Epic Data Announces Q1 Results

Epic Data International Inc. (TSX VENTURE:EKD), a provider of manufacturing
execution systems (MES) today announced the results of operations for the three
months ended December 31, 2012.


Highlights for the quarter ended December 31, 2012 include:



--  The first sale of the newly developed UniView hardware terminal to a
    significant US based aerospace and defense company; 
--  The completion of several small projects in China; 
--  Working capital financing of approximately $240,000 from related
    parties; and 
--  A term loan financing for $555,000, completed shortly after the quarter
    end, the proceeds of which were used to complete the Company's required
    capital contribution for its investment in the Epic-HUST joint venture
    company in China.
      

Results of Operations                                                       
                                                 For the three months ended 
                                                               December 31, 
                                                       2012            2011 
                                              --------------  --------------
                                                                            
Revenue                                        $  1,173,418    $    869,503 
                                                                            
Cost of sales                                       919,635         405,438 
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Gross Margin                                        253,783         464,065 
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Expenses                                                                    
  General and administration                        622,634         515,931 
  Sales and marketing                               404,653         388,054 
  Product development                               387,545         252,845 
  Net finance costs                                  88,171         308,702 
  Other expenses                                      1,024           5,179 
----------------------------------------------------------------------------
                                                                            
                                                  1,504,027       1,470,711 
----------------------------------------------------------------------------
                                                                            
Net loss                                         (1,250,244)     (1,006,646)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss per share - Basic and diluted             $      (0.03)   $      (0.03)
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Results of Operations for the three months ended December 31, 2012 compared with
2011


Revenue

Revenue for the three months ended December 31, 2012 increased $303,915 or 35%
to $1,173,418 compared with $869,503 in the same period of the prior year. The
increase in revenue was due to primarily to revenue from the Epic-HUST JV in
China, which completed several small projects in the quarter accounting for
$232,438 of the increase. In addition, the Epic-HUST JV is working on a number
of other projects which involve the rendering of services, however certain
elements required to allow revenue to be recognized have not yet been met so no
revenue has been recorded for these projects.


Gross Margin

The gross margin for the three months ended December 31, 2012 decreased $210,282
or 45% to $253,783 as compared with $464,065 in the same period of the prior
year. The decrease was due to the fact that the costs associated with certain
projects in progress in the Epic-HUST JV in China have been expensed in the
accounts while the associated revenue has not yet been recognized.


General and administration

General and administration expenses for the three months ended December 31, 2012
increased $106,703 or 21% to $622,634 compared with $515,931 in the same period
of the prior year. The increase is due to the start-up operations in China.


Sales and marketing

Sales and marketing expenses for the three months ended December 31, 2012
increased $16,599 or 4% to $404,653 compared with $388,054 in the same period of
the prior year. The increase is due to the start-up operations in China which
accounted for an increase of 134,167, offset by lower costs in Canada and the
United Kingdom, primarily compensation.


Product development

Product development expenses for the three months ended December 31, 2012
increased $134,700 or 53% to $387,545 compared with $252,845 in the same period
of the prior year. The increase is due to the development of the UniView, our
new shop floor terminal that supports browser-based web applications and high
security, and the continued development of our Integra suite of MES solutions.


Net finance charges

Net finance charges for the three months ended December 31, 2012 decreased
$220,531 or 71% to $88,171 compared with $308,702 in the same period of the
prior year. The decrease is due to the interest accretion of $243,586, which was
primarily related to the repayment of debt in the prior year, and higher
interest charges on new debt in the current period.


Net loss

Net loss for the three months ended December 31, 2012 increased $243,598 or 24%
to $1,250,244 compared with $1,006,646 in the same period of the prior year as a
result of the start-up operations in China, which had an increased loss of
$526,223, offset by lower interest charges and slightly better results in the
United States and the United Kingdom.


Grant of Stock Options

The Company announces that it has granted 75,000 stock options to non-management
directors. The term of the options will be 7 years and the exercise price will
be the greater of the closing price on February 28, 2013 or $0.10 per share.


About Epic Data

Epic Data International Inc. has produced manufacturing execution and warehouse
management solutions for nearly 40 years. Epic Data solutions synchronize supply
chain and production activities to achieve real-time visibility of manufacturing
metrics that reduces cycle times and costs, optimizes production planning and
control, and boosts quality and efficiency. The solutions are easily implemented
either by module or as a completely integrated solution suite across the global
enterprise. Customers include Beechcraft, Lockheed Martin, Bell Helicopter,
Komatsu, Bombardier Learjet, CAE Inc., Kingfisher (B&Q) plc, Joy Mining
Machinery, Cobham Defence Communications Ltd., GE Aircraft Engine, Contour
Premium Aircraft Seating, McBride plc, Phoenix Contact, Rolls-Royce and Volvo.


More information about Epic Data is available at www.epicdata.com.

Caution Regarding Forward-looking Statements

In this document and in other documents filed with Canadian regulatory
authorities or in other communications, the Company may from time to time make
written or oral forward-looking statements within the meaning of applicable
securities legislation, including statements regarding the Company's business
plans and financial objectives. These statements typically use words such as
prospects, believe, estimate, forecast, project, expect, anticipate, plan, may,
should, could and would, or the negative of these terms, variations thereof or
similar terminology. By their very nature, forward-looking statements are based
on assumptions and involve inherent risks and uncertainties, both general and
specific in nature. It is therefore possible that the forecasts, projections and
other forward-looking statements will not be achieved or will prove inaccurate.
Although the Company believes that the expectations reflected in these
forward-looking statements are reasonable, it provides no assurance that these
expectations will prove to have been correct. The Company cautions readers
against placing undue reliance on forward-looking statements when making
decisions, as the actual results could differ considerably from the opinions,
plans, objectives, expectations, forecasts, estimates and intentions expressed
in such forward-looking statements due to various material factors. Among other
things, these factors include fiscal and economic policies, changes in interest
and foreign exchange rates, and general economic conditions, legislative and
regulatory developments, competition and access to capital. The Company further
cautions that the foregoing list of factors is not exhaustive. For more
information on the risks, uncertainties and assumptions that would cause the
Company's actual results to differ from current expectations, please also refer
to the Company's public filings available at www.sedar.com. The Company does not
undertake to update any forward-looking statements, whether oral or written,
made by itself or on its behalf, except to the extent required by securities
regulations.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Epic Data International Inc.
Robert Nygren
President & CEO
604-273-9146
[e-mail]
www.epicdata.com