Mr. Emad Rizkalla reports

BLUEDROP RELEASES Q1 FINANCIAL RESULTSREVENUES JUMP BY 113% AND GROSS PROFIT MORE THAN DOUBLES IN Q1

Bluedrop Performance Learning Inc. is releasing its financial results for the three months ended Dec. 31, 2014.

Revenues for the three months ended Dec. 31, 2014, were $4.3-million, up from $2.0-million, an increase of 113 per cent on the same period in the previous year. Gross profit for the period was $1.6-million, an increase of $900,000 over the three-month period ended Dec. 31, 2013. Pretax income was $200,000 for the three-month period, compared with a loss of $2.8-million in the same period in the previous year, an improvement of $3.0-million. Included in the three-month period ended Dec. 31, 2013, were acquisition and restructuring costs of $1.7-million related to the acquisition and restructuring of Atlantis Systems Corp., an acquisition by Bluedrop on Dec. 31, 2013. Included in the three-month period ending Dec. 31, 2014, was a gain of $500,000 on the early and discounted payout of long-term debt. After-tax profit for the period was $100,000, compared with after-tax loss of $2.1-million for the same period in the previous year.

The inclusion of revenues in the Bluedrop training and simulation business unit from the Atlantis acquisition resulted in greater revenues in this business unit during the three months ended Dec. 31, 2014. As well, higher gross margins were realized in this business unit during the period, due to cost reductions implemented in the previous quarters and improved utilization rates. Sales, marketing, general and administrative costs for the business unit remain at preacquisition levels, reflecting the cost savings achieved.

Combined sales and marketing expenses, and general and administrative expenses, decreased by $300,000 in the three-month period, compared with the same period last year. The combined sales and marketing expenses, and general administrative expense, for the quarter were at a lower level than those comparable quarterly costs during the preacquisition period. Finance costs for the three-month period were $400,000, versus $100,000 for the same period last year, an increase of $300,000. The increase in finance costs arises from the term debt taken on by Bluedrop to finance the Atlantis acquisition and related transaction costs.

For further details, please see the financial statements, and management's discussion and analysis, for the quarter ended Dec. 31, 2014, which are available on the company's website or on SEDAR.

Commenting on the results and progress of Bluedrop, founder and chief executive officer Emad Rizkalla said: "This is the first quarter where we can clearly demonstrate the synergies achieved in the Atlantis acquisition with cost reductions, and improved revenues and margins.

"During the quarter, we paid off the ComVest term debt early, at a $500,000 discount, and subsequently refinanced with longer-term debt better suited to our working capital requirements.

"The Atlantis acquisition required significant management resources last year and I could not be happier with the outcome of the hard work by the team. This year, we will put more focus on the learning networks operations, and its innovative SAAS-based training management and delivery platform, and new mobile enabled applications."

We seek Safe Harbor.