Cyberplex Inc. (TSX : CX), announced its financial results for the fourth quarter and the fiscal year ended December 31, 2006.
Business highlights for 2006:

Acquisition of WebAffairs Inc. which enabled the Company to service small and medium sized organizations with leading creative technologies and proprietary solutions.
Secured a private placement of $3.25 million which further strengthened the Company ’s balance sheet.
Elimination of a $13.5 million lease obligation by negotiating a termination agreement for the leased facility in Toronto.
Acquisition of Incentaclick Media Group Inc. which diversified the Company’s business model into on-line advertising, creating a different and more scalable revenue model leveraging one of the largest growth areas of the Internet.
Fourth quarter revenue of $1.58 million was an increase of 27% over the $1.24 million generated in the previous quarter and an increase of 14% over the $1.39 million recorded during the same period a year ago.  The revenue increase is attributed to consistent revenue performance from the technology services division and the incremental revenue relating to acquisition of Incentaclick, completed at the beginning of December.  The loss before amortization and interest income for the fourth quarter was $163,000, higher than the loss of $114,000 realized in the previous quarter and a significant improvement over the $647,000 in losses generated during the same period a year earlier. 

Gross margin for the quarter was 40%, down from 51% generated in the previous quarter.  The significant change in gross margin resulted from the inclusion of Incentaclick, as the margin from the services business was relatively consistent at 47%.  The largest five accounts in the quarter accounted for approximately 61% of revenue and 32% of the Company’s revenue was generated from clients located in the United States.

Revenue for the year ended December 31, 2006 was $5.33 million, down 26% from the $7.24 million recorded during 2005.  The loss before amortization and interest income was $463,000 compared with a loss of $628,000 generated a year earlier.  The net loss for the year, after accounting for an additional $784,000 of accelerated amortization due to the relocation of our Toronto offices, was $1.39 million, or $0.03 per share.

“2006 was an important year for Cyberplex as we continued to transition the organization” said Geoffrey Rotstein, President and CEO of Cyberplex.  “By completing two very strategic acquisitions, raising $3.25 million in capital and reducing our long term commitments by over $13.5 million, we have positioned ourselves very well for 2007.  Our balance sheet remains strong, with over $3.4 million in cash and no debt, and our focus continues to be on growing the business profitably.  Management is committed to building a stronger company, both through organic growth and selected acquisitions that will deliver value to its shareholders.”

This news release may contain certain forward-looking statements that reflect the current views and/or expectations of Cyberplex Inc. with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. Cyberplex disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

--------------------------------------------------------------------------------
 
 
For more information please contact
Investor Relations, Cyberplex
416-597-8889
1-888-597-8889
investor@cyberplex.com