Evolved Digital Systems Inc releases results for the quarter ended June 30, 2008



    MONTREAL, Aug. 15 /CNW Telbec/ - Evolved Digital Systems Inc. (the
"Company"), today announced its results for the quarter ended June 30, 2008.
    Loss from continuing operations improved approximately 45% and 62% for
the three- and six-month periods ended June 30, 2008, respectively as compared
to the same periods in 2007. The improvement is the result of a reduction in
operating and net interest expenses partially offset by a decline in revenue.
The reductions are primarily due to the expiration of direct financing leases
and non-recurring administrative fees incurred in 2007 to complete the
Shimadzu transaction.
    During the fourth quarter of 2007, the Company received notice that the
preferred shareholders had elected to exercise their retraction rights.
Currently, the preferred amount for all outstanding Series A Preferred Shares
is approximately $4.6 million. The Company is prohibited from proceeding with
the retraction of Shares at this time as the funds legally available therefore
are insufficient.
    The TSX Listings Committee determined to suspend trading of the Company's
common shares on February 20, 2008. The suspension was imposed for failure by
the Company to meet the continued listing requirements of the TSX, including
market value and financial condition requirements. The Company's common shares
were delisted at the close of market on March 20, 2008 and have not been
listed on any other exchange.
    On or about April 3, 2008, the AMF as well as several other provincial
authorities issued Cease Trade Orders (CTO) for the Company's common shares
for failing to file annual financial statements, annual management's
discussion and analysis (MD&A), annual information form, and certification of
annual filings for the year ended December 31, 2007. The Company filed annual
financial statements, annual management's discussion and analysis (MD&A), and
certification of annual filings for the year ended December 31, 2007 on May 1,
2008 and the annual information form on May 12, 2008.
    The Company requires additional capital to continue as a going concern
and is currently pursuing options and continues to have discussions with its
creditors and others with respect to its current financial position.

    FORWARD-LOOKING STATEMENTS: Certain statements in this communication may
constitute forward-looking statements. They are based on management's current
expectation and could be affected by numerous factors and are subject to
various risks and uncertainties. Certain of those risks and uncertainties are
discussed in company filings with the Canadian Securities Commission. Do not
rely on any forward-looking statements as we cannot predict or control many of
the factors that ultimately may affect our ability to achieve the results
estimated. We make no promise to update any forward-looking statement, whether
as a result of changes in underlying factors, new information or future
events.

    
    FINANCIAL HIGHLIGHTS:

    RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIOD ENDED JUNE 30, 2008
    COMPARED TO THE THREE-MONTH PERIOD ENDED JUNE 30, 2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Three months ended June 30,                   2008        2007  % Change
    -------------------------------------------------------------------------
    (in thousands, except share and
     per share data)
    Total revenue - continuing operations   $  1,428.9  $  1,884.8    (24.2%)
    Net income (loss):
     From continuing operations                 (439.5)     (805.2)    45.4%
     From discontinued operations                    -     7,954.1   (100.0%)
       Net income (loss)                        (439.5)    7,148.9   (106.1%)
    Basic and diluted income (loss) per share:
     From continuing operations                  (0.01)      (0.01)       -
     From discontinued operations                    -        0.14        -
                                           -------------------------
       Basic and diluted income (loss) per
        share                               $    (0.01) $     0.13        -
    Weighted average number of common
     shares outstanding during the period   56,488,540  56,488,540        -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    RESULTS OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2008
    COMPARED TO THE SIX-MONTH PERIOD ENDED JUNE 30, 2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Six months ended June 30,                     2008        2007  % Change
    -------------------------------------------------------------------------
    (in thousands, except share and
     per share data)
    Total revenue - continuing operations   $  3,118.6  $  3,636.8    (14.2%)
    Net income (loss):
     From continuing operations                 (805.9)   (2,121.6)    62.0%
     From discontinued operations                    -     8,027.7   (100.0%)
      Net income (loss)                         (805.9)    5,906.1   (113.6%)
    Basic and diluted income (loss) per share:
     From continuing operations                  (0.01)      (0.04)       -
     From discontinued operations                    -        0.14        -
                                           -------------------------
       Basic and diluted income (loss) per
        share                               $    (0.01) $     0.10        -
    Weighted average number of common
     shares outstanding during the period   56,488,540  56,488,540        -
    -------------------------------------------------------------------------
    For more information, contact EVOLVED at 1-877-5EVOLVED or visit the
company website at www.evolveddigital.com

    The TSX has neither approved nor disapproved the information contained
    herein.
    




For further information:

For further information: Linda Willis, Vice President and Controller,
(615) 850-3029, linda.willis@evolveddigital.com; Source: Evolved Digital
Systems Inc.

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EVOLVED DIGITAL SYSTEMS INC.

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