Rare Method announces Q3 Results



    CALGARY, May 28 /CNW/ - Rare Method today announced consolidated
unaudited financial results for the three and nine months ended March 31,
2009. For Q3 2009, Rare Method recorded revenue from continuing operations of
$2.32 million, down 28% from $3.24 million a year ago, and an EBITDA (Earnings
from continuing operations before interest, taxes, stock-based compensation,
and depreciation and amortization) loss of $100,510, down from earnings of
$218,863 a year ago. Rare Method's results for the three and nine months ended
March 31, 2009 as compared to the same periods in 2008 is as follows:

    
    Three months ended March 31st
    -------------------------------------------------------------------------
    Description                 2009            2008       Increase/decrease
    -------------------------------------------------------------------------
    Revenue                $2.32 million   $3.24 million         (28%)
    -------------------------------------------------------------------------
    Gross Income           $1.73 million   $2.27 million         (24%)
    -------------------------------------------------------------------------
    EBITDA                 $(100,510)      $218,863              (146%)
    -------------------------------------------------------------------------
    Comprehensive Income   $(217,705)      $(145,624)             -
    -------------------------------------------------------------------------
    EPS                    $(0.007)        $(0.005)               -
    -------------------------------------------------------------------------


    Nine months ended March 31st
    -------------------------------------------------------------------------
    Description                 2009            2008       Increase/decrease
    -------------------------------------------------------------------------
    Revenue                $7.84 million   $9.51 million         (18%)
    -------------------------------------------------------------------------
    Gross Income           $5.47 million   $6.87 million         (20%)
    -------------------------------------------------------------------------
    EBITDA                 $(79,727)       $809,460              (110%)
    -------------------------------------------------------------------------
    Comprehensive Income
     (Loss)(1)             $(775,419)(1)   $32,965                 -
    -------------------------------------------------------------------------
    EPS                    $(0.026)        $0.001                  -
    -------------------------------------------------------------------------
    (1) Comprehensive income (loss) includes a non recurring goodwill write
        down of $370,733 on U.S. acquisition.
    

    "The recession continues to have a significant effect on the demand for
marketing services," comments Tom Short, president of Rare Method, "new
accounts and project opportunities are fewer, leaner and more competitive. In
response, we have invested in our core accounts, marketing and business
development as we continue to manage the company conservatively in this
downturn. We feel that these efforts will allow us to manage our way through
the current environment as we position ourselves to capitalize on
opportunities when the market recovers."
    Consistent with our strategic objectives, the following are some of the
highlights of the fiscal third quarter and year to date results:

    
    -   During the third quarter of fiscal 2009, gross income decreased 24%,
        from $2.27 million to $1.73 million compared to the corresponding
        period last year. For the nine months ended March 31, 2009, gross
        income decreased 20% declining from $6.87 million in 2008 to
        $5.47 million.

    -   On a year to date basis, we have an EBIDTA loss of $79,727, which
        keeps us on track for our stated goal of achieving a break-even year
        as we manage costs without sacrificing service to our core accounts
        or our ability to be properly positioned when the market recovers.

    -   Canadian operations are feeling the impact of the recession but
        achieved positive EBITDA of $81,654 and $305,070 for the three and
        nine months ended March 31, 2009, respectively. U.S. operations
        continue to feel the full effect of the recession with EBITDA losses
        of $182,164 and $384,797 for the three and nine months ended
        March 31, 2009, respectively. We continue to make adjustments to our
        U.S. operations to minimize the effect of the recession and remain
        committed to the U.S. market as a key element of our long-term
        strategy.

    -   We continue to look for all opportunities to minimize costs and as
        result have reduced salaries by 15% and 7% for the three and nine
        months ended March 31, 2009, respectively. Our management team is
        continuously monitoring short and long-term forecasted revenues and
        adjusting our cost structure accordingly.

    -   Our cash position as at March 31, 2009 was $363,030 compared to
        $948,969 as at December 31, 2008. This decrease is due to the timing
        of cash receipts and payments and is partially based on the Company's
        operating losses. As of May 20, 2009, the Company's cash position was
        $727,645 and has not drawn on its credit facility.
    

    About Rare Method Interactive Corp.

    Rare Method (TSX-V: RAM) is a leading integrated agency that leverages
technology to make marketing more effective and accountable. Rare Method
offers a full range of marketing services including marketing strategies,
creative, technology development, media planning & management, campaign
analytics, reporting & optimization. Rare Method has approximately 65
employees in Calgary, Alberta and Salt Lake City, Utah and is recognized as
one of the top 50 small to mid-sized employers for 2008 in Canada by the
Queen's School of Business, Queen's Centre for Business Venturing and Hewitt
Associates. The Company is also part of the 2008 Profit 100 as one Canada's
fastest growing companies by Profit magazine. www.raremethod.com

    
    Neither TSX Venture Exchange nor its Regulation Services Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    





For further information:

For further information: Rare Method Investor & Media inquiries: Mr. Tom
Short, President, Rare Method, (403) 543-4500 or investors@raremethod.com

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Rare Method Interactive Corp.

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