Mr. Rory Armes reports

EIGHT SOLUTIONS 2016 FISCAL YEAR RESULTS

Eight Solutions Inc. is releasing its audited consolidated financial results for the year ended Dec. 31, 2016. All figures are in Canadian dollars.

2016 financial highlights:

• Revenue for the year ended Dec. 31, 2016, was $3,456,435, all of which was attributable to Cumul8 licensing and royalty revenue, compared with the year ended Dec. 31, 2015, when only $1,930,874 of the company's $8,064,955 total revenue was attributable to licensing and royalty revenue, an increase in 2016 over 2015 of 80 per cent in licensing and royalty revenue.
• Two thousand sixteen was the complete development transition from 3-D conversion to a Cumul8 cloud-based big data platform. The development effort, to build the platform, took longer than expected by the company given the deep development efforts required in building big data analytic platforms.
• The company's net loss attributable to shareholders was $2,869,868 for the year ended Dec. 31, 2016, compared with a net income attributable to shareholders of $255,764 for the year ended Dec. 31, 2015. Excluding all one-time gains and losses, net loss attributable to shareholders of the company improved by 9 per cent in 2016 over 2015.
• Due to the sale of the 3-D studio conversion business and the resulting change in the company's business model, net cash used in operating activities was 40 per cent less for the year ended Dec. 31, 2016, when compared with the year ended Dec. 31, 2015.
• The company was successful in its action against Tianjin Fu Feng Da Movie & Television Technology Investment and Development Co. Ltd. (FFD) in the B.C. Supreme Court, and extinguished a $3,294,635 liability, recording an equivalent gain.

2017 outlook:

• The company plans to continue entrenching its Cumul8 platform within the forestry sector and expand to other sectors. Today, the company has a platform for driving raw sensor data into the cloud to then provide visual analytics to the user. The company has mills running this software today, and 2017 will be all about selling the product.
• The company also anticipates further growth in the entertainment sector, fuelled by the Eight Solutions' commercial launch of its Cumul8 Jetstream product, a file transfer system designed to be better, faster and easier to use than its competitors, and is currently downloadable on-line.
• Upon the approval of the shareholders of the company, the company will sell its 3-D technology to Prime Focus Ltd. for $5-million to inject working capital into the company as well as to pay off the company's short-term debt. With the shift of the company's business to a big data analytic platform, the transaction allows the company to capitalize on its 3-D technology in the current 3-D market rather than risk the future of 3-D, as well as minimize shareholder dilution all the while injecting some working capital into the company. Full details of the transaction will be provided in the company's upcoming information circular.
• The company plans to restructure its operations to minimize and reduce operating costs, further enhanced by the recent resignation of Ken Scott as president, and the appointment of Rory Armes as both president and chief executive officer.

                              FINANCIAL SUMMARY 
                                                                Years ended Dec. 31,
                                                                  2016         2015       

Revenue                                                    $ 3,456,435  $ 8,064,955
Net income (loss) and comprehensive 
income (loss) attributable to the shareholders of 
the company                                                $(2,869,868) $   255,764  
Basic earnings (loss) per share                            $     (0.05) $      0.01

About Eight Solutions Inc.

Eight Solutions is a technology company led by a team of video game industry veterans. Eight Solutions' flagship product is Cumul8, a data analytics and visualization solution. Cumul8 works with any type of data source to help people and companies understand, collaborate and make better decisions with data. Eight Solutions' portfolio includes an award-winning 3-D software technology licensed to the film industry and Reelhouse, a unique video-on-demand platform that allows filmmakers to distribute their content directly to users.

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