Zaio Provides Corporate and Operational Updates

CALGARY, Oct. 31, 2013 /CNW/ - Zaio Corporation (TSXV:ZAO), ("Zaio" or "the Company"), is pleased to provide an operations and corporate update on the following matters:

Purchase of the License held by Zone Data Systems LLC:

On July 5, 2013, Zaio announced that it had signed a letter of intent to acquire the National License Agreement from Zone Data Systems (ZDS) for 13.76 million common shares of Zaio Corporation and 13.76 million share purchase warrants priced at $0.20 per warrant. The acquisition of this legacy agreement allows Zaio to record all of the revenue related to the sale of its appraisal value products directly rather than only the fifty (50) percent profit share under the terms of the NLA and to regain operational control of the US Territory related to administrative and sales functions.

The National License Purchase agreement is in the final draft form, and all parties are aligned with the objectives of the agreements and working to close as soon as possible. Upon completion, the role of the Company's appraisers will be simplified, making them more efficient and motivated to build the database. Under Zaio's control a set of services, processes, and guidelines will be installed and enforced to create consistency and structure for all appraisers across the Country. The net result will be a faster and more effective service offering across Zaio's entire platform.

Valuation Vision Acquisition:

On September 9, 2013, Zaio announced that it had signed a definitive agreement to purchase a majority ownership position in the privately held Valuation Vision LLC., located in Carlsbad, CA. The acquisition is valued at US$1.55 million, payable in two cash instalments over six months and up to US$350,000 in secured short-term working capital loans to facilitate Valuation Vision's growth trajectory. The acquisition transforms Zaio's ability to move its product delivery to Valuation Visions high volume order management system, and leverage cross-selling opportunities with Value Vision's unique line of sophisticated Broker Price Opinion ("BPO") products. These products are bought by a broad array of clients including those in the mortgage and investment industries.

Valuation Vision's experienced management team with long standing industry relationships, in combination with their rapidly growing business will accelerate Zaio's business plan, revenue and growth capacity. Specifically, offering a comprehensive range of detailed and accurate valuation products, immediately, in all 50 States through a combined network of over 100,000 real estate agents and licensed appraisers.

The acquisition of Valuation Vision is progressing within the framework established by Zaio's Canadian regulatory disclosure guidelines. Accordingly, Valuation Vision is completing a required audit for periods ending 2011, 2012, and June 30, 2013. Valuation Vision has engaged a San Diego-based accounting firm to conduct the audit to Canadian IFRS standards. Zaio believes that meeting IFRS standards, as opposed to US GAAP-based audit and financial statements, is important for full and complete alignment and disclosure to Zaio's shareholders.

Current Operations:

Zaio is strategically growing its patented appraisal database coverage across the United States. With current database presence in 22 States through its 239 national appraisal offices demonstrating significant growth from the 16 States that were active in the second quarter. Orders have been and are currently being fulfilled in Washington, Oregon, California, Nevada, Utah, Arizona, Illinois, Michigan, New York, New Jersey, Pennsylvania, North Carolina, Virginia, Georgia, Florida, Massachusetts, Maryland, District of Columbia, Rhode Island, Indiana, Missouri and Texas.   The Company reports that it is on its plan to complete the database with 90 million residential properties, open for Z-VAL product order taking by mid 2014.

In the U.S., there are currently approximately 2 million appraisal reports and Broker Price Opinions generated every month, which represents a significant opportunity in the market for Zaio's products and services. The combined reach of Zaio and Valuation Vision is on track to reach the break-even point at 12,000 reports per month in the next few months. With the Company's projected gross margins ranging between 40% to 52%, depending on the product, there is significant revenue, growth, and profitability visible in the near future.

"Zaio's patented database technology and process remains unique in the marketplace," said David King, President and CEO of Zaio Corporation. "Growth across the United States is on schedule, and the recalibration of our appraiser agreements allows for a new control and profitability for both Zaio and our appraisers. The addition of the Valuation Vision's revenue, management team, software platform, unique product suite, and customer base brings new opportunities for growth and profitability to Zaio in 2014."

About Zaio Corporation
Zaio provides customers in the property valuation, underwriting and lending industries with real-time access to certified appraisal reports from the company's patented database of proactively maintained residential property valuations prepared by licensed appraisers across the United States. Visit the company online at zaio.com.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States or to, or for the account or benefit of U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.

This press release contains forward looking statements. The Company believes that the expectations reflected in this news release are reasonable but actual results may be affected by a variety of variables and may be materially different from the results or events predicted in the forward-looking statements. Readers are therefore cautioned not to place undue reliance on these forward-looking statements. In evaluating forward-looking statements readers should consider the risk factors which could cause actual results or events to differ materially from those indicated by such forward-looking statements. These forward-looking statements are made as of the date hereof and unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or revise any forward-looking statements  Neither TSXV nor their Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release. 

SOURCE: Zaio Corporation

visit zaio.com or contact:

David King
President & CEO Zaio Corporation
(403) 984-ZAIO
[email protected]

Babak Pedram
Investor Relations
Virtus Advisory Group Inc.
416-995-8651
[email protected]