Epic Data Announces Q3 Results

Epic Data International Inc. (TSX VENTURE:EKD) (the "Company" or "Epic Data"), a
provider of manufacturing operations management and real-time data collection
solutions, today announced the results of operations for the three and nine
months ended June 30, 2011.




Results of Operations                                              
                             Three months ended           Nine months ended
                                        June 30,                    June 30,
                             2011          2010          2011          2010
                   --------------  ------------  ------------  ------------
                                                                           
Revenue              $  1,024,998  $  1,059,987  $  3,267,105  $  3,610,633
                                                                           
Cost of sales             490,908       539,804     1,624,173     1,770,063
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Gross margin              534,090       520,183     1,642,932     1,840,570
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Expenses                                                                   
  General and                                                              
   administration         375,761       378,691     1,058,902     1,201,871
  Sales and                                                                
   marketing              327,524       324,598       903,497       809,620
  Product                                                                  
   development            150,484       114,685       447,669       382,819
  Amortization of                                                          
   property, plant          
   and equipment            3,507        10,912        31,377        47,662 
  Net finance                                                              
   charges                 29,442        11,179        58,159        40,587
  Stock based                                                              
   compensation            10,029        23,441        25,241        34,205
  Foreign exchange         11,023       (18,076)       77,193        53,691
  Interest                                                                 
   accretion                2,127             -         3,546             -
  Severance                     -        (8,531)            -        37,460
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                          909,897       836,899     2,605,584     2,607,915
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Net loss for the                                                           
 period              $   (375,807) $   (316,716) $   (962,652) $   (767,345)
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Loss per share -                                                           
 basic and diluted   $      (0.02) $      (0.02) $      (0.04) $      (0.05)
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Results of Operations for the Three and Nine months ended June 30, 2011

Revenue

Revenue for the three months ended June 30, 2011 decreased $34,989 or 3% to
$1,024,998 compared with $1,059,987 in the same period last year. Revenue for
the nine months ended June 30, 2011 decreased $343,528 or 10% to $3,267,105
compared with $3,610,633 in the same period last year. The decrease in revenue
for both periods was due mainly to the stronger Canadian dollar, which
negatively impacted revenue for the three and nine months ended June 30, 2011 by
approximately $45,000 and $211,000, respectively.


Gross Margin

The gross margin for the three months ended June 30, 2011 increased $13,907 or
3% to $534,090 as compared with $520,183 in the same period last year. The gross
margin for the nine months ended June 30, 2011 decreased $197,638 or 11% to
$1,642,932 as compared with $1,840,570 in the same period last year. The
decrease was due to the lower revenue and foreign exchange.


The gross margin as a percentage of revenue for the three months ended June 30,
2011 increased to 52% compared with 49% in the same period last year, while for
the nine months ended June 30, 2011 it decreased to 50% compared with 51% in the
same period last year. The changes in the current periods was due mainly to the
amount of staffing costs being allocated to cost of sales based on the amount of
project work.


General and administration

General and administration expenses for the three months ended June 30, 2011
decreased $2,930 or 1% to $375,761 compared with $378,691 in the same period
last year. General and administration expenses for the nine months ended June
30, 2011 decreased $142,969 or 12% to $1,058,902 compared with $1,201,871 in the
same period last year. The decrease is principally due to lower staff levels,
lower head office rent and a recovery of building operating costs in the second
quarter of 2011 of approximately $63,000.


Sales and marketing

Sales and marketing expenses for the three months ended June 30, 2011 increased
$2,926 or 1% to $327,524 compared with $324,598 in the same period last year.
Sales and marketing expenses for the nine months ended June 30, 2011 increased
$93,877 or 12% to $903,497 compared with $809,620 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.


Product development

Product development expenses for the three months ended June 30, 2011 increased
$35,799 or 31% to $150,484 compared with $114,685 in the same period last year.
Product development expenses for the nine months ended June 30, 2011 increased
$64,850 or 17% to $447,669 compared with $382,819 in the same period last year.
The increases in both periods is due to the development of the Epic Data MES
suite of applications, including for the China market, and staffing costs being
allocated to product development rather than to cost of sales as a result of
less project work in the current periods compared to the same periods last year.


Net loss

Net loss for the three months ended June 30, 2011 increased $59,091 or 19% to
$375,807 compared with $316,716 in the same period last year. Net loss for the
nine months ended June 30, 2011 increased $195,307 or 26% to $962,652 compared
with $767,345 in the same period last year.


Financing Activities

On August 8, 2011 the Company closed a non-brokered private placement of
6,000,000 common shares at $0.20 per share for gross proceeds of $1,200,000. The
6,000,000 common share issued are subject to a four month hold period expiring
on December 9, 2011. The proceeds will be used to market the Company's
manufacturing operations management software products, to fund product
development and for general working capital purposes.


Grant of Stock Options

The Company announces that effective August 30, 2011 it has granted 150,000
stock options to an employee. The term of the options will be 7 years and the
exercise price will be the greater of the closing price on August 29, 2011 or
$0.10 per share.


About Epic Data

Epic Data International Inc. is a provider of manufacturing operations
management and warehouse management solutions. For 36 years Epic Data has
delivered real-time data collection and production information to discrete
manufacturers through turnkey data collection, warehouse management and lean
manufacturing operations management solutions. Defense contractors, aerospace,
automotive, high technology and industrial equipment & machinery manufacturers,
employ Epic Data solutions to optimize the ROI of their manufacturing IT
infrastructure investments and operations by increasing plant productivity,
materials visibility and production velocity. Customers include Hawker
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.