Mr. Cameron Watt reports

IN-TOUCH SURVEY SYSTEMS LTD. ANNOUNCES FY 2014 FINANCIAL RESULTS

In-Touch Survey Systems Ltd. is releasing its operating and financial results for the year ended Dec. 31, 2014.

Revenue for the year ending 2014 was $8,357,824 for continuing operations, which was 16 per cent lower than revenue of $9,964,800 in 2013. The company previously announced that it expected account losses to impact 2014, by 25 per cent. The company was able to procure new business and these revenue losses are within management's expectations. The company reclassified revenues of $489,611 (2013, $692,675) as discontinued operations, as its information management services segment was reclassified as a disposal group.

Net earnings before income taxes were $115,348, compared with a net earnings of $406,685 reported in 2013. Gross margin increased to 58 per cent in 2014, compared with 57 per cent in 2013. Company-defined adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was approximately $764,000 for the year ended Dec. 31, 2014, compared with an EBITDA of approximately $824,000 for the year ended 2013. "We are extremely pleased with the EBITDA and net earnings performance that was achieved despite the significant change in revenues. As a percentage of revenue, EBITDA increased to 9 per cent in 2014, compared to 8 per cent in 2013," said Cameron Watt, president and chief executive officer. "Over the course of 2014, a number of changes were made across the business, not only adjusting the cost structure to match the expected revenues but also to improve the focus of the business itself. Two thousand fourteen saw two separate companies spun off, as well as the launch of the first-ever software-as-a-service (SAAS) product. OpsMatrix has paying customers and will be a continued focus for sales, marketing and development through 2015. Additional opportunities across product lines and markets have also been identified for commercialization efforts in 2015. Monthly recurring revenue from software application licensing and user fees became a driving force for the business through 2014, and is expected to continue to set the stage for future growth," said Mr. Watt.

                     CONSOLIDATED STATEMENTS OF OPERATIONS 
                                                                           2014         2013       

Revenue                                                             $ 8,357,824  $ 9,964,800
Cost of services                                                      3,544,287    4,312,556
Gross profit                                                          4,813,537    5,652,244
Total operating expenses                                              4,549,939    5,228,215
Earnings from operating activities                                      263,598      424,029
Finance costs                                                           (48,250)     (44,601)
Gain on fair value of contingent consideration                                -       27,257
Gain on dilution of associate                                           106,680            -
Share of (loss) from investments accounted for using 
the equity method                                                      (206,680)           -
Net earnings from continuing operations before income tax               115,348      406,685    
(Loss) from discontinued operations                                     (69,752)    (133,984)
Net earnings before income taxes                                         45,596      272,701  

We seek Safe Harbor.