Epic Data Announces Q2 Results

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


Highlights in the Quarter



--  Opened a new research and development centre in Wuhan, China. 
--  Completed the registration of a 51% ownership interest in a joint
    venture company (the "Epic-HUST JV") with Huazhong University of Science
    & Technology based in Wuhan, China. The Epic-HUST joint venture
    commenced operations in March, 2012, and currently has a staff of 40.
    The Epic-HUST JV recently signed two major MES contracts with automotive
    companies, which are expected to be completed by the end of the 2012
    calendar year. 
--  Signed a contract with a major US defense contractor customer to upgrade
    its current shop floor and manufacturing data collection system. The
    upgrade project is expected to be completed in multiple phases by mid-
    2013.



Results of Operations



                               Three months ended          Six months ended 
                                        March 31,                 March 31, 
                                2012         2011         2012         2011 
                        ----------------------------------------------------
                                                                            
Revenue                  $ 1,193,346  $   960,655  $ 2,062,849  $ 2,242,107 
                                                                            
Cost of sales                681,752      522,529    1,087,190    1,133,265 
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Gross margin                 511,594      438,126      975,659    1,108,842 
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Expenses                                                                    
  General and                                                               
   administration            526,223      346,528    1,005,988      726,223 
  Sales and marketing        448,237      298,539      892,934      575,973 
  Product development        404,708      151,599      637,076      297,185 
  Net finance charges         17,316       17,554       40,202       28,717 
  Foreign exchange            25,033       34,115       30,212       66,170 
  Interest accretion           2,128        1,419        4,256        1,419 
----------------------------------------------------------------------------
                                                                            
                           1,423,645      849,754    2,610,668    1,695,687 
----------------------------------------------------------------------------
                                                                            
Net loss for the period     (912,051)    (411,628)  (1,635,009)    (586,845)
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Loss per share - basic                                                      
 and diluted             $     (0.03) $     (0.02) $     (0.05) $     (0.02)
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Results of Operations for the Three and Six months ended March 31, 2012

Revenue

Revenue for the three months ended March 31, 2012 increased $232,691 or 11% to
$1,193,346 compared with $960,655 in the same period last year. The increase in
revenue was due to a significant hardware sale early in the second quarter of
2012. Revenue for the six months ended March 31, 2012 decreased $179,258 or 8%
to $2,062,849 compared with $2,242,107 in the same period last year. The
decrease in revenue for the six months ended March 31, 2012 was due to curtailed
spending by our customers.


Gross Margin

The gross margin for the three months ended March 31, 2012 increased $73,468 or
17% to $511,594 as compared with $438,126 in the same period last year. The
gross margin for the six months ended March 31, 2012 decreased $133,183 thousand
or 12% to $975,659 as compared with $1,108,842 in the same period last year. The
decrease was due to the lower revenue.


The gross margin as a percentage of revenue for the three months ended March 31,
2012 decreased to 43% compared with 46% in the same period last year, while for
the six months ended March 31, 2012 decreased to 47% compared with 50% in the
same period last year. The decreases were due mainly to lower productivity,
especially in professional services, with fixed costs and lower revenue.


General and administration

We maintain centralized executive and administrative support departments located
in Richmond, British Columbia, Canada. 


General and administration expenses for the three months ended March 31, 2012
increased $179,695 or 52% to $526,223 compared with $346,528 in the same period
last year. General and administration expenses for the six months ended March
31, 2012 increased $279,765 or 39% to $1,005,988 compared with $726,223 in the
same period last year. The increase is due primarily to the operations in China,
which in includes the opening and staffing offices in Shanghai and Wuhan, China.


Sales and marketing

Sales and marketing expenses for the three months ended March 31, 2012 increased
$146,698 or 50% to $448,237 compared with $298,539 in the same period last year.
Sales and marketing expenses for the six months ended March 31, 2012 increased
$316,961 or 55% to $892,934 compared with $575,973 in the same period last year.
The increase in both periods is due primarily to the opening of the
representative office in China for the new marketing initiatives in China. In
addition new sales staff were added in the United Kingdom and Canada.


Product development

Product development expenses for the three months ended March 31, 2012 increased
$253,109 or 167% to $404,708 compared with $151,599 in the same period last
year. Product development expenses for the six months ended March 31, 2012
increased $339,891 or 114% to $637,076 compared with $297,185 in the same period
last year. The increase in both periods is principally due to the development of
the Epic Data MES suite of applications and the new development team in Wuhan.


Net Finance Charges

Net finance charges for the three months ended March 31, 2012 decreased $238 or
1% to $17,316 compared with $17,554 in the same period last year. The decrease
is due to the partial repayment of the term loan in November 2011. Net finance
charges for the six months ended March 31, 2012 increased $10,851 or 105% to
$39,568 compared with $28,717 in the same period last year. The increase is due
to the term loan received January 31, 2011.


Net loss

Net loss for the three months ended March 31, 2011 increased $500,423 or 122% to
$912,051 compared with $411,628 in the same period last year. Net loss for the
six months ended March 31, 2011 increased $1,048,164 or 179% to $1,635,009
compared with $586,845 in the same period last year. 


About Epic Data

Epic Data International Inc. has produced manufacturing execution and warehouse
management solutions for 36 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 Lockheed Martin, Bell Helicopter, Komatsu, Hawker
Beechcraft, 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.