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2010 | 2009

Mediagrif Reports FY2009 Financial Results

• Revenues of $47.9 million compared to $47.7 million in the previous year
• Loss of $1.3 million or ($0.09) per share compared to net earnings of $2.0 million or $0.12 per share in the previous year due to severance expenses of $4.3 million and impairment expenses on long-lived assets of $6.6 million
• Cash position maintained at $27.7 million compared to $27.8 million in the previous year

Longueuil, Canada – June 9, 2009: Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the fiscal year ended March 31, 2009. All dollar figures in the present document are in Canadian dollars, unless otherwise specified.

Revenues for the year ended March 31, 2009 increased in comparison to last year, from $47.7 million to $47.9 million.

For the year ended March 31, 2009, total operating expenses increased to $44.6 million compared to $34.9 million for the previous year due to severance expenses of $4.1 million, impairment of intangible assets of $3.6 million and write-off of capitalized software of $3.0 million. As a result, loss from operations amounted to $7.8 million as compared to earnings from operations of $2.8 million for the previous year.

Net loss and basic loss per share amounted to $1.3 million or $0.09 per share as compared to net earnings and basic earnings per share of $2.0 million or $0.12 per share for the previous year.

Key Operating Highlights Of FY2009:

On December 15, 2008, the Board of Directors appointed Mr. Claude Roy as Chairman of the Board and Chief Executive Officer and appointed new members in replacement of departing Board members. Following these changes, the newly appointed Board and Chief Executive Officer conducted a strategic and operational review of Mediagrif’s business activities in order to address the challenging economic conditions and set a solid foundation for profitability and future growth. As a result, in the fourth quarter of 2009, initiatives were taken to reestablish positive operational margins in Mediagrif’s business networks through headcount adjustments, office closures, employee relocation and management changes, in order to reduce operating costs, streamline our operation and simplify the reporting structure.

Our international operations were scaled back with the sale of our Indian operations held through Centerac DMCC (the operator of Yarnsandfibers.com) to our co-shareholder on March 23, 2009, and the start of the liquidation process of our Dubai joint venture held through Polygon DMCC and its subsidiaries on March 16, 2009.

Key Financial Highlights Of FY2009:

Revenues for the year reached $47.9 million as compared to $47.7 million in the corresponding period of last year. These include revenues of the Market Velocity Inc. (“MVI”) and epipeline Inc. (“EPI”) acquisitions from which only a partial year was included in 2008. Most of Mediagrif’s e-business networks experienced good organic growth, especially BidNet, MERX, Carrus and Global Wine & Spirits. Such growth was offset by a decrease in The Broker Forum and Polygon, due to lower memberships as well as a decrease in Power Source On-Line caused by lower average revenue per member. The foreign exchange fluctuation negatively impacted the revenues by $0.3 million. On a constant currency basis, total revenues increased by $0.5 million compared to the previous year.

Gross margin as a percentage of revenue was at 76.8% during the year ended March 31, 2009, compared to 79.0% for the previous year. The decrease is partly explained by severance expenses of $0.2 million.

Total operating expenses for the year increased to $44.6 million compared to $34.9 million for the previous year. General and administrative expenses increased to $16.3 million compared to $12.7 million in the previous year mainly due to severance expenses of $3.2 million and the write-off of capitalized acquisition costs for an unrealized acquisition of $0.4 million. Sales and marketing expenses increased to $11.2 million compared to $10.7 million last year due to severance expenses of $0.4 million and higher bad debts. Technology expenses decreased from $9.2 million last year to $8.3 million this year due to severance expenses of $0.5 million offset by lower salaries and lower amortization of capitalized software.

Certain projects related to internally developed software were abandoned, resulting in a $3.0 million write-off and an impairment test was conducted on acquired intangible assets, resulting in a $3.6 million write-off.

Centerac DMCC was sold to our co-shareholder as of March 23, 2009 and a loss of $0.2 million was recognized.

As a result, loss from operations for the year ended March 31, 2009 reached $7.8 million as compared to earnings from operations of $2.8 million last year, due to severance payments and impairment of long-lived assets. Diluted loss per share amounted to $0.09 for the current year compared to diluted earnings per share of $0.12 for the previous year.

As of March 31, 2009, our cash and cash equivalents reached $27.7 million, a decrease from $27.8 million as of March 31, 2008. Free cash flow, defined as cash flow from operating activities less capital expenditure, was $2.1 million during the current fiscal year, as compared to $1.3 million for the previous year.

On March 3, 2009, the Company announced the renewal of a normal course issuer bid whereby it is authorized to purchase for cancellation for the twelve-month period starting March 5, 2009 up to 700,865 common shares.

About Mediagrif Interactive Technologies Inc.

Mediagrif Interactive Technologies Inc. (TSX: MDF) is a world-leading operator of e-business solutions. Mediagrif's e-business networks allow buyers and sellers within specific industries to source, purchase or sell products and to exchange documents more efficiently using the Internet. Mediagrif operates 15 networks, including industry leaders The Broker Forum , Power Source On-Line , Telecom Finders , Global Wine & Spirits and Polygon . Mediagrif also owns MERX , the exclusive provider of e-publishing services to the Government of Canada, and is a leading provider of government bid aggregation services and e-procurement services in the U.S. Headquartered in Longueuil, Mediagrif has several offices in North America and Asia. For more information, please visit us at www.mediagrif.com or call 1 877 677-9088.

This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect us. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities legislation.

Audited financial statements, accompanying notes and MD&A are available on www.mediagrif.com and have been filed with SEDAR.

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