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WellPoint Systems receives confirmation of US$3.3 million payment putting the company in a strong financial position

^{Published on 2009-08-24 04:53:34, Last Modified on 2009-08-24 04:53:36 - Market Wire}
 

 CALGARY, Aug. 24 /CNW/ - WellPoint Systems Inc., ("WellPoint" or the "Company") (TSX-V:WPS), a leading provider of software and related solutions to the energy industry, today announced that it has received confirmation that a minimum US$3.3 million payment will be made to the Company from Export Development Canada ("EDC") pursuant to the terms of an accounts receivable insurance policy taken by WellPoint to minimize commercial risks associated with a contract for an existing customer in South America. The payment puts the Company in a strong financial position to implement its business plan for the balance of 2009 and in coming years. "WellPoint software has tremendous application in various international markets," said Mr. Richard Slack, President and CEO of WellPoint Systems, "and we will accelerate our efforts to enter into agreements with national oil companies and international oil and gas companies in the coming months both directly and through channel partners. We are fortunate that we have combined these efforts with a risk management strategy insuring our accounts receivable under certain contracts during a challenging economic time. We greatly appreciate the cooperation of EDC. Recovery of our accounts receivable at this time will enable us to continue our efforts in South America and elsewhere as the economic situation improves." WellPoint will now recognize the entire US$3.3 million EDC payment as revenue under the South American contract in the third quarter of 2009. Since this contract for IDEAS software did not previously meet the requirements for revenue recognition under Canadian generally accepted accounting principles ("GAAP"), no revenue was recorded in prior periods. The proceeds received will be used to strengthen the Company's working capital position and will have a positive impact on gross profit, EBITDA and net income in the third quarter of 2009. About WellPoint Systems Inc. WellPoint provides premier software and related services for managing critical operations within the energy industry. As a Microsoft Gold Certified Partner since 2005, WellPoint is the only Independent Software Vendor (ISV) and Microsoft Dynamics partner dedicated to the energy sector. It is breaking new ground with the creation of a more comprehensive, integrated energy software suite based on existing Microsoft ERP technology that utilizes state-of-the-art Dynamics AX(R) and .NET architectures. WellPoint also provides software and services under the BOLO, IDEAS International and iSoft brands. Founded in 1997, Calgary-based WellPoint Systems also has major operations in Denver, CO, Houston, TX, Livingston, NJ, Tampa, FL, Tunis, Tunisia and Pretoria, South Africa. WellPoint is publicly traded on the TSX Venture Exchange under the symbol WPS. This document contains forward-looking statements. Some forward looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "indicates" or similar expressions. The statements are not a guarantee of future performance and are inherently subject to risks and uncertainties. The Company's actual results could differ materially from those currently anticipated due to a number of factors, including, but not limited to, successful integration of structural changes, including restructuring plans, acquisitions, technical or manufacturing or distribution issues, the competitive environment for the Company's products, the degree of market penetration of the Company's products, and other factors set forth in reports and other documents filed by the Company with Canadian securities regulatory authorities from time to time. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 

For further information: Richard Slack, President and Chief Executive Officer, (303) 987-2238, [ rick.slack@wellpointsystems.com ]; Bharat Mahajan, CA, Chief Financial Officer, (403) 444-3916, [ bharat.mahajan@wellpointsystems.com ]