Optimal Geomatics Inc.

Optimal Geomatics Inc.

November 29, 2006 08:00 ET

Optimal Announces Preliminary 2006 Year End Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 29, 2006) - Optimal Geomatics Inc. (TSX VENTURE:OPG) ("Optimal"), a geomatics solutions provider to engineering and geospatial professionals, announces its preliminary unaudited results for the fiscal year ended October 31, 2006. Revenues were $16.5 million for the year resulting in a loss of $1.3 million. Unaudited revenues for the three months ended October 31, 2006 were $3.4 million and the net loss incurred was $819 thousand. Management issued amended guidance on September 6th indicating revenues of $16-18 million for the year and a projected loss of $600-800 thousand. While revenues were at the lower end of the range announced, the Company incurred a larger than forecasted loss due to a change in the mix of revenues resulting in proportionately lower margin revenue being recognized in the fourth quarter.

The 1st quarter of the 2007 fiscal year, which commenced on 1st November, will be similar in terms of revenues and results to the previous quarter. Management is reducing costs and streamlining the organization accordingly. However, the full impact of these adjustments will not be reflected in operating results until the 2nd fiscal quarter commencing February 1, 2007.

Colum Caldwell, President & CEO, acknowledged, "Although the unaudited results for the 4th quarter and fiscal year 2006, as well as the anticipated results of the 1st quarter of 2007, are disappointing, management is confident that its business model and focal markets, namely the Energy and Transportation sectors, continue to offer the company a strong opportunity for growth going forward."

Optimal Geomatics specializes in the science and technology of gathering, analyzing, interpreting, distributing and using geographic information. Optimal applies the disciplines of surveying, mapping, remote sensing, geographic information systems (GIS), and global positioning system (GPS) to provide solutions for engineering and geospatial professionals.

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans, and objectives regarding future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this new release.

Contact Information