SOURCE: Thinkpath Inc.

April 18, 2006 05:39 ET

Thinkpath Releases Financial Results for the Year Ended December 31, 2005

TORONTO -- (MARKET WIRE) -- April 18, 2006 -- Thinkpath Inc. (OTC BB: THPHF) today announced financial results for the year ended December 31, 2005.

Revenues for the year ended December 31, 2005 increased by $660,000 or 5% to $13,280,000 compared to $12,620,000 for the year ended December 31, 2004. This increase is primarily attributable to the expansion of our engineering services in Ontario, Canada.

Gross profit for the year ended December 31, 2005 decreased by $270,000, or 6% to $4,220,000 compared to $4,490,000 for the year ended December 31, 2004. The decrease in gross profit can be attributed to the addition of lower margin engineering projects during the second half of the year as a means of attracting and establishing new clients and delayed start dates of higher margin defense projects.

For the year ended December 31, 2005, the company recorded a loss from continuing operations of $1,330,000 compared to income of $430,000 for the year ended December 31, 2004. This loss is largely attributable to certain non-cash items including depreciation and amortization of $370,000, a write down of goodwill of $1,460,000, and a write down of other assets and property and equipment of $58,000. These expenses were offset by financing costs and marked-to-market adjustments of $450,000 and debt forgiveness of $65,000. On a cash basis, the company had income from continuing operations of $40,000 for the year ended December 31, 2005.

Included in the results for the year ended December 31, 2004 are certain non-cash items including depreciation and amortization expense of $520,000 and the write down of property and equipment of $270,000 which were offset by debt forgiveness of $1,140,000. On a cash basis, the company had income from continuing operations of $80,000 for the year ended December 31, 2004.

For the year ended December 31, 2005, the company recorded a net loss of $2,840,000 or (0.65) per share compared to a net loss of $2,180,000 or (0.80) per share in 2004. Included in the net loss for the years ended December 31, 2005 and 2004 is interest expense of $1,000,000 and $1,605,000 respectively, related to the 12% Senior Secured Convertible Debentures. On June 27, 2005 the Company paid off the convertible debenture holders and all of their outstanding warrants were cancelled.

At December 31, 2005, the company had cash flow from operations of $80,000 compared to a deficiency $1,270,000 at December 31, 2004.

"We are very enthused with the sales growth in Canada, considering the challenge of breaking into a new market, and with the expectation of the delayed defense contracts ramping up in the second half of 2006 it should be a solid year," stated Declan French, Chairman and CEO. "Our plan for 2006 is an aggressive combination of sales growth and strategic acquisitions and with the recent addition of several sales professionals coupled with the support of our lender, Laurus Master Fund, Ltd., increases the odds of success in executing our plan."

About Thinkpath Inc.

Thinkpath is a global provider of engineering solutions. The company's engineering and design services cover every facet of the project from concept to SLA prototyping to complete turnkey packages that deliver a finished, operating system. Thinkpath engineers handle the drafting, detailing and parametric modeling. They work in diverse engineering disciplines including aeronautical, civil, electrical, environmental, mechanical and structural engineering.

For further information about the company, visit us at: www.thinkpath.com.

Forward-Looking Statement

This press release contains forward-looking statements regarding Thinkpath Inc., its business prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause Thinkpath's actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Readers are urged to carefully review and consider the various disclosures made by Thinkpath in this news release and other reports filed with the Securities and Exchange Commission that attempt to advise interested parties of the risks and factors that may affect Thinkpath's business.

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