Isacsoft Inc. announces 2007 year end results



    MONTREAL, March 4 /CNW Telbec/ - Isacsoft Inc. (TSX: ISF) announced its
audited consolidated financial results for the year ended December 31, 2007.
The Company also announced that it has filed its audited financial statements
and notes for the year ended December 31, 2007 and its related management's
discussion and analysis with Canadian securities regulators. The information
is available electronically to interested parties at www.sedar.com and on the
Company's web site at www.ISACSOFT.com. ISACSOFT's 2007 annual report will be
mailed to shareholders during the third week of March 2008.

    
    2007 Financial Highlights:

    - Net income of $991,102 compared to $194,386 (before impairment) for the
      year ended December 31 2006
    - Revenues of $10,052,421 compared to $11,862,922 for the year ended
      December 31 2006
    - EBITDA(1) of $1,089,234 compared to $1,218,329 for the year ended
      December 31, 2006.

    "Despite the additional costs associated with the review of strategic
alternatives and the reduction of revenue streams, I am pleased to present a
net income before impairment that is superior to 2006. This shows our
commitment to deliver profits to shareholders even in periods of declining
revenues." indicated Mr. Brisebois, President and CEO of ISACSOFT.

    Overall Performance

    Isacsoft reported net and comprehensive income of $991,102, compared to a
net loss of $10,141,467 for the year ended December 31 2006. These figures
include net income relating to discontinued operations of $324,183 for the
year ended December 31 2007 and a net loss of $468,041 for the year ended
December 31 2006.
    These results were obtained despite significant reductions in revenues,
specifically in software and maintenance, relating to lower sales of licenses
from our library data management segment. In order to offset these declines,
all possible venues of reduction in costs were examined and actions were
undertaken to reduce these, as seen in the reduction of expenses. The move of
our head office and programming facilities also provided for a review of fair
value of certain of its assets, which resulted in a non cash write-down of
$110,536.
    Cash and cash equivalents increased by over $1,553,213 for the year ended
December 31 2007, mainly because of higher levels of cash from operating
activities and the disposal of equipment and the sale of its training segment


                                                          2007          2006
    REVENUES

                                                    10,052,421    11,862,922
    Expenses
      Operations                                     5,195,818     5,953,423
      Research and development costs                 1,316,262     1,730,076
      Selling, general and administrative
       expenses                                      2,562,214     3,094,604
                                                 -------------  -------------
                                                     9,074,294    10,778,103

    Income before the following items                  978,127     1,084,819

    Foreign exchange loss                               40,725        19,342
    Interest net                                       (78,318)        3,435
    Amortization of property and equipment             195,281       264,666
    Impairment of goodwill                                   -    10,335,853
    Write-down of property and equipment               110,536       134,949
                                                 -------------  -------------

    Net income (loss) before income taxes              709,903    (9,673,426)

    Income taxes                                        42,984             -
                                                 -------------  -------------
    Net income (loss) from continuing operations       666,919    (9,673,426)

    Discontinued operations                            324,183      (468,041)
                                                 -------------  -------------
    Net income (loss)                             $    991,102 ($ 10,141,467)
                                                 -------------  -------------



    Financial Position:
                                                          2007          2006
                                                 -------------  -------------
    ASSETS
      Current assets
        Cash and cash equivalents                 $  1,611,516  $     58,303
        Accounts receivable                          2,520,073     4,244,553
        Work in process                                332,638       388,075
        Inventory                                            -         5,559
        Prepaid expenses                               302,458       271,336
                                                 -------------  -------------
                                                     4,766,685     4,967,826
      Restricted cash                                  650,000       717,820
      Property and equipment                           339,771       850,948
      Goodwill                                       1,101,894     1,101,894
                                                 -------------  -------------
                                                  $  6,858,350  $  7,638,488
                                                 -------------  -------------
                                                 -------------  -------------

    LIABILITIES
      Current liabilities
        Bank indebtedness                         $          -  $          -
        Accounts payable and accrued
         liabilities                                 1,400,006     2,294,247
        Deferred revenues                              753,143     1,625,594
        Deferred credits                                     -        32,706
        Instalments on long-term debt                  186,427        89,105
                                                 -------------  -------------
                                                     2,339,576     4,041,652
      Long-term debt                                   200,619       380,890
                                                 -------------  -------------
                                                     2,540,195     4,422,542
                                                 -------------  -------------
    SHAREHOLDERS' EQUITY
      Capital stock                                 55,346,979    55,346,979
      Contributed surplus                            1,225,870     1,114,763
      Deficit                                      (52,254,694)  (53,245,796)
                                                 -------------  -------------
                                                     4,318,155     3,215,946
                                                 -------------  -------------
                                                  $  6,858,350  $  7,638,488
                                                 -------------  -------------
                                                 -------------  -------------


    ABOUT ISACSOFT

    ISACSOFT is a provider of software business solutions, information
technology- training and systems integration consulting to its national and
international customers. The revenue model is based on software licences,
recurring maintenance revenues and strategic IT projects targeting key
customers. ISACSOFT is headquartered in Montréal, Canada with offices in
Paris, London, Cologne and The Hague.

    FORWARD-LOOKING STATEMENTS

    Certain statements made in this news release are forward-looking and are
subject to important risks, uncertainties and assumptions. The results or
events predicted in these forward-looking statements may differ materially
from actual results or events. These statements do not reflect the potential
impact of any non-recurring items or of any dispositions, monetization,
mergers, acquisitions, other business combinations or other transactions that
may be announced or that may occur after the date hereof. Other factors that
could cause results or events to differ materially from current expectations
include, among other things: general economic factors, adoption rate of our
solutions by clients, signing contracts, response to industry's rapid rate of
change, competition, pricing, operating results, acquisitions, material change
in our strategic relationships, exposure under contract indemnities, defects
in software, security and privacy breaches, loss of key personnel, our ability
to protect intellectual property, infringement claims on our intellectual
property, and industry and government regulation. For additional information
with respect to certain of these and other factors, refer to ISACSOFT Inc.'s
Annual Report (Management's Discussion and Analysis) filed with the Canadian
securities commissions.

    THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE REPRESENT
THE EXPECTATIONS OF ISACSOFT AND ITS SUBSIDIARIES AS AT MARCH 4, 2008 AND,
ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, ISACSOFT AND ITS
SUBSIDIARIES DISCLAIM ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.

    The information is available electronically to interested parties at
www.sedar.com and on the Company's web site at www.ISACSOFT.com. ISACSOFT's
2007 annual report will be mailed to shareholders during the third week of
March 2008.

    (1) EBITDA is defined as earnings before stock based compensation
        expense, gain or loss on foreign exchange, depreciation, amortization
        of intangible assets, provision for impairment of goodwill and other
        intangible assets, interest, gains or losses on sale of assets, other
        income or expenses, provisions for re-structuring costs, and income
        taxes. This is considered a non-GAAP measure.
    
    %SEDAR: 00015181EF




For further information:

For further information: Claude Gobeil, VP Finance and Chief Financial
Officer, (514) 282-7073, ext. 299, claude.gobeil@isacsoft.com

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ISACSOFT INC.

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