IN-TOUCH SURVEY SYSTEMS LTD. ANNOUNCES PROFITABLE Q2 2010 FINANCIAL RESULTS

OTTAWA, Aug. 24 /CNW/ - In-Touch Survey Systems Ltd. ("In-Touch" TSX-Venture: INX) announces revenue of $1,300,599 in Q2 2010 compared to $1,414,500 in Q2 2009. Net Income for Q2 2010 increased 178% to $70,418 compared to a net loss of $89,267 in Q2 2009. The Company-defined adjusted EBITDA increased 563% to $181,000 in Q2 2010, compared to an EBITDA of $27,000 in Q2 2009.

"In-Touch is still adjusting to the effects from the 2009 recession as revenues return to pre-recession levels. The company has now enjoyed four consecutive quarters of positive income from operations; has an increasingly diversified revenue base; and encouraging financial performance in terms of net income and cash flow because of our continued investment in software tools for product development and operations", said Michael Gaffney, Chief Executive Officer.

"Looking forward, revenues for Q3 2010 will exceed revenues for the same period of 2009. Currently, Q4 2010 bookings exceed 66% of target but it is still too early to accurately forecast final Q4 2010 revenues. However, we are predicting that FY 2010 will be net income positive with a significant amount of positive cash flow (EBITDA)", said Gaffney.

    
    Consolidated Statements of Operations          Q2 2010         Q2 2009
                                               --------------  --------------

    Revenue                                     $  1,300,599    $  1,414,500

    Cost of services and goods sold                  536,921         600,409
                                               --------------  --------------

    Gross profit                                     763,678         814,091

    Total operating expenses                        (685,098)       (831,612)
                                               --------------  --------------
    Earnings (loss) before undernoted items           78,580         (17,521)
    Interest expense                                 (25,973)        (40,098)
    Amortization of financing costs                        -          (2,670)
    Amortization of intangible asset                       -          (2,682)
    Change in fair value of derivative                (9,605)              -
    Gain (loss) on foreign exchange                   15,921         (28,491)
    Gain on disposal of property and equipment        11,495           2,195
                                               --------------  --------------
    Net income (loss)                           $     70,418    $    (89,267)
                                               --------------  --------------
    

Certain statements included in this news release contain forward looking statements, which by their nature are necessarily subject to risks and uncertainties and other factors that may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such statements reflect the Company's current views with respect to future events, and are based on information currently available to the Company and on hypotheses which it considers to be reasonable; however, management warns the reader that hypotheses relative to future events which are beyond the control of management could prove to be false, given that they are subject to certain risks and uncertainties.

The TSX Venture Exchange has not reviewed the foregoing and has neither approved or disapproved the contents of this press release.

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For further information: [email protected], Controller and Corporate Secretary, 613-270-7916