ISACSOFT announces second quarter net income strongly ahead of 2006 and the nomination of Mr. Robert Lévesque to the board of Directors of the company



    MONTREAL, Aug. 14 /CNW Telbec/ - ISACSOFT (TSX: ISF) announced its
un-audited interim consolidated financial results for the quarter ended
June 30, 2007. The Company also announced that it has filed its un-audited
interim financial statements and notes for the quarter June 30, 2007 and its
related management's discussion and analysis with Canadian securities
regulators. The information is available electronically to interested parties
at www.sedar.com and on the Company's web site at www.ISACSOFT.com. ISACSOFT's
2007 second quarter report will be mailed to shareholders during the fourth
week of August 2007.

    
    Second quarter 2007 financial results:

    - EBITDA(1) income of $357,354 compared to $148,713 for second quarter
      2006
    - Net income of $323,811 compared to $127,347 for second quarter 2006
    - Revenues at $3,581,462 compared to $4,283,904 for second quarter 2006

    "Second quarter results show ISACSOFT's ability to counter a very
challenging marketplace with measures that provide a better return for its
shareholders. While maintaining these controls our focus will continue to be
customer satisfaction and the pursuit of new growth opportunities" said
Ronald Brisebois, Chairman, President and CEO ISACSOFT INC.

    Overall Performance

    Second quarter net income closed at $328,811 compared to $127,347 for the
second quarter of 2006. Cost compression offset lower demand in all revenue
categories.
    Working capital was $2,213,733 as at June 30, 2007, ahead by $479,739 of
the position of $1,643,994 reported as at December 31, 2006 and is mainly due
to the decrease in both accounts receivables and payables.
    The Company closed the quarter ended June 30, 2007 with cash and cash
equivalents (including restricted cash) of $1,294,692, an increase of $518,569
over the amount of $776,123 reported as at December 31, 2006. The increase is
attributable to the profitability of the quarter, combined with the proceeds
of disposition of assets of $210,511 and positive changes in working capital,
specifically at the accounts receivable level.

    ------------------------
    (1) EBITDA is defined as Eearnings before interest, taxes, depreciation
        and amortization and stock based compensation. This measure is
        considered a non-GAAP measure.


    Financial Results:
                                                      Quarter ending June 30
                                                  ---------------------------
                                                          2007          2006

    REVENUES
                                                     3,581,462     4,283,904

    Expenses
      Operations                                     2,030,975     2,786,314
      Research and development costs                   330,908       475,800
      Selling, general and administrative expenses     819,915       788,774
                                                  ------------  -------------
                                                     3,181,798     4,050,888

    Income before the following items                  399,664       233,016

    Interest net                                       (12,240)        3,625
    Amortization of property and equipment              66,036       102,044
    Impairment of goodwill                                   -             -
    Write-down of property and equipment                     -             -
                                                  ------------  -------------

    Net income (loss) before income taxes              345,868       127,347

    Income taxes                                        22,057             -

                                                  ------------  -------------
    Net income (loss)                             $    323,811  $    127,347
                                                  ------------  -------------


    Financial Position:
                                                     Unaudited       Audited
                                                       June 30,  December 31,
                                                          2007          2006
                                                  ------------  -------------

    ASSETS
      Current assets
        Cash and cash equivalents                 $    576,872  $     58,303
        Restricted cash                                717,820       717,820
        Accounts receivable                          3,111,568     4,244,553
        Work in process                                454,498       388,075
        Inventory                                        3,274         5,559
        Prepaid expenses                               275,994       271,336
                                                  ------------  -------------

                                                     5,140,026     5,685,646
      Property and equipment                           826,957       850,948
      Investments                                            -             -
      Goodwill                                       1,101,894     1,101,894
                                                  ------------  -------------
                                                  $  7,068,877  $  7,638,488
                                                  ------------  -------------

    LIABILITIES
      Current liabilities
        Bank indebtedness                         $          -  $          -
        Accounts payable and accrued liabilities     1,538,268     2,294,247
        Deferred revenues                            1,388,870     1,625,594
        Deferred credits                                     -        32,706
        Instalments on long-term debt                   89,155        89,105
                                                  ------------  -------------
                                                     3,016,293     4,041,652

      Long-term debt                                   253,598       380,890
                                                  ------------  -------------
                                                     3,269,891     4,422,542
                                                  ------------  -------------

    SHAREHOLDERS' EQUITY
      Capital stock                                 55,346,979    55,346,979
      Contributed surplus                            1,171,393     1,114,763
      Deficit                                      (52,719,386)  (53,245,796)
                                                  ------------  -------------
                                                     3,798,986     3,215,946
                                                  ------------  -------------
                                                  $  7,068,877  $  7,638,488
                                                  ------------  -------------
    

    NOMINATION OF MR. ROBERT LEVESQUE TO THE BOARD OF DIRECTORS

    Isacsoft's board of Directors approved the nomination of Mr. Robert
Lévesque as a Director of the Company. Mr. Lévesque has more than 23 years of
experience in technological and financial sectors and is currently a Director
at Desjardins Capital de Risque in IT related investments.
    "I am pleased to have Mr. Lévesque as part of our board of Directors. I
am convinced ISACSOFT will benefit immensely from his experience" said
Ronald Brisebois, Chairman of ISACSOFT INC.

    ABOUT ISACSOFT

    ISACSOFT is a provider of software business solutions, information
technology-training and systems integration consulting to its national and
international customers. The revenue model is based on software licences,
recurring maintenance revenues and strategic IT projects targeting key
customers and training. ISACSOFT is headquartered in Montréal, Canada with
offices in Québec City, Paris, London, Cologne and The Hague.

    FORWARD-LOOKING STATEMENTS

    Certain statements made in this news release are forward-looking and are
subject to important risks, uncertainties and assumptions. The results or
events predicted in these forward-looking statements may differ materially
from actual results or events. These statements do not reflect the potential
impact of any non-recurring items or of any dispositions, monetization,
mergers, acquisitions, other business combinations or other transactions that
may be announced or that may occur after the date hereof. Other factors that
could cause results or events to differ materially from current expectations
include, among other things: general economic factors, adoption rate of our
solutions by clients, signing contracts, response to industry's rapid rate of
change, competition, pricing, operating results, acquisitions, material change
in our strategic relationships, exposure under contract indemnities, defects
in software, security and privacy breaches, loss of key personnel, our ability
to protect intellectual property, infringement claims on our intellectual
property, and industry and government regulation. For additional information
with respect to certain of these and other factors, refer to ISACSOFT Inc.'s
Annual Report (Management's Discussion and Analysis) filed with the Canadian
securities commissions.

    THE FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE REPRESENT
THE EXPECTATIONS OF ISACSOFT AND ITS SUBSIDIARIES AS AT AUGUST 14, 2007 AND,
ACCORDINGLY, ARE SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, ISACSOFT AND ITS
SUBSIDIARIES DISCLAIM ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY
FORWARD-LOOKING STATEMENTS, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE
EVENTS OR OTHERWISE.

    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.

    The information is available electronically to interested parties at
www.sedar.com and on the Company's web site at www.ISACSOFT.com.
    %SEDAR: 00015181EF




For further information:

For further information: Claude Gobeil, VP Finance and Chief Financial
Officer, (514) 282-7073, ext. 299, claude.gobeil@isacsoft.com

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