Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

August 15, 2007 11:57 ET

Quorum Announces Second Quarter 2007 Results

CALGARY, ALBERTA--(Marketwire - Aug. 15, 2007) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) (Quorum) today released Second Quarter (Q2) Fiscal Year (FY) 2007 results. Quorum's suite of Dealership Management System (DMS) software products are Windows-based, completely integrated systems that automate and streamline automobile dealerships' sales, service, parts, accounting and CRM processes.

In Q2 FY2007, the Corporation continued to expand its customer base and implemented another eight dealership customers. These customers signed contracts in late 2006 and were implemented in Q2 FY2007; three of these dealerships are located in Canada and five in the United States. The exit total of implemented customers for the Corporation at June 30, 2007 was 197 dealerships.

During Q2 FY2007, the Corporation continued to develop its proprietary software, XSELLERATOR, which saw the completion of the testing of Version 4.6.1 which will go into general release early in Q3 FY2007. Version 4.6.1 is a significant release with a number of new GM "advanced" integration points, Chrysler integration points and a real-time dashboard deployed through Microsoft Sharepoint and Microsoft SQL Server 2005 Reporting Services.

Maury Marks, President and CEO of Quorum said, "The company is focused on growing our customer base and adding new revenue sources while reducing our cost structure and reaching our goal of being in a positive cash flow position by year-end."



Q2 2007 Financial Highlights
----------------------------
- 31% increase in gross revenues from Q2 FY2006.
- 51% increase in on-going annuity XSELLERATOR software support revenue
over Q2 FY2006.
- 13% increase in customer base since December 31, 2006 from 175 to 197.
- Net loss for Q2 FY2007 decreased to $276,308 versus $1,083,286 in Q2
FY2006.


Financial Highlights

Six months Six months Q2 ended
ended June ended June June 30,
30, 2007 30, 2006 2007

Gross revenue $ 4,117,715 $ 3,223,249 $ 2,003,640
Cost of products and services sold $ 3,145,833 $ 2,967,630 $ 1,708,443

Gross profit $ 971,882 $ 255,619 $ 295,197

Loss before interest, taxes and
amortization (EBITDA) $ (712,219) $(2,683,442) $ (357,156)

Net loss $ (596,433) $(2,022,835) $ (276,308)

Basic loss per share $ (0.016) $ (0.070) $ (0.007)
Fully diluted loss per share $ (0.016) $ (0.067) $ (0.007)

Weighted average number of
common shares
Basic 38,214,449 28,814,022 38,214,449
Diluted 38,214,449 30,268,272 38,214,449

XSELLERATOR installations - in the
period 23 13 8
XSELLERATOR installations - to date
(year to date reflects the loss of
one dealership) 197 156 197
----------------------------------------------------------------------------

Q2 ended Q1 ended Q1 ended
June 30, March 31, March 31,
2006 2007 2006

Gross revenue $ 1,523,452 $ 2,114,075 $ 1,699,797
Cost of products and services sold $ 1,412,344 $ 1,437,390 $ 1,555,286

Gross profit $ 111,108 $ 676,685 $ 144,511

Loss before interest, taxes and
amortization (EBITDA) $(1,462,594) $ (355,063) $(1,220,848)

Net loss $(1,083,286) $ (320,125) $ (939,549)

Basic loss per share $ (0.038) $ (0.008) $ (0.033)
Fully diluted loss per share $ (0.036) $ (0.008) $ (0.032)

Weighted average number of
common shares
Basic 28,814,022 38,214,449 28,781,981
Diluted 30,268,272 38,215,560 29,445,427

XSELLERATOR installations - in the
period 5 15 8
XSELLERATOR installations - to date
(year to date reflects the loss of
one dealership) 156 190 151
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For detailed Q2 FY2007 financial information including the Unaudited Interim Consolidated Financial Statements for the period ended June 30, 2007 and 2006, and the accompanying Management's Discussion and Analysis, please go to www.Sedar.com, or www.QuorumDMS.com.

About Quorum

Headquartered in Calgary, Alberta, Quorum's focus is on developing, marketing, implementing and supporting its Windows-based DMS products for the automotive vertical. Quorum's suite of dealership and customer management software products automate, integrate and streamline every process across departments in a dealership. One of the select North American suppliers of General Motors' IDMS, Quorum is the third largest DMS provider for GM's Canadian dealerships with over 20% of the market. Quorum is a Microsoft Gold Certified Partner and Field-Level Managed ISV in both Canada and the United States. Quorum Information Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS.

For additional information, please go to www.QuorumDMS.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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