YANGAROO reports record second quarter

    Q2 Revenues Jump 48%; EBITDA Improves 35%

    TORONTO, Aug. 26 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the
industry's leading secure digital media distribution company, today announced
record results for the second quarter ended June 30, 2009. Revenues for the
second quarter of 2009 grew 48% over revenues for the second quarter of 2008.
EBITDA (earnings before interest, taxes, depreciation and amortization) for
the second quarter of 2009 improved by 35% over the same period in 2008. The
loss for the second quarter of 2009 was 29% lower than for the second quarter
of 2008.
    Revenues for the six months ended June 30, 2009 grew 46% over revenues
for the first half of 2008. EBITDA for the first half of 2009 also improved by
35% over the same period in 2008. The loss for the first half of 2009 was 27%
lower compared to the first half of 2008.
    Highlights from the second quarter of 2009 include the launch of the next
generation of YANGAROO's Digital Media Distribution System - DMDS 5.0.; the
grant of the company's third patent - United States patent No. 7,529,712
titled Content Distribution System and Method; followed by the filing of an
infringement claim in the U.S. requesting the court issue an injunction
against a competitor, Destiny Media Technologies Inc. (OTC:DSNY); the signing
of a commercial agreement with a Fortune 500 company to use DMDS 5.0 in the
production of its television shows; and subsequently the naming of YANGAROO to
the Canadian Business "The Tech 100" 2009 list, an annual list ranking
Canada's 100 leading technology companies.
    "With the new capabilities of our DMDS 5.0 platform, YANGAROO's markets
have expanded to include secure digital distribution for music, music videos,
television advertising, award shows, television production and beyond," said
YANGAROO President & CEO John Heaven. "By leading through innovation we bring
the best and most advanced solutions available to our customers. We expect our
financial results will continue their upward trend as we move forward."

    Summary of operating results for the periods ended June 30:

           $CDN                  Six Months               2nd Quarter
                             2009         2008         2009         2008
    Revenue                   386,228      265,023      204,482      137,946
    Interest income             9,099       93,096        2,103       37,708
    EBITDA                 (1,086,519)  (1,660,726)    (599,305)    (928,965)
    Net loss for the
     period                (1,335,672)  (1,827,915)    (725,650)  (1,020,724)
    Loss per share
     (basic & diluted)          (0.02)       (0.02)       (0.01)       (0.01)

    The increase in revenues, combined with a 22% decrease in total expenses,
accounted for the 29% lower loss in the second quarter of 2009 compared to the
second quarter of 2008. A 37% decrease in salaries and consulting expense
accounted for most of the reduction in total expenses, with lower technology
development and marketing and promotion expenses also contributing. General
and administrative expense increased 6% in the second quarter, largely due to
$159,000 of expenses related to the enforcement of the company's intellectual
property rights in Canada and the filing of the infringement claim in the U.S.
in the quarter.
    The full text of the financial statements and Management Discussion &
Analysis is available at www.yangaroo.com and at www.sedar.com.

    About YANGAROO:

    YANGAROO's patented Digital Media Distribution System (DMDS) is a leading
secure B2B digital delivery solution for the music and advertising industries.
DMDS is a web-based delivery system that pioneers secure digital file
distribution by incorporating biometrics, high-value encryption and
watermarking. DMDS replaces the physical distribution of audio and video
content for music, music videos, and advertising to television, radio, media,
retailers and other authorized recipients with more accountable, effective,
and far less costly digital delivery of broadcast quality media via the
    Named one of Canada's Top 100 Tech Companies for 2009 by Canadian
Business, YANGAROO has offices in Toronto, New York, Los Angeles, and London,
U.K. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO
and in the U.S. under OTCBB:YOOIF. For further information, please contact
John Heaven at 905-763-3553 or visit www.yangaroo.com.

    The statements contained in this release that are not purely historical
are forward-looking statements and are subject to risks and uncertainties that
could cause such statements to differ materially from actual future events or
results. Such forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. The TSX
Venture Exchange does not accept responsibility for the adequacy or accuracy
of this release.

    %SEDAR: 00018809E

For further information:

For further information: Matthew Caldecutt, Gina Preoteasa, Trylon SMR,
(212) 725-2295, matthew@trylonsmr.com, gina@trylonsmr.com

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