Mr. Mark Elfenbein reports

SLYCE REPORTS THIRD QUARTER 2015 RESULTS

Slyce Inc. has released its financial results for the third quarter ended July 31, 2015.

The interim financial statements and management discussion and analysis for the quarter ended July 31, 2015, are available on SEDAR.

Business highlights

Key achievements during the three-month period ended July 31, 2015, included the following:

• $518,823 in total revenue, consisting of $435,968 in monthly recurring software licensing and purchase transaction fees and $82,855 in other income in the quarter, up from $391,147 total revenue in the previous quarter and from $6,743 total revenue in the comparable period a year earlier;
• On May 5, 2015, Slyce finalized a mobile visual search contract with Toys "R" Us Inc. the world's leading dedicated toy and baby products retailer; Slyce will derive revenues through monthly recurring software licensing and service fees;
• On May 20, 2015, Slyce contracted with Photon, the global leader in digital application development and integration, as Photon's mobile visual search provider, creating a key distribution partner for the company;
• On July 14, 2015, Slyce expanded its B2C (business-to-consumer) offering with the launch of Craves, a fashion discovery and purchase app, providing snap-to-buy shopping experiences for the best in boutique fashion; the app was downloaded over 10,000 times in the week following its launch; the company expects to derive revenue from Craves via affiliate fees on all purchases and through the provision of visual-search-related data and analytics.

Following the third quarter, Slyce announced two and signed two additional customer contracts:

• On Aug. 12, 2015, the Shoes website partnered with Slyce to power snap-to-purchase functionality across its product line, comprising over 500 brands. Slyce will generate revenue through monthly recurring software licensing and service fees.
• On Aug. 26, 2015, luxury retailer Neiman Marcus, Slyce's first customer, expanded its engagement with the company from visual search covering two product categories to cover Neiman Marcus's entire product line.
• On Sept. 14, 2015, Slyce signed a contract with a leading on-line retailer to power mobile visual product search.
• On Sept. 23, 2015, Slyce signed a contract with a leading fashion retailer to power mobile visual product search.

Chief executive officer comment

"During the third quarter, Slyce again achieved growth, both in revenue and in notable deployments of its technology," said Mark Elfenbein, president and chief executive officer of the company. "Slyce continues to solidify its position as the leading supplier of visual search technology in an emerging market. We are executing on a rich pipeline of business development opportunities and we are deepening our relationships with our existing client base, which includes four Fortune 500 companies and other marquee retailers. The expanded engagement with Neiman Marcus following a year using Slyce's platform provides an important experience-based endorsement of our technology and service.

"During the quarter, Slyce also further accelerated its presence in the B2C market through the launch of its new consumer-facing application, [a] boutique fashion discovery app, Craves. The app saw over 10,000 downloads in the first week after launch."

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