Jetcom Inc.

Jetcom Inc.

August 28, 2007 15:30 ET

Jetcom Quarterly

TORONTO, ONTARIO--(Marketwire - Aug. 28, 2007) - Jetcom Inc. (TSX VENTURE:JTM)(FRANKFURT:YGH)(XETRA:YGH), is pleased to report its quarterly results for the period ended June 30, 2007. Also, the Company is pleased to report it is continuing to pursue its TSX Venture Exchange COB submission.

Further to the previous announcements concerning certain uranium exploration property option agreements entered into by Jetcom's wholly owned subsidiary, Yellowcake Resources Inc., located in the Campbell's Bay area of Quebec and in Lac a David, Saguenay area of Quebec located in the township of Dumas, Jetcom wishes to clarify that, while it proposes to enter the mineral exploration business, it is not currently in the business. Given that this is considered to be a change of business under the TSXV policies, these agreements must be approved by Jetcom's shareholders and by the TSXV beforehand.

There can be no assurance that the approvals will be granted and that the transactions will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the Management Information Circular or Filing Statement to be prepared in connection with the transaction, any information released or received with respect to the change of business may not be accurate or complete and should not be relied upon. Trading in the securities of Jetcom Inc. should be considered highly speculative.

As a Subsequent Event occurring after June 30, 2007, Jetcom closed a private placement of 3,571,429 units for gross proceeds of $500,000 to an arm's length placee. The unit price has been adjusted to $0.14. Each unit is comprised of one common share at $0.14 and one common share purchase warrant exercisable at $0.30 for 2 years form the date of closing. The common shares and warrants and common shares underlying the warrants are subject to a four month hold period. The proceeds will be used for working capital purposed at the discretion of the board of Jetcom.

Revenue for the 3 months ending June 30, 2007 for Star Programming, a wholly owned subsidiary of Jetcom, was $67,902 compared to $87,814. The loss from operations was $64,630 or $0.002/share compared to a loss of $49,914 or $0.001/share. The deterioration in revenue and gross profit was due to increased competition from the satellite, c-band and cable television providers who have become very aggressive in the pursuit of additional subscribers. Star continues to encounter intense and increasing competition from the satellite, c-band and cable television industry; new competitors who are constantly entering the subscription television business and the new internet/media technologies are creating additional competition.

The previous management acquired Star Programming in July 2001, for approximately $420,270. The above-mentioned factors created the deterioration in Star's revenue base and hence was the major factor for the revenue decline. After careful analysis, management determined that the declining sales necessitated a re-evaluation of the carrying value of the intangible asset. Accordingly, $236,200 was written off at year end 2004 and as at December 31, 2005 were carrying Star at $80,000. The deterioration continued into 2006, hence management decided to write-off the remaining balance. Star's business has continued to deteriorate, so it was decided to cease operations as of August 28, 2007.

Jetcom Inc. has 42,337,400 outstanding common shares.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

Contact Information

  • Jetcom Inc.
    A. G. Dragone
    (416) 447-4884
    (416) 447-8868 (FAX)