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2010 | 2009

Mediagrif Reports Q3 FY2009 Financial Results

• Revenues stable at $12.2 million
• Net earnings of $2.6 million compared to $0.6 million in the previous quarter mainly due to the reversal of a tax provision
• EPS of $0.18 compared to $0.04 in the previous quarter
• Cash position increased to $27.7 million from the corresponding nine month period of last year due to positive cash flow generated by operations

Note: Unaudited financial statements, accompanying notes and MD&A are available on www.mediagrif.com and have been filed with SEDAR. All dollar figures are in Canadian dollars, unless otherwise specified.

Longueuil, Canada – February 6, 2009: Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading developer of e-business networks and provider of complete B2B e-business solutions, today announced its financial results for the third quarter of fiscal year 2009, ended December 31, 2008.

Revenues for the quarter remain stable at $12.2 million compared to the corresponding quarter of last year. Again this quarter, most of Mediagrif’s e-business networks experienced better organic growth, especially MERX, BidNet, Market Velocity ("MVI"), Carrus Technologies ("Carrus") and Global Wine & Spirits ("GWS"). Such growth was partially offset by a decrease in the revenues of The Broker Forum ("TBF") and Power Source On-Line ("PSO").

Operating expenses increased to $10.7 million during the third quarter from $8.9 million in the corresponding quarter of last year mainly due to non-recurring expenses regarding severance payments of $1.6 million, to the write-off of capitalized acquisition costs for an unrealized acquisition for $0.4 million and to higher bad debts due to economic environment.

Loss from operations amounted to $1.4 million as compared to an earning of $0.6 million in the corresponding quarter of last year. Net earnings and basic earnings per share for the third quarter amounted to $2.6 million or $0.18 per share, as compared to $0.6 million or $0.04 per share for the corresponding quarter of the previous year, mainly due to the reversal of a tax provision.

Key Financial Highlights Of Q3 FY2009:

Revenues for the quarter remained stable at $12.2 million compared to the corresponding quarter of last year. The foreign exchange fluctuation positively impacted the quarterly revenues by $0.3 million. Again this quarter, most of Mediagrif’s e-business networks experienced better organic growth, especially MERX, BidNet, MVI, Carrus and GWS. Such growth was offset by a decrease in TBF due to lower membership as well as a decrease in PSO, caused by lower average revenue per members. On a constant currency basis, total revenues decreased by $0.2 million compared to last quarter.

Revenues for the nine-month period ended December 31, 2008 reached $36.1 million, as compared to $35.6 million in the corresponding period of the previous year. The foreign exchange fluctuation negatively impacted revenues by $0.8 million. Most of Mediagrif’s e-business networks such as MERX, Carrus, BidNet, CBI and GWS showed particularly healthy growth as compared to the corresponding period of last year. Such growth was offset by a decrease in TBF due to lower membership revenues as well as a decrease in PSO, caused by lower average revenue per members. On a constant currency basis, total revenues increased by $1.3 million compared to last year.

Gross margin as a percentage of revenue decreased to 76.1% during the quarter and 76.6% during the nine-month period as compared to 78.1% for the previous quarter and 79.6% for the nine-month period. The decrease is explained by the impact of EPI and Carrus, which have a lower gross margin.

Total operating expenses for the quarter amounted to $10.7 million as compared to $ 8.9 million for the previous year. General and administrative charges increased to $4.8 million as compared to $3.1 million in the corresponding quarter of last year. This increase is mainly due to nonrecurring expenses regarding severance payments of $1.6 million and to the write-off of capitalized acquisition costs for an unrealized acquisition for $0.4 million. Sales and marketing expenses increased from $2.9 million last year to $3.2 million for the quarter ended December 31, 2008. This is attributable to higher bad debts due to economic environment. Technology expenses remained stable at $2.1 million as compared to the corresponding quarter of last year. The amortization of acquired intangible assets decreased from $0.6 million to $0.4 million. Lastly, the Stock-based compensation expense remained stable at $0.2 million as compared to the corresponding quarter of last year.

For the nine-month period, total operating expenses amounted to $27.7 million as compared to $25.2 million for the previous year. General and administrative expenses increased from $9.1 million to $11.1 million mainly due to non-recurring expenses regarding severance payments of $1.7 million and to the write-off of capitalized acquisition costs for an unrealized acquisition for $0.4 million. Sales and marketing expenses increased from $7.9 million last year to $8.4 million for the nine months ended December 31, 2008. This increase is partly attributable to the impact of the MVI and EPI acquisitions and higher bad debts due to economic environment offset by lower salaries and advertising expenses. Technology expenses remained stable at $6.5 million.

As a result, loss from operations during the quarter ended December 31, 2008 amounted to $1.4 million as compared to an earning of $0.6 million in the corresponding quarter of last year. This decrease is mainly due to non-recurring expenses regarding unrealized acquisitions and severance payments. Diluted earnings per share, for the current quarter, were $0.18 as compared to $0.04 for the same period last year, mainly due to the reversal of a tax provision of $2.1 million.

Loss from operations for the nine-month period ended December 31, 2008 amounted to $22 thousands as compared to an earning of $3.1 million last year. This decrease is mainly due to the same elements explained above. Diluted earnings per share, for the current period, were $0.26 as compared to $0.14 for the same period last year, mainly due to the reversal of a tax provision of $2.1 million.

As of December 31, 2008, our cash and cash equivalents reached $27.7 million, a decrease from $27.8 million as of March 31, 2008 and an increase from $26.0 million as of December 31, 2007. Free cash flow, defined as cash flow from operating activities less capital expenditure, was $2.7 million during the current quarter, as compared to $0.1 million for the corresponding quarter of the previous year.

On March 3, 2008, 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, 2008 up to 598,465 common shares. As of December 31, 2008, 547,331 common shares have been repurchased for cancellation. Today, in accordance with the Toronto Stock Exchange approval, the Board approved the increase of its current share buy-back program to 735,962, leaving a total of 188,631 shares to be purchased, starting February 11, 2009, and expiring March 4, 2009.

Subject to regulatory and Toronto Stock Exchange approvals, the Board also approved the renewal of this program, for the twelve-month period starting March 5, 2009.

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. All amounts are in Canadian dollars.

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