Vigil Health Solutions Inc.
TSX VENTURE : VGL

Vigil Health Solutions Inc.

August 13, 2007 09:00 ET

Vigil Health Solutions Reports First Quarter Results

Revenues up 202% over FY07; Sales Bookings up 109% over FY07

VICTORIA, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2007) - Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of operations for the quarter ending June 30, 2007.

Business highlights

- Revenues for the three-month period ended June 30, 2007 were $904 thousand; an increase of 202% compared to $300 thousand in the three-month period ended June 30, 2006.

- Sales bookings for the three-month period ended June 30, 2007 were $902 thousand; an increase of 109% compared to $432 thousand in the three-month period ended June 30, 2006.

- The Company held an order backlog of approximately $1.92 million at June 30, 2007 compared to $1.24 million in the quarter ended June 30, 2006.

- The Company significantly reduced its operating losses to $57 thousand for the quarter versus $357 during the same period last year.

- The Company released its next generation core platform software, Vigil 3.0, into a second beta site trial in June following positive outcomes from the first beta site installation. The Vigil 3.0 software facilitates better user functionality, greater scalability and broader interoperability with complementary systems.

"I am very pleased with our first quarter results," commented Troy Griffiths, President. "I believe this is testimony to the team's execution of our business plan and validates our product development and path to market strategies."

Financial Results

Revenue increased 202% over the same quarter of the previous year. The increase in revenue relates to a higher number of project installations completed in the quarter.

Bookings for the three-month period ended June 30, 2007 were $902 thousand; an increase of 109% compared to $432 thousand in the three-month period ended June 30, 2006.

At June 30, 2007 Vigil had a backlog of approximately $1.92 million (including $722 thousand in deposits and progress billings, recorded as deferred revenue on balance sheet) compared to $1.24 million at June 30, 2006.

The gross margin percentage for the three-months ended June 30, 2007 was 52% compared to 45% for the three-months ended June 30, 2006. Gross margins are above management's expectations of annual margins of between 40% and 45%. Higher margins can be attributed to more favourable product mix for the projects commissioned in this quarter.

Losses for the three-month period ended June 30, 2007 were $86 thousand or $0.001 per share a decrease of 77% compared to $371 thousand, or $0.004 per share for the previous year. The decrease in losses can be attributed to the revenues particularly the increase in gross margins. Operating expenses for the three months ended June 30, 2007 were $524 thousand, up 7% from $493 thousand in the same quarter of the prior year.

The following is a summary of our financial performance for the three months ended June 30, 2007. Detailed financial statements along with Management Discussion and Analysis have been filed with SEDAR and may be viewed at (www.sedar.com) or on the Company web site (http://www.vigil.com/investors/financial-statements/).

Financial information will be mailed to entitled security holders on August 16, 2007. Or, upon notice to the Company, entitled security holders may request a copy of financials in advance.



Summary Financial Information

Three Months Ended
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30-Jun-07 30-Jun-06

Revenue: $ 904,078 $ 300,277

Cost of sales: $ 437,658 $ 164,975
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Gross Profit: $ 466,420 $ 135,302

Expenses $ 523,878 $ 492,542
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Loss before the following items $ (57,458) $ (357,240)

Other income (expense): $ (28,623) $ (13,968)

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Loss for the period $ (86,081) $ (371,208)
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Certain information contained in this news release may constitute forward-looking statements within the meaning of applicable securities laws. Forward looking statements may include estimates, plans, expectations, opinions, forecasts or other statements that are not statements of fact. Although the Company believes that the expectations are reasonable, actual events or results may differ from the Company's expectations.

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

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