Mr. Jeffrey Hasham reports

REDISHRED CAPITAL CORP. ANNOUNCES RECORD Q3-2015 RESULTS

Redishred Capital Corp. has released record third quarter 2015 results.

Third quarter highlights:

• Total system sales (1) in the Proshred system were $6.5-million (U.S.) in the third quarter of 2015, growing 21 per cent over the comparative period in 2014. Scheduled (recurring) system sales for the third quarter reached a record of $3.2-million (U.S.), growing 23 per cent over the third quarter of 2014.
• Unscheduled system sales for the third quarter were $2.2-million (U.S.), growing 22 per cent over the third quarter in 2014.
• Recycling system sales for the third quarter were $1.1-million (U.S.), growing 25 per cent over the third quarter of 2014. The Proshred system shred and recycled 9,000 tons of paper during the third quarter of 2015, an increase of 13 per cent over the third quarter of 2014. This equates to 136,000 trees being saved.
• Redishred's six directly operated corporate locations in Syracuse, Albany, Milwaukee, New York, Charlotte and Miami produced $1.55-million (Canadian) in revenues during the three months ended Sept. 30, 2015, generating $646,000 (Canadian) in earnings before interest, taxes, depreciation and amortization, an increase of 22 per cent over the comparative period in 2014. Franchise and licence revenue for the third quarter of 2015 was $420,000 (Canadian), growing 31 per cent over the third quarter of 2014. This category of revenue is generated by franchisees and licensees of the Proshred system, originally denominated in U.S. dollars.
• On Oct. 1, 2015, a new Proshred franchise was awarded in Minneapolis, Minn. Operations are expected to commence in the first quarter of 2016. This will mark the 28th location in the United States and will allow Proshred to provide service to 31 U.S. markets.

                                    FINANCIAL HIGHLIGHTS
                               (in Cdn $ except where noted) 

                                                  Three months ended         Nine months ended 
                                                       Sept. 30,                 Sept. 30,
                                                   2015         2014         2015         2014   
Corporate location financial results
Corporate location revenue                   $1,554,557   $1,247,349   $4,372.002   $3,668,197
Corporate location operating costs             (908,449)    (719,481)  (2,471,505)  (2,055,957)
Corporate location EBITDA                       646,108      527,868    1,900,497    1,612,240
Depreciation -- tangible assets                (120,789)    (119,093)    (360,985)    (286,683)
Operating income from corporate locations       525,319      408,775    1,539,512    1,325,557
Franchise and licence sales
Franchise and licence fees                        4,120       32,569       33,229      103,396
Royalties and service fees                      415,832      288,974    1,166,812      832,223
Franchise-related revenue                       419,952      321,543    1,200,041      935,619
Operating income                                527,950      289,229    1,463,206    1,029,055
Net income                                      363,260       62,791    1,004,810      133,360
Income per share                                  0.013         .002        0.035        0.005
System sales (U.S.$)                          6,497,246    5,362,658   18,637,513   15,216,644

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, and (3) implementing dedicated hard-drive destruction trucks/equipment throughout the system. The strong service 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 utilizing a secure on-site solution. Its clients are also looking at enhancing risk management programs by utilizing an on-site destruction service, such as the one offered by Proshred. Additionally, an increasing number of clients are requiring their facilities to recycle all paper documents, and by using the company's services, clients are assured that documents are both securely destroyed and 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, 18 franchised locations have deployed high-speed on-site hard-drive destruction trucks. These factors led to 23-per-cent growth in scheduled and 22-per-cent unscheduled system sales in the third quarter of 2015 over the same quarter in 2014.

Corporate operations

During the nine months ended Sept. 30, 2015, 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.

During the three months ended Sept. 30, 2015, corporate location revenue grew by 25 per cent over the same comparative prior-year period. The company has also increased earnings before interest, taxes, depreciation and amortization by 22 per cent and operating income by 30 per cent over the three months ended Sept. 30, 2014.

                   ALL CORPORATE LOCATION RESULTS

                              Three months ended       Nine months ended
                                    Sept. 30,               Sept. 30,
                                2015        2014        2015        2014
Revenue
Shredding service         $1,309,120  $1,032,669  $3,644,651  $3,020,144
Recycling                    245,437     214,680     727,351     648,053
Total revenue              1,554,557   1,247,349   4,372,002   3,668,197
Operating costs              908,449     719,481   2,471,505   2,055,957
EBITDA                       646,108     527,868   1,900,497   1,612,240
Depreciation --
equipment                    120,789     119,093     360,985     286,683
Corporate operating
income                       525,319     408,775   1,539,512   1,325,557

Management's comments on the third quarter of 2015

Jeffrey Hasham, the company's chief executive officer, had the following comments: "Proshred has continued to set growth and system sales records. This is a validation from our clients that our focus on on-site information destruction solution is the best solution to enhance their risk management programs. It is our view that the on-site solution for destroying paper, hard drives and products is the most secure method of destruction. It is Proshred's mandate to provide peace of mind for our clients that their information will be shred on site, significantly reducing the risk of information breach."

Mr. Hasham further commented: "Our franchisee and corporate location performance is a result of our collective willingness to invest in human resources and modern equipment allowing us to provide a five-star solution to our clients. The company's plan is to continue investing in new trucks and human resources to further drive results in the last quarter and into 2016. 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 164 community shredding events in the first nine months of 2015. These events provide an opportunity for clients, clients' employees, local businesses and local residents to ensure 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 is also proud that 100 per cent of the shredded material is recycled, as the company's 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 company's website.

On June 6, 2015, Proshred held its second-annual Shred Cancer event at most of its locations, raising money for the American Institute for Cancer Research (AICR). It is the goal of the company to support the AICR in its endeavour to conduct research to prevent and possibly cure this disease. Please visit the Proshred website for more information on this effort.

Financial statements

Redishred's Sept. 30, 2015, financial statements, notes, and management's discussion and analysis will be available at SEDAR and the company's website.

(1) System sales are revenues generated from franchisees, licensees and corporate-owned locations. Redishred Capital derives its royalty and service fee revenues based on a percentage of system sales from franchisees and licensees. Redishred Capital derives revenues from corporate location system sales.

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