YANGAROO Reports Record Third Quarter Results

Revenues increase 139% With Growth in All Divisions Led by Advertising

TORONTO, Nov. 10, 2011 /CNW/ - YANGAROO Inc. (TSXV: YOO) (OTCBB: YOOIF), the industry's leading secure digital media distribution company, today announced record results for the third quarter ended September 30, 2011. Revenues totaling $410,360 were 139% higher than the same period in 2010. The Company saw significant growth from all divisions led by new business generated by DMDS Advertising. Ad revenues resulted from the delivery of SD and HD spots to television broadcasters led by Horizon Media in the U.S., plus new revenues from other advertising groups including activity in the Canadian market. Loses for the 3rd quarter of 2011 were down 27% from the same period in 2010.

Entertainment Division revenues were up sharply, growing over 92% from the same period in 2010. This growth is a result of increased use of DMDS for music video delivery in North America, and the expansion of music audio delivery in the United States with three of the four major record labels now using DMDS. Adding to this were music audio delivery revenues from Australia, and the profitable expansion of the DMDS Awards Management business with the addition of the Hip Hop Awards, and The Soul Train Awards.

Operating expenses for the 3rd quarter of 2011 have decreased by 17% due to our ongoing cost cutting initiatives that began in fiscal 2010.

"This is a significant quarter for us on our path to profitability," said Scott Wambolt, President and CEO YANGAROO Inc. "We continue to prove that when we focus our attention on execution, our business model can scale rapidly, and we expect this trend to not only continue but to accelerate. The trend lines for revenues and costs are both very favourable and we can see a significant milestone approaching. Since focusing our efforts on our profitable growth strategy, we have executed well in our Entertainment Division, and are seeing our efforts rewarded with results. In the much larger and more lucrative TV Advertising Content Delivery and Workflow Management market, we have spent the last few quarters building out our TV Broadcast footprint (now well over 2500 broadcast destinations), to the point where we now have critical mass and are an attractive alternative for advertising agencies. Our sales team is focused on selling to the advertising agencies and has been actively engaged with new prospects since September and we are seeing our revenues and our forecasted revenue pipeline grow dramatically.  We expect to be able to accelerate our revenues while managing our costs in the coming quarters. We are very excited about the future of YANGAROO."

Summary of operating results for the periods ended September 30th:

$CDN Third quarter
  2011 2010
Revenue  410,360 171,729
EBITDA (500,138) (795,501)
Net loss for the period (718,479) (990,926)
Loss per share (basic & diluted) (0.01) (0.01)

The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.

About YANGAROO:

YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS replaces the physical distribution of audio and video content for music, music videos, and advertising to television, radio, media, retailers, and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet. The DMDS Awards platform powers many of the North America's major awards shows.

Named one of Canada's Top 100 Tech Companies by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and Dallas. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB: YOOIF.

The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

 

SOURCE YANGAROO Inc.

For further information:

Please contact Scott Wambolt at 416-534-0607 ext.111 or visit www.yangaroo.com.

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