Quorum Information Technologies Inc.

Quorum Information Technologies Inc.

April 18, 2008 13:10 ET

Quorum Releases Fiscal Year 2007 Results And and Announces Financing

CALGARY, ALBERTA--(Marketwire - April 18, 2008) - Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the "Corporation") today released Fiscal Year (FY) 2007 results. Quorum provides services to General Motors (GM), Chrysler and Hyundai dealerships in North America. The Corporation is an Integrated Dealership Management System (IDMS) strategic partner with GM and a strategic partner with Microsoft. Quorum has a large opportunity with a market of approximately 12,000 dealerships and to capitalize on this market Quorum has invested significant funds. Historically the Corporation has placed significant emphasis on growing its customer base, however in FY2007, Quorum placed a much greater emphasis on cost management and on providing value added, recurring services to existing customers. Some of the Corporation's key results were:

- Increased sales by 10% from $7.4 million in FY2006 to $8.2 million in FY2007;

- Reduced operating loss before interest, amortization and taxes by 65% from negative $4.3 million in FY2006 to negative $1.5 million in FY2007;

- In fourth quarter of FY2007 the Corporation recorded recurring support revenue of $1.2 million compared to $0.8 million for the fourth quarter of FY2006;

- The Corporation's consolidated statement of cash flow shows cash consumption of less than $110,000 for the fourth quarter of FY2007.

In 2008, we plan to maintain our focus on efficiency and effectiveness to generate positive cash flow. However, we also see 2008 as a growth year for new sales as our sales department becomes more focused on specific US regions. Early in 2008, one of the Corporation's key competitors exited the GM IDMS program and this has significantly enhanced Quorum's sales opportunities.

2007 Financial Highlights

- 10% increase in gross revenues from FY2006.

- 15% increase in customer base from 175 to 201 installations.

- Net loss for FY2007 decreased to $1.952 million from $3.666 million in FY2006.

Financial Year ended Year ended Year ended
Highlights December 31, 2007 December 31, 2006 December 31, 2005

Gross revenue 8,162,503 $7,423,733 $5,772,973
Cost of products
and services sold 5,610,441 6,233,650 5,196,823

Gross profit 2,552,062 1,190,083 576,150

Loss before interest,
taxes and amortization
(EBITDA) (1,514,678) (4,302,926) (2,690,804)

Net loss (1,951,916) (3,666,353) (2,194,589)

Basic loss per share (0.051) (0.116) (0.079)
Fully diluted loss
per share (0.051) $ (0.116) $ (0.075)

Weighted average number
of common shares
Basic 38,214,449 31,517,432 27,634,483
Diluted 38,406,972 31,706,932 29,244,843

XSELLERATOR installations
- in the period 29 34 27
XSELLERATOR installations
- to date (year to date
reflects 3 lost
dealerships) 201 175 143
For detailed FY2006 and FY2005 financial information, please go to
www.Sedar.com or www.QuorumDMS.com.

Quorum is also pleased to announce today that it has closed a non-brokered private placement of 1,500 units ("Units") at a price of $1,000 per Unit for aggregate gross proceeds of $1,500,000 (the "Offering"). Each Unit is comprised of one 12% convertible secured debenture (a "Debenture") of the Corporation having a principal amount of $1,000 and 750 common share purchase warrants (the "Warrants") of the Corporation, each whole Warrant entitling the holder thereof to purchase one (1) common share (a "Common Share") in the capital of the Corporation at an exercise price of $0.55 per share until that date that is two (2) years from the earlier of the maturity date of the Debentures, being three (3) years from the date of closing, and the conversion date of the Debentures. The Debentures, Warrants and Common Shares issuable upon exercise of the Warrants are subject to a hold period of four (4) months from closing. The Corporation's obligations under the Debentures are secured by a first priority security interest in and to, and a first floating charge against, all of the Corporation's present and after-acquired property.

The net proceeds of the financing will be used to capitalize on the sales opportunity created by a key competitor exiting the GM IDMS program and for general corporate purposes, including software development, marketing and implementation and working capital.

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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