Toronto, Canada
Revenues Up 31%, U.S. Deliveries Up 56%, Canadian Deliveries Up 74%
YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced results for the third quarter ended September 30, 2008. Revenues for the quarter ended September 30, 2008 were 31% higher than revenues for the same period in 2007, due to the growing use of YANGAROO’s Digital Media Distribution System (DMDS) by the music and radio industries across North America. Cash and cash equivalents were $3,626,000, representing over a year of funds on hand. In the United States market, the volume of deliveries made by YANGAROO’s DMDS in the nine-month period increased by 56% to 1.3 million, already matching the entire volume for 2007. In addition, deliveries made via DMDS in Canada increased by 74% in the nine month period. From the second quarter to the third quarter of this year, revenues grew 27% and the loss was reduced by 34%.
Highlights from the third quarter of 2008 include the commencement of billing to a U.S. based major record label for use of DMDS, reaching agreement with the Examiner of our U.S. patent application with respect to the patent claims, the launch of several new features for DMDS, an agreement with the Canadian Academy of Recording Arts & Sciences (CARAS) to distribute music and promotional materials submitted for Juno Award consideration to judges and CARAS’ members via DMDS, and the appointment of seasoned U.S. based executive Josh Zieman, former Vice President of Marketing at Manhattan/Blue Note Label Group, a division of EMI Music based in New York City, as Senior Vice President Business Development.
“DMDS’ adoption across North America continues to accelerate,” said YANGAROO President & CEO John Heaven. “We look forward to the release in the new year of DMDS 5.0, which we expect will set a new standard for digital delivery of broadcast quality video, music, advertising and other digital content.”
Summary of operating results for the nine months and third quarter ended September 30, 2008:
| $CDN | Nine Months | 3rd Quarter |
| | 2008 | 2007 | 2008 | 2007 |
| Revenue | 440,790 | 387,306 | 175,767 | 133,858 |
| Interest income | 121,569 | 210,408 | 28,473 | 78,210 |
| EBITDA | (2,236,194) | (1,770,633) | (575,468) | (633,265) |
| Net loss for the period | (2,503,587) | (1,813,550) | (675,672) | (652,295) |
| Loss per share (basic & diluted) | (0.03) | (0.03) | (0.01) | (0.01) |
The increase in the loss for the first nine months of 2008 compared to the same period on 2007 was primarily due to higher total expenses. The majority of the increase in operating expenses in the first nine months of 2008 stemmed from planned augmentation of the company’s human resources and from continuing to enforce and expand the company’s intellectual property rights. Operating expenses in the first nine months of 2008 remained below the budgeted target.
The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com and at www.sedar.com.
About YANGAROO:
YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers, and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.
YANGAROO's DMDS has made over six million deliveries of over 12,000 songs from more than 600 record labels to destinations which include radio stations representing over 35 U.S. broadcast chains. U.S. record labels made 1.3 million deliveries of songs via YANGAROO’s Digital Media Distribution System (DMDS) in the U.S. in the first nine months of 2008.
DMDS is the only system that can digitally deliver music across the U.S., Canada, and the UK. YANGAROO has offices in Toronto, New York, Los Angeles, and London, UK. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB:YOOIF. For further information, please contact John Heaven at 905-763-3553 or visit www.yangaroo.com.
The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.