Mr. Andre Charron reports

DMD ANNOUNCES FINANCIAL RESULTS FOR THE FOURTH QUARTER AND FOR YEAR ENDED DECEMBER 31, 2016

DMD Digital Health Connections Group Inc. has filed its financial statements and MD&A (management discussion and analysis), reporting revenues of $41.0-million for the year ended Dec. 31, 2016, compared with revenues of $32.2-million for the year ended Dec. 31, 2015, an improvement of $8.8-million. For the quarter ended Dec. 31, 2016, revenue rose to $13.4-million, which is an increase of $3.4-million over revenue of $10.0-million realized during the quarter ended Dec. 31, 2015.

Gross margin increased by $6.3-million to $25.0-million for the year ended Dec. 31, 2016, compared with $18.7-million realized during the same period in 2015. For the quarter ended Dec. 31, 2016, gross margin increased by $700,000 to $5.3-million, compared with the quarter ended Dec. 31, 2015. The expansion of the company's products and service offerings, combined with the increased strength and dedicated efforts of its sales team, has enabled the company to successfully improve its performance.

During the quarter ended Dec. 31, 2016, operating expenses were $4.1-million, compared with $2.9-million for the quarter ended Dec. 31, 2015. For the year ended Dec. 31, 2016, operating expenses were $12.1-million, compared with $8.3-million during the same period in 2015. Expenses for the current year reflect the higher level of activities and the strengthening of the management team. They also include share-based compensation of $300,000 for the quarter ended Dec. 31, 2016, and $1.1-million for the year ended Dec. 31, 2016, following the issuance of stock options during the first quarter of 2016.

For the year ended Dec. 31, 2016, the company reported a net income of $1.5-million, compared with a net income of $6.0-million for the same period in 2015. The company had recognized a one-time gain on extinguishment of debt of $3.1-million during the year ended Dec. 31, 2015. For the quarter ended Dec. 31, 2016, the company reported a net income of $100,000, compared with a net income of $1.1-million for the same period in 2015. Net income for the quarter and for the year ended Dec. 31, 2016, also reflects the addition of current income tax and two non-cash expenses, namely share-based compensation and deferred tax expense, that the company did not incur in 2015.

Complete financial statements and the MD&A for the three-month period ended Dec. 31, 2016, are available on SEDAR.

About DMD Digital Health Connections Group Inc.

DMD enables pharmaceutical, pharmaceutical marketing companies, digital advertising agencies and medical device companies to effectively reach, message, connect and interact with U.S. physicians and health care professionals via multiple access channels. Its innovative service offerings provide targeted impressions and interactions through permission-based e-mail, targeted on-line ad-serving and mobile app advertising channels. Top pharmaceutical companies, agencies and respected health care organizations have adopted DMD's solutions to target, engage and interact with leading health care practitioners.

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