

- A major logistics and distribution company serving the rapidly growing video games and accessories market.

- Expansion into its Latin American markets provides additional growth opportunities.

- The Company's core operation is its Commercial Gateway group which generated approximately 97% of overall revenues in 2007. This group provides supply chain management services including third party logistics services primarily to suppliers of electronic entertainment products. It derives its revenue from fee-based services and distribution services.

- Prospects for Sony products (the Company's largest supplier) are attractive with PlayStation 3 expected to be the strongest growing console model between now and 2012. This should lead to strong growth for its related games.

- Sale of Synergex Technology will enable management to focus more closely on the logistics and distribution businesses.

- Management is considering acquisitions to further expand logistics and distribution operations.

- The stock is closely held, with management owning 76% of the outstanding shares.

eResearch rates the shares of Synergex as a Speculative Buy. Our one-year Target Price is $0.24 per share.

This Press Release was prepared by eResearch and was not vetted by Synergex Corporation. Further, the Recommendation and Target Prices contained in this Press Release and in the Initiating Report are strictly those of eResearch and, due to securities laws, are not endorsed by Synergex Corporation.

eResearch is a primary source for professional investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential of reaching millions of global investors through our extensive electronic distribution network.

Synergex Corporation paid eResearch a fee of $20,000 + GST to conduct research on the Company, on an Annual Continuous Coverage basis.

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