Mr. Andrew Ryu reports

LOYALIST ANNOUNCES RECORD THIRD QUARTER EARNINGS

Loyalist Group Ltd. has released its financial results for the nine months ending Sept. 30, 2013.

Revenue for the third quarter was $10.2-million with net income of $1.65-million. Adjusted for the legal costs of acquisitions and other one-time acquisition related expenses, income from operations was $2.3-million.

For the nine months ending Sept. 30, 2013, revenue was $19.9-million, with income from operation of $4.15-million.

Operating income margin for the quarter was 22.3 per cent compared with 20.7 per cent in the same quarter in 2012. For the nine-month period, it was 20.9 per cent compared with 18.0 per cent in the same nine-month period in 2012. "This reflects management's continued focus on rationalizing operating expenses along with integrating additional acquisitions," said chief executive officer Andrew Ryu.

The table provides highlights of the quarter, year over year.

                        FINANCIAL HIGHLIGHTS

                                            Q3 2013        Q3 2012   

Revenue                                $ 10,180,761   $  3,786,339     
Gross profit                              4,785,282      1,494,700      
Net income                                1,657,480        693,369      
Costs relating to acquisitions              640,266        105,132     
Income from operations                    2,268,592        785,863

During the third quarter, Loyalist closed its two largest acquisitions to date, MTi and KGIC. Each contributed only partial-quarter revenues and earnings as they were acquired mid-quarter.

"This quarter highlights two things," said Mr. Ryu. "Firstly, we are becoming increasingly well known in our target overseas markets as the top provider of English as a second language and are therefore seeing very strong demand for our programs. This is evident in our expanding gross margins, which reflect our pricing power. Secondly, we are building a platform with significant economies of scale, as demonstrated in our income from operations in aggregate and as a percentage of revenue while covering our acquisition and integration costs, which include addition of personnel and a comprehensive ERP systems gear-up for growth. Our administrative systems are now adequate to add significantly more revenue with minimal increase in operating costs.

"I'm very excited about the near-term future. We've worked hard to build what we have and I believe we are about to reap the rewards of this effort.

"The company has the funds and profitability to meet all of its obligations, while having access to sufficient funds to make an accretive acquisition without raising additional capital, and this should reflect positively on earnings per share going forward."

We seek Safe Harbor.