YANGAROO Inc.

TSX VENTURE : YOO
OTCBB : YOOIF


YANGAROO Inc.

August 27, 2014 16:00 ET

Yangaroo Reports Second Quarter Results

Advertising Sign-ups Surge in First Half of Year

TORONTO, ONTARIO--(Marketwired - Aug. 27, 2014) - YANGAROO Inc. (TSX VENTURE:YOO) (OTCBB:YOOIF), the industry's leading secure digital media distribution company today announced its results for the second quarter ended June 30, 2014. Revenues for the second quarter of 2014 increased by 2% compared to the second quarter of 2013, while YTD revenues have increased 10% over the same period in 2013.

Music Video revenue increased by 18%, Awards Management revenue increased by 14% and Advertising Revenues were down 8% over same period in 2013. This decrease was due primarily to large customer's loss of some major brands previously delivered by YANGAROO. Operating expenses during this period increased by 61% due primarily to expansion of the Advertising sales and customer service team based in New York City.

More specifically, YANGAROO Advertising has made great strides in the first half of this year, with 30 new clients added since May, bringing the year-to-date total to over 52 new clients. As one new client, Desiree Vick of The PPS Group explained: "I have always been impressed with YANGAROO's easy-to-use platform, great customer service, and responsive advertising support team; they are always pleasant and quick to respond." In addition, YANGAROO has signed 1,000 new destinations and introduced new revenue workflows, such as the Cablevision Media Sales private portal. The Advertising Division's growth, has warranted the need to hire more team members focused on sales, customer service, and technical development. This has positioned the division for the onboarding of the new clients, as well as the upcoming seasonal increase in advertising activity, expected in the late third and fourth quarters.

The Entertainment Division remains strong, stable, and continues to grow in North America with future International growth expected.

"The first half of 2014 has been a transitional period for YANGAROO," said Gary Moss, President and CEO, "New customer signings in the Advertising division, at 52 so far this year, has exceeded expectations. The team we have assembled has had an immediate impact in broadening our customer base. Revenue from these new accounts started to flow in Q2, generating more than 50% of total advertising revenue in May and June. This was unfortunately offset by the loss of several brands by one of our large customers, masking the impact of the new business. Most of the new customers have now completed their testing and we expect to see an increase in revenue over the remainder of 2014 as they come online. At the current pace of customer acquisition, we expect to enter 2015 with 80-100 new customers. The scalability of the systems and infrastructure we have built, will result in rapid sales and profit growth going forward."

Summary of operating results for the periods ended June 30th:

$CDN Six Months Second Quarter
2014 2013 2014 2013
Revenue 1,752,307 1,598,854 852,695 835,751
Adjusted EBITDA (loss) (1,025,096 ) (380,300 ) (622,862 ) (59,072 )
Adjusted normalized EBITDA (loss) (754,961 ) (276,551 ) (472,595 ) (78,375 )
Net loss for the period (1,298,200 ) (843,072 ) (803,319 ) (298,300 )
Loss per share (basic & diluted) (0.031 ) (0.052 ) (0.018 ) (0.018 )

About YANGAROO:

YANGAROO is a company dedicated to digital media management. YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital cloud based solution focused on the music and advertising industries. The DMDS solution provides more accountable, effective, and far less costly digital management of broadcast quality media via the Internet. It replaces the physical, satellite and closed network distribution and management of audio and video content, for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients. The YANGAROO Awards platform is now the industry standard and powers most of North America's major awards shows.

YANGAROO has offices in Toronto, New York, and Los Angeles. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.

The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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