Section Rouge Média reports a second quarter loss, but its publications division improves



    LONGUEUIL, QC, Aug. 29 /CNW Telbec/ -

    
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    SUMMARY
    -------
                      30 JUNE 2007  30 JUNE 2006  30 JUNE 2007  30 JUNE 2006
                          3 months      3 months      3 months      6 months
                        (unaudited)   (unaudited)   (unaudited)   (unaudited)

    GROSS SALES        $   882,450   $   837,316   $ 1,724,668   $ 1,824,251
    OPERATING COSTS    $   473,848   $   491,292   $   942,670   $ 1,002,918
    LOSS BEFORE TAXES  $  (227,766)  $   (64,254)  $  (410,162)  $    29,539
    NET LOSS           $  (291,526)  $   (93,673)  $  (759,354)  $   (56,793)
    LOSS PER SHARE     $    (0.007)  $    (0.004)  $    (0.017)  $    (0.003)
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    SECTION ROUGE MEDIA inc (TSX : SRO) recorded a 5% increase in gross sales
for its second quarter of 2007, which ended June 30th. However, the Company
continues to post a loss mainly due to its cinema division, of which the
Company has taken steps to divest itself.
    The Company's gross sales rose to $882,450, in comparison to $837,316
reported for the same period in 2006. In spite of this performance and a rigid
control of expenses, the Company recorded a net loss of $291,526 as compared
to a $93,673 loss reported last year. Thus, the net loss per share is $0.007.
The Company's gross profit improved, from 41% in 2006 to 46% in the
second quarter of this year.
    The increase in sales is ascribable solely to its publications division,
which was the only division to generate revenues. The deficit in the
publications division decreased from $93,673 in 2006 to $85,382 for the same
period in 2007. Meanwhile, due to the addition of the cinema division during
the summer of 2006, the Company's operating costs increased by 81%. For the
second quarter of the year, the administration expenses of the cinema division
were $144,974.
    "Our Company has no long-term debt and we undertook on June 14th to sell
our cinema division (Image in Média) which has lagged in producing results.
This transaction should be approved on August 31", stated
Mr. Richard Desmarais, President and Chairman of the Board. He further
reflected that the contemplated acquisition, by reverse take-over, of Evolutra
Corporation, a company specialized in internet production and diffusion, will
contribute significantly to the Company's revival.

    The growth stock exchange TSX has neither approved nor disapproved the
    contents of this communiqué.
    %SEDAR: 00008697EF




For further information:

For further information: Richard Desmarais, President and Chairman of
the Board, Section Rouge Média inc., (450) 677-2556, sedar.com

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Section Rouge Média Inc.

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