TIO Networks Announces Fourth Quarter and Year end Financial Results for Fiscal 2007

    Q4 Revenue increased by 22% - Annual Revenues increase 32% from prior

    BURNABY, BC, Nov. 26 /CNW/ - TIO Networks Corp. (TIO), owner of North
America's leading non-bank bill payment and financial services network (TSX-V:
TNC), today announced financial results for the fourth Quarter and the year
ended July 31, 2007.
    Revenue for the fourth quarter was $3,636,153, an increase of $666,600 or
22% over $2,969,553 as recorded in the fourth quarter of fiscal 2006. Total
Recurring revenue in Q4 increased by $939,122 to $3,357,438, an increase of
39% as compared with the same period last year. Gross profit for Q4 was
$1,339,283, an increase of $36,659 over $1,302,624 as recorded in the same
quarter a year ago. Fourth quarter EBITDA(*) was a loss of $621,000(*) compared to
earnings of $115,000(*) in Q4 2006.
    In the fourth quarter of fiscal 2007, the Company deployed the TIO bill
payment services on to 179 TIO powered kiosks and signed up or deployed 368
non-kiosk clerk assisted locations bringing the total number of locations
deployed or signed up to 2,956 (1,462 kiosks and 1494 non-kiosk clerk assisted
locations). As of July 31, 2007, 1152 of these kiosks and 946 non-kiosk clerk
assisted locations were activated and capable of generating revenues for a
total of 2,098 locations activated and transacting.
    Revenue for the year ended July 31, 2007 increased 32% to $13,463,895
from $10,200,307 one year ago, with a net loss of $3,834,078 compared to a
loss of $2,793,971 one year ago. EBITDA(*) for the year was a loss of $664,000(*)
compared to a loss of $840,000(*) one year ago. Contributing to the financial
results for fiscal 2007 were 1- Amortization of property and equipment of
$2,136,132 (compared with $1,280,621 in fiscal 2006), 2- Interest expenses of
$661,676 compared to $542,010 in 2006, 3- Research and Development expenses of
$1,004,404 compared to $509,246 in 2006 and 4- Foreign exchange loss of
$154,730 compared to a gain of $98,533 in 2006.
    "Q4 represented a substantial period of revitalization, intensive product
development, growth and overall network activity for TIO Networks" said Hamed
Shahbazi, Chairman and CEO of TIO Networks, "The Company continued its growth
in location acquisition, deployments, overall transactions, and notably set in
place the backend technology and services infrastructure required to enable
TIO to operate as a true electronic processor of financial services
transactions. These new systems have substantially increased TIO's capacity to
operate on a much larger scale and on an expanded host of devices at a
fraction of the cost of the Company's traditional deployment model. Gross
profit margins were affected by foreign exchange, increases in maintenance,
and start-up costs associated with setting up the Company's own "feet on the
street" field engineer program to improve uptime and customer service in the
Company's core kiosk operations."
    Annual revenue was primarily derived from transaction services (87% of
total revenue for fiscal year 2007 - same as previous year), with the balance
being made up of maintenance services, professional services, software and the
sale of kiosk systems. Total recurring revenue for the year ended July 31,
2007, including transaction services and maintenance services revenue,
increased 31% and accounted for $12,108,716 or 90% of total revenue, compared
to $9,233,661 or 90% for the year before.

    The chart illustrates some key measures on the Company's performance in
terms of the deployment of its services:

                       Q4 07        Q3 07        Q2 07      Q1 07      Q4 06
    No. of TIO
     devices deployed
     or TIO Express
     locations signed  2,956        2,409        1,964      1,442      1,101
    No. of TIO
     devices or TIO
     activated on
     TIO's processing
     system            2,345        2,235          n/a        n/a        n/a
    No. of TIO
     devices or TIO
     transacting and
     income            2,098        1,883        1,555      1,292        976
    No. TIO
     by TIO      1,462/1,129  1,283/1,029  1,204/1,014  1,115/963  1,041/896
    No. of TIO
     Signed up/
     transacting   1,494/946    1,126/748      760/460    327/248      60/60
    No. revenue-
     for the
     quarter       1,231,248    1,114,860      966,748    847,581    795,191
     Revenue Gross
     ($'000)     3,255/1,084  3,260/1,282  2,767/1,144  2,471/961  2,344/857
     + Fixed fee)
     ($'000)           3,357        3,356        2,850      2,546      2,418
    Quarter to
     growth : No.
     gross margin
     revenue        10%/(15%)     15%/12%      14%/19%     7%/12%     2%/18%
    Gross profit
     margin from
     revenue           33.3%        39.3%        41.4%      38.9%      36.6%

    The Company's aggressive investment in its R&D program has substantially
strengthened TIO's ability to unlock the value of its service and biller
portfolio. Companies can now instantly connect to TIO's processing switch
through TIO's suite of APIs (Application programming Interfaces) and process
transactions on an approved basis. An example of this is today's announcement
of TIO's strategic alliance with IPP of America (IPP) who operates the largest
network of independent walk-in payment centers in the US, to process a number
of TIO's authorized bill payment products at more than 4,500 IPP locations in
41 States across the United States. With this agreement, the TIO Network grows
by an incremental 4500 bill payment locations to over 7500 locations with
nominal capital expenditures. Customers who pay bills processed by TIO at IPP
locations pay a convenience fee that is shared between TIO, IPP and its
    With the successful formation of the Company's new field engineer
maintenance program completed, Randy Overturf is transitioning his duties as
Chief Operations Officer (COO) to Joseph Nakhla, TIO's new COO. Joseph has
been with TIO Networks for more than 9 years and was most recently the
Company's Executive Vice President of Distribution where he was responsible
for creating and maintaining relationships with the Company's retail
customers. The Company thanks Randy for his service to TIO Networks and looks
forward to Joseph's tenure as COO.

    Conference Call: You are invited to attend a conference call on Monday
November 26th at 11am Eastern Standard Time to review the 2007 fiscal year end
financial results. The dial-in numbers are (416) 644-3420 in Toronto, or, Toll
Free 1-800-732-0232. Callers should request the TIO Networks Conference.

    About the TIO Networks Corp.

    TIO Networks Corp. is a non-bank financial network that powers the
largest and most convenient national network of self-service and clerk
assisted walk-up bill payment locations for the 'cash preferred' consumer
marketplace in North America. TIO symbolizes safe secure access to key
financial services including bill payment, prepaid, stored value and money
transfer. For more information, please visit www.TIOnetworks.com

    The TSX Venture Exchange has not reviewed this news release and does not
    accept responsibility for its adequacy and accuracy.

    (*) EBITDA: Earnings before interest, tax, depreciation, amortization and
        stock-based compensation

    EBITDA is not a defined term under Canadian generally accepted accounting
principles, nor does it have a standard, agreed upon meaning. Accordingly, the
Company's EBITDA may not be directly comparable to EBITDA reported by other
issuers. Management had determined EBITDA is a useful supplemental measure in
evaluating the Company's performance as it provides investors with an
indication of cash available for debt service, working capital needs and
capital expenditures. This non-GAAP measure is intended to provide additional
information on the Company's performance and should not be considered in
isolation or as a substitute for measures of performance prepared in
accordance with GAAP.

    %SEDAR: 00010068E

For further information:

For further information: Derek Lai - Acting CFO - TIO Networks, Tel:
(604) 298-4636, Ext. 269, Email: Derek.Lai@tionetworks.com; John Lewis,
Business Development - TIO Networks, Tel: (416) 364-2266, Email:

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