Northcore reports third quarter 2007 results



    Q3 driven by currency fluctuations, management change and operational
    activities

    (TSX: NTI; OTCBB: NTLNF)

    TORONTO, Nov. 13 /CNW/ - Northcore Technologies Inc. (TSX: NTI; OTCBB:
NTLNF), a global provider of core asset solutions, announced today its interim
results for the third quarter ended September 30, 2007. All figures are in
Canadian dollars.
    Northcore reported consolidated third quarter revenues of $250,000, a
decrease of 12 percent from the $285,000 the company generated in the second
quarter of 2007, and an improvement of 13 percent over the $222,000 that the
company produced in Q3 of 2006. 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, royalty fees, and other technology services.
    "As with Q2, the burgeoning strength of the Canadian dollar significantly
impacted our Q3 performance since currently all of our application development
projects and most of our application hosting agreements are with US-based
customers," said Duncan Copeland, CEO of Northcore Technologies. "Our
performance was also affected by the summer holiday period in Europe, which
limited the amount of royalties from ADB Systemer AS. But the fact remains
that we produced insufficient product revenues. We are taking steps to address
this key issue."
    Northcore reported a net loss for the third quarter of $636,000 or
$0.01 per share, basic and diluted. This compares to a net loss of $590,000 or
$0.01 per share, basic and diluted in the second quarter. In the third quarter
of 2006, Northcore reported a net loss of $640,000 or $0.01 per share, basic
and diluted.
    Northcore also reported an EBITDA loss in the third quarter of 2007 of
$416,000. This compares to an EBITDA loss of $419,000 in the second quarter of
2007 and an EBITDA loss of $404,000 in the third quarter of 2006.
    EBITDA loss is defined as losses before interest, taxes, depreciation,
amortization, employee stock options and discontinued operations. Northcore
considers EBITDA to be a meaningful performance measure as it provides an
approximation of operating cash flows.
    As at September 30, Northcore held cash and cash equivalents of $844,000
and accounts receivables of approximately $227,000.

    
    Operating highlights

    Northcore completed the following customer and operating activities in the
period:
    -   The company announced a management change, naming Duncan Copeland as
        Chief Executive Officer and James Moskos as Chief Operating Officer.
        The management change took effect July 12, 2007.
    -   Northcore generated gross proceeds of $1.65 million through a rights
        offering to eligible shareholders.
    -   The company extended the terms of a number of agreements with
        customers, including the State of Tennessee and the School Board of
        Broward County (Florida). The customers use Northcore's technology
        and services to manage their asset maintenance activities.
    -   Northcore introduced enhancements to Asset Tracker, the web-based
        equipment tracking application of its joint venture with GE. The
        enhancements make it easier for users to report on the status,
        location and condition of key equipment.
    

    "Our focus in Q3 was primarily driven by operational activities,
including the management change and the shareholder rights offering. With
these activities now behind us, our attention in the quarters to come will be
on accelerating our revenue growth, both through our standalone offerings and
through our joint venture with GE. We're not yet where we want to be, but our
products have never been better and our relationship with our partners at GE
has never been stronger."
    Northcore will hold a conference call at 10:00 a.m. (Eastern time) on
Wednesday, November 14 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 Technologies 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, 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)
    -------------------------------------------------------------------------

                                    September 30  September 30   December 31
                                    -----------------------------------------
                                        2007          2007          2006
                                    -----------------------------------------
                                     (Unaudited)   (Unaudited)    (Audited)
                                                     (in US$)

                                                    translated
                                                   into US$ at
                                                   Cdn$ 0.9959
                                                       for
                                                   convenience

    Cash                             $       844   $       848   $       475
    Other current assets                     290           291           217
    Other assets                              62            62           121
                                    -----------------------------------------
      Total assets                   $     1,196   $     1,201   $       813
                                    -----------------------------------------
                                    -----------------------------------------

    Accounts payable and
     accrued liabilities             $       797   $       800   $     1,074
    Deferred revenue                          81            81            68
    Demand loans                             330           331             -
    Current portion of
     secured subordinated notes              170           171         1,682
    Non-current portion of
     secured subordinated notes            1,005         1,009           244
    Total shareholders' deficiency        (1,187)       (1,191)       (2,255)
                                    -----------------------------------------
      Total liabilities and
       shareholders' deficiency      $     1,196   $     1,201   $       813
                                    -----------------------------------------
                                    -----------------------------------------



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

                        -------------------------- --------------------------
                            Three Months Ended         Nine Months Ended
                        -------------------------- --------------------------
                               September 30               September 30
                        -------------------------- --------------------------
                          2007     2007     2006     2007     2007     2006
                         ($C)     ($US)    ($C)     ($C)     ($US)    ($C)
                        -------------------------- --------------------------
                                translated                 translated
                                into US$ at                into US$ at
                                Cdn$ 0.9959                Cdn$ 0.9959
                                    for                        for
                                convenience                convenience

    Revenue              $  250   $  251   $  222   $  857   $  861   $  763
                        -------------------------- --------------------------
    Operating expenses
      General and
       administrative       395      397      410    1,290    1,295    1,350
      Customer service
       and technology       205      206      151      555      558      476
      Sales and
       marketing costs       66       66       65      215      216      321
      Employee stock
       options               66       66       42       79       79      114
      Depreciation and
       amortization          10       10       23       29       29       68
                        -------------------------- --------------------------
        Total operating
         expenses           742      745      691    2,168    2,177    2,329
                        -------------------------- --------------------------
    Loss from
     operations            (492)    (494)    (469)  (1,311)  (1,316)  (1,566)
                        -------------------------- --------------------------
    Interest expense
      Cash interest
       expense               72       72       78      203      204      278
      Accretion of
       secured
       subordinated
       notes                 72       72       99      263      264      367
    Interest income           -        -       (6)      (1)      (1)     (12)
                        -------------------------- --------------------------
                            144      144      171      465      467      633
                        -------------------------- --------------------------
    Loss from continuing
     operations            (636)    (638)    (640)  (1,776)  (1,783)  (2,199)
    Income from
     discontinued
     operations               -        -        -        -        -    2,123
                        -------------------------- --------------------------
    Net loss for
     the period            (636)    (638)    (640)  (1,776)  (1,783)     (76)
                        -------------------------- --------------------------
                        -------------------------- --------------------------
    Other comprehensive
     income, net of tax:
      Foreign currency
       translation
       adjustment             -        -        -        -        -       17
                        -------------------------- --------------------------
    Comprehensive loss   $ (636)  $ (638)  $ (640) $(1,776) $(1,783)  $  (59)
                        -------------------------- --------------------------
                        -------------------------- --------------------------
    Loss per share:
      From continuing
       operations,
       basic and
       diluted           $(0.01)  $(0.01)  $(0.01) $ (0.02) $ (0.02)  $(0.03)
      Net loss per
       share, basic
       and diluted       $(0.01)  $(0.01)  $ 0.01) $ (0.02) $ (0.02)  $    -
                        -------------------------- --------------------------
                        -------------------------- --------------------------
    Weighted average
     number of shares
     outstanding,
     basic and
     diluted (000's)     95,640   95,640   82,545   88,000   88,000   78,686
                        -------------------------- --------------------------
    

    %SEDAR: 00019461E




For further information:

For further information: At Northcore Technologies Inc., Joe Racanelli,
Tel: (416) 640-0400 ext. 273, Fax: (416) 640-0412, E-mail:
jracanelli@northcore.com

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NORTHCORE TECHNOLOGIES INC.

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