Fortsum Business Solutions Inc. posts an increase in revenues of nearly 20% for Q2 2007 and closes the first semester with net earnings of $218,000



    Publication of financial results for Q2 2007

    QUEBEC, Aug. 10 /CNW Telbec/ - FORTSUM BUSINESS SOLUTIONS INC.
(Fortsum Business Solutions) (TSX Venture Exchange: FRT) today releases its
results for the second quarter of the fiscal year, which show an increase in
consolidated revenues of 19.5% over the same period in the preceding year
($6,721,963 as compared to $5,625,962 in 2006). The net loss for Q2 totalling
$106,324, as compared to net earnings $37,688 for the same period in 2006, is
largely explained by certain exceptional expenditures on the order of $574,450
incurred in Q2 as well as by the a variation of $154,000 regarding the
recording of tax credits for research and development, compensated by a
$400,623 drop in the amortization of intangible assets. The Corporation's net
earnings for the first semester of 2007 shows solid growth over the same
period last year.

    Outlook

    "Shareholders and potential investors should analyze Q2 financial
statements in light of certain individual factors that significantly
influenced the quarter's results. Management believes that the cumulative
results for the first six months of 2007 better reflect the reality of the
Corporation's growth," said Chief Executive Officer, François Taschereau.
"Isolating the exceptional and non-recurrent elements of the second quarter,
the Corporation is optimistic looking forward to results for the second half
of the year. We are actively seeking opportunities for our two activity
segments and plan to continue dedicating all our efforts to maximize their
profitability. We are very pleased with Fortsum Business Solutions' major
improvement in net earnings for the first six months of 2007," concluded
Taschereau.

    -------------------------------------------------------------------------
    Fortsum Business Solutions presents segmented information to help the
    readers better understand the Corporation's performance and outlook. The
    reader can consult the financial statements and MD&A at the SEDAR archive
    or on our Web site at www.fortsum.com.
    -------------------------------------------------------------------------

    
    Consolidated Statements of Net
    and Comprehensive Earnings

    For the periods
     ended June 30            2007 ($)    2006 ($)      2007 ($)     2006 ($)
                                    3 Months                  6 Months
    -------------------------------------------------------------------------
    Revenues                6,721,693    5,625,962   14,025,296    9,846,938
    Cost of goods
     sold before
     depreciation           2,660,895    1,977,521    5,384,436    2,728,034
    Selling and
     customer service
     expenses               1,765,710    1,622,672    3,502,146    3,305,040
    Administrative
     expenses (Note 8)      1,346,829      967,059    2,633,992    1,806,539

    Development
     costs (net tax
     credits for an
     investment of
     $150,000 in 2007
     and $304,349 in
     2006)                    390,425      210,500      973,860      715,380
    -------------------------------------------------------------------------
                            6,163,859    4,777,752   12,494,434    8,554,993
    -------------------------------------------------------------------------
    Earnings before
     interest, taxes,
     depreciation and
     amortization             557,834      848,210    1,530,862    1,291,945
    -------------------------------------------------------------------------
    Depreciation of
     property, plant
     and equipment             73,217       62,134      144,417      108,114
    Amortization of
     intangible assets        150,245      550,868      319,395    1,062,236
    Amortization of
     pre-operating
     costs                     23,400       23,400       46,800       46,800
    Financial expenses
     (including amortiz-
     ation of deferred
     charges of $24,190
     in 2007 and $33,471
     in 2006 and 6 Months
     in the amount of
     $57,661 in 2007
     and $66,942 in
     2006) (Note 8)           203,681      228,889      428,821      451,844
    Charges related to
     debt refinancing
     (including
     amortization
     of deferred
     charges of
     $145,045) (Note 6)       408,450            -      408,450            -
    Interest revenue          (55,524)     (54,963)    (102,159)     (95,648)
    -------------------------------------------------------------------------
                              803,469      810,328    1,245,724    1,573,346
    -------------------------------------------------------------------------
    Earnings (loss)
     before income
     taxes                   (245,635)      37,882      285,138     (281,401)
    -------------------------------------------------------------------------
    Income taxes
      Current                 (13,461)     142,227      192,056      200,876
      Future                 (125,850)    (142,033)    (124,775)    (256,033)
    -------------------------------------------------------------------------
                             (139,311)         194       67,281      (55,157)
    -------------------------------------------------------------------------
    Net and compre-
     hensive earnings
     (net and compre-
     hensive loss)           (106,324)      37,688      217,857     (226,244)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Basic and
     diluted net
     earnings (loss)
     per outstanding
     share                          -            -         0.01        (0.01)
    -------------------------------------------------------------------------
    Average number
     of outstanding
     shares for the
     period (in
     thousands)                34,923       33,009       34,605       33,009
    -------------------------------------------------------------------------


    Consolidated statements of deficit

    For the periods
     ended June 30            2007 ($)     2006 ($)     2007 ($)     2006 ($)
                                    3 Months                  6 Months
    -------------------------------------------------------------------------
    Deficit, beginning
     of period             (5,620,784)  (5,773,356)  (5,944,965)  (5,509,424)
    Add
    Unit issue
     expenses (net of
     related future
     income taxes
     of $133,125)            (292,193)           -     (292,193)           -
    Net earnings
     (loss)                  (106,324)      37,688      217,857     (226,244)
    -------------------------------------------------------------------------
    Deficit, end
     of period             (6,019,301)  (5,735,668)  (6,019,301)  (5,735,668)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Consolidated statements of cash flows

    For the periods
     ended June 30            2007 ($)     2006 ($)     2007 ($)     2006 ($)
                                    3 Months                  6 Months
    -------------------------------------------------------------------------

    OPERATING ACTIVITIES
    Net earnings
     (loss)                  (106,324)      37,688      217,857     (226,244)
    Adjustments for:
      Compensation
       expense -
       Stock options           27,051       54,095       34,079      155,477
      Depreciation of
       property, plant
       and equipment           73,217       62,134      144,417      108,114
      Amortization
       of intangible
       assets                 150,245      550,868      319,395    1,062,236
      Amortization of
       pre-operating
       costs                   23,400       23,400       46,800       46,800
      Amortization
       of deferred
       charges                169,235       33,471      202,706       66,942
      Accrued interest
       on balance of
       purchase price
       payable                  7,620            -       15,241            -
      Loss (gain) on
       disposal of
       property, plant
       and equipment                -          389         (438)         389
      Future income
       taxes                 (125,850)    (142,033)    (124,775)    (256,033)
    -------------------------------------------------------------------------
                              218,594      620,012      855,282      957,681
    Net change in
     non-cash working
     capital items             96,342      612,514   (1,200,120)     270,242
    -------------------------------------------------------------------------
    Cash flows related
     to operating
     activities               314,936    1,232,526     (344,838)   1,227,923
    -------------------------------------------------------------------------

    INVESTING ACTIVITIES
    Additions to
     property, plant
     and equipment            (85,899)     (48,532)    (165,033)    (168,010)
    Additions to
     intangible
     assets (Note 4)         (235,800)           -     (235,800)           -
    Proceeds from
     disposal of
     property, plant
     and equipment                  -            -        1,000            -
    Business
     acquisition (Note 4)    (657,666)  (1,827,190)    (657,666)  (1,827,190)
    Increase in
     deferred charges         (33,776)           -      (33,776)           -
    -------------------------------------------------------------------------
    Cash flows related
     to investing
     activities            (1,013,141)  (1,875,722)  (1,091,275)  (1,995,200)
    -------------------------------------------------------------------------

    FINANCING ACTIVITIES
    Repayment of
     long-term debt        (3,867,620)    (189,220)  (4,051,130)    (365,620)
    Long-term
     debt (Note 6)          5,000,000            -    5,000,000            -
    Unit issued (Note 7)    3,500,002            -    3,500,002            -
    Unit issue costs         (374,388)           -     (374,388)           -
    -------------------------------------------------------------------------
    Cash flows related
     to financing
     activities             4,257,994     (189,220)   4,074,484     (365,620)
    -------------------------------------------------------------------------
    Net increase
     (decrease) in
     cash and cash
     equivalents            3,559,789     (832,416)   2,638,371   (1,132,897)
    Cash and cash
     equivalents,
     beginning of
     period                 5,172,760    5,551,257    6,094,178    5,851,738
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period          8,732,549    4,718,841    8,732,549    4,718,841
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplementary
     information
    Interest paid             359,212      161,274      509,095      321,574
    Income taxes
     paid (received)          114,717     (291,038)     700,961     (253,384)
    -------------------------------------------------------------------------
    Property, plant
     and equipment
     included in
     accounts payable          37,763       12,119       37,763      113,263
    -------------------------------------------------------------------------


    Consolidated Balance Sheets
                                                        June 30  December 31
                                                           2007         2006
                                                              $            $
                                                     (unaudited)    (audited)
    -------------------------------------------------------------------------

    ASSETS
    Current assets
    Cash                                                982,549    1,494,177
    Temporary investment, 3.8% maturing
     on July 27, 2007 (3.8% matured on
     January 27, 2007)                                7,750,000    4,600,000
    Accounts receivable                               2,463,138    2,762,900
    Work in progress                                    297,007      194,942
    Income taxes receivable                             192,655            -
    Inventories                                         202,371      273,748
    Prepaid expenses                                    180,473      158,185
    Future income tax assets                            677,650      668,900
    -------------------------------------------------------------------------
    Total current assets                             12,745,843   10,152,852
    -------------------------------------------------------------------------
    Investment                                           47,336       19,349
    -------------------------------------------------------------------------
    Property, plant and equipment                       730,526      702,567
    -------------------------------------------------------------------------
    Intangible assets                                 2,939,293    3,022,888
    -------------------------------------------------------------------------
    Deferred charges                                    124,000      339,730
    -------------------------------------------------------------------------
    Goodwill                                          9,776,841    9,119,175
    -------------------------------------------------------------------------
    Future income tax assets                            532,025      343,000
    -------------------------------------------------------------------------
                                                     26,895,864   23,699,561
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES AND SHAREHOLDERS' EQUITY
    Current liabilities
    Accounts payable and accrued
     liabilities (Note 5)                             2,867,040    3,674,826
    Income taxes payable                                      -      451,519
    Current position of long-term debt                1,325,000      859,040
    -------------------------------------------------------------------------
                                                      4,192,040    4,985,385

    Deferred revenues                                 4,916,705    4,875,758
    -------------------------------------------------------------------------
    Total current liabilities                         9,108,745    9,861,143
    -------------------------------------------------------------------------
    Long-term debt (Note 6)                           3,895,995    3,397,844
    -------------------------------------------------------------------------
    Future income tax liabilities                       768,800      828,925
    -------------------------------------------------------------------------
    Shareholders' equity
    Share capital (Note 7)                           16,177,390   12,741,024
    Warrants (Note 7)                                    93,636       30,000
    Contributed surplus (Note 7)                      2,870,599    2,785,590
    Deficit                                          (6,019,301)  (5,944,965)
    -------------------------------------------------------------------------
                                                     13,122,324    9,611,649
    -------------------------------------------------------------------------
                                                     26,895,864   23,699,561
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Non-GAAP financial measures

    Earnings before interest, income taxes, depreciation and amortization
(EBITDA) has no standardized meaning prescribed by Canadian GAAP and are
considered non-GAAP measures. Therefore, these measures may not be comparable
to similar measures presented by other issuers. EBITDA figures are to provide
the reader with additional information regarding the Corporation's ability to
generate funds to finance its operations. They are not intended to replace
financial information prepared in accordance with GAAP.

    About Fortsum Business Solutions

    FORTSUM BUSINESS SOLUTIONS INC. is mainly involved in the development,
integration, marketing and support of accounting, commercial and banking data
management software. For more information: www.fortsum.com.

    Forward-looking Information

    This press release could contain forward-looking information. Statements
based on current management expectations involve inherent risks and
uncertainties, both known and unknown. Actual results may vary from forecasts.
The reader should not place undue faith in forward-looking information.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of the release.
    %SEDAR: 00019855EF




For further information:

For further information: François Taschereau, Chief Executive Officer,
ftaschereau@fortsum.com; Dany Beaudet, Shareholder Communications Coordinator,
(418) 877-3003 ex. 2272, Toll-free: 1-888-268-0088, Fax: (418) 877-9994,
dbeaudet@fortsum.com

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FORTSUM BUSINESS SOLUTIONS INC.

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