Mr. James Moskos reports

NORTHCORE REPORTS FIRST QUARTER 2013 FINANCIAL RESULTS

Northcore Technologies Inc. has released its interim financial results for the first quarter ended March 31, 2013.

Northcore reported consolidated revenues of $289,000 for the first quarter, representing a decrease of 12 per cent from the $330,000 reported in the fourth quarter of 2012 and an increase of 26 per cent over the $230,000 reported in the same period of 2012.

Northcore reported an operational EBITDA (earnings before interest, taxes, depreciation and amortization) loss for the first quarter of $325,000, representing an improvement of 14 per cent from the operational EBITDA loss of $380,000 reported in the fourth quarter of 2012. In the same period of 2012 Northcore reported an operational EBITDA loss of $356,000. The improvement in operational EBITDA loss was attributed primarily to the decrease in operating expenses.

For the quarter and year ended March 31, 2013, Northcore reported a net loss per share of 0.2 cent, basic and diluted, a slight improvement of 0.1 cent from the net loss per share of 0.3 cent, basic and diluted, reported in the same period of 2012.

As at March 31, 2013, Northcore held cash and short-term investments of $74,000, and accounts receivable of $164,000.

Operating highlights

During the period, Northcore:

• Delivered a new proof-of-concept enterprise system for a key strategic partner;
• Executed a targeted on-line auction for a partner and industry leader in the material-handling space;
• Implemented a series of platform enhancements for a key enterprise client, one of the largest food and beverage companies in North America;
• Created a series of extensions to the Dutch-auction-based wine and spirits sales platform.

Outlook

"These are challenging times for technology companies like Northcore. We remain focused on the pursuit of initiatives that will respect the best interests of the collective stakeholders as we move forward," said James Moskos, interim chief executive officer of Northcore Technologies.

     CONDENSED INTERIM CONSOLIDATED STATEMENTS OF 
          OPERATIONS AND COMPREHENSIVE LOSS                                    
  (in thousands of dollars, except per-share amounts)   

                                      Three months ended 
                                               March 31, 
                                         2013       2012 
                                                                            
Revenues                             $    289   $    230 
Other income                                                               
Income from GE Asset Manager LLC           27         18 
Operating expenses                                                         
General and administrative                331        436 
Customer service and technology           259        166 
Sales and marketing                        51         27 
Stock-based compensation                  113        343 
Depreciation and amortization              61         11 
                                     --------   --------
Total operating expenses                  815        983 
(Loss) and comprehensive (loss) 
for the period                       $   (499)  $   (735)
                                     ========   ========
(Loss) per share, basic and diluted  $ (0.002)  $ (0.003)

We seek Safe Harbor.