Northcore reports second quarter 2008 results



    (TSX: NTI; OTCBB: NTLNF)

    TORONTO, Aug. 12 /CNW/ - Northcore Technologies Inc. (TSX: NTI;
OTCBB:NTLNF), a global provider of core asset solutions, announced today its
interim financial results for the second quarter ended June 30, 2008. All
figures are reported in Canadian dollars.
    Northcore reported second quarter revenues of $207,000, an increase of
32 percent from the $157,000 the Company generated in the first quarter of
2008, and a decrease of 27 percent from the $285,000 that Company produced in
the second quarter of 2007.
    Northcore derives its revenues through fees from application hosting
activities provided to customers, the sale of software licenses, and the
delivery of application development, software customization and other
technology services.
    "While an improvement over Q1 results, until very recently Northcore did
not have the funds to add people who can generate billable hours, but that is
changing," said Duncan Copeland, CEO of Northcore Technologies. "More
tellingly, our important projects are still in process. It is these
initiatives that will provide the revenues that I, and our shareholders, are
looking for."
    Northcore reported a net loss for the second quarter of $575,000 or
$0.01 per share, basic and diluted. This compares to a net loss of $692,000 or
$0.01 per share, basic and diluted, in the first quarter of 2008. In the
second quarter of 2007, Northcore reported a net loss of $590,000 or $0.01 per
share basic and diluted.
    Northcore also reported an EBITDA loss in the second quarter of 2008 of
$387,000. This compares to an EBITDA loss of $526,000 in the first quarter of
2008 and an EBITDA loss of $419,000 in the second quarter of 2007.
    EBITDA loss is defined as losses before interest, taxes, depreciation and
employee stock options. Northcore considers EBITDA to be a meaningful
performance measure as it provides an approximation of operating cash flows.
    As at June 30, Northcore held cash and cash equivalents of $92,000, and
accounts receivable of approximately $171,000.
    Subsequent to the quarter ended June 30, 2008, the Company raised gross
proceeds of $678,000 through the issuance of convertible debentures. The funds
will be used for general working capital purposes and to sustain Northcore's
operations so it can take advantage of the opportunities before it.

    
    Operating Highlights

    We realized a number of operating achievements in the period, notably:

    -   In partnership with GE, conducted a series of sales events for
        selected Fortune 1000 clients on the GEasset.com marketing portal.
        The site can be viewed at www.GEasset.com;

    -   Completed the initial delivery of a new version of The Asset Manager
        tool, optimized for industrial settings and delivered on rugged-ized
        mobile devices operating under Windows Mobile; and

    -   For the first time, offered consulting and development services
        directly from GE Asset Manager to selected industry leaders
        (completed the first engagement to a Fortune 100 food and beverage
        company).
    

    Outlook

    "In this challenging economic environment, companies are seeking to more
aggressively "stretch" or otherwise make best use of their Capital Asset
investments. The tools provided by Northcore and by extension, our joint
venture GE Asset Manager, provide this capability in a powerful harmonized
platform," said Mr. Copeland. "As word of our solutions and successes
continues to spread, we look forward to the emergence of new opportunities,
which should manifest themselves as a steady improvement in our financial and
operational results."
    Northcore will hold a conference call at 10:00 a.m. (Eastern time) on
Wednesday, August 13 to discuss its financial results and review operational
activities. Investors and followers of the Company can listen to a live
broadcast of the call from the investor relations section of the Company's
website, www.northcore.com.

    About Northcore Technologies Inc.
    ---------------------------------

    Northcore provides core asset solutions that help organizations source,
manage and sell their capital equipment. Northcore works with a growing number
of customers and partners in a variety of sectors including oil and gas,
government, and financial services. Current customers include GE Commercial
Finance, Paramount Resources and Trilogy Energy Trust.
    Northcore owns a 50 percent interest in GE Asset Manager, LLC, a joint
business venture with GE.

    This news release may include comments that do not refer strictly to
historical results or actions and may be deemed to be forward-looking within
the meaning of the Safe Harbor provisions of the U.S. federal securities laws.
These include, among others, statements about expectations of future revenues,
cash flows, and cash requirements. Forward-looking statements are subject to
risks and uncertainties that may cause Northcore's ("the Company") results to
differ materially from expectations. These risks include the Company's ability
to raise additional funding, develop its business-to-business sales and
operations, develop appropriate strategic alliances and successful development
and implementation of technology, acceptance of the Company's products and
services, competitive factors, new products and technological changes, and
other such risks as the Company may identify and discuss from time to time,
including those risks disclosed in the Company's Form 20-F filed with the
Securities and Exchange Commission. Accordingly, there is no certainty that
the Company's plans will be achieved.



    
                         Northcore Technologies Inc.
                         Consolidated Balance Sheet
                 (expressed in thousands of Canadian dollars)
                         (Canadian GAAP, Unaudited)
    -------------------------------------------------------------------------

                                        -------------------------------------
                                         June 30      June 30    December 31
                                           2008         2008         2007
                                        -------------------------------------
                                       (Unaudited)  (Unaudited)    (Audited)
                                                      (in US$)

                                                     translated
                                                    into US$ at
                                                    Cdn$ 1.0185
                                                        for
                                                    convenience

    Cash                                 $      92    $      90    $     478
    Other current assets                       205          201          157
    Other assets                                34           34           52
                                        -------------------------------------
      Total assets                       $     331    $     325    $     687
                                        -------------------------------------
                                        -------------------------------------
    Accounts payable and
     accrued liabilities                 $     742    $     729    $     577
    Deferred revenue                            92           90           52
    Current portion of long term debts       1,379        1,354          378
    Non-current portion
     of long term debt                         506          497        1,280
    Total shareholders' deficiency          (2,388)      (2,345)      (1,600)
                                        -------------------------------------
      Total liabilities and
       shareholders' deficiency          $     331    $     325    $     687
                                        -------------------------------------
                                        -------------------------------------



                         Northcore Technologies Inc.
       Consolidated Statements of Operations and Comprehensive Income
        (expressed in thousands of dollars, except per share amounts)
                         (Canadian GAAP, Unaudited)
    -------------------------------------------------------------------------

                  ----------------------------- -----------------------------
                        Three Months Ended             Six Months Ended
                  ----------------------------- -----------------------------
                            June 30                       June 30
                  ----------------------------- -----------------------------
                    2008      2008      2007      2008      2008      2007
                    ($C)      ($US)     ($C)      ($C)      ($US)     ($C)
                  ----------------------------- -----------------------------

                            translated                    translated
                           into US$ at                   into US$ at
                           Cdn$ 1.0185                   Cdn$ 1.0185
                               for                           for
                           convenience                   convenience

    Revenue        $   207   $   203   $   285   $   364   $   357   $   607
                  ----------------------------- -----------------------------
    Operating
     expenses:
      General and
       admini-
       strative        398       391       448       841       826       895
      Customer
       service
       and tech-
       nology          175       171       178       353       346       350
      Sales and
       marketing        21        21        78        83        81       149
      Employee
       stock
       options           9         9         6        19        19        13
      Depreciation       9         9        10        18        18        19
                  ----------------------------- -----------------------------
        Total
         operating
         expenses      612       601       720     1,314     1,290     1,426
                  ----------------------------- -----------------------------
    Loss from
     operations       (405)     (398)     (435)     (950)     (933)     (819)
                  ----------------------------- -----------------------------
    Interest
     expense:
      Cash
       interest
       expense          80        79        67       148       145       131
      Accretion
       of secured
       subordinated
       notes            90        88        88       169       166       191
    Interest
     income              -         -         -         -         -        (1)
                  ----------------------------- -----------------------------
                       170       167       155       317       311       321
                  ----------------------------- -----------------------------

                  ----------------------------- -----------------------------
    Net loss and
     comprehensive
     loss for the
     period        $  (575)  $  (565)  $  (590)  $(1,267)  $(1,244)  $(1,140)
                  ----------------------------- -----------------------------
                  ----------------------------- -----------------------------
    Loss per
     share, basic
     and diluted   $ (0.01)  $ (0.01)  $ (0.01)  $ (0.01)  $ (0.01)  $ (0.01)
                  ----------------------------- -----------------------------
                  ----------------------------- -----------------------------
    Weighted
     average
     number of
     shares
     outstanding,
     basic and
     diluted
     (000's)       108,644   108,644    84,397   108,576   108,576    84,117
                  ----------------------------- -----------------------------
                  ----------------------------- -----------------------------
    


    %SEDAR: 00019461E          %CIK: 0001079171




For further information:

For further information: Northcore Technologies Inc., Investor
Relations, Tel: (416) 640-0400 ext. 273, E-mail:
InvestorRelations@northcore.com

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NORTHCORE TECHNOLOGIES INC.

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