Medical Intelligence announces 2007 third quarter results



    - Company obtains its first firm order for 1,000 subscriptions in Spain -

    QUEBEC CITY, Nov. 28 /CNW/ - Medical Intelligence Inc. (TSX-V: MIZ) today
announced its operational and financial results for the three and nine-month
periods ended September 30, 2007.

    
    Subsequent Events:
    ------------------

    -  Received order for more than 1,000 Columba service subscriptions from
       the Confederation of Alzheimer's Associations of Spain (CAEFA) and
       other institutional clients in Spain
    -  Signed definitive agreement with Orange Healthcare, a subsidiary of
       France Telecom, for the commercialization of the Columba bracelet in
       France's institutional market
    -  Signed definitive agreement with Orange UK mobile phone operator
    

    "During the quarter, Medical Intelligence reached a crucial stage of
development with its major partners, as we started to gain traction with the
commercialization of our Columba bracelet. We are now applying our new
commercial strategy in France and Spain. Our progress with France Telecom and
CAEFA brings us closer to our goal of generating subscriptions and recurring
revenues from telesecurity services in these countries," said Mr. Philippe
Huneault, President and CEO of Medical Intelligence. "With France Telecom now
offering our products, our brand will have better visibility in the healthcare
institutional market. Our partnership with CAEFA will also facilitate access
to the Spanish market and bring additional credibility to the Columba bracelet
when targeting mental health associations. In the upcoming quarters, we will
focus our efforts on: positioning the Columba bracelet as the key product to
prevent Alzheimer's wandering, increase the number of Alzheimer patients
continuing to live in their homes, which is in-line with the Menard report
submitted to the President of France on November 8, 2007, and generate
positive earnings in support of our shareholders."

    
    SUMMARY OF RESULTS
    -------------------------------------------------------------------------

                                     Three months ended    Nine months ended
                                         September 30,        September 30,
    (in thousands of dollars,       -----------------------------------------
     except per-share data)
                                       2007       2006       2007       2006

    -------------------------------------------------------------------------

    Revenues                             26          8         65          8

    -------------------------------------------------------------------------

    Cost of goods                       447          6        702          6

    Gross profit (gross loss)          (421)         2       (637)         2

    Selling expenses                    863        365      2,396        881

    General and administrative
     expenses, before stock-based
     compensation costs                 362        533      1,308      1,509

    Research and development
     expenses, net of tax credits       244        128        526        546

    Stock-based compensation costs      151        113        450        301

    Subsidy income                        -          -        (40)         -

    Interest income                    (120)       (32)      (221)      (103)

    Exchange gain (loss)                 70          -        345          -

    EBITDA                           (1,991)    (1,105)    (5,401)    (3,132)

    Adjusted EBITDA                  (1,840)      (992)    (4,951)    (2,831)

    Loss for the period              (2,021)    (1,141)    (5,486)    (3,248)

    Basic and diluted loss
     per share                       (0.028)    (0.024)    (0.086)    (0.073)

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    Total revenue from the telesecurity service for the quarter ended
September 30, 2007, was $26,000, compared to $8,000 for the corresponding
period in 2006. The accounting policy of the Company allows revenue
recognition only when the buyer of a Columba bracelet subscribes to the
Company's mobile telesecurity service and, as such, pays a monthly service
fee. Revenues from the sale of equipment and related direct costs will be
amortized over the estimated average duration of subscriptions to the mobile
telesecurity service. When a sale is made to distributors, the proceeds are
posted on the balance sheet as a deposit until the units are sold to
subscribers of the telesecurity service.
    Selling expenses for the third quarter of 2007 totalled $863,000,
compared to $365,000 for the third quarter of 2006. The increase in selling
expenses during the quarter resulted from an increase in business development
salaries, set-up fees, travel expenses, product launch expenses and public
relations expenses to increase the awareness of Medical Intelligence's
products.
    Research and development ("R&D") expenses, net of tax credits, for the
three-month period ended September 30, 2007, totalled $244,000 compared to
$128,000 for the same period in 2006. The increase in R&D expenses is
primarily the result of purchase of equipment related to the final development
of the Urgentys product and to higher tax credits.
    Consolidated loss for the third quarter of 2007 was $2,021,000 or $0.028
per share, compared to a loss of $1,141,000 or $0.024 per share in the third
quarter of 2006.
    For the nine-month period ended September 30, 2007, total revenue was
$65,000, compared to $8,000 for the corresponding period in 2006. Selling
expenses for the nine-month period ended September 30, 2007, totalled
$2,396,000, compared to $881,000 for the same period in 2006. R&D expenses,
net of tax credits, year-to-date totalled $526,000, compared to $546,000 for
the first nine months of 2006. Consolidated loss for the nine months ended
September 30, 2007 was $5,486,000 or $0.086 per share, compared to a loss of
$3,248,000 or $0.073 per share, in the same period of 2006.
    As at September 30, 2007, the Company had cash and cash equivalents of
$9,820,000 compared to $1,432,000 as at December 31, 2006.
    As at November 27, 2007, Medical Intelligence had 85,487,275 common
shares issued and outstanding, 14,592,329 warrants outstanding (weighted
average exercise price of $0.81) and 6,263,750 stock options outstanding
(weighted average exercise price of $0.49) for a total of 106,343,354 shares
on a fully diluted basis.
    Additional information about the Company, including the MD&A and
financial results can be found on SEDAR at www.sedar.com.

    About Medical Intelligence Technologies

    Medical Intelligence is the early innovator in the personal telesecurity
industry, integrating information and telecommunications technologies to the
healthcare sector. The firm designs portable medical devices for the benefit
of people having health or safety concerns. Based in Quebec City, the Company
also has subsidiaries in France, Spain and the United Kingdom (Medical Mobile)
where it commercializes the Columba, a GPS bracelet designed to prevent
Alzheimer wandering. For further information, visit www.medicalintelligence.ca
or www.medicalmobile.com.

    Forward-looking statements

    Any statement in this press release that does not relate directly and
exclusively to historical facts can be considered a forward-looking statement.
Such statements reflect the intentions, plans, expectations and beliefs of
Medical Intelligence Technologies, and are subject to risks, uncertainties and
other factors that are largely beyond the Company's control, to the extent
that actual results may differ significantly from those contemplated by such
statements. Medical Intelligence Technologies neither intends nor is required
to update or revise such forward-looking statements based on new information
or future events, or for any other reason.

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    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    %SEDAR: 00020559EF




For further information:

For further information: Information: Quebec: Jean Brouillard
Communication, (418) 682-6111, jbcom@videotron.ca; Montreal: Johanne Lépine,
Media Relations, Torchia Communications, (514) 288-8290, ext. 234,
jlepine@torchiacom.com; Investor relations: Eric Bouchard, The Equicom Group
Inc., (514) 844-7997, ebouchard@equicomgroup.com

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