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ENGINEERING.com Incorporated Announces Fourth Quarter & Fiscal 2011 Results

(April 18, 2012)

TORONTO, ONTARIO -- (Marketwire) -- 04/18/12 -- ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource for engineers today announced its financial results for the fourth quarter and year ended December 31, 2011.

ENGINEERING.com revenue was $1,549,389 for the fiscal year 2011, compared to revenue of $1,504,846 for the year 2010. Sales of Internet advertising rose by 15% to $842,344 in 2011 compared to $730,270 for the year ended December 31, 2010. This increase was driven by new content offerings.

Revenue across all products for the three months ended December 31, 2011 was $385,166 compared to $461,905 for the fourth quarter of 2010. The loss for the year ended December 31, 2011 totaled ($206,781) and ($0.01) per Common Share compared with a net income of $78,862 and $0.00 for the same period a year ago.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($23,862) or $0.00 per Common Share for the fourth quarter of 2011 compared with an operating loss of ($29,670) or $0.00 per Common Share for the three month period ended December 31, 2010. Operating loss for fiscal 2011 was ($169,182) or ($0.00) per Common Share compared to an operating loss of ($261,539) or ($0.01) per Common Share for fiscal 2010. The operating expenses in the latest quarter were $271,102 and for the year were $1,062,513 compared to $299,180 for the fourth quarter a year earlier and $1,146,047 for fiscal 2010.


"During 2011 we expanded on our video offering with the release of two new series, adding Some Assembly Required and Cafe BIM to the already successful Product Design Show," said John Hayes, President of ENGINEERING.com. "That trend continued into the first quarter of 2012 with the release of Engineering Career GPS and the renewal of the Product Design Show for another 35 episodes."

As at December 31, 2011, the Company had a cash balance of $259,014 compared to a cash balance of $78,244 as at December 31, 2010.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE:EGN) inspires, informs and entertains a worldwide audience of engineers through the www.ENGINEERING.com web site and other distribution channels. ENGINEERING.com offers marketing services to manufacturers, technology inventors and engineering academia around the world. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.

EBITDA

EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock-based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under Canadian generally accepted accounting principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with Canadian generally accepted accounting principles) as a measure of liquidity.

Forward Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.

STATEMENTS OF FINANCIAL POSITION Expressed in Canadian Dollars Audited Audited Dec. 31, Dec. 31, 2011 2010 ASSETS CURRENT ASSETS Cash $ 259,014 $ 78,244 Accounts Receivable 351,537 316,302 Prepaids Expenses and Deposits 21,383 13,895 ---------------------------------------------------------------------------- TOTAL CURRENT ASSETS $ 631,934 $ 408,441 ---------------------------------------------------------------------------- NON-CURRENT ASSETS Property and Equipment 11,818 20,727 Intangible Assets 325,020 316,063 ---------------------------------------------------------------------------- TOTAL NON-CURRENT ASSETS 336,838 336,790 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- TOTAL ASSETS $ 968,772 $ 745,231 ---------------------------------------------------------------------------- LIABILITIES AND SHAREHOLDER'S EQUITY CURRENT LIABILITIES Accounts Payable & Accrued Liabilities $ 465,785 $ 489,015 Deferred Revenue 156,922 65,640 Promissory Notes - Short Term - - ---------------------------------------------------------------------------- TOTAL LIABILITIES $ 622,707 $ 554,655 ---------------------------------------------------------------------------- SHAREHOLDER'S EQUITY Share Capital 15,450,966 15,113,752 Contributed Surplus 497,899 472,843 Deficit (15,602,800) (15,396,019) ---------------------------------------------------------------------------- TOTAL SHAREHOLDERS EQUITY $ 346,065 $ 190,576 ---------------------------------------------------------------------------- TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $ 968,772 $ 745,231 ---------------------------------------------------------------------------- STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY Expressed in Canadian Dollars Number of Common Share Contributed Shares Capital Surplus ---------------------------------------------------------------------------- At January 1, 2010 36,870,623 $ 15,113,752 $ 445,548 Net Income for the Year Stock Based Compensation 27,295 ---------------------------------------------------------------------------- At December 31, 2010 36,870,623 15,113,752 472,843 Share Issuance 7,000,000 337,214 Net Loss for the Year Stock Based Compensation 25,056 ---------------------------------------------------------------------------- At December 31, 2011 43,870,623 $ 15,450,966 $ 497,899 ---------------------------------------------------------------------------- STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY Expressed in Canadian Dollars Deficit Total -------------------------------------------------------------- At January 1, 2010 $ (15,468,881) $ 90,419 Net Income for the Year 72,862 72,862 Stock Based Compensation 27,295 -------------------------------------------------------------- At December 31, 2010 (15,396,019) 190,576 Share Issuance 337,214 Net Loss for the Year (206,781) (206,781) Stock Based Compensation 25,056 -------------------------------------------------------------- At December 31, 2011 $ (15,602,800) $ 346,065 -------------------------------------------------------------- STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) Expressed in Canadian Dollars (Unaudited) (Unaudited) (Audited) (Audited) Three Months Three Months Year Year Ended Ended Ended Ended Dec. 31, 2011 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2010 REVENUE $ 385,166 $ 461,905 $ 1,549,389 $ 1,504,846 COST OF SALES 137,927 192,396 656,058 620,338 ---------------------------------------------------------------------------- GROSS PROFIT 247,239 269,509 893,331 884,508 ---------------------------------------------------------------------------- OPERATING EXPENSES Salaries and Benefits 156,403 131,275 575,003 536,272 Marketing Expenses 24,427 36,576 91,329 112,932 Development Costs 51,192 48,087 195,325 204,475 General and Administrative 39,080 83,242 200,856 292,368 ---------------------------------------------------------------------------- TOTAL OPERATING EXPENSES 271,102 299,180 1,062,513 1,146,047 ---------------------------------------------------------------------------- LOSS BEFORE UNDERNOTED ITEMS: (23,862) (29,671) (169,182) (261,539) Stock Based Compensation (10,563) (5,230) (25,056) (27,295) Amortization Expense (3,453) (3,364) (12,543) (119,828) Vendor Reconciliation Adjustment - 481,524 - 481,524 ---------------------------------------------------------------------------- NET INCOME (LOSS) &COMPREHENSIVE INCOME $ (37,879) $ 443,259 $ (206,781) $ 72,862 ---------------------------------------------------------------------------- Earnings (Loss) Per Share Basic and Diluted $ 0.00 $ 0.01 $ 0.00 $ 0.00 Weighted Average Number of Common Shares (Basic and Diluted) 39,495,623 36,870,623 39,495,623 36,870,623 ---------------------------------------------------------------------------- STATEMENTS OF CASH FLOWS Expressed in Canadian Dollars (Unaudited) (Unaudited) Three Three (Audited) (Audited) Months Months Year Year Ended Ended Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2011 2010 2011 2010 OPERATING ACTIVITIES Net Income (Loss) $ (206,781) $ 443,259 $ (206,781) $ 72,862 Add items not affecting cash Stock based compensation 10,563 5,230 25,056 27,295 Amortization 3,453 3,364 12,543 119,828 Changes in Operating Assets and Liabilities Other than Cash 62,917 (518,828) 25,328 (207,151) ------------ ------------ ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES (129,848) (66,975) (143,853) 12,834 ------------ ------------ ----------- ----------- FINANCING ACTIVITIES Proceeds of Share Issuance - - 337,214 - Promissory Notes - - - (24,999) ------------ ------------ ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES - - 337,214 (24,999) ------------ ------------ ----------- ----------- INVESTING ACTIVITIES Additions to Property and Equipment (1,650) (1,694) (3,634) (8,494) Additions to Intangible Assets (2,561) (1,101) (8,957) (7,215) ------------ ------------ ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES (4,211) (2,795) (12,591) (15,709) ------------ ------------ ----------- ----------- INCREASE (DECREASE) IN CASH (134,059) (69,770) 180,770 (27,874) CASH, Beginning of Period $ 393,073 $ 148,014 $ 78,244 $ 106,118 ------------ ------------ ----------- ----------- CASH, End of Period $ 259,014 $ 78,244 $ 259,014 $ 78,244 ------------ ------------ ----------- -----------

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
ENGINEERING.com, Inc.
John Hayes
President & CFO
905-273-9991, ext. 3280 or Toll Free: 1-877-997-9917
905-273-6691 (FAX)
jhayes@engineering.com
www.engineering.com


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