Zedi Inc.
TSX VENTURE : ZED

Zedi Inc.

August 13, 2008 19:45 ET

Zedi Inc. Announces Second Quarter 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - Aug. 13, 2008) - Zedi Inc. (the "Company" or "Zedi") (TSX VENTURE:ZED) today releases results for Q2 of 2008. "Our positive Q2 results are proof that the continued focus and execution of our strategy delivers results. Despite an extremely wet spring break-up throughout the second quarter, we have been able to leverage our full suite of products and services to produce strong financial results - a trend we expect to maintain," said Matthew Heffernan, Zedi President & CEO. The second quarter 2008 financial statements and MD&A are filed on SEDAR and can be accessed at www.sedar.com or on the Company's website at www.zedi.ca.

Revenues for the Q2 of 2008 were $10,033,000, compared to $4,870,000 in 2007, an increase of approximately 106%. The Company continues to generate strong positive cash flow with cash on hand at the end of the Q2 2008 of $11,313,000 and working capital of $16,365,000, while spending $3,258,000 to purchase shares under the Company's normal course issuer bid and the acquisition of Universal Measurement Solutions. None of the Company's cash is invested in asset-backed commercial paper.

Net income before tax for Q2 2008 was $424,000 compared to net loss before tax of $1,145,000 for Q2 2007, an improvement of $1,569,000. A stock-based compensation expense of $458,000 was recognized in Q2 2008 compared to $500,000 for Q2 2007. Although these are non-cash expenses, with no actual impact on the Company's operations, generally accepted accounting principles require that they be recognized in the calculation of net income. Earnings before interest, taxes, depreciation, amortization and stock-based compensation expense ("EBITDAS") for Q2 2008 was $1,659,000 compared to ($83,000) for Q2 2007. While EBITDAS is a non GAAP measure it is a common measure used by industry to normalize non-operating factors that are included in the net income results.

Zedi continued to deliver on its promises in Q2 with the introduction of new products and services. With the acquisition of Universal Measurement Solutions Ltd. and the launch of Zedi Vital™, an advanced field data capture system, on May 1st, every well and facility site can benefit from Zedi technology and production operations management solutions. On May 29th, the Company implemented its 10,000th site for monitoring oil and gas production. Whether a site produces oil or gas, sees high or low production volumes, is remote or easily accessible, Zedi provides the insight needed to make more effective production operations decisions.

Zedi specializes in production operations management, delivering systems and services that help oil and gas producers to efficiently manage people, assets and information. We enable our customers to increase earnings from production, decrease operating costs, effectively utilize human, physical and fiscal assets and mitigate compliance risk.

Established in 1987, Zedi has enhanced the operational performance of more than 10,000 sites for over 300 upstream, midstream and oilfield service customers. Please visit www.zedi.ca for more information.

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

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