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, 2013.


Results of Operations 



                               Three months ended          Six months ended 
                                        March 31,                 March 31, 
                                2013         2012         2013         2012 
                        ----------------------------------------------------
Revenue                  $ 1,749,865  $ 1,193,346  $ 2,923,283  $ 2,062,849 
                                                                            
Cost of sales                956,741      681,752    1,876,376    1,087,190 
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Gross margin                 793,124      511,594    1,046,907      975,659 
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Expenses                                                                    
  General and                                                               
   administration            602,020      569,509    1,224,654    1,085,440 
  Sales and marketing        370,184      391,029      711,837      779,083 
  Product development        371,905      418,630      759,450      671,475 
  Net finance charges        106,850       33,187      195,021      341,889 
  Foreign exchange             6,123       25,033        7,147       30,212 
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                           1,457,082    1,437,388    2,898,109    2,908,099 
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Net loss for the period     (663,958)    (925,794)  (1,851,202)  (1,932,440)
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Loss per share - basic                                                      
 and diluted             $     (0.02) $     (0.03) $     (0.04) $     (0.06)
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Results of Operations for the Three and Six months ended March 31, 2013

Revenue

Revenue for the three months ended March 31, 2013 increased $556,519 or 47% to
$1,749,865 compared with $1,193,346 in the same period last year. Revenue for
the six months ended March 31, 2013 increased $860,434 or 42% to $2,923,283
compared with $2,062,849 in the same period last year. The increase in revenue
in both periods was due to revenue from the Epic-HUST JV in China. During the
quarter ended March 31, 2013, the Company has determined that outcome of certain
contracts of its China subsidiaries that involve the rendering of services
cannot be measured reliably, primarily because the stage of completion could not
be measured reliably. However, where cash has been received and it is probable
that costs will be recovered, revenue has been recorded in an amount equal to
costs incurred.


Gross Margin

The gross margin for the three months ended March 31, 2013 increased $281,530 or
55% to $793,124 as compared with $511,594 in the same period last year. The
gross margin for the six months ended March 31, 2013 increased $71,248 or 7% to
$1,046,907 as compared with $975,659 in the same period last year. The increase
in both periods was due to the increased revenue levels in China.


General and administration

General and administration expenses for the three months ended March 31, 2013
increased $32,511 or 6% to $602,020 compared with $569,509 in the same period
last year. General and administration expenses for the six months ended March
31, 2013 increased $139,214 or 13% to $1,224,654 compared with $1,085,440 in the
same period last year. The increase in both periods is due primarily to the
continued expansion of operations in China.


Sales and marketing

Sales and marketing expenses for the three months ended March 31, 2013 decreased
$83,845 or 21% to $307,184 compared with $391,029 in the same period last year.
Sales and marketing expenses for the six months ended March 31, 2013 decreased
$67,246 or 9% to $711,837 compared with $779,083 in the same period last year.
The decrease in both periods is due primarily to reduced sales personnel costs
in Canada and the United Kingdom, primarily compensation.


Product development

Product development expenses for the three months ended March 31, 2013 decreased
$46,725 or 11% to $371,905 compared with $418,630 in the same period last year
as staff in China were diverted to revenue generating projects. Product
development expenses for the six months ended March 31, 2013 increased $87,975
or 13% to $759,450 compared with $671,475 in the same period last year
principally 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 March 31, 201 increased $73,663
or 222% to $106,850 compared with $33,187 in the same period last year as a
result of the increased loans funding operations. 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, 2013 decreased $146,868 or 43% to $195,021 compared
with $341,889 in the same period last as the prior period had an interest
accretion charge of $301,687, 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 March 31, 2013 decreased $324,836 or 35% to
$600,958 compared with $925,794 in the same period last year. Net loss for the
six months ended March 31, 2013 decreased $81,238 or 4% to $1,851,202 compared
with $1,932,440 in the same period last year. The decrease in the net loss in
both periods resulted from the improved operations in China as certain revenue
recognition criteria have been met.


Transaction with Sylogist

On May 8, 2013 the Company entered into an agreement (the "Arrangement
Agreement") with Sylogist Ltd. ("Sylogist"), a Calgary based company listed on
the TSX Venture Exchange. The transactions contemplated under the Arrangement
Agreement will be effected by way of a Plan of Arrangement (the "Arrangement")
under the British Columbia Business Corporations Act. Under the Arrangement,
Epic Data will transfer to Epic Fusion Corp ("Epic Fusion"), a newly
incorporated subsidiary, (i) its investments in Epic Data Systems (Shanghai)
Co., Ltd and Epic-Hust Technology (Wuhan) Co., Ltd; (ii) cash proceeds of $5
million less the amount of the working capital deficiency of the Company at the
date of closing; (iii) a perpetual royalty free license to use certain of the
Company's technology in China; and (iv) certain other assets. In addition, under
the Arrangement, Epic Fusion will assume the convertible debentures, term loans
and certain other current liabilities of the Company, all of which have an
estimated carrying value of $3.7 million as at April 30, 2013. Under the
Arrangement the current shareholders of the Company will receive an equal number
of common shares of the Epic Fusion for their common shares of the Company.
Shareholders of the Company will not receive any cash payment in connection with
the Arrangement.


The Company will be holding a special meeting of shareholders on June 25, 2013
to seek shareholder approval for the Arrangement. Further information is
available in the Company's Information Circular dated May 28, 2013 which is
being mailed to shareholders and will be available on SEDAR (www.sedar.com). The
Arrangement is expected to close on July 1, 2013.


Loan Financing

The Company announces that it has entered into a loan agreement with Sylogist,
to receive up to $600,000 to fund general working capital requirements until
closing of the Arrangement. The principal amount of the loan will be due on July
1, 2013 and will bear interest at the rate of 5% per annum. In connection with
this loan, the Company has executed a general security agreement granting to
Sylogist security over all the assets of the Company.


About Epic Data

Epic Data International Inc. has produced manufacturing execution and warehouse
management solutions for 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 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, including the closing of the Arrangement and the
date of the meeting of shareholders of the Company. 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,
access to capital, and the Company's ability to satisfy the closing conditions
in the Arrangement Agreement. 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