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Mediagrif announces an increase in operating results for the first quarter of fiscal 2012

Highlights of the first quarter ended June 30, 2011:
  • Increase in revenues of 12%, or $1.4 million, reaching $12.6 million;
  • Acquisition of InterTrade Systems Inc., completed in December 2010, contributes positively to the improvement of the results of the quarter;
  • Increase of 9% in EBITDA reaching $4.0 million and of 8% in operating profit reaching $3.2 million;
  • Net earnings reached $2.2 million, at the same level compared to the first quarter of 2011;
  • Cash level reached $29.7 million as at June 30, 2011, compared to $30.0 million as at March 31, 2011;
  • Declaration by the Board of Directors of a cash dividend of $0,08 per share, payable on October 17, 2011 to shareholders of record at the close of business on October 3, 2011.

Longueuil, Canada – September 7, 2011: Mediagrif Interactive Technologies Inc. (TSX: MDF), a world-leading operator of e-commerce solutions, today announced its financial results for the first quarter ended June 30, 2011. Unless indicated otherwise, all amounts are in Canadian dollars.

CONSOLIDATED RESULTS

(in thousands of Canadian dollars, except for numbers related to shares)
(unaudited)
Three months ended June 30
2011 2010

Revenues
EBITDA
Operating profit
Net earings

12,637
3,992
3,225
2,158
11,245
3,664
2,981
2,271
Earnings per share    
- Basic
- Diluted
0,16
0,16
0,16
0,16
Weighted average number of share outstanding (in thousands)    
- Basic
- Diluted
13,682
13,725
13,899
13.921


FIRST QUARTER RESULTS

The earnings analysis takes into consideration the impact of the acquisition of InterTrade Systems Inc. (“InterTrade”) completed in December 2010.

For the first quarter of 2012, revenues increased by $1.4 million, compared to the first quarter of 2011, reaching $12.6 million. This increase is mainly due to the revenues of InterTrade which amounted to $1.4 million during the first quarter of 2012.

Furthermore, revenues in original currencies increased by $0.3 million for the first quarter of 2012, compared to the first quarter of 2011. However, the changes in the value of the Canadian dollar compared to the U.S. dollar, combined with hedge coverage, generated a negative impact on revenues of $0.3 million, thus cancelling the increase of revenues in original currencies.

Operating expenses of the first quarter of 2012 reached $6.8 million, compared to $5.7 million for the first quarter of 2011. The increase in operating expenses is mainly due to the addition of InterTrade expenses as well as a decrease of tax credits and a penalty reversal during the first quarter of 2011, related to a tax assessment.

EBITDA reached $4.0 million or 31.6% of revenues for the first quarter of 2012 compared to $3.7 million or 32.6% of revenues for the first quarter of 2011.

Net earnings reached $2.2 million for the first quarter of 2012, compared to $2.3 million for the first quarter of 2011.


CASH FLOW AND FINANCIAL POSITION

As at June 30, 2011, cash and cash equivalents amounted to $29.7 million, compared to $30.0 million as at March 31, 2011.

Free cash flow, defined as cash flows from operating activities less the acquisition of fixed assets and intangible assets and less dividends paid, reached a negative $1.0 million during the first quarter of 2012, compared to generating $0.3 million during the first quarter of 2011.

This decrease is mainly due to the payment of a cash dividend of $1.0 million during the first quarter of 2012 while there were none during the first quarter of 2011. The Company has modified, in February 2011, its dividend payment policy, from a semi-annual to a quarterly dividend distribution policy.


TRANSITION TO IFRS

Mediagrif’s unaudited condensed consolidated interim financial statements for the quarter ended June 30, 2011 have been prepared using IFRS. Amounts relating to the year ended March 31, 2011 have been restated to reflect the adoption of IFRS. Details of the accounting differences can be found in the notes to the interim financial statements.


About Mediagrif Interactive Technologies Inc.

Mediagrif Interactive Technologies Inc. (TSX: MDF) delivers innovative e-commerce solutions to businesses since 1996. Its web platforms enable clients to find, purchase and sell products, exchange information, gain access to business opportunities and manage supply chain collaboration with greater speed and efficiency. The Company provides e-commerce solutions in the fields of electronic components, computer equipment and telecommunications, medical equipment, automotive aftermarket, wine & spirits, diamonds and jewelry, retail markets and government opportunities. Mediagrif has its headquarters in Longueuil and has offices in North America and Asia. For more information, please visit us at www.mediagrif.com or call 1 877 677- 9088.

In addition to providing an earnings measure in accordance with IFRS, the Company shows operating profit and earnings before interest, taxes, depreciation and amortization (“EBITDA”) as supplementary earnings measures. The Company sometimes refers to the free cash flow measure in its documents. Free cash flow is defined as cash flows from operating activities less the acquisition of fixed assets and intangible assets presented in investing activities and less dividends paid that are presented in financing activities. Operating profit, EBITDA and free cash flow are not intended to be measures that should be regarded as an alternative to other financial operating performance measures prepared in accordance with IFRS. Those measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other companies.

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.

Unaudited condensed interim financial statements, accompanying notes and MD&A are available on www.mediagrif.com and have been filed with SEDAR at the following address: www.sedar.com.

For further information:

Claude Roy
Chief Executive Officer
Tel.: (450) 449-0102 ext. 2004
Toll Free: 1 877 677-9088 ext. 2004
Email: croy@mediagrif.com
Paul Bourque
Chief Financial Officer
Tel.: (450) 449-0102 ext. 2135
Toll Free: 1 877 677-9088 ext. 2135
Email: pbourque@mediagrif.com

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