Rare Method builds on growing media trend in Q2



    CALGARY, Feb. 28 /CNW/ - Rare Method today announced consolidated
financial results for the 3 months and six months ending December 31, 2007.
For Q2, Rare Method recorded revenue of $3.13 million, up 54% from $2.04
million a year ago, and EBITDA (Earnings before interest, taxes, stock-based
compensation, and depreciation and amortization) of $351,803 up 190% from
$121,126 a year ago. Comparisons of Rare Method's Q2 2008 results to Q2 2007
and the 6 months ending are provided below:

    
    Three months ended December 31st
    Description                              2007             2006  Increase
    Revenue                         $3.13 million    $2.04 million       54%
    Gross Income                    $2.35 million    $1.63 million       44%
    EBITDA                               $351,803         $121,126      190%
    Normalized Earnings                  $177,749          $66,470      167%
    EPS(2)                                  $0.01           $0.003

    Six months ended December 31st
    Description                              2007             2006  Increase
    Revenue                         $6.52 million    $3.88 million       68%
    Gross Income                    $4.77 million    $3.10 million       54%
    EBITDA(1)                            $615,830         $225,547      173%
    Normalized Earnings(1)               $293,453         $117,121      150%
    EPS(2)                                  $0.01           $0.005

    (1) Excludes one time severance payment of $169,217 in Q1 of fiscal 2008
    (2) Earnings Per Share (basic and diluted)
    

    "Our results demonstrate that our strategy and new organizational
structure is working" comments Tom Short, president of Rare Method, "the
results go well beyond the financial success to the long term strategy of
building one of the most comprehensive and accomplished marketing agencies in
North America," says Tom Short.

    
    Consistent with the strategic objectives, the following are some of the
highlights of the second quarter:

    -   Rare Method achieved record revenues of $3.13 million and $6.5
        million for the quarter and our six month ended, which represents a
        54% and 68% increase from the same period last year based on strong
        media growth;
    -   Rare Method gross income increased 44% and 54% respectively as we
        continue to grow revenue on the success of building deeper
        relationships with our top accounts;
    -   Rare Method EBITDA increased 190% over the same period last year
        based on greater revenues and increased efficiencies of a more
        focused team;
    -   Rare Method working capital position improved to $751,190, which
        represents 55% increase over the same period last year providing us
        with the necessary resources to execute on our strategy;
    -   Rare Method was recognized as one of the top 25 employers in Canada
        for small to medium sized businesses;
    

    "Media dollars tell the whole story about how vibrant the marketing world
will be for organizations that have the capabilities to offer advanced online
marketing strategy and execution," explains Mr. Short, "online media
expenditures will surpass all other major forms of media from print to
broadcast by 2010 and organizations like Rare Method are well positioned to be
leaders in the new marketing paradigm where agencies will be required to be as
good in digital marketing as traditional marketing. Our organization is a Rare
commodity in a $44 billion market," concludes Mr. Short.
    For detailed financial statements, please visit:
www.raremethod.com/investors_investors_financial.htm

    ABOUT RARE METHOD INTERACTIVE CORP.

    Rare Method (TSX-V: RAM) is a leading interactive marketing firm that
designs, builds, implements and optimizes strategic interactive marketing
programs that acquire, convert and retain customers. Rare Method offers a full
range of interactive marketing services including interactive marketing
strategies, creative development, technology development, implementation of
interactive marketing programs and campaign optimization. Rare Method has
offices in Calgary, Alberta and Salt Lake City, Utah and was recognized as
Alberta's 2nd fastest growing company by Alberta Venture magazine in 2007 and
one of the top 25 small to medium employers in Canada in 2008 based on study
by the Queen's School of Business, Queen's Centre for Business Venturing and
Hewitt Associates.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    %SEDAR: 00014945E




For further information:

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

Organization Profile

Rare Method Interactive Corp.

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