Grey Island Announces Record Revenue in Fourth Quarter and Fiscal Year End 2008



    TORONTO, Jan. 10 /CNW Telbec/ - Grey Island Systems International Inc.
(TSX-V:GIS), a leading provider of real-time vehicle tracking, fleet
management and predictive arrival systems, marketed under the InterFleet and
NextBus brands, for government and related fleets in North America, today
announced financial results for the fourth quarter and the 2008 fiscal year
ended September 30, 2007.
    Record revenue of $5.0 million in the fourth quarter of fiscal 2008
represented an increase of 60.5% as compared with revenue of $3.1 million in
the fourth quarter of fiscal 2007 and represented an increase of 28.6% as
compared to the third quarter of fiscal 2008 revenue of $3.9 million. Revenue
of $16.7 million in fiscal year ended 2008 was also a record for the Company
and represented an increase of 41% as compared to fiscal 2007 revenue of
$11.8 million.
    The Company incurred a net loss for the year ended September 30, 2007, of
$500,877 or $0.006 per share, compared to a loss of $298,545 or $0.005 per
share in the year ended September 30, 2006. The net loss arose after
accounting for stock-based compensation of $408,845, (2006: $219,725),
substantial amortization of intangible assets of $999,324, (2006: $916,136),
and a foreign exchange loss of $421,914, (2006: $71,082), which is offset by a
taxation recovery of $381,044, (2006: $714,620), resulting in income before
the above-noted items of $948,162 versus $193,778 in the comparable year of
2006. The Company's stated future goal is to maintain only moderate increases
in operating expenses on a quarter by quarter basis when compared to expected
revenue increases.
    "Our financial results represent another period of achievement for the
Company as we reported record revenue, substantial growth and improved bottom
line performance. Our commitment to focusing on government sector clients in
North America and providing exceptional customer service to existing clients
continues to be a key differentiator for the Company" said Owen Moore,
President Grey Island.
    The current results are a reflection of the Company's previously stated
objectives to grow organically and through acquisition with a goal to increase
the Company's share of the US market place. The following are significant
highlights related thereto.

    
    - Revenue for the year increased to $16.7 million an increase of 41%.
    - Revenue from US customers increased to $11.0 million an increase of
      71.5%.
    - Gross profit for the year increased to $8.2 million an increase of
      33.3%.
    - Gross margin for the year was 49.2%.
    - $12.1 million in cash and short-term investments.
    

    "The Company has demonstrated its ability to land large government
contracts and post strong revenue growth within its core market and continues
to see large opportunities on the horizon as market awareness increases and
technology adoption accelerates in our emerging industry. While we are
encouraged with our existing results, we are even more encouraged with our
prospects for the future" said Andrew Moore, CEO of Grey Island.
    The Company's consolidated financial statements, accompanying notes and
Management's Discussion and Analysis are available on the System for
Electronic Document Analysis and Retrieval ("SEDAR") website (www.sedar.com).

    About Grey Island

    Grey Island Systems International Inc. (TSX-V: GIS), together with its
subsidiaries NextBus Inc. in Alameda, California, InterFleet, Inc. in New
York, New York is a leading provider of custom real-time GPS/AVL, security and
Telematics solutions as well as real-time passenger information systems to
government and related fleets. To find out more about our products and
services, visit our websites at www.interfleet.com or www.nextbus.com.

    Forward Looking Statements

    This news release contains forward-looking information based on
management's best estimates and the current operating environment. These
forward-looking statements are related to, but not limited to, Grey Island's
operations, anticipated financial performance, business prospects and
strategies. Such forward-looking statements are subject to a number of known
and unknown risks, uncertainties and other factors which could cause actual
results or events to differ materially from those expressed or implied by such
forward-looking statements. These risks and uncertainties include, among other
things, business risks, changes in market and competition, technological and
competitive developments and potential downturns in economic conditions
generally. Therefore, there can be no assurance that the expectations of the
management of Grey Island will prove to be correct.

    THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY
    OR ACCURACY OF THIS RELEASE.




For further information:

For further information: Grey Island Systems Inc.: Owen Moore, (416)
348-9991, (416) 348-9993 (FAX), information@interfleet.com,
www.interfleet.com, www.nextbus.com; Renmark Financial Communications Inc.:
John Boidman, jboidman@renmarkfinancial.com; James Buchanan,
jbuchanan@renmarkfinancial.com, (514) 939-3989, Fax: (514) 939-3717,
www.renmarkfinancial.com

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GREY ISLAND SYSTEMS INTERNATIONAL INC.

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