Quorum Information Technologies Inc.
TSX VENTURE : QIS

Quorum Information Technologies Inc.

April 30, 2007 11:48 ET

Quorum Releases Fiscal Year 2006 Results

CALGARY, ALBERTA--(CCNMatthews - April 30, 2007) - Quorum Information Technologies Inc. (Quorum) (TSX VENTURE:QIS) today released Fiscal Year (FY) 2006 results. In FY2006, Quorum entered into two key strategic relationships: a) On January 3, 2006 Quorum was named one of only two providers, on behalf of General Motors Corporation (GM) of its Integrated Dealer Management System (IDMS) throughout North America. The award of this contract is a positive endorsement of the Corporation's XSELLERATOR™ product and is providing accelerated access to the over 8,000 GM-branded dealerships throughout North America. The Company incurred a number of costs in 2006 to put the people and processes in place to deliver on this long-term contract.

b) In November 2006, Microsoft announced a strategic relationship with Quorum for the North American automotive market. The strategic relationship will improve the exposure of the Corporation's XSELLERATOR product in the marketplace and will accelerate development projects.

Corporately, Quorum is leveraging these very significant strategic relationships with GM and Microsoft to grow the company in North America. Additionally, we are actively selling to Chrysler dealerships throughout North America in 2007. It was costly to invest in these strategic relationships and to open the Chrysler marketplace; however, these investments are providing Quorum with significant long-term growth opportunities.

Strategically, the Company has all the pieces in place to be successful in North America, including the relationships, the products, financing and the people to support an initiative of this magnitude. Our "story" has broad market appeal. Getting to cash flow positive will "prove out" our financial model and, we believe, provide the basis for much wider appeal for the Company's shares. Stepped growth to cash flow positive has become the absolute mission for Quorum in 2007.

2006 Financial Highlights

- 29% increase in gross revenues from FY2005.

- 48% increase in on-going annuity XSELLERATOR software support revenue.

- 22% increase in customer base from 143 to 175 installs.

- Raised $6.65 million in equity capital to fund continuing operations and expansion.

- Net loss for FY2006 increased to $3.666 million from $2.195 million in FY2005.

- The net loss in FY2006 is due to increased costs of the expanding organization as it prepared to meet the requirements of the GM IDMS contract.



Financial Highlights Year ended Year ended Year ended
December December December
31, 31, 31,
2006 2005 2004
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Gross revenue $7,423,733 $5,772,973 $ 3,869,025
Cost of products and services sold 6,233,650 5,196,823 2,832,287

Gross profit 1,190,083 576,150 1,036,738

Loss before interest, taxes and
amortization (EBITDA) (4,302,926) (2,690,804) (923,844)

Net loss (3,666,353) (2,194,589) (1,045,648)

Basic loss per share (0.116) (0.079) (0.044)
Fully diluted loss per share $(0.116) $(0.075) $(0.038)

Weighted average number of
common shares
Basic 31,517,432 27,634,483 23,971,784
Diluted 31,706,932 29,244,843 27,261,922

XSELLERATOR installations
- in the period 34 27 25

XSELLERATOR installations
- to date (reflects 2 lost
dealerships) 175 143 116
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For detailed FY2005 financial information, 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 XSELLERATOR™ product for the automotive vertical. XSELLERATOR is a dealership and customer management software product which automates, integrates and streamlines 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 is traded on the Toronto Venture Exchange (TSX-V) under the symbol QIS.

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

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