Mr. Kevin Ford reports

CALIAN REPORTS FIRST QUARTER RESULTS

Calian Technologies Ltd. has released its unaudited results for the first quarter ended Dec. 31, 2015.

The company reported revenues for the quarter of $64.5-million, a 15-per-cent increase from the $56.0-million reported in the same quarter of the previous year.

Earnings before interest, taxes, depreciation and amortization for the first quarter were $5.2-million, a 19-per-cent increase compared with $4.4-million in the same quarter of the previous year.

Net profit for the first quarter was $3.1-million or 42 cents per share basic and diluted, a 24-per-cent increase compared with $2.5-million or 34 cents per share basic and diluted in the same quarter of the previous year. Adjusted net profit for the first quarter was $3.3-million or 45 cents per share basic and diluted compared with $2.7-million or 37 cents per share basic and diluted in the same quarter of the previous year.

"The 15-per-cent improvement in revenues this quarter is a reflection of the revenue growth in both divisions -- 32-per-cent growth in our systems engineering division (SED) revenues, and 9-per-cent growth in our business and technology services (BTS) division. We experienced organic growth in most of our service lines this quarter and cash earnings continue to improve with an increase in EBITDA compared with the prior year," stated Jacqueline Gauthier, chief financial officer.

"Our Q1 revenue attainment of $64.5-million represents our highest Q1 revenues in our 33-year history," stated Kevin Ford, president and chief executive officer. "Despite challenging market conditions I am very proud of the team's efforts to continue the momentum coming out of last fiscal year.

"I am also pleased to see tangible progress in each of the components of our growth strategy. We have secured new customers in support of our customer diversification focus and continue to evolve our services with investment in areas such as product development at our SED division. We also signed almost $50-million in new contracts this quarter which demonstrates our sales and marketing functions are executing well.

"As reported in our last quarter results, to reflect the diversity of Calian's services with the expansion into areas such as health care and training, management has obtained board agreement to ask for shareholder approval to rename Calian Technologies Ltd. to Calian Group Ltd. to more accurately reflect the current business activities of the company. Shareholder approval will be solicited during our annual meeting of shareholders to be held Feb. 5, 2016."

During fiscal 2016, management will continue to focus on its key strategic initiatives. Traditional markets in which Calian operates have stabilized recently, and management expects organic revenue and earnings growth in most or all of its service lines through the successful execution of our growth strategy. However, the company must caution that revenues realized are ultimately dependent on the extent and timing of future contract awards, as well as customer utilization of existing contracting vehicles. Based on currently available information and the company's assessment of the marketplace, it expects revenues for fiscal 2016 to be in the range of $250-million to $280-million, net profit per share in the range of $1.40 to $1.70 per share and adjusted net profit in the range of $1.49 to $1.79 per share.

     UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF NET PROFIT
                     (In thousands, except per share)

                                                 Three months ended Dec. 31,
                                                   2015                2014

Revenues                                       $ 64,533            $ 56,000
Cost of revenues                                 52,866              45,496
Gross profit                                     11,667              10,504
Selling and marketing                               973               1,020
General and administration                        4,613               4,303
Facilities                                          908                 824
Depreciation                                        307                 334
Amortization                                        312                 358
Deemed compensation related to
acquisitions                                        267                 267
Profit before interest income
and income tax expense                            4,287               3,398
Interest income                                       4                  43
Profit before income tax
expense                                           4,291               3,441
Income tax expense -- current                     1,312               1,056
Income tax expense -- deferred                      (84)                (83)
Total income tax expense                          1,228                 973
Net profit for the period                       $ 3,063             $ 2,468
Net profit per share
Basic                                            $ 0.42              $ 0.34
Diluted                                          $ 0.42              $ 0.34

We seek Safe Harbor.