Intrinsyc Software International, Inc.

Intrinsyc Software International, Inc.

February 08, 2010 09:00 ET

Intrinsyc Announces Management Restructuring

Moves to improve operational efficiency and effectiveness

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2010) - Intrinsyc Software International, Inc. (TSX:ICS), a leading provider of software solutions for mobile devices, announces a restructuring plan to reduce its cost structure, and changes in its management, designed to improve operational efficiency and effectiveness. These actions are in response to challenges in the macroeconomic environment and competitive factors, and to ensure that Intrinsyc is positioned to benefit from an eventual economic rebound and market trends presenting near-term opportunities.

As a result of these initiatives, the Company expects to incur a one-time restructuring charge of approximately $500,000 during the three months ended March 31, 2010 attributable to employee severance and other costs. The staff reductions will include the departure of executives, David Manuel, Vice President and General Manager, Device Development Solutions, and Souheil Gallouzi, Vice President and General Manager, Mobile Product Development. Direct replacement for these positions will not be made. Rather, the respective organizations that previously reported to Mr. Manuel and Mr. Gallouzi will be restructured, with management reporting to the Chief Executive Officer.

"I want to thank Souheil and David for their contributions to Intrinsyc" said, Tracy Rees, Chief Executive Officer. "We are well positioned with a strong balance sheet, exceptionally talented engineering resources, and exciting new products launching in this quarter."

The Company expects to reduce its total annualized expenses by approximately $800,000 or 8%, as a result of these restructuring initiatives.

About Intrinsyc Software International, Inc.

Intrinsyc empowers device makers, mobile operators, and silicon vendors to deliver compelling, next generation mobile devices faster with higher quality, and differentiating innovation. We help our customers deliver compelling products using our unmatched expertise with the leading OS platforms including Android, Apple, Blackberry, Linux, Symbian, Windows CE and Windows Mobile. Intrinsyc delivers Destinator, the most feature rich navigation application with the best integration for leading smartphones, including from OEMs like Motorola and LG Electronics. Destinator is also available through leading application stores and Intrinsyc's own navigation store Intrinsyc is publicly traded (TSX:ICS) and headquartered in Vancouver, Canada, with offices in China, Israel, Taiwan, U.K. and the United States.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect," "anticipate," "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the expense reduction initiatives may not generate the cost savings anticipated, revenues for the Company's new product offerings may not commence or realized as anticipated, the need to develop, integrate and deploy software solutions to meet the Company's customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on the Company's customer's satisfaction; the timing of entering into significant contracts; customers' continued commitment to the deployment of the Company's solutions; the performance of the global economy and growth in software industry sales; market acceptance of the Company's products and services; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to international expansion; concentration of sales; international operations and sales; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and other factors described in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2008. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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