VIQ Solutions Inc.

VIQ Solutions Inc.

August 28, 2006 17:01 ET

VIQ Solutions Reports Fiscal 2006 Second Quarter Results

MARKHAM, ONTARIO—-(Marketwire – Aug. 28, 2006) - 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 six month periods ended June 30, 2006.

Revenues were $2.9 million and $5.4 million for the three and six month periods ended June 30, 2006 as compared to $3.2 million and $5.8 million for the three and six month periods ended June 30, 2005. Net loss for the three and six month periods ended June 30, 2006 was $0.56 million and $1.2 million as compared to $0.58 million and $2.2 million for the three and six month periods ended June 30, 2005. Net loss per common share was $0.01 and $0.02 for the three and six month periods ended June 30, 2006 and $0.01 and $0.04 for the same periods ended June 30, 2005.

Business Highlights for the Quarter:

- The Corporation solidified its global distribution model and entered into a North American distribution agreement for VIQ Solutions products and services with Smoltz Distributing, a digital and analog audio distribution specialist with an established network of over 400 dealers across the United States;

- The Corporation completed a non-brokered private placement financing of 3,090,000 common shares at $0.19 per share for aggregate gross proceeds of $587,100; and

- Subsequent to the period, the Corporation obtained a two-year $455,000 secured bridge loan. The bridge loan bears interest at a rate of 12%, payable annually and includes the issuance to the lenders of 2,275,000 common share purchase warrants, which have an exercise price of $0.16 for the first year and $0.24 for the second year.


Management will maintain its focus on rationalizing and controlling costs, capitalizing on the strong market opportunities for VIQ Solutions' solutions and continuing to develop its network of global distribution and system integration partners.

Management believes that the Corporation's digital audio recording solutions will uniquely address the existing and rapidly growing need for integrated digital recording solutions from a centralized database, inclusive of case management capabilities, as currently being mandated by many courts. The Corporation's solutions, which have been developed to address all solutions from simple installations to large complex enterprise solutions, are ideally suited to address the growing demand for customized system integration including data and case management solutions.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the quarter ended June 30, 2006 will be posted on VIQ Solutions' website (under Investor Relations) at and on SEDAR's website at 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, 2005, 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 shouldassumptions 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.

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