HDX Announces Record Sales and EBITDA profit for Second Quarter 2009

    TORONTO, Aug. 13 /CNW/ - Hosted Data Transaction Solutions Inc. ("HDX")
announced today its financial results for the three-month period ending June
30th, 2009. HDX is listed on the TSX under the symbol "HDX".
    Paul Howell, President and CEO states, "The HDX team has achieved
excellent financial results for the second quarter of 2009. Our consistent
disciplined approach towards developing new products and business
opportunities combined with identifying all possible cost reductions has
resulted in record HDX revenue of $2,691,473 and EBITDA profit of $251,449 for
the quarter."
    Mr. Howell noted further, "I am especially pleased with these results
considering the difficult current economic climate for the tourism and
hospitality industry. This strong financial report demonstrates to our
shareholders that the elimination of expenses HDX incurred in previous
quarters has greatly improved our cost structure moving forward. This allows
us to focus on our competitive strengths and take advantage of growth
    In the second quarter of 2009 HDX installed new point of sale solutions
at 37 quick service restaurants and deployed 212 integrated payment solutions
at client locations. HDX also distributed 431 new electronic cash registers,
21 digital surveillance solutions, and deployed new point of sale solutions at
11 fine dining restaurants.
    HDX continues to pursue selective strategic acquisitions to further its
growth. None are specifically named at this time but the Company is focused on
POS sales and services companies and transaction based payment solution

    Highlights and Summary for the Quarter

    -   Revenue was $2,691,473 for the three months ended June 30, 2009,
        compared to $2,009,890 for the three months ended June 30, 2008;

    -   Deferred revenue, which represents annual recurring revenues that
        have not yet been recognized as revenue, was $1,060,638 compared to
        $838,137 for the three months ended June 30, 2008;

    -   Gross margin was $1,633,494 for the three months ended June 30, 2009,
        compared to $1,261,173 for the three months ended June 30, 2008;

    -   EBITDA income (loss) (earnings before interest taxes depreciation and
        amortization) for the three months ended June 30, 2009, was $251,449
        compared to a loss of $176,564 for the three months ended June 30,

    -   HDX's cash, cash equivalents and short term investments totaled
        $1,101,934 as at June 30, 2009; and

    -   Net income which includes non-cash expenses such as amortization and
        stock-based compensation charges of $65,474 was $166,600 for the
        three months ended June 30, 2009, compared to a loss of $327,209 for
        the three months ended June 30, 2008.

    Additional information on HDX financial results for second quarter 2009
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.hdxsolutions.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 restaurants, integrated RFID gift card payment systems, self
serve customer kiosks, mobile wireless POS terminals, fine dining / table
service POS systems, integrated digital video surveillance and recording
systems, electronic cash registers, and web enabled business intelligence

    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 unless required
by security regulation.

For further information:

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

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