Lingo Media Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2016

TORONTO, ON--(Marketwired - November 28, 2016) - Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) ("Lingo Media" or the "Company"), an EdTech company that is 'Changing the way the world learns English' through innovative online and print-based technologies and solutions, announces its financial results for the third quarter ended September 30, 2016 reporting revenues of $152,657 and a net loss of $581,710 or $0.016 loss per share. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Michael Kraft, President & CEO of Lingo Media, stated, "We are disappointed with our results for the 3^rd quarter. Notwithstanding, we have been moving forward with full efforts to establish additional sales channels and partners globally. Our sales team led by Laurent Glorieux who recently joined our company, has developed a growing sales pipeline. The nature of our business is such that revenues are recognized upon signing of a contract, delivery of the software and customer acceptance and sign-off. The lower level of revenue in Q3-16 is a result of delays in signing sales contracts and delivery of the software. We are confident that we can close a significant portion of our sales pipeline but cannot forecast the exact timing of such closings and delivery as our primary customers are government ministries and educational institutions with long sales cycles. We continued to invest in the development of our digital content library and our technology team which are key factors to position the company for future growth along with broadening and enhancing our sales channels."

Q3 2016 Operational Highlights

• Online English Language Learning:
  • Entered into a sales contract with Universidad de San Martin de Porres in Peru through Telefonica
  • Entered into a sales contract with Certus, an educational institution in Peru through Telefonica
  • Entered into a sales contract with Universidad Da Vinci to teach English to teachers in Mexico
  • Continued marketing and selling, English for Success, a series of lessons and activities derived from ELL Library as a premium solution for government ministries and educational institutions

• Print-Based English Language Learning:
  • Continued expanding the market for PEP Primary English and Starting Line programs with People's Education Press in China

Corporate Highlights

• Appointed Laurent Glorieux to lead sales team and expansion of ELL into Asia, North America, Middle East

• Revenue for the third quarter ended September 30, 2016 totalled $152,657 compared to $1,203,201 for the same period in 2015.
• Operating expenses for the quarter ended September 30, 2016 totalled $460,099 as compared to $462,455 for the same period in 2015. Net loss for the quarter was $581,710 as compared to net profit of $694,300 for the same period in 2015.
• Loss before amortization, share-based payments, depreciation, finance charges and taxes was $307,442 compared to income of $740,746 in 2015.

• Revenue for the nine months ended September 30, 2016 totalled $2,458,912 compared to $3,649,487 the same period in 2015, due to a decline in ELL Technologies' digital sales.
• Operating expenses for the nine months ended September 30, 2016 totalled $1,218,303 as compared to $1,204,487 for the same period in 2015.
• Net profit for the nine months was $100,303 as compared to net profit $1,898,832 for the same period in 2015.
• Income before amortization, share-based payments, depreciation, finance charges and taxes was $1,240,609 compared to income of $2,445,000 in 2015.

Balance Sheet as at September 30, 2016

• Cash and cash equivalents as at September 30, 2016 totalled $348,839 as compared to $409,022 as at December 31, 2015.
• Current ratio improved to 8.4:1 for the period ended September 30, 2016 as compared to 2.4:1 as at December 31, 2015.
• Total liabilities as at September 30, 2016 totalled $462,771 as compared to $1,186,167 as at December 31, 2015, an improvement of $723,396 after loans payable of $580,000 were repaid in full and retired.
• Book value improved to $6,493,479 as at September 30, 2016 as compared to $4,046,784 as at December 31, 2015.

The unaudited condensed interim financial statements for the quarter the unaudited condensed interim financial statements for the quarter ended September 30, 2016 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX VENTURE: LM) (OTCQB: LMDCF)

Lingo Media is a global EdTech company that is 'Changing the way the world learns English', developing and marketing products for learners of English through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers English language educators to easily transition from traditional teaching methods to digital learning.

Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies provides online training and assessment for English language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.

Lingo Media has formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China, and continues to both extend its global reach and expand its product offerings.

Follow Lingo Media On:

Facebook: https://www.facebook.com/LingoMedia
Twitter: @LingoMediaCorp
YouTube: https://www.youtube.com/lingomedialm
LinkedIn: https://www.linkedin.com/company/lingo-media-corporation
RSS: http://feeds.feedburner.com/LingoMedia

Portions of this press release may include "forward-looking statements" within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. 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. Lingo Media has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. Lingo Media's expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. 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.

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