Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

August 25, 2005 11:26 ET

Quorum Information Technologies Inc. Releases Second Quarter 2005 Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 25, 2005) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) (QIT) today released Second Quarter (Q2) Fiscal Year (FY) 2005 results. As outlined in the 2004 Annual Report to Shareholders, the Company's focus for 2005 is to continue building sales and Quorum brand recognition across the North American market. During the second quarter of 2005 (Q2 2005) the Company continued to move forward with the organizational and developmental steps required to achieve this mandate.

U.S. initiatives included:

- Received GM-US VIS Certification as a first step along the path of advanced integration to GM in the US.

- Continued to make progress towards completing the required integration to Daimler Chrysler to allow for sales to Daimler Chrysler dealerships starting in Q1 2006.

- Completed the successful roll-out of the handheld Personal Digital Assistant (PDA) Sales Technology to all 387 U.S. Cadillac dealerships participating in the General Motors Standards for Excellence (SFE) Process.

- Continued progress in establishing a significant partnering arrangement with globally recognized integrator to provide significant scalability to the number of achievable implementations in the U.S.

- Installed XSELLERATOR at five new dealerships.


Canadian initiatives included:

- Continued sales momentum in Canada to GM dealerships surpassing the 15% market share milestone.

- Added highly skilled and motivated development, support, and implementations staff to increase our ability to deliver world class software and service to our customers.

- Installed XSELLERATOR at five new dealerships.


Q2 2005 Financial Highlights

- 55% increase in Gross Revenues from Q2 FY2004.

- 41% increase in on-going annuity XSellerator software support revenue.

- 8% increase in customer base in the quarter from 120 to 130.

- Net loss for Q2 FY2005 increased to $265,797 versus $99,925 in Q2 FY2004.




------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS Second Quarter Second Quarter
ended June 30, 2005 ended June 30, 2004
------------------------------------------------------------------------

Gross Revenue $1,904,141 $1,227,630
Cost of products and services sold $1,489,817 $ 840,770

Gross Profit $ 414,324 $ 386,860

Loss Before Interest, Taxes,
Depreciation and
Amortization (EBITDA) $ (363,661) $ (167,966)

Net loss $ (265,797) $ (99,925)

Basic Loss per share $ (0.010) $ (0.005)
Fully diluted Loss per share $ (0.009) $ (0.004)

Weighted average number of
common shares
Basic 26,755,323 22,026,448
Diluted 29,787,138 24,034,261

XSELLERATOR Installations
- in the period 10 7
XSELLERATOR Installations
- to date 130 103
------------------------------------------------------------------------


For detailed Q2 FY2005 financial information including the unaudited Consolidated Financial Statements for the period ended June 30, 2005 and 2004, and the accompanying Management's Discussion and Analysis, please go to www.Sedar.com, or www.QuorumIs.com.

About Quorum:

Quorum (TSX V: QIS) is a successful information technology company that develops, markets, implements and supports its own software products for the automotive vertical. Its key products are DISTRIBUTOR™, a Windows and Web based network solution, and XSELLERATOR dealership management software, which combine to form a Dealership and Customer Relationship Management System (DMS) for the automotive dealership market. Quorum's success comes from delivering the best DMS System on the market, and their commitment to total customer satisfaction.

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

Contact Information