Grey Island Systems International Inc.
TSX VENTURE : GIS

Grey Island Systems International Inc.

March 02, 2009 07:30 ET

Grey Island Announces First Quarter Fiscal 2009 Financial Results

TORONTO, ONTARIO--(Marketwire - March 2, 2009) - Grey Island Systems International Inc. (TSX VENTURE:GIS) is a leading provider of real-time vehicle tracking, fleet management and predictive arrival systems, marketed under the InterFleet and NextBus brands, for government and related fleets in North America. GIS is pleased to announce today the financial results for the first quarter of fiscal 2009 ended December 31, 2008.

First quarter revenue was $4.8 million for the 3 months ending December 31, 2008. Recurring revenues were $2.15 million, a 30.9% increase year over year. The company incurred a net loss of $264,015 or $0.003 for the first quarter ending December 31, 2008.

"The recent economic downturn had a substantial impact on private sector contracts, prospects, distributors and channel partners" said Owen Moore, President of Grey Island, "The Company moved quickly to re-focus on direct public sector contracts and opportunities and by doing so mitigated the effects of the current state of the economy in the first quarter and expects to show further near term improvement in financial results."

"Grey Island's products and services continue to dominate the public sector vehicle tracking, telematics and predictive arrival systems market" said Andrew Moore, CEO of Grey Island "the company continues to see large public sector opportunities and benefits from a strong sector backlog which will position the company well in the long term."

The current results are a reflection of the Company's previously stated objectives to grow organically and through acquisition. The following are significant highlights related thereto.

- Revenue for the first quarter was $4.8 million.

- The Company had a net loss of $264,015 for the first quarter.

- Recurring service revenue increased to $2,15 million for the first quarter.

- US revenues account for $2.6 million of total Company revenue.

- As at December 31, 2008, the Company had $11.3 million in cash and short-term investments.

The Company's consolidated financial statements, accompanying notes and Management's Discussion and Analysis are available on the System for Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com).

About Grey Island

Grey Island Systems International Inc. (TSX VENTURE:GIS), together with its subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New York, New York is a leading provider of custom real-time GPS/AVL, security and Telematics solutions as well as real-time passenger information systems to government and related fleets. To find out more about our products and services, visit our websites at www.interfleet.com or www.nextbus.com.

Forward Looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, Grey Island's operations, anticipated financial performance, business prospects and strategies. Such forward-looking statements are subject to a number of known and unknown risks, uncertainties and other factors which could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, business risks, changes in market and competition, technological and competitive developments and potential downturns in economic conditions generally. Therefore, there can be no assurance that the expectations of the management of Grey Island will prove to be correct.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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