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Yangaroo Reports Record Quarter

^{Published on 2009-05-27 06:04:10, Last Modified on 2009-05-27 06:05:25 - Market Wire}
 

 First Quarter Revenues Up 43%; EBITDA Improves 33% TORONTO, May 27 /CNW/ - YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced results for the first quarter ended March 31, 2009. Revenues for the first quarter of 2009 set a new record for the company and were 43% higher than for the same period in 2008. First quarter revenues increased 31% over the revenues for the preceding fourth quarter of 2008. EBITDA (earnings before interest, taxes, depreciation and amortization) for the first quarter of 2009 improved by 33% over the same period in 2008. Cash and cash equivalents at March 31, 2009 were $2,248,000. Other highlights from the first quarter of 2009 include the launch of the next generation of YANGAROO'S patented Digital Media Distribution System - DMDS 5.0, the use of the new DMDS 5.0 platform to power the 2009 JUNO Awards for The Canadian Academy of Recording Arts and Sciences (CARAS), and the allowance and subsequent grant of the company's United States patent No. 7,529,712 titled "Content Distribution System and Method". "The growth in revenue shows that DMDS' adoption across North America continues to accelerate," said YANGAROO President & CEO John Heaven. "Not only are existing partners increasingly relying on it, but DMDS 5.0 has been embraced by the Canadian Academy of Recording Arts & Sciences and demonstrated how cost-effective, environmentally friendly and less labour-intensive it is. In addition, the grant of our third patent has further recognized and protected our sector leading technology innovations." Summary of operating results for the three months ended March 31: --------------------------------------------------------- $CDN First Quarter --------------------------------------------------------- 2009 2008 --------------------------------------------------------- Revenue 181,386 127,077 --------------------------------------------------------- Interest income 6,996 55,388 --------------------------------------------------------- EBITDA (487,213) (731,762) --------------------------------------------------------- Net loss for the period (610,021) (807,192) --------------------------------------------------------- Loss per share (basic & diluted) (0.01) (0.01) --------------------------------------------------------- The loss for the first quarter of 2009 was reduced by 24% compared to the first quarter of 2008, primarily due to the higher revenues combined with lower salaries and consulting, general and administrative and marketing and promotion expenses. 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 musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet. YANGAROO's DMDS has made over six million deliveries of over 21,000 songs from more than 600 record labels to destinations which include radio stations representing over 35 U.S. broadcast chains. U.S. record labels made over 2 million deliveries of songs via DMDS in 2008. DMDS is the only system that can digitally deliver music across the U.S., Canada and the U.K. 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: Matthew Caldecutt, Gina Preoteasa, Trylon SMR, (212) 725-2295, [ matthew@trylonsmr.com ], [ gina@trylonsmr.com ]