Komunik Corporation

Komunik Corporation

March 14, 2008 17:00 ET

KOMUNIK: Canadian Leader in Communication Resource Management-Announces its Third Quarter Results

MONTREAL, QUEBEC--(Marketwire - March 14, 2008) - Komunik Corporation ("Komunik") (TSX:KOM) announces that is had filed its quarterly results and related Management's Discussion and Analysis for the third quarter ending January 31, 2008.

The Consolidated revenues of Komunik have increased in the third quarter ended January, 31, 2008, in comparison to last year, from $2.5M to $26.9M, with the earnings before interest, taxes, depreciation and amortization (EBITDA) increasing from $0.37M to $0.76M in the same period, if we consider the non-cash expense of stock based compensation. Consolidated revenues for the nine months ended January 31, 2008 were $72M, compared to $6.4M for the nine months ended January 31, 2007. These results include operations for the Komunik Konversation business unit (former Komunik) for the whole nine months, but include only 7 months and 18 days of the Komunik Datamark operations since the transaction occurred on June 12, 2007.

"Komunik's third quarter results reflect our industry's yearly cycle with a lower level of activity than the second and fourth quarter. However, our positive yet low EBITDA can also be explained by lower margins on some print projects while the corporation increased its investments in technology, infrastructure automation and other long term fundamentals.

During this last quarter, Komunik's executive team also continued its restructuring activities, shaving some non profitable sales while reducing future costs in some traditional operations.

"Our challenge is to increase profitability while investing in technology to transform and align the Datamark acquisition with the Komunik business model. We are confident that our ongoing restructuring will soon have a positive impact on the company's overall results." said Alain Paquin, President and Chief Executive Officer of Komunik.

These unaudited interim consolidated financial statements have been prepared by Komunik on the basis of currently available information and have not been reviewed by Komunik's auditors. These documents are available at www.sedar.com.

About Komunik Corporation

Komunik is a leading provider of end-to-end solutions for Communication Resource Management. We simplify the management of communication resources to help our clients increase efficiency and control over their overall communications.

Komunik develops best of class technology, and provides expertise and support for document management, multi-channel relationship marketing and overall print services. Our clients count on an experienced workforce of over 700 employees with experts covering each area of our value proposition. Our nationwide network of 6 production & project development facilities and 5 distribution centres, touch points in every major Canadian city, as well as strategically located offices in the United States, ensures that our clients benefit from local support. For more information about Komunik visit www.komunik.com.

Cautionary note about forward-looking statements

Some of the statements made in this release may constitute forward-looking information or statements within the meaning of securities laws. These statements are based on certain factors and assumptions, which Komunik believes are reasonable as of the current date. While Komunik considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Komunik cautions that actual future performance could be affected by a number of factors, including technological change, regulatory change and competitive factors, many of which are beyond Komunik's control. Therefore, future events and results may vary substantially from what Komunik currently foresees. While Komunik may elect to, it is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information.

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