HDX Announces Financial Results for the First Quarter 2009

    TORONTO, May 15 /CNW/ - Hosted Data Transaction Solutions Inc. ("HDX")
announced today its financial results for the three-month period ending March
31, 2009. HDX is listed on the TSX under the symbol "HDX".
    Paul Howell, President and CEO states, "the HDX team continued to grow
during the 1st quarter of 2009. New sales and technical staff were hired in
B.C., Alberta, Ontario, Quebec, and Nova Scotia. Key infrastructure and
staffing investments have been made specifically in the Montreal, QC region to
address the growing business opportunity for HDX in French speaking Canada".
    Mr. Howell noted that, "during the quarter, HDX installed the HDX
Fingerprints(TM) point of sale solution at over fifty restaurants in five
separate quick service restaurant chains. HDX installed 290 sites of
integrated debit and credit and released version II of the Company's hosted
enterprise management suite, HDX Webview(TM). The business intelligence tool
has been installed at a tier one quick service restaurant chain and will
continue to be enhanced and marketed to new and existing clients".
    HDX achieved record 1st quarter sales of $2,077,200 for the quarter,
compared to $1,585,575 for the three months ended March 31, 2008. The Company
was able to maintain a gross margin of $1,281,713 for the three months ended
March 31, 2009, compared to $899,436 for the three months ended March 31,
2008. Recurring contract revenue, represented as deferred revenue, was
$1,018,066 compared to $833,714 for the three months ended March 31, 2008.
    Recurring contract revenue grows at a rate commensurate with the number
of systems installed and the number of service and support contracts invoiced.
    The former Dexit office at 1 Richmond Street was sublet and vacated
effective January 7th 2009. In the first quarter of 2009 the Company
recognized a liability of $257,475 for the remaining net lease obligation,
which will result in an annual reduction in operating expenses of more than
$240,000 beginning in Q3 2009. In the first quarter of 2009, lease costs were
$84,000 for the vacated 1 Richmond Street offices. As of the third quarter
2009, the Company will be free of this overhead except for a lease sublease
subsidy of $8,143 per month or $97,716 per year for the Richmond Street office
lease which expires May 2011.
    Management is focused on growing the business organically by marketing
the Company's solutions and services to the Quick Service Restaurant industry
and the Table Service Restaurant industry in Canada and the United States.
    HDX continues to pursue selective acquisitions to further its growth,
which the Company expects will be primarily focused on POS services companies
which can be acquired at attractive multiples. During 2007 the Company
completed one point of sale company acquisition and during the first quarter
of 2008 the Company acquired Biz-Pro Ltd. and Sabrepoint Inc.

    Highlights and Summary for the Quarter

    -   Revenue was $2,077,200 for the three months ended March 31, 2009,
        compared to $1,585,575 for the three months ended March 31, 2008;

    -   Deferred revenue, which represents annual recurring revenues that
        have not yet been recognized as revenue, was $1,018,066 compared to
        $833,714 for the three months ended March 31, 2008;

    -   Gross margin was $1,281,713 for the three months ended March 31,
        2009, compared to $899,436 for the three months ended March 31, 2008;

    -   EBITDA loss (Earnings before interest taxes depreciation and
        amortization) for the three months ended March 31, 2009, was
        $539,406 compared to $475,141 for the three months ended March 31,

    -   HDX's cash, cash equivalents and short term investments totaled
        $650,808 as at March 31, 2009; and

    -   Net income (loss) which includes non-cash expenses such as
        amortization and stock-based compensation charges of $249,415 was
        $639,140 for the three months ended March 31, 2009, compared to a
        $664,752 for the three months ended March 31, 2008.

    Additional information on HDX first quarter 2009 financial results will
be available in the financial reports filed by the Company with Sedar at
www.sedar.com and posted to the Investor Relations section of the Company's
website at www.dexit.com.

    About the Company

    Hosted Data Transaction Solutions Inc. is in the business of managing
merchant transactions with consumers and facilitating payment. HDX develops
and deploys touch screen POS system software and associated enterprise
management tools and has developed and deployed numerous POS applications. HDX
also provides system hardware integration services, merchant staff training,
system installation services, and post sale software and hardware support
    HDX leading edge technology also includes customer self serve kiosks and
"line buster" mobile point of sale terminals. These products have been
designed to dramatically enhance customer throughput and drastically reduce
customer queues. These technologies are especially effective in high foot
traffic environments that have limited cash register counter space, limited
retail square footage, and the absence of a drive through.
    The Company offers a complete suite of products and solutions for
merchants. HDX develops, sells, deploys, and supports:

    -   Touch Screen POS Systems for Quick Service
    -   Integrated RFID Gift Card Payment System
    -   Self Serve Customer Kiosks
    -   Mobile Wireless POS Terminals
    -   Fine Dining/Table Service POS Systems
    -   Integrated Digital Video Surveillance and Recording Systems
    -   Electronic cash registers
    -   Web enabled business intelligence applications

    Forward-Looking Statements

    This discussion includes certain forward-looking statements that are
based upon current expectations, which involve risks and uncertainties
associated with our business and the environment in which the business
operates. Any statements contained herein that are not statements of
historical facts may be deemed to be forward-looking, including those
identified by the expressions "anticipate", "believe", "plan", "estimate",
"expect", "intend", and similar expressions to the extent they relate to the
Company or its management. The forward-looking statements are not historical
facts, but reflect HDX's current expectations regarding future results or
events. These forward-looking statements are subject to a number of risks and
uncertainties that could cause actual results or events to differ materially
from current expectations, including the matters discussed under "Risks and
Uncertainties" in the Annual Information Form filed on March 30, 2009 with the
regulatory authorities. HDX assumes no obligation to update the
forward-looking statements, or to update the reasons why actual results could
differ from those reflected in the forward-looking statements.

For further information:

For further information: Paul Howell, President, CEO, Hosted Data
Transaction Solutions Inc. (HDX), (416) 703-6462, extension 2263

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