Mr. Gary Moss reports

YANGAROO REPORTS RECORD ANNUAL AND FOURTH QUARTER RESULTS; ANNUAL REVENUES UP 86%, Q4 REVENUES UP 67%, ANNUAL OPERATING EXPENSES DOWN 14%

Yangaroo Inc. has released its results for the year and fourth quarter ended Dec. 31, 2012.

Revenue for the fiscal year 2012 was $2,690,214, 86 per cent higher than in fiscal 2011. Revenue for the fourth quarter was $761,280, 67 per cent higher than the revenue for the same period in 2011 and 1 per cent higher than the previous quarter. The increase in revenue is primarily a result of greater use of Yangaroo advertising to deliver SD and HD advertisements to television broadcasters, primarily in the United States. Growth continued for music video delivery by the major and independent record labels in the U.S. and Canada, and there was also significant growth from Yangaroo Awards, with the addition of the Emmys and the Latin Grammys. Over all, there was strong growth in all divisions and in all territories, with U.S. revenues up 94 per cent and revenues from Canada growing by 20 per cent.

The company's fourth quarter revenue was significantly impacted by hurricane Sandy. There was very little activity as many of the company's advertising- and music-industry clients, based in New York and New Jersey, were affected by the storm for up to two weeks.

Total operating expenses for the year ended Dec. 31, 2012, were $594,345 lower than the previous year. The loss from operations for 2012 was $968,715, down from $2,803,383 in 2011. Excluding one-time charges and non-recurring expenses in 2011, the operating loss declined by $1,234,668, while revenue for the same period increased by $1,240,323. Total operating expenses for the fourth quarter of 2012 were 3 per cent higher than the same period in fiscal 2011. The loss from operations was down 59 per cent ($278,629) and revenue was up 67 per cent ($305,524) for the fourth quarter of 2012, compared with the same period in 2011.

"We are very pleased with the continued growth in all areas of the business throughout 2012. Despite the impact of hurricane Sandy in the fourth quarter, weekly activity during the quarter increased over the third quarter, indicating continued double-digit quarter-to-quarter growth on a normalized basis. Excluding year-end adjustments for items such as vacation pay accruals, the quarterly cash burn continues to decline," said Gary Moss, president and chief executive officer of Yangaroo. "With our results in 2012, combined with the business and deal activity so far in 2013, we are confident of achieving our growth and profit goals for this year."

                   SUMMARY OF OPERATING RESULTS 
          FOR THE YEARS AND FOURTH QUARTERS ENDED DEC. 31

                                               Year      Fourth quarter        
                                   2012        2011       2012     2011     

Revenue                      $2,690,214  $1,449,891   $761,280  $455,756  
Adjusted EBITDA (loss)        (877,829) (2,721,170)  (179,055) (455,386)
Net (loss) for the period   (2,235,052) (4,613,295)  (400,579) (298,312)
(Loss) per share (basic and      (0.02)      (0.04)   (0.003)    (0.002)  
diluted)    

The full text of the financial statements and management's discussion and analysis is available at the company website and at SEDAR.

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