Mr. Chuck Leighton reports

RADIANT COMMUNICATIONS ANNOUNCES 2013 FIRST QUARTER RESULTS

Radiant Communications Corp. has released its financial results for the first quarter ended March 31, 2013.

Highlights:

• Record revenue of $8.3-million for the first quarter ended March 31, 2013, increased by 1.5 per cent compared with revenue of $8.2-million for the first quarter ended March 31, 2012.
• Gross margin was 40.2 per cent for the quarter compared with 40.0 per cent in the first quarter of 2012.
• Earnings before interest, taxes, depreciation and amortization for the first quarter ended March 31, 2013, were $622,492 compared with $433,181 in the first quarter of 2012, a growth of 43.9 per cent. Included in the first quarter 2013 EBITDA calculations are expenses related to the proposed plan of arrangement process of $140,000.
• Net income for the first quarter ended March 31, 2013, was $275,101 or two cents per share compared with net income of $39,714 or nil per share in the first quarter of 2012. Included in the first quarter 2013 net income amount are expenses related to the proposed plan of arrangement process of $140,000.
• The company ended the quarter with cash and short-term investments of $5.6-million and used $1.1-million of cash for operating activities during the first quarter.
• On March 8, 2013, the company entered into an arrangement agreement with three controlling shareholders under which the company would be taken private pursuant to a plan of arrangement under the provisions of the Canada Business Corporations Act. This agreement was later terminated on April 25, 2013.
• On April 26, 2013, Don Calder resigned as chairman of the board of directors of Radiant.

"The first quarter of 2013 has proven to be a very successful quarter with strong performance in all areas," said Paul Healey, president and chief executive officer. "Our expertise across Canada, combined with our broad portfolio, offers customers a unique customer experience in the market. Radiant is very well positioned as a leading provider of cloud-hosting and network solutions across Canada with a strong recurring revenue base and customer-focused operation."

In the first quarter of 2013, Radiant achieved EBITDA of $622,492 compared with EBITDA of $433,181 in the first quarter of 2012. Included in the EBITDA calculation are expenses of $140,000 related to the proposed plan of arrangement.

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