VRX Reports Fourth Quarter 2006 Results (Unaudited)



    
    -   Annual Revenues surpass $5 million
    -   4th Quarter generates Profit of $248,000 ($0.01 per share)
    -   4th Quarter Licensing Revenue up 39 per cent over Q4'05
    -   4th Quarter Service Revenue up 417 per cent over Q4'05
    

    VANCOUVER, April 19 /CNW/ - VRX Worldwide Inc. (TSX.V:VRW) today reported
its unaudited financial results for the fourth quarter ending December 31,
2006. The financial results reflect strong year-over-year and
quarter-over-quarter revenue growth and evidence of the increasing importance
of Licensing Revenues.

    
    -------------------------------------------------------------------------
                                %Increase      4th
                   12 Months     vs. 12      Quarter   %Increase   %Increase
                     Ended       Months       Ended      vs. 4th     vs. 3rd
                   Dec 31/06     Ending     Dec 31/06    Quarter     Quarter
                  (Million C$)  Dec 31/05  (Million C$) Dec 31/05   Sep 30/06
    -------------------------------------------------------------------------
    Licensing Fees  $   0.85        41.0%   $    0.25       39.1%       34.2%
    -------------------------------------------------------------------------
    Service Fees    $   4.32       252.5%   $    1.74      417.0%       31.0%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Revenue   $   5.17       183.0%   $    1.99      284.0%       31.4%
    -------------------------------------------------------------------------
    

    Total revenue for fiscal 2006 reached record levels of $5.17 million,
surpassing the previous record (2003 - $4.15 million) by over $1 million in
spite of a much stronger Canadian dollar. Similarly, total revenues for the
fourth quarter of 2006, along with service and licensing revenues, reached
record levels of $1.99 million, $1.74 million, and $0.25 million,
respectively.
    "2006 was a tremendous year for VRX," commented David MacLaren, President
and CEO. "We continued to lead the industry in quality, consistency and
capacity; we raised the content bar yet again by being the first to date-stamp
hotel content; we shot over 4,000 hotels; and we signed licensing agreements
with two of the top three online travel agencies. On top of all of this, we
posted the highest licensing and service revenues in the history of VRX."
    During the fourth quarter, VRX's licensing revenues increased
34.2 per cent. This increase was led by one of VRX's largest licensing clients
who began integrating VRX's Hotel Content into its website at the end of the
quarter.
    VRX's custom services agreement with Wyndham Hotel Group (formerly
Cendant Hotel Group) was a strong driver behind the growth of the Company's
Service Fees throughout 2006. As of December 31, VRX had shot a total of 4,362
Wyndham hotels, 3,752 of which were shot in 2006.

    Expenses

    While revenue achieved record levels in the fourth quarter, total
expenses were $84,579 lower than the previous quarter. Year over year, revenue
increased 183 per cent while expenses before other items increased
31.1 per cent. For the fourth quarter of 2006, expenses before other items
increased to $1.69 million, up 47.4 per cent over the fourth quarter of 2005,
while revenue increased 284 per cent to $1.99 million. Ultimately, the strong
revenue growth and more moderate expense growth culminated in the Company
achieving its first quarterly profit since the third quarter of 2004.
    Accounts showing a material change from fiscal 2005 include: photographer
and production fees, which increased by $930,992 ($3,131,042 vs. $2,200,050)
reflecting the increased production activity; general and administrative
costs, which increased by $372,730 ($1,715,219 vs. $1,342,489) due to
increased support activities related to ongoing service work; investor
relations expenses, which increased $31,155 ($126,314 vs. $95,159) as the
result of a now expired agreement with Renmark Financial Communications;
interest expense, which increased by $109,248 ($125,837 vs. $16,589)
reflecting costs associated with two convertible debenture financings and
other debt obligations; stock-based compensation, which decreased $54,218
($27,403 vs. $81,621) as previously granted options were fully amortized,
fewer grants were made in the period, and certain options expired before
maturity generating a reversal of some prior charges to this account.

    
    -------------------------------------------------------------------------
                          Three Months Ended Dec. 31     Year Ended Dec. 31
                               2006         2005          2006         2005

    Licensing Revenue     $   254,109  $   182,731  $   846,945  $   600,516
    Service Fees            1,739,981      336,566     4,320,50    1,225,733
                            ---------      -------     --------    ---------
    Total Revenue           1,994,090      519,297    5,167,452    1,826,249
    EBITA                     366,186     (632,635)    (400,230)  (2,348,405)
    Net Income/(Loss)         248,335     (638,355)    (893,834)  (2,501,424)
    Earnings (Loss)
     Per Share            $      0.01  $     (0.02) $     (0.03) $     (0.08)
    -------------------------------------------------------------------------


    Net Income (Loss)

    VRX recorded a Net Income of $248,335 in the fourth quarter. For fiscal
2006, the company recorded a loss of $893,834, $1,607,590 less than the
previous year.

    Balance Sheet Items

    -------------------------------------------------------------------------
                                     December 31, 2006     December 31, 2005
    -------------------------------------------------------------------------
    Current Assets                         $ 1,024,498           $   847,219
    Property Plant & Equipment                 271,013               326,197
    -------------------------------------------------------------------------
                                           $ 1,295,511           $ 1,173,416
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Accounts Payable & Accrued
     Liabilities                           $   367,528           $   280,017
    Deferred Revenue                            59,912               177,556
    Due to Related Parties                           -               250,000
    -------------------------------------------------------------------------
    Current Liabilities                        427,422               707,573

    Liability Component of
     Convertible Debenture                     820,367               427,000
    -------------------------------------------------------------------------
                                             1,247,809             1,131,608
    -------------------------------------------------------------------------

    Shareholder's Equity                        47,702                38,843

    -------------------------------------------------------------------------
                                           $ 1,295,511           $ 1,173,416
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Balance sheet items of note include an increase in working capital to
$597,056 at December 31, 2006 from $139,646 at December 31, 2005, the
strongest level in 2006. Accounts receivable of $379,333 was a significant
component of current assets at December 31, the majority of which will be
collected in Q1 2007. Current liabilities were markedly reduced due to a
reduction in deferred revenue as fees paid in advance were rebooked into
revenue and loans provided by related parties in the fourth quarter of 2005
were repaid during fiscal 2006.

    Outlook

    Licensing revenue is expected to maintain its strong growth trend
throughout 2007 driven by the combination of an increasing number of licensing
clients, further integration by existing clients, and a growing archive of
Hotel, Cruise and Destination Content. Service revenue is expected to comprise
a large percentage of total revenue in 2007 as VRX continues to service
existing contracts and is negotiating several new service contracts to be
started this year.

    Detailed Financial Statements

    The financial results provided in this release are based upon unaudited 
results management believes to be accurate; however, until such time as  the
audit process is complete, full financial statements and the related  MD&A
will not be published on either the Company's website, ww.vrxworldwide.com, or
on SEDAR at www.sedar.com.

    About VRX

    VRX Studios Inc., a wholly owned subsidiary of VRX Worldwide Inc.
(www.vrxworldwide.com ), is the world leader in producing and syndicating high
quality, web-ready, rich media content that educates, inspires, and compels
online travel consumers. Leading travel brands such as Carnival, Hyatt,
Travelocity, Lastminute, Southwest Vacations, Orbitz, and many others rely on
VRX's stunning visual content to attract and engage consumers. Each month,
millions of people interact with VRX's Hotel, Cruise and Destination Content
in their search for their perfect vacation. To find out more about VRX
Studios, its products and services, visit www.vrxstudios.com.

    VRX Worldwide Inc.

    per "David MacLaren"

    David MacLaren, CEO

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





For further information:

For further information: VRX Worldwide Inc., Barry Girling, VRX
Worldwide Inc., 1-877-688-2321, wbg@vrxworldwide.com

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VRX WORLDWIDE INC.

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