Yangaroo Reports Second Quarter Results



    U.S. Deliveries Double; Revenues Up; Indie Signings Accelerate

    TORONTO, Aug. 29 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the
industry's leading secure digital media distribution company, today announced
results for the first half and second quarter ended June 30, 2008. Revenues
for the six months ended June 30 were 5% higher than revenues for the same
period in 2007, due to the increased use of YANGAROO's Digital Media
Distribution System (DMDS). Cash and cash equivalents were $4,475,000 at
June 30, 2008. In the United States market, the volume of deliveries made by
YANGAROO's DMDS in the second quarter more than doubled over the second
quarter of 2007 to 526,000.
    Highlights from the first half of 2008 include the registration of the
2,000th U.S. radio station on DMDS, partnering with leading U.S. music
industry publication Radio & Records, signing of over 30 new independent music
customers, doubling the number of U.S. deliveries via DMDS in the second
quarter, continued revenue growth, aggressively prosecuting our $15 million
Canadian patent infringement claim against a competitor, launching our
ecommerce service DMDSDirect, linking DMDSDirect with Nielsen BDS' Virtual
Encode site, integrating DMDS with OMT Inc.'s iMediaTouch Radio Automation
Software, launching the Canadian music industry's digital news source
FYIMusic.ca and reaching agreement with the Examiner on the patent claims in
our pending U.S. patent application.
    "YANGAROO made significant progress on many fronts during the first half
of 2008," said YANGAROO President & CEO John Heaven. "Not only are our
existing partners relying on DMDS more, but we are also making significant
inroads in the U.S. market and with the independent music community, which is
embracing the cost-effective, environmentally friendly and less
labour-intensive way DMDS allows songs and promotional materials to be sent to
radio."
    Summary of operating results for the six months and second quarter ended
June 30, 2008:

    
    -------------------------------------------------------------------------
            $CDN                     Six Months             2nd Quarter
    -------------------------------------------------------------------------
                                  2008        2007        2008        2007
    -------------------------------------------------------------------------
    Revenue                      265,023     253,448     137,946     130,640
    -------------------------------------------------------------------------
    Interest income               93,096     132,198      37,708      71,715
    -------------------------------------------------------------------------
    EBITDA                    (1,660,726) (1,137,368)   (928,965)   (625,651)
    -------------------------------------------------------------------------
    Net loss for the period   (1,827,915) (1,161,255) (1,020,724)   (632,562)
    -------------------------------------------------------------------------
    Loss per share
     (basic & diluted)             (0.02)      (0.02)      (0.01)      (0.01)
    -------------------------------------------------------------------------
    

    The increase in the loss for the first half of 2008 compared to the same
period on 2007 was primarily due to higher total expenses. The majority of the
increase in operating expenses in the first half of 2008 stemmed from planned
human resource additions and from continuing to enforce and expand
intellectual property rights. During the period the company commenced work on
a major version upgrade of DMDS that will improve existing functions and add
many significant new features and capabilities to the system. Operating
expenses in the first six months of 2008 were below the budgeted target.
    The full text of the financial statements and Management Discussion &
Analysis is available at www.yangaroo.com and at www.sedar.com.
    In other news, Garry Wallace, Executive Vice President Sales & Marketing
for YANGAROO, is leaving the company to help launch a family business. Garry
is expected to continue his relationship with YANGAROO in a part time advisory
board or consulting role. YANGAROO wishes him every success with the new
enterprise.

    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 is a web-based delivery system that pioneers secure digital file
distribution by incorporating biometrics, high-value encryption and
watermarking. DMDS replaces the physical distribution of musical recordings
and advertising to radio, media, retailers, and other authorized recipients
with more accountable, effective, and far less costly digital delivery of
broadcast quality media via the Internet.
    YANGAROO's DMDS has made over five million deliveries of over 11,000
songs from more than 600 record labels to destinations which include radio
stations representing over 35 U.S. broadcast chains. U.S. record labels
delivered 1.3 million songs via YANGAROO's Digital Media Distribution System
(DMDS) in the U.S. in 2007.
    DMDS is the only system that can digitally deliver music across the U.S.,
Canada, and the UK. YANGAROO has offices in Toronto, New York, Los Angeles,
and London, UK. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the
symbol YOO and in the U.S. under OTCBB:YOOIF. For further information, please
contact John Heaven at 905-763-3553 or visit www.yangaroo.com.

    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.

    %SEDAR: 00018809E




For further information:

For further information: Matthew Caldecutt, Gina Preoteasa, Trylon SMR,
(212) 725-2295, matthew@trylonsmr.com, gina@trylonsmr.com

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