Homeserve Reports Third Quarter Results



    TORONTO, Dec. 21 /CNW/ - Homeserve Technologies Inc. today reported a
basic and diluted loss available to common shareholders of $0.1 million ($0.02
loss per common share) on revenues of $1.4 million for the third quarter ended
November 30, 2007 compared to a basic and diluted loss available to common
shareholders of $0.6 million ($0.08 loss per common share) on revenues of $1.4
million for the same period of the last fiscal year. The $0.5 million
quarter-over-quarter difference was primarily attributed to a $2.0 million
increase in the gains realized on the sale of certain holdings within the
Company's investment portfolio. Partially offsetting these amounts was a $0.6
million increase in amortization of intangible assets resulting from
additional consideration earned under terms of the ICON acquisition, a
$0.5 million increase in costs associated with the Aeromove program, and a
$0.2 million decrease in Investment income as a result of a change in the
Company's investment strategy.

    
                                       Three months Ended  Nine months Ended
    ($ thousands, except                   November 30         November 30
     per share amounts)                  2007      2006      2007      2006
    -------------------------------------------------------------------------

    Revenue                              1,393     1,378     9,632     9,171
    Cost of sales                           61         -       129         -
    -------------------------------------------------------------------------
    Gross profit                         1,332     1,378     9,503     9,171
    Operating costs                      1,421       914     4,616     2,493
    -------------------------------------------------------------------------
    Contribution margin                    (89)      464     4,887     6,678
    Investment income                      219       375       955     1,084
    Gain on sale of investments          2,225       226     2,225       250
    Amortization                        (1,490)     (887)   (4,511)   (2,667)
    -------------------------------------------------------------------------
    Net income for the period              865       178     3,556     5,345
    Dividends paid on preferred shares    (984)     (766)   (2,972)   (2,316)
    -------------------------------------------------------------------------
    Basic earnings/(loss) available
     to common shareholders               (119)     (588)      584     3,028
    Diluted earnings/(loss) available
     to common shareholders               (119)     (588)      584     3,028
    Basic and diluted earnings/(loss)
     per common share
      Basic                            $ (0.02)  $ (0.08)  $  0.08   $  0.44
      Diluted                          $ (0.02)  $ (0.08)  $  0.08   $  0.44
    

    Outlook

    Homeserve is well positioned to be a leading technology and marketing
services company in the home and move sector by leveraging its technology
assets, relationships with related Brookfield companies in the Centract
Residential Real Estate portfolio, and through a strategic focus on marketing
services in relevant sectors. In addition to Aeromove, we will look at
leveraging the move services platform by developing partnerships with other
loyalty programs which seek to reach the Canadian moving population with a
one-stop move services program.
    While markets for software remain uncertain, we are optimistic that the
sustainable stable cash flows from the ICON acquisition combined with
licensing opportunities from the Company's CRM software and move services
program model, will position the Company well for the future growth.
    Homeserve will consider seeking a re-listing of the Company's common
shares when there is a reasonable probability of returning value to common
shareholders after having considered the overall capitalization of the Company
and in particular the servicing of the obligations related to the Company's
preferred shares.

    Additional Information

    Detailed financial information and Management's Discussion and Analysis
of Results and Financial Condition as at and for the quarter ended
November 30, 2007 is posted on Homeserve's website (under Investor Relations,
Financial Information) at www.homeserve.ca and should be read in conjunction
with this press release and is also available on SEDAR's website at
www.sedar.com.

    About Homeserve

    Homeserve is a Canadian based software development and services company
focused on home-related services for the real estate, relocation and banking
industries. Homeserve provides a one-stop shopping service for home buyers and
sellers, offering real-estate related products and services throughout the
customer's purchasing and selling cycle, coordinated by a proprietary CRM
software system and contact centre.

    Forward - Looking Statements

    This press release contains forward-looking information, including
"forward-looking statements". The words "will", "intends", "expected" and
other expressions which are predictions of or indicate future events and
trends and which do not relate to historical matters identify forward looking
statements. Reliance should not be placed on forward-looking statements
because they involve known and unknown risks, uncertainties and other factors,
which may cause Homeserve's performance to differ materially from the
description of the investment expressed or implied by such forward-looking
statements. Although Homeserve believes that the anticipated future results,
performance or achievements expressed or implied by the forward-looking
statements and information are based upon reasonable assumptions and
expectations, the reader should not place undue reliance on forward-looking
statements and information because they involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to differ materially from
anticipated future results, performance or achievement expressed or implied by
such forward-looking statements and information. Factors that could cause
actual results to differ materially from those contemplated or implied by
forward-looking statements include general economic conditions; interest rate
changes; availability of equity and debt financing; and other risks and
factors described from time to time in the documents filed by the Company with
the securities regulators in Canada including in the Annual Information Form
under the heading "Risk Factors." The Company undertakes no obligation to
publicly update or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise.

    %SEDAR: 00004370E




For further information:

For further information: Susana Hsu, Mansfield Communications Inc.,
(416) 599-0024 or susana@mcipr.com

Organization Profile

HOMESERVE TECHNOLOGIES INC.

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