TORONTO, ON -- (Marketwire – May 17, 2010) - Cyberplex Inc. (TSX: CX) a leader in advertising solutions, on-line customer acquisition strategies, and technology development, today announced the financial results for the first quarter-ended March 31, 2010. 

“Although the first quarter of 2010 proved to be quite challenging and financial results were disappointing, much of this change was attributed to our internal initiatives and commitment to having the highest quality of revenue in the performance marketing space” said Geoffrey Rotstein, President and Chief Executive Officer of Cyberplex.  Beginning in late 2009, the Company began repositioning and proactively managing client mix, in anticipation of industry and regulatory changes in online marketing. These strategic initiatives include greater brand protection, higher quality of distribution, and stricter regulatory compliance on campaign messaging.  “While we expected a negative short-term impact from these initiatives, we see tremendous longer-term benefits as companies in every industry begin to shift more of their advertising spend towards online performance based marketing”.  

2010 First Quarter Highlights

• Selected by Quest Personals, the industry leader in telephone dating and chat services, to expand their client reach using online marketing
• Broadened current vertical reach outside of health and beauty, with improved traction in the finance and dating verticals
• Enhanced technology platform for better screening and evaluation of all publishing partners to ensure clients receive exceptional quality
• Developed new sales initiatives which are beginning to pave the way for additional and higher quality advertising partners
• Announced normal course issuer bid for 10% of the "public float" of common shares on March 30, 2010

Results for the First Quarter of 2010

First quarter revenue of $12.3 million was a decrease of 50% over the $24.3 million generated last quarter.  Gross margin for the quarter was 27% compared to 28% last quarter which was in line with Company’s expectations. Income before amortization, interest, stock compensation charges, and income taxes for the quarter was $340,000. 

During the quarter, the Company worked aggressively to improve the types of campaigns and publishing initiatives going through its network.  The purpose of these changes was to position the Company in a way that would appeal more to direct advertises and allow the Company to engage more with brand advertisers and agencies that represent them.  Brand protection, quality distribution and consumer messaging were all essential attributes of what was being pursued and all of these initiatives are well underway.  While the performance based marketing industry is still very young, the Company believes that these factors must be the primary focus of every campaign and the primary focus of every network in order to ensure that quality advertisers and brands continue to embrace the model.

The performance based marketing industry resides on one key attribute – the ability to target customers with advertising messages that are of interest.  This entails working with and developing lasting relationships with its advertising partners to ensure the results delivered are of value and ensuring that the publishing partners are always looking out for the best interest of the advertiser.  Through the work performed at the end of 2009 and into 2010 to screen advertisers and publishing partners, the additional technology initiatives performed by the organization, and the desire to help promote change in the industry, Cyberplex now believes that it is in the right position to push forward.  The Company expected these changes to negatively impact the Company in the short term; but it has made Cyberplex and the industry much stronger.

“We have already started to experience positive results from our changes.” said Geoffrey Rotstein. “We are speaking to many more key accounts, we have been able to target audiences in many new verticals and we are seeing a notable shift in the professionalism of the publishers in the performance marketing sector.  We are confident about the road ahead.”

Conference Call Details

In conjunction with the release, Cyberplex will host a conference call on Monday, May 17, 2010 at 4:30 p.m. EST to discuss the financial results.  To access the call, please dial 1-888-892-3255. Please call five minutes prior to the call.  A replay of the conference call will be available as of 12:00 a.m. the same day, until midnight May 24 2010. To access the replay of the conference call dial the toll free number: 1-800-937-6305, followed by the playback pass-code: 631954

About Cyberplex

Cyberplex Inc. (www.cyberplex.com) is a leader in providing advertising solutions, online customer acquisition strategies and technology development. The Company, through its subsidiaries, leverages its proprietary affiliate network, robust advertising relationships and experience, along with technology design, development and solutions specialists to develop and implement web-based programs and solutions that have a proven record in delivering results.

With over 16 years of experience serving Fortune 1000 clients including FTD, Vista Print, Sony Canada, IAC, Atlantic Lottery Corporation, Vista Print, Aecon, Ontario Power Generation, Scotia Bank and the Royal Bank of Canada, Cyberplex is frequently the firm of choice for business leaders looking for effective and reliable online solutions. Cyberplex serves clients across Canada and the US and is headquartered in Toronto, Canada.

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.

Alexzandria (Ali) Johnson, Marketing Manager
Cyberplex
1255 Bay Street, Suite 400 | Toronto, Ontario | M5R 2A9
p: 416.260.4482  f: 416.597.2345
alexzandria.johnson@cyberplex.com