Mr. Cody Slater reports

BLACKLINE GPS CORP. REPORTS 69% INCREASE IN Q1 REVENUE

Blackline GPS Corp. has released first quarter results for the fiscal 2012 year.

Q1 2012 highlights

• Quarterly revenue increased by 69 per cent over Q1 2011;
• Fourth consecutive quarter-on-quarter revenue growth;
• Gross margin increased by 198 per cent over Q1 2011;
• Gross margin percentage increased to 45 per cent;
• Adjusted earnings before interest, taxes, depreciation and amortization improved by 23 per cent over prior year;
• Signed first nationwide industrial safety distributor, Procon Systems Inc.;
• Signed monitoring and marketing agreement with Waste Management.

"In Q1 we saw the initial results from completing the transition to higher-margin business-to-business markets including strong increases in both our revenue and gross margins," says Cody Slater, chief executive officer of Blackline. "Continuing to invest in our future by adding new sales personnel, and designing, developing and launching new products will enable Blackline to maintain momentum through fiscal 2012 and beyond."

                      FINANCIAL HIGHLIGHTS
                (In thousands, except per share)

                                                  Q1 2012  Q1 2011

Revenue                                           $ 637.3  $ 376.8
Gross margin                                        285.2     95.8
Gross margin percentage                                45%      25%
Adjusted EBITDA                                    (363.4)  (473.3)
Net (loss)                                         (839.9)  (771.7)
(Loss) per share                                    (0.06)   (0.09)

Q1 revenue of $637,000 represents a 69-per-cent increase over the prior year and the second highest quarterly revenue in the company's history. This strong performance was a result of a growing service revenue base, sales into new distribution networks and acceptance of the company's mobile worker-safety-monitoring products in commercial markets.

The company achieved strong improvement in gross margin over the prior year, both as contribution margin -- up 198 per cent and as a percentage of sales -- up 80 per cent. The focus on the business-to-business products and the increased service margins were the factors driving the positive change.

Adjusted EBITDA improved by approximately $110,000 from Q1 2011 due to the impact of increased revenue and greater margins partially offset by the impact of growth in the sales and marketing expenses necessary as the company continues its expansion. The company expects to see positive impacts from the increased sales and marketing investments in late 2012.

Net loss increased by $68,222 to $839,923 over Q1 2011 due to the stock-based compensation expense generated by the option grant in January, 2012. Excluding the impact of stock-based compensation in both periods, the net loss decreased by $41,150 over the prior year.

The company's unaudited condensed interim consolidated financial statements, and management's discussion and analysis for the three-month period ended Jan. 31, 2012, are available on SEDAR.