Nexus Group International Inc.

Nexus Group International Inc.

February 25, 2005 17:31 ET

NEXUS Group Announces Second Quarter Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NEXUS GROUP INTERNATIONAL INC.

TSX SYMBOL: NXS

FEBRUARY 25, 2005 - 17:31 ET

NEXUS Group Announces Second Quarter Results

BURLINGTON, ONTARIO--(CCNMatthews - Feb. 25, 2005) - NEXUS Group
International Inc. (TSX:NXS) reports its fiscal 2005 second quarter
results for the period ending December 31, 2004. Nexus reports its
results in Canadian dollars.

Revenues decreased to $188,583 in the 2nd quarter of fiscal 2005 from
$236,147 in the 2nd quarter of fiscal 2004.For the second quarter of
fiscal 2005, technology revenue accounted for 88% of overall total
revenue.

Selling, general and administrative expenses decreased in the 2nd
quarter of fiscal 2005 ($392,753) as compared to the same period last
year ($445,102). Research and development costs continue to decrease as
evidenced by the amount recorded in the second quarter of fiscal 2005
($196,908) compared to the same period last year ($523,378). The
reduction is the result of Nexus having fulfilled its funding
obligations to Acsys during fiscal 2004, and the development of products
having been virtually completed. An allowance for doubtful accounts of
$492,191 was recorded in order to write down the loans and accounts
receivable to their expected collectable amounts.

The Company arranged a demand, bridge loan financing from one of the
Company's directors on November 5, 2004, of up to $700,000 with a first
position security on the assets of the company. On December 13, 2004,
management was advised that the funding was discontinued. Insufficient
funding forced management lay off all the staff of both Nexus and Acsys,
and commenced a restructuring mode. A demand to repay the bridge loan of
$278,000 was received on December 27, 2004. iView continued to operate
from its available cash flow.

To ensure the Company's survival, the efforts of the President and the
remaining directors were immediately focused on acquiring additional
funding for the Company, and/or monetizing corporate assets.

Subsequent to the quarter end, the Company has entered into non-binding
Letters of Intent with two arms length parties for the sale of iView and
Acsys. Negotiations are continuing toward consummating the proposed
transactions. The Company has heard from other interested parties that
may wish to entertain a purchase of these assets, should the current
proposed transactions not be completed.

NEXUS is a Burlington, Ontario-based corporation. NEXUS has been
suspended from trading on the Toronto Stock Exchange under the symbol
"NXS".

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    NEXUS Group International Inc.
    Tom Fischer
    399 Pearl Street, Burlington, Ontario, L7R 2M8
    (905) 634-4111 ext. 32
    (905) 634-1101 (FAX)
    www.nxsgrp.com