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Northcore Reports Third Quarter 2011 Financial Results

(November 09, 2011)

TORONTO, ONTARIO -- (Marketwire) -- 11/09/11 -- Northcore Technologies Inc. (TSX:NTI)(OTCBB:NTLNF), a global provider of asset management and social commerce solutions, announced today its interim financial results for the third quarter ended September 30, 2011. All figures are reported in Canadian dollars.

Northcore reported consolidated revenues of $203,000 for the third quarter, representing an increase of 54 percent over the $132,000 reported in the same quarter of 2010. Northcore also reported year-to-date consolidated revenues of $573,000, an increase of 41 percent over the $406,000 reported for the same period of 2010. The growth in revenues was attributed primarily to the development of a group purchase platform and applications implementation for our strategic partners.

Northcore derives its revenues from application hosting activities provided to customers, the sale of software licenses, and the delivery of technology services, such as application development, software customization and social commerce solutions.

Northcore reported an Operational EBITDA loss for the third quarter of $404,000, consistent the Operational EBITDA loss of $395,000 reported for the third quarter of 2010. Northcore reported year-to-date Operational EBITDA loss of $1,252,000, an improvement of six percent from the operational EBITDA loss of $1,327,000 reported for the same period of 2010. The increase in revenues contributed to the improvement in Operational EBITDA loss during the period.


Operational EBITDA is defined as the loss before interest, taxes, depreciation, stock-based compensation, non-cash and non-recurring items. The Company considers Operational EBITDA to be a meaningful performance measure as it provides an approximation of operating cash flows.

For the quarter and nine months ended September 30, 2011, Northcore reported a net loss per share of $0.004 and $0.017 respectively, basic and diluted. This compares to a loss per share of $0.006 and $0.014 respectively, basic and diluted, in the same period of 2010.

As at September 30, 2011, Northcore held cash of $1,524,000 and accounts receivable of $253,000.

Operating Highlights

We accomplished the following activities in the period:

-- Deployed a new release of the Asset Tracker redeployment platform for a major global food and beverage corporation; -- Garnered significant capital market interest, which resulted in the initiation of analyst coverage; -- Launched first Social Commerce client, Discount This, with a unique group buying platform at: www.discountthis.com; -- Formed a Social Commerce Group to focus on helping corporations leverage social media to accelerate buying and selling; -- Entered into an agreement to provide the e-tendering technology for the Irish Government Health Services Executive's initial online acquisition pilot; and -- Secured $1,107,000 proceeds through the exercise of warrants and options by current holders.

Outlook

"I am gratified by the progress that Northcore has achieved in the last quarter. On the strength of the successful deployment of our first Social Commerce customer, we have formed a dedicated group to focus on this business area," said Amit Monga, CEO of Northcore Technologies. "It is also exciting to see the modest, but important, sequential improvements to our revenue lines and balance sheet. We are working aggressively on many fronts to ensure these encouraging trends continue."

Northcore will hold a conference call at 10:00 a.m. (Eastern Time) on Thursday, November 10, 2011 to discuss its financial results and review operational activities. Investors and followers of the Company can listen to a live broadcast of the call from the investor relations section of the Company's website, http://www.northcore.com/events.html.

About Northcore Technologies Inc.

Northcore Technologies provides enterprise level software products and services that enable its customers to purchase, manage and dispose of capital equipment. Utilizing award-winning, multi-patented technology, as well as powerful, holistic Social Commerce tools, Northcore's solutions support customers throughout the entire asset lifecycle.

Northcore has earned the trust and loyalty of customers from a wide range of organizations across many different industry sectors.

Northcore owns 50 percent of GE Asset Manager, LLC, a joint business venture with GE and holds a substantial intellectual property portfolio.

For more information, visit www.northcore.com.

This news release may include comments that do not refer strictly to historical results or actions and may be deemed to be forward-looking within the meaning of the Safe Harbor provisions of the U.S. federal securities laws. These include, among others, statements about expectations of future revenues, cash flows, and cash requirements. Forward-looking statements are subject to risks and uncertainties that may cause Northcore's ("the Company") results to differ materially from expectations. These risks include the Company's ability to raise additional funding, develop its business-to-business sales and operations, develop appropriate strategic alliances and successful development and implementation of technology, acceptance of the Company's products and services, competitive factors, new products and technological changes, and other such risks as the Company may identify and discuss from time to time, including those risks disclosed in the Company's Form 20-F filed with the Securities and Exchange Commission. Accordingly, there is no certainty that the Company's plans will be achieved. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the Toronto Stock Exchange, on SEDAR (the System for Electronic Document Analysis and Retrieval at www.sedar.com) and the US Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company in any jurisdiction.

(financial results follow)

Northcore Reports Q3 2011 Results

Northcore Technologies Inc. Consolidated Statements of Financial Position (expressed in thousands of Canadian dollars) (IFRS) ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- ------------------------------------------------ September 30, September 30, December 31, 2011 2011 2010 ------------------------------------------------ (Unaudited) (Unaudited) (Audited) (in US$) translated into US$ at Cdn$ 1.048 for convenience Cash $ 1,524 $ 1,454 $ 51 Other current assets 287 274 187 Other assets 105 100 46 ------------------------------------------------ Total assets $ 1,916 $ 1,828 $ 284 ------------------------------------------------ ------------------------------------------------ Accounts payable and accrued liabilities $ 454 $ 433 $ 619 Deferred revenue 57 54 3 Current portion of long term debts 517 493 1,031 Non-current portion of long term debts 141 135 204 Total shareholders' equity 747 713 (1,573) ------------------------------------------------ Total liabilities and shareholders' equity $ 1,916 $ 1,828 $ 284 ------------------------------------------------ ------------------------------------------------ Northcore Technologies Inc. Consolidated Statements of Operations and Comprehensive Loss (expressed in thousands of dollars, except per share amounts) (IFRS, Unaudited) ----------------------------- ----------------------------- Three Months Ended Nine Months Ended ----------------------------- ----------------------------- September 30, September 30, ----------------------------- ----------------------------- 2011 2011 2010 2011 2011 2010 ($C) ($US) ($C) ($C) ($US) ($C) ----------------------------- ----------------------------- translated translated into US$ at into US$ at Cdn$ 1.048 Cdn$ 1.048 for convenience for convenience Revenues $ 203 $ 194 $ 132 $ 573 $ 547 $ 406 ----------------------------- ----------------------------- Operating expenses: General and administrative 351 335 311 1,308 1,248 1,049 Customer service and technology 181 173 174 543 518 550 Sales and marketing 75 71 41 209 199 133 Employee stock options 372 355 77 1,625 1,551 374 Depreciation 8 8 5 20 19 16 ----------------------------- ----------------------------- Total operating expenses 987 942 608 3,705 3,535 2,122 ----------------------------- ----------------------------- Loss before the undernoted (784) (748) (476) (3,132) (2,988) (1,716) ----------------------------- ----------------------------- Interest expense: Cash interest expense on notes payable and secured subordinated notes 20 19 39 93 89 100 Accretion of secured subordinated notes 34 32 30 103 98 84 ----------------------------- ----------------------------- Total interest expense 54 51 69 196 187 184 ----------------------------- ----------------------------- Other expenses (income): Income from GE Asset Manager, LLC (18) (17) (4) (54) (51) (32) Gain on settlement of debt - - (57) - - (57) Provision for impaired investment - - 544 - - 544 ----------------------------- ----------------------------- Total other expenses (income) (18) (17) 483 (54) (51) 455 ----------------------------- ----------------------------- ----------------------------- ----------------------------- Loss and comprehensive loss for the period $ (820) $ (782) $ (1,028) $ (3,274) $ (3,124) $ (2,355) ----------------------------- ----------------------------- ----------------------------- ----------------------------- Loss per share, basic and diluted $ (0.004) $ (0.004) $ (0.006) $ (0.017) $ (0.017) $ (0.014) ----------------------------- ----------------------------- ----------------------------- ----------------------------- Weighted average number of shares outstanding, basic and diluted (000's) 203,888 203,888 163,388 190,265 190,265 162,151 ----------------------------- ----------------------------- ----------------------------- -----------------------------

Contacts:
Northcore Technologies Inc.
Investor Relations
(416) 640-0400 ext. 273
(416) 640-0412 (FAX)
InvestorRelations@northcore.com


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