Cyberplex Inc. Reports a Strong Second Quarter 2008



    Revenue More Than Doubles Year-Over-Year

    TORONTO, Aug. 7 /CNW/ - Cyberplex Inc. (TSX: CX) a leader in web
advertising solutions, online customer acquisition strategies and technology
development, today announced record second-quarter results and its 7th
consecutive quarter of revenue growth. Cyberplex's total consolidated revenue
for the second quarter of 2008 was $9.5 million, an increase of 114% over the
$4.4 million reported for second quarter of 2007.

    
    Financial Highlights
    --------------------

      -  CX Digital Media, Cyberplex's online advertising division, increased
         revenue by 151% to $8.5 million, when compared to the previous year.
      -  Earnings before amortization, interest and other items increased to
         over $350,000, an increase of 58% from $221,000 last quarter.
      -  Net income grew to $206,522, an increase of 300% from the previous
         quarter.
      -  Sequential quarterly revenue growth of over 20%.
      -  Secured an operating line of credit of $5.0 million from the Royal
         Bank of Canada.
    

    "Cyberplex delivered another outstanding quarter," said Geoffrey
Rotstein, President and CEO, Cyberplex Inc. "The second quarter demonstrated
the strategic value of our performance-based marketing solutions and our
team's ability to deliver in very difficult market conditions. Notwithstanding
the macro-economic cross-currents, our business pipeline remains healthy, and
we are confident in our ability to execute. In addition, by securing the
$5.0 million operating line, we believe we have more than sufficient capital
to fund our business plan for the foreseeable future."

    
    Second Quarter Highlights
    -------------------------

      -  Canadian Business Magazine ranked Cyberplex Inc. as one of the Top
         100 Technology Companies in Canada.
      -  CDN Magazine ranked Cyberplex Inc. as one of Canada's Top 100
         Solution Providers.
      -  Branham Group ranked Cyberplex Inc. as the 3rd top Mover and Shaker
         in Canada, and also the 6th fastest growth company in Canada.
      -  Average revenue per customer grew by over 5% quarter over quarter.
    

    "Looking ahead, we see many growth opportunities for Cyberplex as we
continue to aggressively strengthen our online advertising division - CX
Digital Media, grow into new and adjacent markets and expand our presence
around the globe," Rotstein added. "The power of our performance-based
marketing solution positions us well to extend our leadership and continue
gaining market share."

    
    Operational Results:
    --------------------
    

    For the quarter ended June 30, 2008, the Company generated revenue of
$9.5 million, an increase of $5.1 million or 114% when compared to the
$4.4 million generated in the second quarter of 2007. This increase resulted
directly from our online advertising division, which generated $8.5 million in
revenue resulting in a year-over-year revenue growth of 151% combined with
revenue from our technology services division of approximately $1.0 million.
    Gross profit for the quarter ended June 30, 2008 was $3.2 million
resulting in a gross margin of 34% compared to $2.6 million or 32% gross
margin last quarter. This increase resulted from the Company executing on
strategic revenue models during the quarter and executing new initiatives to
build and strengthen its network. Earnings before amortization, interest and
other items was over $350,000, an increase of 58% over last quarter. As the
Company continues to bolster its advertising division and develop its unique
offers and proprietary technologies, we expect our trend of revenue growth and
greater operating leverage to continue.

    
    Conference Call Details:
    ------------------------
    

    In conjunction with this announcement, Cyberplex will host a conference
call Thursday, August 7, 2008 at 4:30pm EST to discuss the results and the
financial performance. To access the call, please dial 888-892-3255. Please
call five minutes prior to the call.
    A replay of the conference call will be available as of 12:00pm EST the
same day, until midnight August 16, 2008. To access the replay dial
1-800-937-6305 followed by the passcode 281442.

    
    About Cyberplex
    ---------------
    

    Cyberplex Inc. (www.cyberplex.com) is a leader in providing web
advertising solutions, online customer acquisition strategies and technology
development. The Company, through its subsidiaries, has developed a
proprietary affiliate network which combined with advertising relationships
and teams of technology consultants and design, usability and solutions
specialists, assist customers with all aspects of their web-based programs as
they design, develop and promote solutions that deliver results.
    With over 14 years of experience serving Fortune 1000 clients including
FTD, Xerox, Sony Canada, IAC, Atlantic Lottery Corporation, Vista Print,
Aecon, Ontario Power Generation, Scotia Bank and the Royal Bank of Canada.
Cyberplex is frequently the firm of choice for business leaders looking for
reliable solutions. Cyberplex serves clients across Canada and the US, and is
headquartered in Toronto, Canada with offices in San Diego and Halifax.

    Forward-Looking Statements

    This news release may contain forward-looking statements that are based
on management's current expectations and are subject to known and unknown
uncertainties and risks, which could cause actual results to differ materially
from those contemplated or implied by such forward-looking statements.
Cyberplex is under no obligation to update any forward-looking statements
contained herein should material facts change due to new information, future
events or otherwise.

    
    CYBERPLEX INC.
    CONSOLIDATED BALANCE SHEETS

                                                         as at         as at
                                                       June 30,  December 31,
                                                          2008          2007
                                                  ------------- -------------
                                                    (unaudited)   (unaudited)

    ASSETS

    Current Assets:
      Cash, cash equivalents and short-term
       investments                                $  1,932,775  $    473,177
      Accounts receivable, net of allowance for
       doubtful accounts of $827,954 (2007 -
       752,015)                                      4,683,094     4,264,373
      Prepaid expenses and other assets                640,284       338,024
                                                  ------------- -------------
                                                     7,256,153     5,075,574

    Capital assets                                   1,000,406     1,019,496
    Goodwill                                         8,637,015     5,959,615
    Intangible assets                                   31,256       187,157
                                                  ------------- -------------
                                                  $ 16,924,830  $ 12,241,842
                                                  ------------- -------------
                                                  ------------- -------------

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Current Liabilities:
      Bank indebtedness                           $          -  $    678,967
      Accounts payable and accrued liabilities       3,190,188     3,185,545
      Deferred lease inducements                        25,791        51,582
      Unearned revenue                                  72,756       149,535
                                                  ------------- -------------
                                                     3,288,735     4,065,629

    Deferred lease inducements                         216,097       216,097
                                                  ------------- -------------
                                                       216,097       216,097

    Shareholders' equity                            13,419,998     7,960,116

                                                  ------------- -------------
                                                  $ 16,924,830  $ 12,241,842
                                                  ------------- -------------
                                                  ------------- -------------



    CYBERPLEX INC.
    CONSOLIDATED STATEMENT OF OPERATIONS

                              Three months ended            Six months ended
                           June 30,      June 30,      June 30,      June 30,
                              2008          2007          2008          2007
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)
                      ------------- ------------- ------------- -------------

    Revenue           $  9,471,604  $  4,435,563  $ 17,368,484  $  7,474,479
    Cost of revenue      6,255,891     2,591,266    11,592,837     4,530,582
                      ------------- ------------- ------------- -------------
                         3,215,713     1,844,297     5,775,647     2,943,897

      Sales and
       marketing         1,835,838       986,742     3,329,153     1,476,799
      General and
       administrative      999,972       731,324     1,919,775     1,481,628
      Foreign exchange
       (gain) loss          29,775       129,735       (44,588)      142,231
                      ------------- ------------- ------------- -------------
                         2,865,585     1,847,801     5,204,340     3,100,658

    Income (loss)
     before undernoted
     items                 350,128        (3,504)      571,307      (156,761)

      Amortization of
       capital assets       74,833        61,151       149,030       116,275
      Amortization of
       intangible assets    69,571        97,611       155,901       195,222

    Income (loss) from
     operations            205,724      (162,266)      266,376      (468,258)

      Interest expense     (11,439)            -       (32,818)            -
      Interest income       12,237        15,478        24,821        41,893

    Income (loss)
     before income
     taxes                 206,522      (146,788)      258,379      (426,365)

    Income tax
     recovery:
      Future                     -       (35,257)            -       (70,514)

                      ------------- ------------- ------------- -------------
    Income (loss)          206,522      (111,531)      258,379      (355,851)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Other comprehensive
     income (loss)

    Unrealized gain on
     marketable securities       -       (13,923)            -         2,216

                      ------------- ------------- ------------- -------------
    Income (loss) and
     other comprehensive
     income (loss)        $206,522     $(125,454)     $258,379     $(353,635)
                      ------------- ------------- ------------- -------------
                      ------------- ------------- ------------- -------------

    Basic and diluted
     earnings (loss)
     per share               $0.00        $(0.00)        $0.01        $(0.01)

    Weighted average
     number of common
     shares used in:
      Basic             52,286,535    42,130,545    49,703,691    42,107,595
      Diluted           53,399,226    42,130,545    50,807,817    42,107,595
    





For further information:

For further information: Susie Ibbotson, Media Relations, Cyberplex
Inc., (416) 260-4763, 1-888-597-8889 ext. 4763, susie.ibbotson@cyberplex.com

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