SENSIO Technologies Inc.

SENSIO Technologies Inc.

October 20, 2009 14:30 ET

SENSIO Makes Advances and Positions Itself Strategically in the Marketplace During the First Quarter of the 2009-2010 Fiscal Year

MONTREAL, QUEBEC--(Marketwire - Oct. 20, 2009) - SENSIO Technologies Inc. ("SENSIO") (TSX VENTURE:SIO), inventor of the SENSIO® 3D technology, presents its financial results for its first quarter ended August 31, 2009. The quarter was marked by numerous strategic advances, such as obtaining a U.S. patent for its technology, the signing of a licensing agreement with manufacturer Hyundai IT Corporation, and the adoption of the SENSIO format by Ubisoft for the 3D video games, including "Avatar: The Game". The revenues generated during the quarter arise in large part from the European deployment of SENSIO's technology in digital movie theaters. This deployment enabled the broadcasting of three live 3D events in Europe: the Don Giovanni Opera, a concert by Julien Clerc and a tennis match in France. "This is the most important quarter in SENSIO's history in terms of strategic achievements. Our revenues have increased as expected and our strategic advances have enabled us to position ourselves as the leader in the digital theater and consumer electronics markets, in addition to reinforcing our momentum," says Nicholas Routhier, SENSIO's President and Chief Executive Officer.

Important milestones from the quarter

- Awarding of the first key U.S. patent for SENSIO's 3D content distribution and formatting technology

- Signing of a licensing agreement with Hyundai IT Corporation for integration of SENSIO's technology into Hyundai IT's 3D televisions

- Ubisoft chooses the SENSIO format for the stereoscopic video games, starting with "Avatar: The Game"

- Continuation of the European deployment of SENSIO technology in digital movie theaters, and broadcasting of three live 3D events in Europe

- Raising $3,071,750 following the exercising of warrants

SENSIO deploys its technology in movie theaters on a second continent

After deployment in the United States of its SENSIO® 3D technology, which enables live broadcasting of 3D events into digital movie theaters, SENSIO pursued its deployment in several European countries. The expansion of this network enabled SENSIO to generate revenues of $198,668 during the first quarter compared to $33,647 during the corresponding quarter of the previous fiscal year. By deploying on a second continent, SENSIO reinforces its leadership position and approaches its objective of creating a worldwide network of movie theaters equipped with SENSIO's technology in order to be able to broadcast international 3D events simultaneously on multiple continents.

A unique offering for the consumer electronics market

SENSIO has made several significant advances in the consumer electronics market, such as obtaining its U.S. patent and acquiring new content in its format, such as the 3D video game "Avatar: The Game". At a time when the consumer electronics market is undergoing rapid growth, SENSIO has a patented technology to offer in addition to a content library as vast as it is varied. This includes 3D DVD movies, 3D events such as concerts and sports matches, a video game, and JVC's 2D-to-3D conversion technology, which has been offered by SENSIO for several years. SENSIO has succeeded in distinguishing itself and in significantly enhancing its offering. "We now possess multiple assets that provide us with a unique position in the marketplace. We are confident that these advances will enable us to sign agreements with many other manufacturers in the near future," explains Routhier.

The first consumer products to integrate SENSIO® 3D technology arrive on the market

SENSIO signed a licensing agreement during the quarter with Hyundai IT Corporation for integration of the SENSIO® 3D technology into Hyundai IT's 3D televisions. Commercialization of the product is expected during the fall in the U.S., European and Asian markets. In addition, Aspen Media's media servers, which integrate SENSIO's technology, arrived on major store shelves in August. With these media servers, consumers can watch movies in 3D in the home.

SENSIO raises $3,071,750 following the exercising of warrants

During the quarter, SENSIO issued shares following the exercising of warrants, enabling the Company to collect a total amount of $3,071,750. The majority of the warrants were exercised by institutional investors, who thus demonstrated once again their confidence in the Company and in its ability to deliver results.

Summary of financial results

During the first quarter of the 2010 fiscal year, SENSIO generated revenues of $210,161 compared to $131,477 for the quarter ended August 31, 2008 an increase of 59.8%. The majority of SENSIO's revenues generated during the first quarter arise from one of its target markets, the digital movie theater market. SENSIO's gross profit experienced a decrease, falling from 90.3% to 56.8%. This decrease is due to the fact that SENSIO sold a hardware solution in movie theaters located in Europe in order to enable it to rapidly deploy in this new market. SENSIO is currently working to develop a software solution for the European market similar to that of the U.S. market, which would enable the Company to achieve a gross margin that corresponds to its business model, which is based on revenues from royalties.

With regard to expenses, SENSIO has had to adjust to the acceleration of the consumer electronics and digital movie theater markets by increasing its marketing efforts. Although expenses for administration and research and development remained similar to those for the corresponding quarter of the previous fiscal year, the Company's selling expenses increased significantly during the first quarter, rising from $189,172 to $257,288.

Principal Financial Information

Quarters ended
August 31
2009 2008
Sales 210,161 131,477
Gross profit 119,459 118,664
Net loss fully diluted (453,462) (359,549)
Net loss per common share (0.0108) (0.0106)
Weighted average number of shares 42,041,648 33,915,281


Founded in 1999 and headquartered in Montreal, Canada, SENSIO develops and markets forward-looking stereoscopic technologies designed to offer the most advanced and immersive cinematographic experience available. Its flagship technology, SENSIO®3D, allows the high-quality distribution of 3D content through conventional 2D channels and playback on any display device, including plasma TVs, HDTV and glass-free 3D displays. Working with major Hollywood studios and large format 3D film producers, SENSIO has built up one of the world's largest libraries of 3D movies for the home entertainment market.

SENSIO® is a trademark of SENSIO Technologies Inc.

This news release contains forward-looking statements that reflect the Company's expectations with regard to future events. Actual events could differ significantly from those anticipated in this document.

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

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