Mr. David Moore reports

SANGOMA REPORTS RESULTS FOR THIRD QUARTER OF FISCAL 2013

Sangoma Technologies Corp. has released highlights of its unaudited consolidated interim financial statements under international financial reporting standards for the third quarter of fiscal 2013 ended March 31, 2013.

Sales for the third quarter of fiscal 2013 were $3.2-million, an increase of approximately 15 per cent from $2.8-million in the immediately preceding second quarter, although still down from the prior year.

"I am encouraged with the improvement this quarter, after a somewhat disappointing second quarter," said Bill Wignall, president and chief executive officer of Sangoma. "There are several positive signals emerging over recent months, including revenue strengthening, significant customer wins, good uptake of the newer products, including SBCs and Lync Express, and some substantial new partners joining the Sangoma network. We know that our revenue is lumpier these days than in the past, for all the reasons we've explained previously, but I'm cautiously optimistic that our fourth quarter will show continued progress on the topline. Although Sangoma produced a modest operating loss this quarter, we generated positive cash and added to our cash balance. There is still much hard work to be done as we continue to strive for growth by transitioning away from relying on TDM products into a company that can grow revenue via its new products. This transition is an extremely challenging one for a company with Sangoma's resources, especially compared to our larger competitors, but I'm very proud of our progress, even if it's taken a bit longer than we may have hoped at times. We have utilized a highly focused R&D program and road map, to launch an incredible number of exciting new products over the past year or two, and we are now nearing the point, where we can feel confident that Sangoma has caught up in our product portfolio and started to lead in some key product categories. That should make it possible to tighten both expense and cash management slightly over the next couple of quarters."

                  FINANCIAL HIGHLIGHTS

                         Q3 FY2013    Q2 FY2013   Q3 FY2012

Sales                     $  3.2-m     $  2.8-m     $ 3.6-m
Gross profit              $  2.0-m     $  1.9-m     $ 2.4-m
Operating expense         $  2.2-m     $  2.2-m     $ 2.3-m
Operating income (1)       ($0.2-m)     ($0.3-m)    $ 0.1-m
Net income                 ($0.1-m)     ($0.3-m)    $ 0.1-m
Net earnings per share
(fully diluted)             (0.005)      (0.009)      0.003
EBITDA (1)                $  0.0-m      ($0.2-m)    $ 0.2-m
                                                                            
(1) Sales for the third quarter of fiscal 2013 were 
$3.2-million, an increase of approximately 15 per cent
from $2.8-million in the immediately preceding second 
quarter, although still down from the prior year.

Gross profit was $2.0-million for the quarter or 63 per cent of revenue, which is slightly lower than margins in recent quarters, purely as result of the mix of products sold this quarter.

Total operating expense for the third quarter was $2.2-million, down 7 per cent from the same quarter of the last fiscal year and down 2 per cent from the immediately preceding quarter.

Operating loss was $200,000 for the quarter, an improvement from last quarter, but still lower than the operating profit of $100,000 during the same quarter last year.

Net loss for the quarter ended March 31, 2013, was $100,000 (0.5 cent per share fully diluted), compared with net income of $100,000 (0.3 cent per share fully diluted) for the same quarter last year.

For the nine months of fiscal 2013 to date, Sangoma's revenue is about 11 per cent lower than the same period of fiscal 2012, driven mostly by soft second quarter sales. Net loss of $400,000 is lower than the net income of $700,000 earned in the first nine months of fiscal 2012, resulting from the lower revenue and gross margin, as well as the impact of a $400,000 foreign exchange gain realized in the second quarter of last year not repeating this year. Total operating expense was otherwise approximately flat with the prior year and has stabilized as expected.

Sangoma continues to have a very strong balance sheet, with working capital of $10.8-million on March 31, 2013, as compared with $11.4-million on June 30, 2012, and a solid cash balance that has increased from $3.4-million at the end of last quarter to $3.5-million as of March 31.

President and chief executive officer, Bill Wignall, and chief financial officer, David Moore, will host a conference call on May 24, 2013, at 11:30 a.m. Eastern Standard Time, to discuss the quarterly results. The dial-in number for the call is 1-800-319-4610 (international 1-604-638-5340). Investors are requested to dial in five to 10 minutes before the scheduled start time and ask to join the Sangoma call.

We seek Safe Harbor.