Mr. Gary Moss reports

YANGAROO REPORTS 2014 ANNUAL AND FOURTH QUARTER RESULTS

Yangaroo Inc. has released its results for the year and fourth quarter ended Dec. 31, 2014. Revenue for the fiscal year 2014 was $4,266,250, 22 per cent higher than in fiscal 2013. Revenue for the fourth quarter was $1,508,617, 42 per cent higher than the revenue for the same period in 2013 and 50 per cent higher than the previous quarter, and was cash flow positive. Advertising revenue led the way with fourth quarter revenue up 106 per cent over the same quarter in 2013. The increase in revenue is primarily the result of Yangaroo advertising use by the 90 new customers signed during 2014. This usage, combined with an element of seasonality in the fourth quarter, contributed to the record quarter.

Growth also continued for music video delivery by the major and independent record labels in the United States and Canada, as well as revenue received from European partnerships. Yangaroo Awards also continues to grow, renewing agreements with the BET Awards, the Soul Train Awards, the Junos and others.

In the quarter ended Dec. 31, 2014, the company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) income was $28,299, compared with a loss of $119,886 for the same period in 2013 and a loss of $472,004 for the quarter ended Sept. 30, 2014. The company invested in personnel and technology during the year to drive the growth in the advertising division.

"It is very exciting to see the majority of advertising revenue coming from new clients in the fourth quarter," said Gary Moss, president and chief executive officer of Yangaroo. "Monetizing our client acquisition efforts has been a focus of the team. While revenue in Q1 of 2015 is expected to be seasonally lower than the prior quarter, the sales from new clients continues to drive comparative growth, with all-time record monthly advertising revenue in March, 2015. In addition, all of the major Canadian broadcasters are now on-line, providing our customers with a comprehensive North American-wide digital footprint and an immediate incremental revenue opportunity for Yangaroo."

Total operating expenses for the year ended Dec. 31, 2014, were $1,653,113 higher than the previous year, primarily relating to additional developers, and sales and support staff, to support increase in advertising-related business. The loss from operations for 2014 was $1,629,504, increasing from $748,151 in 2013, while revenue for the same period increased by $771,760. Total operating expenses for the fourth quarter of 2014 were 27 per cent higher than the same period in fiscal 2013, primarily due to additional staff. The loss from operations was down 82 per cent ($122,978), and revenue was up 42 per cent ($449,136) for the fourth quarter of 2014 compared with the same period in 2013. Excluding the impact of non-cash and non-operating costs, the fourth quarter of 2014 had positive normalized cash flow of $21,401.

 SUMMARY OF OPERATING RESULTS FOR THE YEARS AND FOURTH QUARTERS ENDED DEC. 31

                                          Year                 Fourth quarter
                                    2014         2013         2014        2013

Revenue                       $4,266,250   $3,494,490   $1,508,617  $1,059,481
Adjusted EBITDA (loss)        (1,468,801)    (649,084)      28,299    (119,886)
Adjusted normalized EBITDA
(loss)                        (1,140,332)    (309,580)      21,401      29,221
Net gain (loss) for the
period                        (1,794,425)  (1,630,434)       1,660  (2,081,643)
Gain (loss) per share (basic
and diluted)                      (0.038)      (0.074)       0.000      (0.053)

The full text of the financial statements, and management discussion and analysis is available at the company's website and on SEDAR.

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