Lingo Media Corporation
TSX VENTURE : LM
OTC Bulletin Board : LMDCF

Lingo Media Corporation

April 30, 2008 21:07 ET

Lingo Media Reports 2007 Results

TORONTO, ONTARIO--(Marketwire - April 30, 2008) - Lingo Media Corporation (TSX VENTURE:LM)(OTCBB:LMDCF) ("Lingo Media") a leader in the development of proprietary print-based and online language learning products announces its financial results for the fiscal year ended December 31, 2007.

2007 AND 2008 YEAR-TO-DATE BUSINESS HIGHLIGHTS:

- Revenue increased 154% during the fiscal year 2007.

- Expanded into new media through the acquisition of Speak2Me Inc. ("Speak2Me"), the world's first digital English language speaking tutor. The Company has now converted Speak2Me's CDs to the Internet and created an online service that combines advanced speech recognition technology and a social networking platform. Speak2Me's Conversational Advertising™ platform takes product placement to a new level, by allowing brand marketers to have advertising-based lessons included in Speak2Me's library of more than 300 English conversational lesson modules.

- Speak2Me assembled an experienced local development team in Beijing and completed website development in 2007.

- Tested Speak2Me's online service in three Beijing universities in Q1 2008.

- Speak2Me initiated a roll out of its service to 50 universities in greater Beijing and Shanghai in March 2008

- Entered into an agreement to deploy its online service on China's only nationwide Internet Service Provider serving the education market, China Education and Research NETwork (CERNET) in April 2008.

- On April 24th 2008, the Company announced the appointment of an industry veteran Anthony Lacavera to the Board of Directors. Mr. Lacavera co-founded Globalive Communications Corp., in 1998 and became President & CEO in 1999. Most recently he served as director and principal executive officer of Yak Communications (NASDAQ:YAKC) acquired by Globalive in 2006. Mr. Lacavera received his B.A.Sc. (Honours) in Computer Engineering from the University of Toronto in 1997.

FINANCIAL HIGHLIGHTS:

The 2007 year-end results compared with 2006, reported in Canadian dollars are as follows:



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2007 2006
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Revenue:
China 877,706 888,816
Canada 3,126,651 685,521
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4,004,357 1,574,337
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Net Loss (925,040) (748,924)
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Total Assets 7,597,406 2,884,158
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Long Term Debt 431,705 347,541
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Working Capital (Deficiency) 576,657 (347,127)
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Cash Flow Provided by (Used In) Operations (1,826,195) 285,037
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- Revenues

The Company's overall revenue increased from $1.5 million in 2006 to $4.0 million in 2007, a 154% increase. This increase is primarily attributed to the full inclusion of A+ Child Development (Canada) Ltd. acquired in October 2006.

- Total Assets

In 2007, the Company's total assets increased to $7.6 million from $2.9 million in 2006. This increase is due to software and web development as a result of the Speak2Me acquisition.

- Working Capital

As at December 31, 2007, the Company improved its working capital to $576,657 from a deficit of ($347,127) in 2006.

- Cash Flow from Operations

The Company used $1.8 million in its operations primarily because of an increase in its accounts receivable and incremental investment in software and web development.

The audited annual financial statements for the year ended December 31, 2007 and Management Discussion & Analysis are available at www.sedar.com.



SUMMARY OF FINANCIAL INFORMATION:

LINGO MEDIA CORPORATION
Consolidated Balance Sheets
(Expressed in Canadian dollars)

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As at December 31 2007 2006
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Assets

Current assets:
Cash $ 343,338 $ 73,169
Short term investment(note 8) 150,000 150,000
Accounts and grants receivable(note 2) 1,110,151 304,924
Inventory 121,323 154,276
Prepaid and sundry assets 131,869 130,573
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1,856,681 812,942

Investment and advances(note 3) 182,520 182,520
Deferred costs(note 3) 157,419 157,419
Property and equipment, net(note 4) 89,325 77,304
Development costs, net(note 5) 267,910 343,308
Software and web development costs, net(note 6) 4,212,564 -
Future income taxes(note 11) - 189,534
Goodwill(note 7) 1,121,131 1,121,131
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$ 7,887,550 $ 2,884,158
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Liabilities and Shareholders' Equity

Current liabilities:
Bank loans(note 8) $ 230,000 $ 485,000
Accounts payable(note 14) 822,818 526,491
Accrued liabilities 227,206 148,578
Less current portion of long term debt 228,674 -
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1,508,698 1,160,069
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Loans payable(note 9) 203,031 347,541
Future income taxes(note 12) 290,145 -
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1,711,729 1,507,610
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Shareholders' equity:
Capital stock(note 10 (a)) 10,335,707 5,028,656
Contributed surplus(note 10 (b)) 452,411 325,293
Warrants(note 10 (f)) - -
Deficit (4,902,441) (3,977,401)
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5,885,677 1,376,548
Commitments(note 19)
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$ 7,887,550 $ 2,884,158
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LINGO MEDIA CORPORATION
Consolidated Statements of Operations
(Expressed in Canadian dollars)

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For the years ended December 31 2007 2006 2005
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Revenue (note 16 & 17) $ 4,004,357 $ 1,574,337 $ 906,357
Direct costs 758,076 319,277 123,107
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Margin 3,246,281 1,255,060 783,250
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Expenses:
General and administrative
(note 12) 3,745,276 1,417,867 855,118
Amortization of property
and equipment 117,386 222,306 267,819
Interest and other financial
expenses 113,369 57,097 42,869
Stock-based compensation 156,395 193,819 42,869

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4,132,426 1,891,089 1,380,143
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Loss before income taxes and
other taxes (866,145) (636,030) (596,893)

Income taxes and other
taxes (note 12) 38,895 112,895 128,839

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Net loss for the year $ (925,040) (748,924) (725,732)
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Loss per share (note 11 (g)) $ (0.16) $ (0.18) $ (0.21)

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Weighted average number of
common shares outstanding
(note 10 (g)) 5,655,792 4,060,331 3,530,231
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About Lingo Media (TSX VENTURE:LM)(OTCBB:LMDCF)

Lingo Media Corporation is a diversified print and online education product and services corporation.

Lingo Media's Speak2Me Inc. subsidiary is a new media company that focuses on online advertising in China via its Internet-based English Language Learning portal.

In China, where the Company has extensive industry and Government contacts built up over the past decade. Lingo Media continues to expand its legacy business via its subsidiary Lingo Learning Inc. ("Lingo Learning"), a print-based publisher of English Language Learning programs in China since 2001. Lingo Learning has an established presence in China's education market of 200 million students. To date, it has published 197 million units from its library of more than 300 program titles in China.

In Canada, Lingo Media focuses on early childhood cognitive development, through its subsidiary A+ Child Development (Canada) Ltd. ("A+"), which publishes and distributes educational materials along with its unique curriculum. A+ has been operating in Canada for over ten years through its four offices in Calgary, Edmonton, Toronto and Vancouver. Lingo Media plans to introduce A+'s learning system and products to parents of pre-school children in China.

Portions of this press release may include "forward-looking statements" within the meaning of securities laws. Forward-looking statements contained in this press release are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and involve certain risks and uncertainties. Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.

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