PsiNaptic announces first quarter results



    CALGARY, Jan. 30 /CNW/ - PsiNaptic Inc. ("PsiNaptic" or "the Company")
announces its financial and operating results for the three months ended
December 31, 2006.
    The Company was unable to generate consulting revenue this quarter due to
a delay in the approval process of a number of contract proposals. These
remain pending.
    We again presented our technology to the European community as a speaker
at the Wireless Congress 2006, Munich, Germany on November 16, 2006.

    
    Financial Highlights
                                                  For the three months ended
                                                          December 31
                                                          2006          2005
    -------------------------------------------------------------------------

    Revenue                                        $         -   $         -
    Net earnings (loss)                            $  (108,842)  $  (181,455)
      per share - basic                            $   (0.0032)  $   (0.0076)
    Cash flow from operations                      $   (99,758)  $  (175,524)
    Working capital                                $   122,277   $   121,697
    Total assets                                   $   184,707   $   199,203
    Capital expenditures                           $         -   $     2,983
    Long term debt                                 $         -   $         -
    Shareholders' equity                           $   146,089   $   159,112
    Weighted average shares outstanding basic       33,886,812    23,786,812
    Shares outstanding at period end                33,886,812    23,786,812
    -------------------------------------------------------------------------
    

    Outlook
    PsiNaptic had working capital of $120,477 at December 31, 2006 compared
to working capital of $121,697 at December 31, 2005. The Company took steps to
reduce its operating expenses - in particular its salaries - and contain its
costs. The working capital on hand is not sufficient to support operations
beyond 90 days. The Company continues to investigate both public and private
sources of funds.

    Results of Operations
    PsiNaptic incurred an operating loss of $110,591 in the quarter ended
December 31, 2006, which compares to an operating loss of $182,871 in the
quarter ended December 31, 2005. The net loss, after expense recoveries and
interest, decreased to $108,842 in the current quarter from a net loss of
$181,455 in the comparative quarter of the prior year.

    Revenue and Other Income
    PsiNaptic's licensing agreements did not generate any licensing revenue
during the current quarter or the comparative quarter of 2005.
    The Company did not generate any consulting revenue this quarter or the
comparative quarter of 2005. While there are no commitments in place at the
present time, the Company awaits the response to a number of proposals.
    PsiNaptic earned net interest income of $1,749 in the quarter ended
December 31, 2006 compared to $1,416 in the quarter ended December 31, 2005.

    Operating Expenses
    Total operating expenses decreased to $110,591 in the quarter ended
December 31, 2006 from $182,871 in the quarter ended December 31, 2005.
Salaries, including consultants and benefits were $56,529 in the current
quarter compared to $125,293 in the corresponding quarter of the prior year.
This decrease reflects the reduction in salaries from market levels by all
employees and contractors. Other general and administrative costs decreased to
$38,578 in the quarter ended December 31, 2006 from $44,234 in the quarter
ended December 31, 2005, reflecting decreased costs of investor relations,
legal expenses and travel.
    Marketing expenses remained stable at $12,041 in the quarter ended
December 31, 2006 compared to $10,313 in the quarter ended December 31, 2005.

    About PsiNaptic Inc.

    PsiNaptic is a technology company that develops and markets software
based on open standards to address the growing need to connect small,
low-power wired or wireless devices without human intervention, configuration
or set up.
    The problem with the bulk of the electronic devices on the market today
is that they don't share and they don't cooperate. PsiNaptic builds and
markets innovative software designed to solve these problems allowing
consumers to receive exponentially more value from individual devices whose
anti-social behaviour prevents them from fully leveraging the functionality
trapped inside them. Teaching today's devices to cooperate and share is an
often complicated process involving the installation of "relationship
specific" software that may or may not achieve the desired result - but will
most certainly not be useful when the next device comes along. PsiNaptic's
common device collaboration platform, built on industry leading technology
from Sun Microsystems, provides for an open and ad hoc exchange of
functionality between the various devices consumers encounter in their
everyday lives.
    PsiNaptic software products JMatos(R), CMatos and JCopia are commercially
available. They add dynamic networking capabilities to Java and non-Java
embedded processors, revolutionizing the way devices interact.

    Statements in this release which describe the Corporation's intentions,
expectations or predictions, or which relate to matters that are not
historical facts are forward-looking statements. These forward-looking
statements involve known and unknown risks and uncertainties which may cause
the actual results, performances or achievements of the Corporation to be
materially different from any future results, performances or achievements
expressed in or implied by such forward-looking statements. The Corporation
may update or revise any forward-looking statements, whether as a result of
new information, future events or changing market and business conditions.

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





For further information:

For further information: Aaron Dagan, President and CEO, or Morris
Bleviss, CFO, Telephone: (403) 720-2531, Fax: (403) 720-2537, E-mail :
adagan@psinaptic.com or mbleviss@psinaptic.com, Web site: www.psinaptic.com

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PSINAPTIC INC.

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