Epic Data Announces Q3 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 nine months ended June 30, 2012.


Highlights in the Quarter



--  Signed several new manufacturing customers in China, resulting in
    revenue of over $130,000 for the quarter. 
--  Completed an MES project with a UK aerospace company. 
--  Launched the new UniView smart terminal, expected to be deployed next
    quarter for a major US aerospace customer, along with the latest
    generation of the IntegraNet manufacturing platform for the customer's
    multiple manufacturing facilities in the United States. 
--  Increased headcount to over 140 staff at the quarter end from 36 at
    beginning of fiscal year. 
--  Completed a $2.4 million financing, which included the participation of
    several members of management, including Robert Nygren, the Company's
    President & CEO. 

Results of Operations                                                       
                                                                            
                     Three months ended June 30, Nine months ended June 30, 
                              2012          2011          2012         2011 
                     ------------- ------------- ------------- -------------
                                                                            
Revenue                $ 1,194,395   $ 1,024,998   $ 3,257,244  $ 3,267,105 
                                                                            
Cost of sales              637,767       490,908     1,724,957    1,624,173 
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Gross Margin               556,628       534,090     1,532,287    1,642,932 
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Expenses                                                                    
  General and                                                               
   administration          738,243       457,808     1,797,064    1,313,971 
  Sales and marketing      416,083       259,013     1,324,877      703,053 
  Product development      540,956       150,484     1,204,711      449,662 
  Net finance charges       34,569        29,442        74,771       58,159 
  Foreign exchange                                                          
   loss                     16,785        11,023        46,997       77,193 
  Interest accretion         2,128         2,127         6,384        3,546 
----------------------------------------------------------------------------
                                                                            
                         1,748,764       909,897     4,454,804    2,605,584 
----------------------------------------------------------------------------
                                                                            
Net loss for the                                                            
 period                 (1,192,136)     (375,807)   (2,922,517)    (962,652)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Loss per share -                                                            
 Basic and diluted     $     (0.04)  $     (0.02)  $     (0.09) $     (0.04)
----------------------------------------------------------------------------
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Results of Operations for the Three and Nine months ended June 30, 2012

Revenue

Revenue for the three months ended June 30, 2012 increased $169,397 or 17% to
$1,194,395 compared with $1,024,998 in the same period last year. The increase
was due to revenue of $159,732 in the start-up operations in China. Revenue for
the nine months ended June 30, 2012 decreased $9,861 or 0.3% to $3,257,244
compared with $3,267,105 in the same period last year. The slight decrease in
revenue for the nine months ended June 30, 2012 was primarily due to lower
maintenance revenue not being fully offset by revenues of $176,910 from the
start-up operations in China.


Gross Margin

The gross margin for the three months ended June 30, 2012 increased $22,538 or
4% to $556,628 as compared with $534,090 in the same period last year due to
higher revenue. The gross margin for the nine months ended June 30, 2012
decreased $110,645 thousand or 7% to $1,532,287 as compared with $1,642,932 in
the same period last year. The decrease in gross margin for the nine months
ended June 30, 2012 was due to higher costs for hardware sales.


The gross margin as a percentage of revenue for the three months ended June 30,
2012 decreased to 47% compared with 52% in the same period last year, while for
the nine months ended June 30, 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 and
lower margins for hardware sales.


General and administration

General and administration expenses for the three months ended June 30, 2012
increased $280,435 or 61% to $738,243 compared with $457,808 in the same period
last year. General and administration expenses for the nine months ended June
30, 2012 increased $483,093 or 37% to $1,797,064 compared with $1,313,971 in the
same period last year. The increase in both periods is due primarily to the
operations in China, which includes the opening and staffing offices in Shanghai
and Wuhan, China plus a severance provision of approximately $90,000.


Sales and marketing

Sales and marketing expenses for the three months ended June 30, 2012 increased
$157,070 or 61% to $416,083 compared with $259,013 in the same period last year.
Sales and marketing expenses for the nine months ended June 30, 2012 increased
$621,824 or 88% to $1,324,877 compared with $703,053 in the same period last
year. The increase in both periods is due primarily to the operations in China,
which in includes the opening and staffing of sales personnel in the offices in
Shanghai and Wuhan, China. In addition, new sales staff were added in the United
Kingdom and Canada.


Product development

Product development expenses for the three months ended June 30, 2012 increased
$390,472 or 260% to $540,956 compared with $150,484 in the same period last
year. Product development expenses for the nine months ended June 30, 2012
increased $735,049 or 168% to $1,204,711 compared with $449,662 in the same
period last year. The increase in both periods is due primarily to the
development of the Integra MES suite of software applications, the development
of the UniView smart terminal and the establishment of a new development team in
Wuhan.


Net Finance Charges

Net finance charges for the three months ended June 30, 2012 increased $5,127 or
17% to $34,569 compared with $29,442 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 nine months ended June 30, 2012 increased $16,612 or 27% to
$74,771 compared with $58,159 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 June 30, 2012 increased $816,329 or 217% to
$1,192,136 compared with $375,807 in the same period last year. Net loss for the
nine months ended June 30, 2012 increased $1,959,865 or 204% to $2,922,517
compared with $962,652 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.