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Epic Data Announces Year End Results

(December 16, 2011)

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/16/11 -- Epic Data International Inc. (TSX VENTURE:EKD) (the "Company" or "Epic Data"), a provider of manufacturing operations management and real-time data collection solutions, today announced the results of operations for the three months and year ended September 30, 2011.

Results of Operations Three months ended Year ended September 30, September 30, 2011 2010 2011 2010 ------------- ------------- ------------- ------------- Revenue $ 935,869 $ 1,120,259 $ 4,202,974 $ 4,730,892 Cost of sales 458,325 483,342 2,082,498 2,253,405 ---------------------------------------------------------------------------- Gross margin 477,544 636,917 2,120,476 2,477,487 ---------------------------------------------------------------------------- Expenses General and administration 359,272 377,756 1,418,174 1,579,627 Sales and marketing 447,093 227,266 1,350,590 1,036,886 Product development 149,159 112,631 596,828 495,450 Amortization of property, plant and equipment 2,918 10,105 34,295 57,767 Net finance charges 25,959 8,315 84,118 48,902 Stock based compensation 9,185 5,425 34,426 39,630 Foreign exchange 7,640 18,296 84,833 71,987 Interest accretion 2,128 - 5,674 - Severance costs - 19,324 - 56,784 ---------------------------------------------------------------------------- 1,003,354 779,118 3,608,938 3,387,033 ---------------------------------------------------------------------------- Net loss for the period (525,810) (142,201) (1,488,462) (909,546) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Loss per share - basic and diluted $ (0.02) $ (0.01) $ (0.06) $ (0.05) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------

Results of Operations for the year ended September 30, 2011

Revenue


Revenue for the year ended September 30, 2011 decreased $527,918 or 11% to $4,202,974 compared with $4,730,892 in the same period last year. The decrease in revenue was due to the stronger Canadian dollar, which negatively impacted revenue for the year ended September 30, 2011 by approximately $257,000 and by decreased sales.

Gross Margin

The gross margin for the year ended September 30, 2011 decreased $357,011 or 14% to $2,120,476 as compared with $2,477,487 in the same period last year. The decrease was due to the lower revenue and foreign exchange. The gross margin as a percentage of revenue for the year ended September 30, 2011 decreased to 50% compared with 52% in the same period last year. The decrease was due mainly to the lower productively of staff due to lower volumes of project work.

General and administration

General and administration expenses for the year ended September 30, 2011 decreased $161,453 or 10% to $1,418,174 compared with $1,579,627 in the same period last year. The decrease is principally due to lower staff levels, lower head office rent and a recovery of building operating costs in the second quarter of 2011 of approximately $63,000.

Sales and marketing

Sales and marketing expenses for the year ended September 30, 2011 increased $313,704 or 30% to $1,350,590 compared with $1,036,886 in the same period last year. The increase is due primarily to the opening of the representative office in Shanghai for the new marketing initiatives in China.

Product development

Product development expenses for the year ended September 30, 2011 increased $101,378 or 21% to $596,828 compared with $495,450 in the same period last year. The increase is due to the development of the Epic Data MES suite of applications, including for the China market, and staffing costs being allocated to product development rather than to cost of sales as a result of less project work in the current year compared to last year.

Net finance charges

Net finance charges for the year ended September 30, 2011 increased $35,216 or 72% to $84,118 compared with $48,902 in the same period last year. The increase is due to the interest charged on the term loan.

Interest accretion

Interest accretion for the year ended September 30, 2011 was $5,674 compared with $Nil in the same period last year. The increase is due to the interest accretion expense related to the warrants issued in connection with the term loan financing.

Net loss

Net loss for the year ended September 30, 2011 increased $578,916 or 64% to $1,488,462 compared with $909,546 in the same period last year.

Results of operations for the fourth quarter

Revenue for the three months ended September 2011 decreased $184,390 or 17% to $935,869 compared with $1,120,259 in the same period of the prior year. The decrease was due to the continued slow down in business in 2011.

Expenses for the three months ended September 2011 increased $224,236 or 29% to $1,003,354 compared with $779,118 in the same period of the prior year. In general the expenses for the three months ended September 30, 2011 are higher than last year due to the sales and marketing activities in China.

Net loss for the three months ended September 30, 2011 increased $383,609 to a loss of $525,810 compared with a loss of $142,201 in the same period of the prior year. The increase was due to lower sales and increased costs primarily as of result of sales and marketing activities in China.

Grant of Stock Options

The Company announces that effective December 20, 2011 it has granted 225,000 stock options to employees. The term of the options will be 7 years and the exercise price will be the greater of the closing price on December 19, 2011 or $0.10 per share.

About Epic Data

Epic Data International Inc. is a provider of manufacturing operations management and warehouse management solutions. For 36 years Epic Data has delivered real-time data collection and production information to discrete manufacturers through turnkey data collection, warehouse management and lean manufacturing operations management solutions. Defense contractors, aerospace, automotive, high technology and industrial equipment & machinery manufacturers, employ Epic Data solutions to optimize the ROI of their manufacturing IT infrastructure investments and operations by increasing plant productivity, materials visibility and production velocity. Customers include Hawker Beechcraft, Lockheed Martin, Bell Helicopter, Komatsu, 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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