Highlights in the Quarter

-- Opened a new research and development centre....." />
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Epic Data Announces Q2 Results

(May 30, 2012)

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 05/30/12 -- Epic Data International Inc. (TSX VENTURE:EKD) (the "Company" or "Epic Data"), a provider of manufacturing execution systems (MES), today announced the results of operations for the three and six months ended March 31, 2012.

Highlights in the Quarter

-- Opened a new research and development centre in Wuhan, China. -- Completed the registration of a 51% ownership interest in a joint venture company (the "Epic-HUST JV") with Huazhong University of Science & Technology based in Wuhan, China. The Epic-HUST joint venture commenced operations in March, 2012, and currently has a staff of 40. The Epic-HUST JV recently signed two major MES contracts with automotive companies, which are expected to be completed by the end of the 2012 calendar year. -- Signed a contract with a major US defense contractor customer to upgrade its current shop floor and manufacturing data collection system. The upgrade project is expected to be completed in multiple phases by mid- 2013.

Results of Operations


Three months ended Six months ended March 31, March 31, 2012 2011 2012 2011 ---------------------------------------------------- Revenue $ 1,193,346 $ 960,655 $ 2,062,849 $ 2,242,107 Cost of sales 681,752 522,529 1,087,190 1,133,265 ---------------------------------------------------------------------------- Gross margin 511,594 438,126 975,659 1,108,842 ---------------------------------------------------------------------------- Expenses General and administration 526,223 346,528 1,005,988 726,223 Sales and marketing 448,237 298,539 892,934 575,973 Product development 404,708 151,599 637,076 297,185 Net finance charges 17,316 17,554 40,202 28,717 Foreign exchange 25,033 34,115 30,212 66,170 Interest accretion 2,128 1,419 4,256 1,419 ---------------------------------------------------------------------------- 1,423,645 849,754 2,610,668 1,695,687 ---------------------------------------------------------------------------- Net loss for the period (912,051) (411,628) (1,635,009) (586,845) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Loss per share - basic and diluted $ (0.03) $ (0.02) $ (0.05) $ (0.02) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Results of Operations for the Three and Six months ended March 31, 2012

Revenue

Revenue for the three months ended March 31, 2012 increased $232,691 or 11% to $1,193,346 compared with $960,655 in the same period last year. The increase in revenue was due to a significant hardware sale early in the second quarter of 2012. Revenue for the six months ended March 31, 2012 decreased $179,258 or 8% to $2,062,849 compared with $2,242,107 in the same period last year. The decrease in revenue for the six months ended March 31, 2012 was due to curtailed spending by our customers.

Gross Margin

The gross margin for the three months ended March 31, 2012 increased $73,468 or 17% to $511,594 as compared with $438,126 in the same period last year. The gross margin for the six months ended March 31, 2012 decreased $133,183 thousand or 12% to $975,659 as compared with $1,108,842 in the same period last year. The decrease was due to the lower revenue.

The gross margin as a percentage of revenue for the three months ended March 31, 2012 decreased to 43% compared with 46% in the same period last year, while for the six months ended March 31, 2012 decreased to 47% compared with 50% in the same period last year. The decreases were due mainly to lower productivity, especially in professional services, with fixed costs and lower revenue.

General and administration

We maintain centralized executive and administrative support departments located in Richmond, British Columbia, Canada.

General and administration expenses for the three months ended March 31, 2012 increased $179,695 or 52% to $526,223 compared with $346,528 in the same period last year. General and administration expenses for the six months ended March 31, 2012 increased $279,765 or 39% to $1,005,988 compared with $726,223 in the same period last year. The increase is due primarily to the operations in China, which in includes the opening and staffing offices in Shanghai and Wuhan, China.

Sales and marketing

Sales and marketing expenses for the three months ended March 31, 2012 increased $146,698 or 50% to $448,237 compared with $298,539 in the same period last year. Sales and marketing expenses for the six months ended March 31, 2012 increased $316,961 or 55% to $892,934 compared with $575,973 in the same period last year. The increase in both periods is due primarily to the opening of the representative office in China for the new marketing initiatives in China. In addition new sales staff were added in the United Kingdom and Canada.

Product development

Product development expenses for the three months ended March 31, 2012 increased $253,109 or 167% to $404,708 compared with $151,599 in the same period last year. Product development expenses for the six months ended March 31, 2012 increased $339,891 or 114% to $637,076 compared with $297,185 in the same period last year. The increase in both periods is principally due to the development of the Epic Data MES suite of applications and the new development team in Wuhan.

Net Finance Charges

Net finance charges for the three months ended March 31, 2012 decreased $238 or 1% to $17,316 compared with $17,554 in the same period last year. The decrease is due to the partial repayment of the term loan in November 2011. Net finance charges for the six months ended March 31, 2012 increased $10,851 or 105% to $39,568 compared with $28,717 in the same period last year. The increase is due to the term loan received January 31, 2011.

Net loss

Net loss for the three months ended March 31, 2011 increased $500,423 or 122% to $912,051 compared with $411,628 in the same period last year. Net loss for the six months ended March 31, 2011 increased $1,048,164 or 179% to $1,635,009 compared with $586,845 in the same period last year.

About Epic Data

Epic Data International Inc. has produced manufacturing execution and warehouse management solutions for 36 years. Epic Data solutions synchronize supply chain and production activities to achieve real-time visibility of manufacturing metrics that reduces cycle times and costs, optimizes production planning and control, and boosts quality and efficiency. The solutions are easily implemented either by module or as a completely integrated solution suite across the global enterprise. Customers include Lockheed Martin, Bell Helicopter, Komatsu, Hawker Beechcraft, Bombardier Learjet, CAE Inc., Kingfisher (B&Q) plc, Joy Mining Machinery, Cobham Defence Communications Ltd., GE Aircraft Engine, Contour Premium Aircraft Seating, McBride plc, Phoenix Contact, Rolls-Royce and Volvo.

More information about Epic Data is available at www.epicdata.com.

Caution Regarding Forward-looking Statements

In this document and in other documents filed with Canadian regulatory authorities or in other communications, the Company may from time to time make written or oral forward-looking statements within the meaning of applicable securities legislation, including statements regarding the Company's business plans and financial objectives. These statements typically use words such as prospects, believe, estimate, forecast, project, expect, anticipate, plan, may, should, could and would, or the negative of these terms, variations thereof or similar terminology. By their very nature, forward-looking statements are based on assumptions and involve inherent risks and uncertainties, both general and specific in nature. It is therefore possible that the forecasts, projections and other forward-looking statements will not be achieved or will prove inaccurate. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it provides no assurance that these expectations will prove to have been correct. The Company cautions readers against placing undue reliance on forward-looking statements when making decisions, as the actual results could differ considerably from the opinions, plans, objectives, expectations, forecasts, estimates and intentions expressed in such forward-looking statements due to various material factors. Among other things, these factors include fiscal and economic policies, changes in interest and foreign exchange rates, and general economic conditions, legislative and regulatory developments, competition and access to capital. The Company further cautions that the foregoing list of factors is not exhaustive. For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please also refer to the Company's public filings available at www.sedar.com. The Company does not undertake to update any forward-looking statements, whether oral or written, made by itself or on its behalf, except to the extent required by securities regulations.

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.

Contacts:
Epic Data International Inc.
Robert Nygren
President & CEO
604-273-9146
robert.nygren@epicdata.com
www.epicdata.com


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