D-BOX Releases 2008 Second Quarter Results



    LONGUEUIL, QC, Nov. 29 /CNW/ - D-BOX Technologies Inc. (TSX-V: DBO.A), a
leading provider of motion technology for immersive home entertainment, today
released its financial results for the second quarter ended September 30,
2007.

    
    Q2 2008 Highlights

    -   17% revenue growth from the same quarter of the previous year;
    -   Increased liquidities to $11 million, following the second closing of
        a public offering that raised $1.5 million this quarter;
    -   Launched retail version of the GP-200 gaming chair at the CEDIA Expo
        that is now available as an accessory to HP's Voodoo brand of gaming
        PCs;
    -   Launched new loveseat-version UMP-200 Universal Motion Platform,
        which received two commendations, including the Electronic House
        Product of the Year award;
    -   Concluded agreement with Audiokinetic for the creation of a software
        tool that enables users to design and embed motion effects in video
        games.
    

    "We are pleased with our increased revenues for the quarter, a direct
result of our sales and marketing initiatives. Also, from their initial
launching, the GP-200 gaming chair and the UMP-200 platform have received an
overwhelming reception from our customers and have contributed to our revenues
increase" said Claude Mc Master, President and CEO of D-BOX Technologies.
"Funds raised through our public offering will serve to accelerate current
growth and enable us to focus our efforts towards developing new partnerships
with important players in the entertainment industry. We have already made
progress on this front with the signing of a new license agreement on November
14th, with Lionsgate, the largest independent studio in the U.S."
    D-BOX posted $1,148,733 in operating revenues for the second quarter of
2008, compared to $980,457 for the same period of the previous year. Operating
expenses totaled $1,287,563 in comparison to last year's operating expenses of
$1,020,026. Net loss came in at $784,909 ($0.009 per share), compared to last
year's net loss of $598,727 ($0.011 per share) for the same period. This
progress is due to a significant increase in the portion of revenues derived
from D-BOX products compared to revenues coming from the arcade market. The
increase in sales of D-BOX products enabled the Company to reduce the
percentage of revenues coming from a single major client in the arcade market
from 57% of total sales in the same quarter last year, to 26% this quarter.
Higher operating expenses were primarily the result of new hires over the past
year and expanded sales and marketing activities.

    About D-BOX

    D-BOX Technologies designs and manufactures high-technology motion
systems destined mainly for the entertainment industry. Its unique, patented
technology uses motion codes specifically programmed for each film, TV program
or video game, resulting in motion that is perfectly synchronized with
on-screen action. By forming strong industry alliances, D-BOX's award-winning
motion technology is creating a global standard in the entertainment world.
For more information, please visit www.d-box.com.
    D-BOX(R) is a registered trademark and Motion Code is a trademark of
D-Box Technologies Inc. Other names are for informational purposes only and
may be trademarks of their respective owners.

    Forward-Looking Statements

    Certain statements included herein, including those that express
management's expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws.
Forward-looking statements are necessarily based upon a number of estimates
and assumptions that, while considered reasonable by management at this time,
are inherently subject to significant business, economic and competitive
uncertainties and contingencies. We caution that such forward-looking
statements involve known and unknown risks, uncertainties and other risks that
may cause our actual financial results, performance, or achievements to be
materially different from our estimated future results, performance or
achievements expressed or implied by those forward-looking statements.
Numerous factors could cause actual results to differ materially from those in
the forward-looking statements, including without limitation, our ability to
achieve increased market acceptance for our product offerings and penetrate
new markets; the existence of undetected errors or similar problems in our
products; our ability to manage our growth; our ability to compete
successfully; potential liabilities; maintaining our intellectual property
rights and litigation involving intellectual property rights; our dependence
on the expertise of our key personnel; and our access to sufficient capital to
fund our future requirements. This list is not exhaustive of the factors that
may affect any of our forward-looking statements. Investors are cautioned not
to put undue reliance on forward-looking statements. All subsequent written
and oral forward-looking statements attributable to D-BOX or persons acting on
our behalf are expressly qualified in their entirety by this notice. We
disclaim any intent or obligation to update publicly these forward-looking
statements, whether as a result of new information, future events or
otherwise. Risks and uncertainties about our business are more fully discussed
in our Annual Report.

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

    
    D-BOX TECHNOLOGIES INC.

    Unaudited Consolidated Interim Financial Statements

    Second Quarter and Six months period ended on September 30th, 2007


    D-BOX Technologies Inc.
    UNAUDITED CONSOLIDATED INTERIM BALANCE SHEETS


    As of                                        September 30th,    March 31,
                                                           2007         2007
                                                -----------------------------
                                                              $            $

    ASSETS
    Current assets
    Cash and cash equivalents                        10,983,605      931,163
    Short-term investments                                    -    1,799,873
    Accounts receivable                               1,152,112      917,559
    Inventories                                       1,533,325    1,226,925
    Prepaid expenses                                     95,773       34,028
    -------------------------------------------------------------------------
                                                     13,764,815    4,909,548
    -------------------------------------------------------------------------
    Property, plant and equipment                       452,997      429,320
    Intangible assets                                   208,702      190,044
    -------------------------------------------------------------------------
                                                     14,426,514    5,528,912
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Accounts payable and accrued liabilities          1,178,862    1,168,123
    Current portion of long-term debt                    15,336       15,182
    -------------------------------------------------------------------------
                                                      1,194,198    1,183,305
    Long-term debt                                      747,354      742,317
    -------------------------------------------------------------------------
                                                      1,941,552    1,925,622
    -------------------------------------------------------------------------

    Shareholders' equity
    Share capital                                    22,615,901   12,324,101
    Warrants                                            841,262      517,620
    Contributed surplus                                 340,705      291,716
    Equity component of convertible debentures           89,278       89,278
    Déficit                                         (11,402,184)  (9,619,425)
    -------------------------------------------------------------------------
                                                     12,484,962    3,603,290
    -------------------------------------------------------------------------
                                                     14,426,514    5,528,912
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    D-BOX Technologies Inc.
    UNAUDITED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND DEFICIT

                           --------------------------------------------------
                                  Second Quarter              Six months
                           --------------------------------------------------
    For the second Quarter
     ended September 30th,       2007         2006         2007         2006
                           --------------------------------------------------
                                    $            $            $            $
    Revenues                1,148,733      980,457    1,951,271    2,091,918
    Cost of goods sold        646,079      559,158    1,169,168    1,124,084
    -------------------------------------------------------------------------
    Gross profit              502,654      421,299      782,103      967,834
    -------------------------------------------------------------------------

    Expenses
    Selling and marketing     762,038      436,774    1,305,921      765,566
    Administrative            467,708      348,560      929,922      657,871
    Research and development  164,412      155,223      364,806      291,176
    Financial                (106,595)      79,469      (35,787)     171,474
    -------------------------------------------------------------------------
                            1,287,563    1,020,026    2,564,862    1,886,087
    -------------------------------------------------------------------------
    Net loss                 (784,909)    (598,727)  (1,782,759)    (918,253)

    Deficit, beginning of
     period               (10,617,275)  (7,860,416)  (9,619,425)  (7,540,890)
    -------------------------------------------------------------------------
    Deficit, end of
     period               (11,402,184)  (8,459,143) (11,402,184)  (8,459,143)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic and diluted
     loss per share           (0.0085)     (0.0110)     (0.0238)     (0.0169)
    -------------------------------------------------------------------------

    Weighted average
     number of shares
     outstanding           84,480,485   54,377,333   74,883,912   54,212,393
    -------------------------------------------------------------------------


    D-BOX Technologies Inc.
    UNAUDITED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS


                           --------------------------------------------------
                                  Second Quarter              Six months
                           --------------------------------------------------
    For the second Quarter
     ended September 30th,       2007         2006         2007         2006
                           --------------------------------------------------
                                    $            $                         $

    OPERATING ACTIVITIES
    Net loss                 (784 909)    (598,727)  (1,782,759)    (918,253)
    Items not affecting cash:
      Amortization of
       property, plant
       and equipment           33,966       20,017       66,286       34,729
      Amortization of
       intangible assets        8,765        5,913       16,477       11,496
    Stock-based compensation   21,748       24,111       48,989       49,290
      Accrued interest
       and other non-cash
       interest expense on
       convertible debentures   9,067       23,243       17,127       53,571
    -------------------------------------------------------------------------
                             (711,363)    (525,443)  (1,633,880)    (769,167)
    Net change in non-cash
     working capital items
      Accounts receivable    (267,493)      (7,186)    (234,553)      25,950
      Inventories            (218,049)     (10,949)    (306,400)      38,734
      Prepaid expenses        (40,441)      13,251      (61,745)      (9,396)
      Accounts payable and
       accrued liabilities    (92,413)     201,724       10,739      181,963
    -------------------------------------------------------------------------
    Cash flows relating to
     operating activities  (1,329,759)    (328,603)  (2,225,839)    (531,916)
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Additions to property,
     plant and equipment      (47,628)    (162,113)     (89,963)    (167,121)
    Additions to intangible
     assets                   (13,122)      (5,368)     (35,135)     (31,187)
    Decrease (increase)
     in short-term
     investments                    -      500,000    1,799,873      479,681
    -------------------------------------------------------------------------
    Cash flows relating
     to investing activities  (60,750)     332,519    1,674,775      281,373
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Repayment of long-term
     debt                      (5,935)      (4,128)     (11,936)     (44,731)
    Increase of long term
     debt                           -       17,400            -       17,400
    Shares issued           1,522,700            -   11,523,001            -
    Shares issued costs      (130,011)           -     (907,559)           -
    -------------------------------------------------------------------------
    Cash flows relating
     to financing
     activities             1,386,754       13,272   10,603,506      (27,331)
    -------------------------------------------------------------------------

    Net change in cash
     and cash equivalents      (3,755)      17,188   10,052,442     (277,874)
    Cash and cash
     equivalents,
     beginning of period   10,987,360      404,129      931,163      699,191
    -------------------------------------------------------------------------
    Cash and cash
     equivalents, end of
     period                10,983,605      421,317   10,983,605      421,317
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplementary information
    Interest paid              98,034          838       99,320       14,460
    -------------------------------------------------------------------------
    

    %SEDAR: 00012304EF




For further information:

For further information: Normand Chartrand, Chief Financial Officer,
D-BOX Technologies Inc., (450) 442-3003, ext. 258, nchartrand@d-box.com;
Danielle Ste-Marie, The Equicom Group Inc., (514) 844-6064,
dste-marie@equicomgroup.com

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