YANGAROO REPORTS SECOND QUARTER RESULTS

TORONTO, Aug. 27 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the six months and second quarter ended June 30, 2010.

Revenues for the six months ended June 30, 2010 decreased 1% over revenues for the same period in 2009, primarily as a result of timing differences in award show billings that were invoiced in the second quarter of 2009 but are to be billed in the second half of 2010. The loss for six months ended June 30, 2010 was 10% higher ($128,000) compared to the same period in 2009, largely due to increases in amortization of intangible assets of 41% ($87,000) and interest expense of $52,000 on convertible debentures that were issued in the first half of 2010. EBITDA (Earnings before interest, taxes, depreciation and amortization) for the six months ended June 30, 2010, calculated as the loss for the period before amortization, interest income and interest expense, improved by 2% ($22,000) over the same period in 2009. EBITDA is a non-GAAP measure that does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies.

Highlights from the second quarter of 2010 included the first commercial delivery of a broadcast quality music video via DMDS in the United States, an agreement with Telestream for integration of DMDS technology to manage television advertising spot management, additional award show customers and the appointment of Scott Wambolt as Chief Executive Officer of YANGAROO.

"We made significant progress on several fronts in the second quarter," said YANGAROO CEO Scott Wambolt. "We began delivery of music videos to major U.S. and Canadian television broadcasters. We also continued to build relationships with key music video and advertising production partners and expect to see growing revenues from these new market segments in the second half of the year."

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

    
    -------------------------------------------------------------------------
              $CDN                Six Months              Second Quarter
    -------------------------------------------------------------------------
                               2010         2009         2010         2009
    -------------------------------------------------------------------------
    Revenue                   381,824      386,228      196,534      204,842
    -------------------------------------------------------------------------
    Interest income               783        9,099          379        2,103
    -------------------------------------------------------------------------
    EBITDA                 (1,064,588)  (1,086,519)    (559,021)    (599,306)
    -------------------------------------------------------------------------
    Net loss for the
     period                (1,463,651)  (1,335,672)    (777,351)    (725,651)
    -------------------------------------------------------------------------
    Loss per share (basic
     & diluted)                 (0.02)       (0.02)       (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.

In further news, the company has granted Karen Dealy, who was recently appointed as President, U.S. Advertising Operations, 1,000,000 options that are exercisable at $0.10 and expire five years after grant. Half of these options become exercisable after the attainment of objectives for revenue and profitability for the advertising division. The balance of these options becomes exercisable as follows: one third after completion of the first year of service, one third after the second year and the remainder after the third year.

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 audio and video content for music, music videos, and advertising to television, radio, media, retailers, award shows and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.

Named one of Canada's Top 100 Tech Companies for 2009 by Canadian Business, YANGAROO has offices in Toronto, New York, Los Angeles, and London, U.K. 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 Scott Wambolt at 416-534-0607 ext 30 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

SOURCE YANGAROO Inc.

For further information: For further information: Deana Graffeo Weeks, Gina Preoteasa, Trylon SMR, 212 725-2295, deana@trylonsmr.com, gina@trylonsmr.com

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