Telehop Reports Q3 and Nine Months Results to September 30, 2007 - Nine Month earnings of $0.03 per share



    TSX VENTURE SYMBOL: HOP

    TORONTO, Nov. 29 /CNW/ - Telehop Communications Inc. ("Telehop") (TSX-V -
 HOP) today released its financial results for the third quarter and for the
nine months ended September 30, 2007, which showed earnings of $0.03 per share
for the nine month period and continued strength in its balance sheet.
    Telehop's revenue for the third quarter ended September 30, 2007 of
$4,309,819 represented a decrease from $5,451,582 over the same period in
2006. Net income for the quarter ended September 30, 2007 was $2,712 ($0.00
per share), a decrease from $286,635 ($0.02 per share), for the third quarter
of 2006.
    Revenues for the nine months ended September 30, 2007 were $13,896,579, a
decrease of 11% from $15,619,052 in the comparable period in 2006. Net income
for the nine month period was $ 454,526 ($0.04 per share), (or $0.03 fully
diluted), compared with $770,420 ($0.06 per share) for the nine months ended
September 30, 2006.
    The Company continues to improve the strength of its balance sheet, and
working capital at September 30, 2007 increased 16.6% to $3,645,486 from
$3,126,904 at December 31, 2006. Telehop's cash and equivalents at September
30, 2007 improved to $ 3,034,500 ($0.24 per share) from $2,778,664 ($0.22 per
share) as at December 31, 2006. Telehop's capital requirements are entirely
funded by cash flow from operations, and the company has no outstanding bank
or other debt.
    Hersh Spiegelman, Chairman and Director of Telehop stated: "We are
continuing our efforts to control our costs in a very competitive environment
and have dropped some of our wholesale traffic which was not generating
adequate returns. Our focus on controlling costs and maximizing our margins
will continue for the balance of this year, and our recent expansion of our
"10-10-620" and "10-10-100" 'Dial-Around' service offerings to customers of
Rogers Telecommunications, has provided a significant expansion of our target
market for these services."

    About Telehop Communications Inc.

    Telehop is licensed by the CRTC and provides a complete range of
value-priced telecommunications services to Canadians in both residential &
business markets. Telehop offers its branded "10-10-620" and the "10-10-100",
Dial-Around Services and "WorldTalk(TM)" 'Equal Access' Long Distance and
alternative Directory Assistance Programs. Telehop also provides toll free
numbers, Virtual Calling Cards, and "Broadtalk(TM)" VOIP flat rate service.
For more information on Telehop's products and services check our websites;-
www.telehop.com; www.myworldtalk.com; www.1010100.com; www.1010620.com; and
www.broadtalk.ca

    
    Shares Outstanding;-     13,153,500
    Fully Diluted;-          13,618,500

    More investor information on Telehop (HOP-TSX Venture) may be obtained at
http://www.sedar.com and at www.telehop.com,or by calling Patrick V. Farrell
at (416) 494 4490 ext 399, or 1-866-530 7988 or e-mail pfarrell@telehop.com,
or Garry Clifford at (647) 346 2050.


    TELEHOP COMMUNICATIONS INC.
    Consolidated Balance Sheets

    -------------------------------------------------------------------------
                                                  September 30,  December 31,
                                                          2007          2006
    -------------------------------------------------------------------------

    ASSETS                                          (unaudited)     (Audited)

    CURRENT
      Cash and cash equivalents                    $ 3,034,500   $ 2,778,664
      Accounts receivable                            2,689,333     3,319,359
      Income taxes recoverable                          57,786             -
      Prepaid expenses and deposits                    118,825       236,881
    -------------------------------------------------------------------------
                                                     5,900,444     6,334,904

    PROPERTY, PLANT AND EQUIPMENT                      749,938       809,543

    INTANGIBLES                                        326,246       358,328

    -------------------------------------------------------------------------
                                                   $ 6,976,628   $ 7,502,775
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    LIABILITIES

    CURRENT
      Accounts payable and accrued liabilities     $ 2,254,958   $ 2,989,398
      Income taxes payable                                   -       218,602
    -------------------------------------------------------------------------
                                                     2,254,958     3,208,000

    FUTURE INCOME TAX LIABILITY                         43,217        69,050

    -------------------------------------------------------------------------
                                                     2,298,175     3,277,050
    -------------------------------------------------------------------------


    SHAREHOLDERS' EQUITY

    SHARE CAPITAL                                    1,333,823     1,277,968
    CONTRIBUTED SURPLUS                                116,608       174,261
    RETAINED EARNINGS                                3,228,022     2,773,496
    -------------------------------------------------------------------------
                                                     4,678,453     4,225,725
    -------------------------------------------------------------------------

                                                   $ 6,976,628   $ 7,502,775
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    TELEHOP COMMUNICATIONS INC.
    Consolidated Interim Statements of Income and Comprehensive Income
    Unaudited
    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                              Sept 30,     Sept 30,     Sept 30,     Sept 30,
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------

    Revenue               $ 4,309,819  $ 5,451,582  $13,896,579  $15,619,052
    -------------------------------------------------------------------------

    Expenses
      Telecommunication
       costs                2,522,851    2,966,942    8,138,313    8,663,609
      General and
       administration         707,342      825,946    2,231,996    2,338,989
      Marketing and
       selling                669,547      904,819    1,837,083    2,482,096
      Development and
       technical support      261,735      197,506      549,379      599,360
      Depreciation and
       amortization           111,150      105,495      346,638      312,083
      Interest expense         10,838        1,919       24,946        3,016
    -------------------------------------------------------------------------
                            4,283,463    5,002,627   13,128,355   14,399,153
    -------------------------------------------------------------------------

    Income before
     income taxes              26,356      448,955      768,224    1,219,899
    Income tax expense         23,644      162,320      313,698      449,479
    -------------------------------------------------------------------------
    Net income  for
     the period           $     2,712  $   286,635  $   454,526  $   770,420
    Other Comprehensive
     Income                         -            -            -            -
    -------------------------------------------------------------------------
    Comprehensive
     Income               $     2,712  $   286,635  $   454,526  $   770,420
    -------------------------------------------------------------------------

    Earnings per
     share
    Basic                 $      0.00  $      0.02  $      0.04  $      0.06
    Diluted               $      0.00  $      0.02  $      0.03  $      0.06
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    TELEHOP COMMUNICATIONS INC.
    Consolidated Interim Statements of Retained Earnings
    Unaudited

    -------------------------------------------------------------------------
                                                 For the Nine months ended
                                              Sep 30, 2007      Sep 30, 2006
    -------------------------------------------------------------------------

    Balance at beginning of period             $ 2,773,496       $ 1,876,349

    Income for the period                          454,526           770,420
    -------------------------------------------------------------------------
    Balance end of period                      $ 3,228,022       $ 2,646,769
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    TELEHOP COMMUNICATIONS INC.
    Consolidated Interim Statements of Cash Flows
    Unaudited
    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                              Sept 30,     Sept 30,     Sept 30,     Sept 30,
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------

    CASH FLOW PROVIDED
     BY (USED FOR)

    Operating activities
      Net income for
       the period         $     2,712  $   286,635  $   454,526  $   770,420
      Adjustments for
       non-cash items:
        Amortization
         expense              111,150      105,495      346,638      312,083
        Future income
         taxes                 (6,984)      (8,282)     (25,833)     (11,357)
        Stock-based
         compensation               -       38,219      (39,298)      38,219
    -------------------------------------------------------------------------
                              106,878      422,067      736,033    1,109,365

      Changes in working
       capital items:
        Accounts
         receivable           153,249     (135,406)     630,026       80,763
        Prepaid expenses      (39,910)     (72,110)     118,056     (125,537)
        Accounts payable
         and accrued
         liabilities         (165,331)      78,545     (734,440)     845,608
        Income taxes          119,358      148,484     (276,388)      82,396
    -------------------------------------------------------------------------
    Cash provided by
     operating activities     174,244      441,580      473,287    1,992,595
    -------------------------------------------------------------------------

    Investing activities
      Acquisition of
       property, plant
       and equipment          (42,669)     (43,277)    (180,187)    (202,738)
      Acquisitions of
       intangible assets      (39,326)     (25,857)     (74,764)     (70,557)
    -------------------------------------------------------------------------
    Cash used for
     investing activities     (81,995)     (69,134)    (254,951)    (273,295)
    -------------------------------------------------------------------------

    Financing activities
      Repayment of
       obligations under
       capital lease                -       (3,007)           -       (8,750)
      Issuance of common
       shares                  17,500       10,000       37,500       20,000
    -------------------------------------------------------------------------
    Cash provided by
     financing activities      17,500        6,993       37,500       11,250
    -------------------------------------------------------------------------

    Increase in cash          109,749      379,439      255,836    1,730,550

    Cash, beginning of
     period                 2,924,751    2,183,846    2,778,664      832,735
    -------------------------------------------------------------------------
    Cash, end of period   $ 3,034,500  $ 2,563,285  $ 3,034,500  $ 2,563,285
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplementary Information
    -------------------------
    Interest received          33,719       32,027       99,469       84,404
    Income taxes paid          98,783       94,612      641,617      283,837
    

    %SEDAR: 00004365E




For further information:

For further information: Telehop Communications Inc., Hersh Spiegelman,
Chairman & Director, (416) 494-4490, 1-888-846-7654, http://www.telehop.com/

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