Medical Intelligence announces 2007 second quarter results



    QUEBEC CITY, Aug. 29 /CNW/ - Medical Intelligence Inc. (TSX-V: MIZ) today
announced its operational and financial results for the second quarter ended
on June 30, 2007.

    
    Second quarter highlights:
    --------------------------

    -   Closed $15.6 million share issue financing on April 18, 2007.
    -   Started selling Columba in Spain and hired a Sales Director for this
        region.
    -   Completed technical tests on the Columba Bracelet with Tunstall Group
        Limited to finalize an agreement on the commercial distribution of
        the Columba Bracelet in the United Kingdom.
    -   Signed a LOI with ASM Research Inc. to sell Medical Intelligence GPS
        alert systems in the United States.
    -   Finalized the development of the Urgentys GPS alarm button.
    -   Deployed the Urgentys GPS technology for the first time during former
        U.S. President Bill Clinton's visit to Quebec City.
    

    In the last quarter, Medical Intelligence completed a major round of
funding that will enable the Company to implement its Columba Bracelet sales
strategy. As a result, the Company will considerably increase its sales and
marketing efforts to post sales in France and Spain while continuing to
establish strategic partnerships to deploy the Columba Bracelet in other
markets, notably the United Kingdom. Also, the Company reached another stage
of development by implementing the Urgentys technological platform for the
first time. The funds raised in the latest round of financing will also be
used for the commercial launch of the Urgentys. In the upcoming quarters, all
energies will be devoted to increase sales and generate revenues from these
two lead products.

    
    SUMMARY OF QUARTERLY RESULTS
    -------------------------------------------------------------------------
                                             2007                2006
    (in thousands of dollars         ----------------------------------------
     except per-share data)           3 months  6 months  3 months  6 months
                                         ended     ended     ended     ended
                                       June 30   June 30   June 30   June 30
    -------------------------------------------------------------------------
    Revenues                                23        39         -         -
    -------------------------------------------------------------------------

    Cost of goods                          237       255         -         -

    Gross profit (gross lost)             (214)     (216)        -         -

    Selling expenses                       940     1,533       302       516

    General and administrative
     expenses, before stock-based
     compensation costs                    554       946       667       976

    Research and development expenses,
     net of tax credits                    185       282       224       418

    Interest income                        (93)     (101)      (66)      (71)

    Exchange gain (loss)                   283      (275)        -         -

    Adjusted EBITDA                     (2,083)   (3,111)   (1,127)   (1,839)

    Loss for the period                 (2,257)   (3,464)   (1,300)   (2,107)

    Basic and diluted loss per share    (0.033)   (0.058)   (0.027)   (0.048)
    -------------------------------------------------------------------------
    

    Total revenue from the telesecurity service for the fiscal quarter ended
June 30, 2007 was $23,000 compared to $0 for the corresponding period in 2006.
The accounting policy of the Company, it should be noted, allows revenue
recognition only when the buyer of a Columba Bracelet subscribes to the
Company's mobile telesecurity service and, as such, pays a monthly rental fee.
Revenues from the sale of equipment and related direct costs will be amortized
over the estimated average duration of subscriptions to the mobile
telesecurity service. When a sale is made to distributors, the proceeds are
posted on the balance sheet as a deposit until the units are sold to
subscribers to the telesecurity service.
    Selling expenses for the second quarter of 2007 totalled $940,000
compared to $302,000 for the same period in 2006. The increase in selling
expenses for the fiscal quarter ended June 30, 2007 consisted primarily of an
increase in salaries for employees devoted to business development, set-up
fees, travel expenses, product launch expenses and public relations expenses
to increase awareness of Medical Intelligence's products.
    Research and development expenses, net of tax credits, for the period
ended June 30, 2007 totalled $185,000 during the second quarter of 2007
compared to $224,000 for the same period in 2006. The drop between the two
periods is primarily the result of a reduction in subcontracting and purchase
of equipment. It is to be noted that in 2006 the Company was going through the
finalization of the Columba Bracelet development and certification tests, thus
incurring more expenses.
    Consolidated loss for the quarter ended June 30, 2007 was $2,257,000 or
$0.033 per share compared to a loss of $1,300,000 or $0.027 per share in the
second quarter of 2006.
    The net proceeds from the financing round completed on April 18, 2007
provides the Company with cash and cash equivalents of $12,240,000 as of
June 30, 2007. In the upcoming months the Company intends to use these funds
to continue the commercialization of the Columba in France and Spain, the
manufacturing and commercialization of the Urgentys and the research and
development of its other products.
    As of August 27, 2007, Medical Intelligence had 85,222,275 common shares
issued and outstanding, 19,384,034 warrants outstanding (weighted average
exercise price of $0.81) and 5,298,750 stock options outstanding (weighted
average exercise price of $0.45) for a total of 109,971,309 shares on a fully
diluted basis.
    Additional information about the Company, including the MD&A and
financial results can be found on SEDAR at www.sedar.com.

    About Medical Intelligence Technologies

    Medical Intelligence is the early innovator in the personal telesecurity
industry, integrating information and telecommunications technologies to the
healthcare sector. The firm designs portable medical devices for the benefit
of people having health or safety concerns. Based in Quebec City, the Company
also has subsidiaries in France, Spain and the United Kingdom (Medical Mobile)
where it commercializes the Columba, a GPS bracelet designed to prevent
Alzheimer wandering. For further information, visit www.medicalintelligence.ca
or www.medicalmobile.com.

    Forward-looking statements

    Any statement in this press release that does not relate directly and
exclusively to historical facts can be considered a forward-looking statement.
Such statements reflect the intentions, plans, expectations and beliefs of
Medical Intelligence Technologies, and are subject to risks, uncertainties and
other factors that are largely beyond the Company's control, to the extent
that actual results may differ significantly from those contemplated by such
statements. Medical Intelligence Technologies neither intends nor is required
to update or revise such forward-looking statements based on new information
or future events, or for any other reason.

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





For further information:

For further information: Quebec: Jean Brouillard Communications, (418)
682-6111, jbcom@videotron.ca; Montreal: Johanne Lépine, Media Relations,
Torchia Communications, (514) 288-8290, ext. 234, jlepine@torchiacom.com;
Investor relations: Eric Bouchard, The Equicom Group Inc., (514) 844-7997,
ebouchard@equicomgroup.com

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