Gemcom Software International Inc.

Gemcom Software International Inc.

June 24, 2005 10:39 ET

Gemcom Announces Fiscal 2005 Year-End Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 24, 2005) - Gemcom Software International Inc. (TSX:GCM) is pleased to announce the Company's audited financial results for the fiscal year ended March 31, 2005. Gemcom reported net income of $1.4 million (basic and diluted earnings per share of $0.06), compared to net income (restated (1)) of $0.9 million (restated basic and diluted earnings per share of $0.04) last year.

"This is the second consecutive year of strong revenue growth coupled with increased net earnings", said Garth Albright CFO. "We are proud of how many important milestones the company achieved during the last year."

Key highlights of Gemcom's fiscal 2005 year-end results include:

- Gross Revenue growth of 10% during 2005 which builds on the 44% growth in 2004. Early repayment of our subordinate debt on March 31, 2005. At year end, the Company has repaid all debentures.

- Improvement of working capital from 2004 of $0.5 million to $1.7 million at March 31, 2005. This improvement is following repayment of subordinate debt and accrued and prepayment interest that totalled $1.8 million on March 31, 2005.

- Continued investment into R&D with a 30% increase in R&D spending in 2005 totalling $3.7 million (2004 R&D expenditures totalled $2.8 million).

"The investments we have been making in R&D have been paying off", said Rick Moignard, President & CEO. "Our solutions are more robust and flexible than ever before and our technology is helping mining leaders around the world to achieve their business goals. From exploration to production management, our solutions and services deliver the tools and information mining companies need to manage and optimize the mining value chain."

"The level of innovation and industry knowledge our people bring to the table is impressive", continued Moignard. "Once again, the teamwork and dedication of our worldwide staff has helped us achieve new levels of product quality and professional service excellence."

Complete financial statements can be found via SEDAR (, or on the Company's website (

About Gemcom

Gemcom's business is to deliver comprehensive software and service solutions to mining companies, enabling these companies to evaluate, manage and monitor their mining operations from early exploration through to final production.

Gemcom has a customer base of more than 1000 mine sites in over 90 countries, including such industry giants as Anglo American, BHP Billiton, Codelco, CVRD, De Beers, Noranda, Rio Tinto, and Teck Cominco, which rely on Gemcom's software to facilitate economic decision-making at their operations.

(1) Restated: the 2004 financial statements have been restated to reflect the impact of withholding tax liabilities related to the Company's operations in the Republic of South Africa and to reflect the Company's retroactive adoption of the amended provisions of the Canadian Institute of Chartered Accountants Handbook Section 3870 "Stock-Based Compensation and other Stock-Based Payments". Please refer to note 3 of the audited consolidated annual financial statements for the year ended March 31, 2005 for further details.

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