VIQ Solutions Inc.
TSX VENTURE : VQS

VIQ Solutions Inc.

May 29, 2007 17:01 ET

VIQ Solutions Reports Fiscal 2007 First Quarter Results

MARKHAM, ONTARIO—-(Marketwire - May 29, 2007) - 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 month period ended March 31, 2007.

Revenues were $3.3 million for the three month period ended March 31, 2007 as compared to $2.47 million for the three month period ended March 31, 2006. Gross margin increased to 39% for the period as compared to 33% for the same period in 2006. Net loss for the three month period ended March 31, 2007 was $175,344, including approximately $156,000 of one-time costs associated with the new Australian transcription contracts as compared to a net loss of $667,777 for the three month period ended March 31, 2006. Net loss per common share was $0.00 for the three month period ended March 31, 2007 and $0.01 for the same period ended March 31, 2006.

Business Highlights for the Quarter:

- Achieved revenue growth of 34% over previous year's first quarter results as a result of revenue growth from our new product releases as well as growth in our transcription and recording services;

- Commenced roll out of new Encompass digital audio and video capture solution offering synchronized digital video capture resulting in immediate success in the marketplace with a 155% increase in our computer products and services sales as compared to the previous year;

- Awarded two major long-term Australian transcription and recording contracts during the period 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; and

- Significant improvement in financial performance for the first quarter over the previous year's results, resulting in positive cash from operations for the three months ended March 31, 2007.

"We are pleased with the revenue growth that we have been able to achieve in both our computer products and our transcription businesses" stated David Outhwaite, Chief Executive Officer of VIQ Solutions. "Our digital audio recording solutions have had unprecedented growth in the quarter as a result of our new feature-rich and reliable solutions as well as our on-going customer care," added Mr. Outhwaite.

Additional Information

Detailed financial information and Management's Discussion and Analysis of Results and Financial Condition for the quarter ended March 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, 2006, 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.

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