Mr. Joel Leetzow reports

CORTEX BUSINESS SOLUTIONS REPORTS Q1 F2017 FINANCIAL RESULTS

Cortex Business Solutions Inc. has released its three months ended Oct. 31, 2016, management's discussion and analysis and condensed interim consolidated financial statements.

"As we share Q1 F2017 results today, I continue to be encouraged by the progress that we have made as an organization in the past year. My confidence in this Cortex management team to now deliver on our growth and financial strategy has never been stronger," commented Joel Leetzow, president and chief executive officer. "With the restructuring and internal transformation of Cortex now being mostly complete, F2017 is going to be a year of increased sales momentum with new customers and a continued focus on increasing our value to our current customers.

"Q1 results for F2017 provide further proof that our goal of profitability is within reach this fiscal year. These Q1 results were achieved despite an increase in sales and marketing expenses during the quarter. Although there were no new buyers signed in Q1 F2017, the business coming from within our current customer base was strong, and the results can be seen with our 777-per-cent improvement in professional services revenue quarter over quarter."

First quarter fiscal 2017 highlights:

Cash flow from operations:

• Net cash used in operating activities improved 9 per cent to $126,248.

Revenue:

• Total revenue was down 6 per cent.
• Access and usage fees were down 7 per cent:
  • Access fees grew 6 per cent.
  • Usage fees declined 22 per cent.
• Integration and set-up fees were down 82 per cent.
• Project management fees were up 777 per cent.

Expenses:

• Total expenses were down 26 per cent.
• Cost of sales was down 42 per cent.
• Sales and marketing were up 32 per cent.
• Research and development costs were down 25 per cent.
• General and administrative costs were down 21 per cent.
• Severance and termination charges were down 62 per cent.

"Q1 F2017 marked a great start to the 2017 fiscal year," said Sandra Fawcett, chief financial officer of Cortex. "With the cost realignment behind us, the focus has moved towards generating new sales while maintaining the strict cost structure. The pipeline for sales was strong in Q1 F2017; however, no net new buyers contracts closed in the quarter. It was expected, given the ongoing development of the sales team. Confidence remains in the ability to close additional buyers in the upcoming six months."

Cortex management will host a conference call, followed by a question-and-answer period.

The details of the conference call are as follows:

Date:  Dec. 7, 2016

Time:  10 a.m. Eastern Time (8 a.m. Mountain Time)

Toll-free dial-in number:  1-866-225-0198

International dial-in number:  1-416-340-2216

Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Cortex Business Solutions at 403-219-2838.

A replay of the conference call will be available after the call through Dec. 14, 2016.

Toll-free replay number:  1-800-408-3053

Toll replay number:  1-905-694-9451

Replay ID:  6178544

About Cortex Business Solutions

Cortex Business Solutions is a business-to-business network that enables electronic invoicing for buying and supplying organizations. The Cortex network offers flexible connection methods to reduce the time required to process invoices and tools that leverage existing customer technologies and processes. Access to the Cortex Network enhances the exchange of documents allowing companies to connect and interact with each other to expand their businesses.

   CONDENSED CONSOLIDATED INTERIM STATEMENT OF LOSS AND COMPREHENSIVE LOSS 

                                           For the three months ended Oct. 31, 
                                                         2016            2015
Revenue
Access and usage fees                              $2,337,660      $2,516,293
Integration fee and set-up fees                        18,124          98,056
Project management and other revenue                  113,284          12,923
                                                   ----------      ----------
                                                    2,469,068       2,627,272

Cost of sales                                         823,538       1,412,546
                                                   ----------      ----------
Gross profit                                        1,645,530       1,214,726
                                                   ----------      ----------
Expenses
Sales and marketing                                   459,909         348,634
Research and development                              440,531         585,703
General and administrative                            801,857       1,017,901
Severance and termination charges                      21,388          56,108
                                                   ----------      ----------
                                                    1,723,685       2,008,346
                                                   ----------      ----------
(Loss) before finance expense and income taxes        (78,155)       (793,620)
Finance income (expense)                                    9          (2,536)
Income tax expense                                    (14,641)        (12,979)
                                                   ----------      ----------
Net (loss)                                            (92,787)       (809,135)
                                                   ==========      ==========
Other comprehensive earnings
Items that may be reclassified
subsequently to net (loss)
Foreign exchange gain on foreign operations            73,377          41,879
Comprehensive (loss)                                  (19,410)       (767,256)
                                                   ==========      ==========
Net (loss) per share -- basic and diluted               (0.01)          (0.10)
                                                   ==========      ==========