VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

April 24, 2008 09:05 ET

VIQ Solutions Reports 2007 Year End Results, Well Positioned for Market Leadership

MARKHAM, ONTARIO--(Marketwire - April 24, 2008) - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX VENTURE:VQS), a world leader in computer-based digital audio capture and management, today reported its financial results for the three and twelve month periods ended December 31, 2007. In 2007, VIQ Solutions steadily improved financial performance and solidified its position as a market leader in both markets in which it currently operates.

"We are very pleased with recent contract wins in both our technology and transcription business units. We feel confident that these recent contracts and real market opportunities will allow us to achieve our goal of profitability and positive cash flow in 2008," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We are focused on continuing to deliver improved financial performance in 2008 and dedicated to providing top tier products and services to our clients," concluded Mr. Outhwaite.

Fourth Quarter Results

Revenue was $2.8 million for the three month period ended December 31, 2007, down from $3.1 million for the same period in 2006. Gross margins were 36% for the period as compared to 42% for the fourth quarter of 2006. Cash flow from operations was $36,403 for the quarter as compared to $33,679 for 2006. Net loss for the fourth quarter of 2007 was $356,399 as compared to a net income of $190,316 for the fourth quarter of 2006. Net income per common share was $0.005 for the three month period ended December 31, 2007 as compared to a net income per common share of $0.00 for 2006.

Annual Results

Revenue was $12.3 million for the year ended December 31, 2007 as compared to $11.3 million for the previous year. Net loss for the year was $0.97 million or $0.01 per share as compared to a net loss of $1.3 million or $0.02 per share for the previous year.

2007 Business Highlights:

- Selected by Nortel Government Solutions for the United States Department of Justice, Executive Office for Immigration Review to provide a complete digital audio recording solution for approximately 375 fixed and portable locations across the United States;

- Expanded our market opportunities with the release of new products including the Encompass Server solution, the VIQ Shuttle and the VIQ Shuttle DRA, providing an enhanced service offering as well as back office workflow management capabilities;

- Awarded two major long-term Australian transcription and recording contracts during the year in addition to the Western Australian contract that was awarded in late 2006, confirming our position as the market leader in the Australian transcription and recording market;

- Awarded a U.S. General Services Administration ("GSA") schedule as of June 26, 2007 whereby the Corporation's core commercial products and services will be readily available to government agencies, providing VIQ Solutions with direct access to U.S. government purchase contracts;

- Subsequent to the year end, selected by the government of Newfoundland and Labrador to provide digital recording solutions in all Supreme and Provincial courts in the province; and

- Subsequent to the year end, announced that the Corporation is in late-stage negotiations with a third party respecting a multi-year contract to provide digital audio recording and management software into multiple locations.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the year ended December 31, 2007 will be posted on VIQ Solutions' website (under Investor Relations) at www.viqsolutions.com and on SEDAR's website at www.sedar.com. The financial information included in this release is qualified in its entirety and should be read together with the audited consolidated financial statements for the year ended December 31, 2007, including the notes thereto.

About VIQ Solutions Inc.

VIQ Solutions is recognized as a global provider in the digital audio industry with innovative product and service-based solutions for voice-driven systems in the legal, medical, business, and government industries. VIQ Solutions provides an integrated range of digital record workflow solutions, including digital audio and video capture, workflow management software, transcription services, interactive electronic scheduling, and case management integration, all from one central, secure database.

Forward-looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "will," and "would" and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions Inc.'s current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by VIQ Solutions Inc. with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. VIQ Solutions Inc. does not intend and does not assume any obligation to update these forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.

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