Cyberplex Inc. (TSX:CX) a leader in building and promoting on-line business solutions, today announced its financial results for the first quarter ended March 31, 2007.

Revenue for the three month period ended March 31, 2007 was $3.04 million up 150% from the $1.22 million generated a year earlier and an increase of 92% from the $1.58 million recognized in the previous quarter.  During the quarter, the Company invested heavily in its sales and marketing initiatives which helped generate the revenue growth and set the foundation for future performance.  On an operational basis, the loss before amortization and interest income for the quarter was $153,000 compared to a $131,000 operating loss for the same period a year earlier and a loss of $163,000 generated in the previous quarter.  Included in the 2007 figure, is a one time non-recurring charge of $100,000 and stock based compensation expense of $20,000.

Gross margin for the quarter was 36%, down from the 40% recorded in the previous quarter, as a result of the significant growth of our advertising division, which has traditionally has operated with lower gross margins.  The Company’s top five clients accounted for approximately 37% of the quarterly revenue with 70% of the revenue derived from clients in the United States.  The company finished the quarter with cash and cash equivalents of $3.12 million compared to $5.41 million at March 31, 2006.

"We are very pleased with the revenue growth from the first quarter,” said Geoffrey Rotstein, chief executive officer of Cyberplex.  “Our investment in sales and marketing to drive growth was successful and as we reach a critical mass in revenue we expect to be profitable at an enterprise level.”

Operational Results:
Revenue from our advertising division grew significantly.  For the three month period ended March 31, 2007, revenue from on-line advertising increased to $2.04 million, compared to the $362,000 recorded in the previous quarter (only one month of revenue was recorded in the fourth quarter as the acquisition was completed on November 30, 2006).  Gross margin for the period was 35%, a significant increase from the 18% realized in the previous quarter.  Revenue from our services business of $1.00 million was down from the $1.22 million recorded during the previous quarter and as a result, the gross margin also decreased to 40%.   

Cyberplex’s unique ability to offer clients a full suite of solutions to be successful on-line, from software development to customer acquisition and promotion, has positioned it well in the marketplace.  With the integration of our acquisitions now completed, a solid foundation has been set for 2007.

Forward-Looking Statements
This news release may contain forward-looking statements that are based on management’s current expectations and are subject to known and unknown uncertainties and risks, which could cause actual results to differ materially from those contemplated or implied by such forward-looking statements.  Cyberplex is under no obligation to update any forward-looking statements contained herein should material facts change due to new information, future events or otherwise.

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