Gemcom Software International Inc.
TSX : GCM

Gemcom Software International Inc.

August 10, 2005 17:40 ET

Revenue and Profitability Growth Highlight Gemcom's First Quarter

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 10, 2005) - Gemcom Software International Inc. (TSX:GCM) is pleased to announce the Company's financial results for its first quarter, which ended June 30, 2005. For this quarter, Gemcom reported a net income increase of $78,865 to $319,048 (basic and diluted earnings per share of $0.01). In the first quarter of the prior fiscal year, the company reported a net income of $240,183 (basic and diluted earnings per share of $0.01).

"Gemcom's objectives of increasing revenue and expanding our customer base by offering flexible, integrated software solutions have translated into a strong financial quarter," said Garth Albright, Chief Financial Officer. "We will continue to execute on these objectives throughout the remainder of fiscal 2006."

Key Q1 Financial Highlights:

- Quarter-over-quarter revenue growth was 21%. Total revenue for the fiscal year to date was $4.6 million versus $3.8 million over the same period in the prior fiscal year.

- Net earnings grew 33% when compared to the first quarter of the prior fiscal year.

- Working capital increased 27% from $1.7 million at the beginning of the quarter to $2.1 million at its end.

- Investment in research and development increased 29% to $1.0 million when compared to the first quarter of the prior fiscal year.

"The Company's focus on working with our clients to fully understand their needs and technical requirements has enabled us to enhance and build upon our solutions in a manner that has allowed us to increase total earnings and profitability," commented Rick Moignard, President and CEO. "During this quarter we delivered on our targeted development milestones with the release of GEMS 5.5 and Whittle 3.3. We are anticipating the release in Q2 of Gemcom In-Site™, the next generation of our proven production management technology."

Complete financial statements can be found via SEDAR (www.sedar.com), or on the Company's website (www.gemcomsoftware.com).

About Gemcom

Gemcom is a global provider of Mine Production Management Solutions ("MPMS"). Established in 1985, the Company delivers technical mining applications, professional services, training, and support. Reliable, timely information provided by Gemcom's MPMS allows for greater control throughout the mine lifecycle, which can translate into significant productivity gains.

Gemcom has a customer base of more than 1000 mine sites in over 85 countries, including such industry giants as Anglo American, BHP Billiton, Codelco, CVRD, De Beers, Falconbridge, Rio Tinto, and Teck Cominco, which rely on Gemcom's software to facilitate economic decision-making at their operations.

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