The DMDS Team Blog

30Apr/090

YANGAROO REPORTS CONTINUED REVENUE GROWTH IN 2008

4/30/2009 11:00:00 AM

Sixth Consecutive Year of Revenue Growth; U.S. Deliveries Increase By 60% Over 2007

TORONTO, CANADA – YANGAROO Inc. (TSX-V: YOO, OTC: YOOIF), the industry's leading secure digital media distribution company, today announced its results for the year and fourth quarter ended December 31, 2008. YANGAROO achieved its sixth consecutive year of revenue growth in the year, reporting a 10% increase in revenue (which excludes interest income) over fiscal 2007. Cash and cash equivalents were $3,030,000 at December 31, 2008, representing over a year of funds on hand.

Highlights from 2008 included allowance of the company’s US patent application #10/431,854 titled Content Distribution System and Method, 60% growth in U.S. delivery volume to surpass 2 million, 120% growth in Canadian deliveries, development of the new industry-leading Digital Media Distribution System (DMDS) 5.0 platform, launch of the ecommerce portal DMDSDirect to expand market reach into the independent music sector, registering the 2,000th U.S. radio station on DMDS, integration of DMDS with leading radio station automation systems iMediaTouch, MusicMaster and Powergold, extending agreements with Universal and Warner Music Canada and powering the JUNO Awards for the Canadian Academy of Recording Arts and Sciences (CARAS) with DMDS 5.0.

“Adoption of DMDS in the North American record and radio industries continued at a rapid pace,” said YANGAROO’s President and CEO John Heaven. “The significant growth in both U.S. and Canadian usage of DMDS illustrates that it is becoming an indispensable tool for the music industry. Despite the economic downturn in 2008, our revenues increased for the sixth consecutive year. Growth in independent music sector revenues led this vibrant group to account for approximately half of our revenues. While the onset of the recession appeared to dampen the rate of revenue growth in the last half of 2008, we expect that the achievements of 2008 will drive increased revenue growth through 2009.”

Approximately half of the increase in the loss for the year was due to an increase in amortization expenses and reduced interest income. The remainder of the increase was primarily due to planned increases in operating expenses that were related to the development of DMDS 5.0 and the enforcement and expansion of YANGAROO’s intellectual property rights. These operating expenses remained under the budget target for the year and are being reduced as development of DMDS 5.0 is completed. The loss for the fourth quarter of 2008 was lower by 11% compared to the same period last year as salaries and consulting costs decreased by 22% in the fourth quarter.

Summary of operating results for the years and fourth quarters ended December 31:

$CDN Year 4th Quarter
2008 2007 2008 2007
Revenue 578,813 524,956 138,024 137,650
Interest income 139,230 280,757 17,660 70,348
EBITDA (2,885,125) (2,573,990) (648,929) (803,358)
Net loss for the period (3,264,043) (2,665,159) (760,455) (851,610)
Loss per share (basic & diluted) (.04) (.04) (.01) (.01)

The full text of the financial statements and Management Discussion & Analysis is available at www.yangaroo.com. and at www.sedar.com.

About YANGAROO:

YANGAROO's patented Digital Media Distribution System (DMDS) is a leading secure B2B digital delivery solution for the music and advertising industries. DMDS is a web-based delivery system that pioneers secure digital file distribution by incorporating biometrics, high-value encryption and watermarking. DMDS replaces the physical distribution of musical recordings and advertising to radio, media, retailers and other authorized recipients with more accountable, effective, and far less costly digital delivery of broadcast quality media via the Internet.

YANGAROO's DMDS has made over six million deliveries of over 21,000 songs from more than 600 record labels to destinations which include radio stations representing over 35 U.S. broadcast chains. U.S. record labels made over 2 million deliveries of songs via DMDS in 2008. DMDS is the only system that can digitally deliver music across the U.S., Canada and the U.K.

YANGAROO has offices in Toronto, New York, Los Angeles, and London, U.K. YANGAROO trades on the TSX Venture Exchange (TSX-V) under the symbol YOO and in the U.S. under OTCBB:YOOIF. For further information, please contact John Heaven at 905-763-3553 or visit www.yangaroo.com.

Contacts:
Matthew Caldecutt / Gina Preoteasa
Trylon SMR
212-725-2295
matthew@trylonsmr.com / gina@trylonsmr.com

The statements contained in this release that are not purely historical are forward-looking statements and are subject to risks and uncertainties that could cause such statements to differ materially from actual future events or results. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
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