Mr. Jeffrey Hasham reports

REDISHRED CAPITAL CORP. ("REDISHRED") ANNOUNCES Q3-2014 RESULTS

Redishred Capital Corp. has released its third quarter 2014 results.

Third quarter highlights:

• Total system sales in the Proshred system were $5.36-million (U.S.) in the third quarter of 2014, growing 24 per cent over the comparative period in 2013:
  • System sales are revenues generated from franchisees, licensees and corporate-owned locations. Redishred derives its royalty and service fee revenues based on a percentage of system sales from franchisees and licensees. Redishred derives revenues from corporate-location system sales.
• Scheduled (recurring) system sales for the third quarter reached a record of $2.57-million (U.S.), growing 14 per cent over the third quarter of 2013.
• Unscheduled system sales for the third quarter reached a record of $1.82-million (U.S.), growing 37 per cent over the third quarter of 2013.
• Recycling system sales for the third quarter were $959,000 (U.S.), growing 31 per cent over the third quarter of 2013.

The Proshred system shred and recycled 8,000 tons of paper during the third quarter of 2014, an increase of 24 per cent over the third quarter of 2013.

Redishred's six directly operated corporate locations in Syracuse, Albany, Milwaukee, New York, Charlotte and Miami produced $1.2-million in revenues during the three months ended Sept. 30, 2014, generating $527,000 in earnings before interest, taxes, depreciation and amortization (EBITDA), an EBITDA increase of 46 per cent compared with the third quarter of 2013.

Redishred's same-store corporate stores, Syracuse, Albany, Milwaukee and New York, grew sales by 10 per cent quarter over quarter. During the nine months ended Sept. 30, 2014, the same-store corporate store EBITDA increased by 32 per cent.

                                            FINANCIAL HIGHLIGHTS
                                  (in Canadian dollars, except where noted)

                                             Three months ended Sept. 30,       Nine months ended Sept. 30, 
                                                  2014              2013(1)          2014             2013(1)
Corporate location data
Corporate location revenue              $    1,247,349    $      937,034   $    3,668,197   $    2,407,880
Corporate location operating costs            (719,481)         (576,519)      (2,055,957)      (1,567,861)
Corporate location EBITDA                      527,868           360,515        1,612,240          840,019
Depreciation -- tangible assets               (119,093)          (76,184)        (286,683)        (194,098)
Interest expense                              (208,442)         (168,783)        (597,177)        (488,495)
Operating income from corporate
locations                                      200,333           115,548          728,380          157,426
Franchise data
Franchise and license fees                      32,569           264,205          103,396          266,764
Royalties and service fees                     288,974           251,040          832,223          735,268
Franchise related revenue                      321,543           515,245          935,619        1,002,032
Continuing operating costs                    (394,670)         (391,589)      (1,147,573)      (1,166,262)
Broker fees                                          -           (84,551)         (34,445)         (84,551)
Impairment of notes receivable                 (44,577)                -          (44,577)               -
Interest expense                                (8,220)           (8,215)         (24,660)         (24,660)
Total operating costs                         (447,467)         (484,355)      (1,251,255)      (1,275,473)
Operating income (loss)                         74,409           146,438          412,744         (116,015)
Net income (loss)                               62,791          (214,588)         133,360         (503,184)
System sales (USD)                           5,362,658         4,337,484       15,216,644       12,767,211

(1) The Miami operations are excluded in the three and nine months ended Sept. 30, 2013, results, as the 
    Miami business was jointly operated by Redishred and one of the company's franchise locations. The 
    company commenced operations of the Miami location directly on Jan. 1, 2014.

System sales

Redishred's management team continued to focus its efforts through its franchisees and its corporate locations on:

1. Building recurring service revenues;
2. Maximizing route density and logistical efficiencies;
3. Implementing dedicated hard-drive-destruction trucks/equipment throughout the system.

The strong system sales results are driven by Redishred's sales and marketing programs that are aimed at educating clients on the legislative requirements to destroy confidential information using a secure on-site solution. Additionally, an increasing number of clients are requiring their facilities to recycle all products, including office paper, and, by using the company's service, clients are assured that documents are securely destroyed and the materials are recycled. Proshred also offers hard-drive-destruction services in almost all of its locations, and has been deploying high-speed on-site hard-drive-destruction trucks. Currently, eight franchised locations have deployed high-speed on-site hard-drive-destruction trucks. These factors led to 22-per-cent growth in scheduled and unscheduled sales in the second quarter of 2014 over the same quarter in 2013.

Recycling system sales increased by 31 per cent during the three months ended Sept. 30, 2014, in comparison with the same period in 2013. During the three months ended Sept. 30, 2014, the Proshred system shredded and recycled 8,000 tons of paper, equating to 120,000 trees saved.

Corporate operations

During the three and nine months ended Sept. 30, 2014, Redishred directly operated six shredding locations in Syracuse, N.Y., Albany, N.Y., Milwaukee, Wis., New York, N.Y., Charlotte, N.C., and Miami, Fla. On July 31, 2013, the company acquired the Charlotte franchise, and on Jan. 1, 2014, the company began directly operating the Miami, Fla., location. During the three months ended Sept. 30, 2014, the corporate location revenue grew by 33 per cent over the same comparative prior-year period. The company also increased EBITDA by 46 per cent over the three months ended Sept. 30, 2013.

Same-store corporate store results are indicators of performance of corporate stores that have been in the system for equivalent periods in 2014 and 2013. Same-store corporate results include the operations of Syracuse, Albany, Milwaukee and New York. During the three months ended Sept. 30, 2014, the same-store corporate location revenue grew by 10 per cent.

Management's comments on the third quarter of 2014

Jeffrey Hasham, the company's chief executive officer, had the following comments: "The third quarter continued the positive trends attained in the first two quarters of the year. Our system sales, in particular the service side, continued to grow over last year at close to 20 per cent on a year-to-date basis. The growth can be attributed to continued investment in sales, marketing, human resources and trucks. This trend can be seen in our corporate locations, which continued to demonstrate solid sales and bottom-line growth. It is our plan to continue to invest in activities and assets that will provide our clients with the best on-site destruction services. I would like to thank our franchisees, employees and vendor partners for their hard work and our shareholders for their continued support of our company."

Community and social commitment

The company's locations under the Proshred banner conducted 178 community shredding events in the first three quarters of 2014. These events provide an opportunity for the company's clients, clients' employees, local businesses and local residents to ensure that their personal and confidential materials are securely destroyed. In addition to helping to reduce identity theft, several of these events allow for donations to various not-for-profit organizations. Proshred continues to be a proud supporter of the American Institute of Cancer Research and is planning future events to help with its important research.

Proshred is also proud that 100 per cent of the shredded material is recycled, as its continued goal is to foster the use of fewer trees in the production of all paper products. Future community shredding event locations can be found at the Proshred website.

Financial statements

Redishred's Sept. 30, 2014, financial statements, notes, and management's discussion and analysis will be available on SEDAR and the company website.

We seek Safe Harbor.