Total Revenue More Than Triples Year-Over-Year

TORONTO, Tuesday, March 25, 2008/CNW/-Cyberplex Inc. (TSX: CX) Cyberplex Inc. (www.cyberplex.com), a leader in providing web advertising solutions, on-line customer acquisition strategies and application expertise to its clients, today announced its financial results for the fiscal year-ended December 31, 2007 and fourth quarter-ended December 31, 2007.

2007 Business Highlights Include:

• Revenue more than triples in 2007 compared to 2006
• Number of on-line advertising campaigns increases over 105% compared to the prior year
• Rebranding of the web advertising division to CX Digital Media
• Strengthened balance sheet with a $5M private placement completed subsequent to year end

“2007 was a pivotal year for Cyberplex as we continued to grow our Company, expand our market share, and solidify our position as a leader in performance-based web advertising solutions” said Geoffrey Rotstein, Chief Executive Officer of Cyberplex Inc.  “Together with our technology services division, we remain focused on execution and are pleased with our aggressive growth, our financial progress and our ability to deliver value and improved business results to all of our clients.”

Through the acquisition of Incentaclick (now CX Digital Media Inc.) in December 2006, Cyberplex entered into the market of performance-based online customer acquisition.  The market for on-line media has experienced tremendous growth over the past number of years and industry experts believe this trend will continue.   CX Digital Media serves a segment of this market that has already begun to capitalize on this exciting growth opportunity. 

Results for the year ended December 31, 2007:

• The Company generated revenue of $17.7M, an increase of 231% compared to the $5.3M generated in 2006
• Web advertising revenue increased over 90% yearly and grew on a sequential quarter over quarter basis
• Value of customer campaigns increased over 150% during the year

For the year ended December 31, 2007, the Company generated revenue of $17.7M, an increase of $12.4M or 231% when compared to the $5.3M generated in 2006.  This increase resulted from the web advertising division, which generated approximately $13.0M in revenue.  Revenue generated from the technology services division totaled $4.7M, as compared to $5.0M in 2006.  The loss before amortization, interest and other items was approximately $772K, an increase from the loss of $463K incurred during 2006.  Included in the loss for 2007 was approximately $426K in foreign exchange losses and $255K of stock-based compensation expenses.  These same charges in 2006 were ($44K) and $54K respectively.     

Gross margin for the year ended December 31, 2007 was 40%, as compared to 46% for the same period last year.  Gross margin for the web advertising and technology services was 42% and 35% respectively.

The largest three clients in 2007 accounted for approximately 24% of revenue, compared with 41% last year.  No client exceeded 10% of total revenue and the top 10 clients accounted for just 43% of revenue whereas in the previous year, the top 10 clients accounted for over 70% of revenue. 
 
“Looking ahead to 2008, we are very encouraged by the business trends that we are witnessing in all areas of our business.  As advertising and marketing dollars continue to move towards on-line initiatives, solutions that enable companies to track and analyze their performance will be in demand.  Our affiliate network and CPA based business model is the type of solution that clients are seeking, and we believe we are well positioned to capitalize on this trend.  We are confident that as we continue to invest in and expand our web advertising division, we will deliver even greater value to our shareholders.” concluded Geoffrey Rotstein, Chief Executive Officer of Cyberplex Inc.

Results for the fourth quarter of 2007:

Fourth quarter revenue of $5.5M was an increase of 16% over the $4.7M generated in the previous quarter.  This increase was a result of growth from both the web advertising and technology services divisions.  The growth in web advertising resulted from adding new publishers, the increase in campaign budgets during the quarter and the result of our proprietary publishing initiatives.  The loss before amortization, interest and other items for the quarter increased to $470,000, up from a loss of $145,000 the previous quarter.  The increased loss was the direct result of growing sales and marketing efforts during the quarter, which we expect to better position the company for 2008, and an increase to the bad debt provision.   Approximately $429,000 of bad debt expense was recorded during the quarter, with one customer accounting for a significant portion of this amount.  The Company believes that improved controls and policies are currently in place to prevent this type of exposure in the future. 

Gross margin for the quarter was 39%, consistent with the 41% realized in the previous quarter and consistent with the 40% generated in the same quarter in 2006.  The margin in the web advertising division was up slightly at 44%, while the margin from the technology services business decreased to 25%.  This decrease was the result of certain over runs in various projects that required additional work and resulted in the reduced margin.  The largest five accounts during the quarter accounted for approximately 45% of the revenue and 69% of the revenue was derived from clients in the United States.  
Subsequent to year end, Cyberplex completed a brokered private placement for $5.0 million which helped strength its balance sheet and also enable the company to continue it path of aggressive growth. 

Conference Call Details:
In conjunction with this announcement, Cyberplex will host a conference call Wednesday, March 26 at 8:30 am EST to discuss the company's fourth quarter and fiscal year end 2007 financial results.  To access this call, dial this dedicated number 888-892-3255.  The conference recording will be available for 24 hours after the conference call.  The playback phone number is 1-800-937-6305, passcode is 291647.

About Cyberplex
Cyberplex Inc. (www.cyberplex.com) is a leader in providing web advertising solutions and on-line customer acquisition strategies, as well as application expertise, to its clients. 

The Company, through its subsidiaries, has developed a proprietary affiliate network which combined with advertising relationships and teams of technology consultants and design, usability and solutions specialists, assist customers with all aspects of their web-based programs as they design, develop and promote solutions that deliver results. 

With over 14 years of experience serving Fortune 1000 clients including Thomson, Atlantic Lottery Corporation, Xerox, Advanced Micro Devices (AMD), and the Royal Bank of Canada, Cyberplex is frequently the firm of choice for business leaders looking for reliable solutions.  Cyberplex serves clients across Canada and the US, and is headquartered in Toronto, Canada with offices in San Diego and Halifax.

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
Susie Ibbotson, Media Relations, Cyberplex
416-260-4763
1-888-597-8889 ext. 4763
1-888-597-8890 susie.ibbotson@cyberplex.com