VRX Reports Third Quarter Results (Un-Audited)



    
    -  Record Licensing Fees: up 113% over Q3'06

    -  5th straight quarter of increased Licensing Fee Growth
    

    VANCOUVER, Nov. 14 /CNW/ - VRX Worldwide Inc. (TSX-V:VRW) announced today
its un-audited financial results for the third quarter ending September 30,
2007. The financial results reflect the continued growth of the company's
Licensing Fees.

    
    -------------------------------------------------------------------------
                           Nine  % change        Three   % change   % change
                         Months  vs. Nine       Months  vs. Three  vs. Three
                          Ended    Months        Ended     Months     Months
                         9/30/7     Ended       9/30/7      Ended      Ended
                    (Million C$)   9/30/6  (Million C$)    9/30/6     6/30/7
    -------------------------------------------------------------------------
    Licensing             $1.09     83.9%        $0.40     112.6%       9.4%
    -------------------------------------------------------------------------
    Services              $1.66    -35.8%        $0.53     -60.4%       7.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Total Revenue         $2.75    -13.4%        $0.93     -38.9%       8.3%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    During the third quarter, VRX's Licensing Fees increased 112.6 percent
over the third quarter of 2006 and 9.4 percent over the second quarter of 2007
to a record $402,514. This growth is the result of VRX's continued focus on
increasing the number of new licensing clients, growing VRX's Hotel, Cruise,
and Destination Archives and working with existing licensing clients to
increase the effectiveness of content on their websites.
    "As we continue to grow our market share, increase our licensing
revenues, and improve our bottom line, we continue to strengthen our leading
position within the online content industry," commented David MacLaren,
president and CEO of VRX. "With profitability in our sights and our
relationships with leading brands deepening, the team is very excited. We look
forward to a great fourth quarter and an even better 2008."
    VRX's custom services agreement with Wyndham Hotel Group (formerly
Cendant Hotel Group) continues to be a strong contributor to VRX's Service
Revenues. On May 8, 2007, VRX announced phase three of the Wyndham project
which increased the number of properties under contract to be photographed to
5,300. As of September 30, 2007 VRX had shot a total of 5,247 Wyndham hotels,
3,752 of which were shot in 2006, and has entered the maintenance phase of the
project which covers all new openings and renovations.

    Expenses

    Year to date operating expenses for 2007 decreased 18% over the same
period in 2006 while total revenue decreased 13 percent for the same period.
    Operating accounts showing a material change in the first nine months of
2007, compared to the same period in 2006, include: photographer and
production fees which decreased 30% primarily due to reduced focus on Service
Work; research and development which increased 114% as the Company has focused
on technology improvements to increase product efficiencies, enhance its
distribution infrastructure, and grow its stable of products and services; and
investor relations which decreased 40% primarily due to the terminated
agreement with Renmark effective June 30, 2006.

    Net Income (Loss)

    VRX recorded a Net Loss of $986,488 in the first nine months of 2007
compared with a net loss of $1,142,169 for the same period in 2006, an
improvement of 14%. Further, VRX's earnings before interest, taxes and
amortization (EBITA) improved 34% for the nine months of 2007 over the prior
period in 2006.

    
    -------------------------------------------------------------------------
                 Nine Months     Nine Months    Three Months    Three Months
              Ended Sep 30/7  Ended Sep 30/6  Ended Sep 30/7  Ended Sep 30/6
    -------------------------------------------------------------------------
    Revenue       $2,746,997      $3,173,362        $927,737      $1,517,290
    -------------------------------------------------------------------------
    EBITA           (546,033)       (830,255)       (104,505)       (183,175)
    -------------------------------------------------------------------------
    Net Loss        (986,488)     (1,142,169)       (238,375)       (338,562)
    -------------------------------------------------------------------------
    Loss Per
     Share        $    (0.03)     $    (0.03)       $  (0.01)     $    (0.01)
    -------------------------------------------------------------------------
    

    Balance Sheet

    Balance sheet items of note include a decrease in working capital to
$91,911. The decrease in working capital is directly related to the Company
realizing a cash loss from operations during the period offset by the
completion of a convertible debenture financing in the amount of $250,000 as
announced on May 4, 2007.
    Improvement in the Company's working capital during 2007 (and beyond) is
largely dependent on the success and speed with which the Company's Hotel
Program is taken up by hotels and online travel intermediaries and on the
Company's ability to generate and capitalize on other business opportunities.
Ultimately the Company's increase in liquidity and capital resources will be
based upon its ability to achieve consistently profitable operations.

    Outlook

    Licensing Revenue is expected to maintain its strong growth trend
throughout 2007 and beyond driven by the combination of an increasing number
of licensing clients, a growing archive of Hotel, Cruise and Destination
Content, and further integration by existing clients. Service Revenue is
expected to continue to comprise a significant percentage of total revenue as
VRX expands existing service contracts and signs on new service clients.
    On or about October 4, 2007 the Company entered into a multi-year
agreement with Red Roof Inns, Inc. to produce still images, virtual tours,
interactive maps and descriptive text for approximately 320 Red Roof
properties. The Company will host and distribute the new content, along with
other relative Red Roof Inn visual content, to all Red Roof Inn branded
websites and approved third party websites. This agreement represents a
significant service and licensing contract for the Company.

    Detailed Financial Statements

    The financial results provided in this release are based upon un-audited
results management believes to be accurate; until such time as the annual
audit process is complete and detailed Financial Statements are available,
un-audited quarterly financial statements and related management discussion
and analysis will be published on the Company's website, www.vrxworldwide.com
and on www.sedar.com.

    About VRX

    VRX Studios Inc., a wholly owned subsidiary of VRX Worldwide Inc.
(TSX-V:VRW) (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
Harrah's, Hyatt, Travelocity, Lastminute, 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. VRX is recognized as one of the fastest
growing companies in Canada by Profit magazine (June 2007). To find out more
about VRX Studios, its products, and services, visit www.vrxstudios.com.

    VRX Worldwide Inc.

    per "David MacLaren"

    David MacLaren, President and 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., (604) 605-0052, (888)
605-0059, info@vrxworldwide.com

Organization Profile

VRX WORLDWIDE INC.

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