In-Touch Survey Systems Ltd. announces Q1 2009 financial results with 17% revenue growth



    OTTAWA, June 1 /CNW Telbec/ - In-Touch Survey Systems Ltd. ("In-Touch"
TSX-Venture: INX) is pleased to announce that revenue grew by 17% to
$1,358,291 in Q1 2009 compared to $1,159,999 in Q1 2008. Net loss for Q1 2009
was $160,228 compared to a net loss of $240,806 in Q1 2008. The
company-defined adjusted EBITDA was $(46,000) in Q1 2009, compared to an
EBITDA of $(80,000) in Q1 2008.
    "Revenues increased compared to Q1 2008. Q1 is typically our lowest
revenue cycle in the year. We are focused on increasing our revenue, even in
these difficult economic times, and our current sales forecast has second
quarter 2009 revenues exceeding last year's second quarter revenues. We expect
the company to generate positive cash flows for the balance of the year and
these funds will be used to reduce debt and improve our working capital. Our
largest client, General Motors U.S.A. ("GM"), declared bankruptcy today. While
GM faces significant restructuring challenges, we believe that our core
services will continue to be in demand by GM during their transition - helping
them learn about their customers and sell automobiles. Today GM informed us
that it is 'business as usual'", said Michael Gaffney, Chief Executive
Officer.
    "Over the next two quarters, we are entering the strongest demand period
of the year for In-Touch services with a backlog greater than at this time
last year", said Gaffney.

    
    Consolidated Statements of Operations              Q1 2009       Q1 2008
                                                   ------------  ------------
    Revenue                                        $ 1,358,291   $ 1,159,999

    Cost of services and goods sold                    558,190       499,496
                                                   ------------  ------------

    Gross profit                                       800,101       660,503

    Total operating expenses                           936,001       894,699
                                                   ------------  ------------
                                                   ------------  ------------
    Earnings (loss) before undernoted items           (135,900)     (234,196)

    Interest expense                                   (34,195)      (25,833)
    Amortization of financing costs                     (4,217)       (1,168)
    Amortization of discount on promissory note              -       (15,240)
    Amortization of intangible asset                    (2,777)       (4,761)
    Change in fair value of derivative                       -        (3,751)
    Gain (loss) on foreign exchange                      2,774        15,364
    Gain on disposal of property and equipment          14,087        28,779
                                                   ------------  ------------
    Net loss                                       $  (160,228)  $  (240,806)
                                                   ------------  ------------
                                                   ------------  ------------
    

    Certain statements included in this news release contain forward looking
statements, which by their nature are necessarily subject to risks and
uncertainties and other factors that may cause actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements. Such statements reflect the Company's current
views with respect to future events, and are based on information currently
available to the Company and on hypotheses which it considers to be
reasonable; however, management warns the reader that hypotheses relative to
future events which are beyond the control of management could prove to be
false, given that they are subject to certain risks and uncertainties.

    The TSX Venture Exchange has not reviewed the foregoing and has neither
    approved or disapproved the contents of this press release.
    %SEDAR: 00007687E




For further information:

For further information: Karen McNaughton, Director of Marketing, (613)
270-7913, kmcnaughton@intouchsurvey.com

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In-Touch Survey Systems Ltd.

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