Epic Data Announces Year End 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 months and
year ended September 30, 2011.




Results of Operations                                                       
                                                                            
                           Three months ended                    Year ended 
                                 September 30,                 September 30,
                          2011           2010           2011           2010 
                  -------------  -------------  -------------  -------------
                                                                            
Revenue            $   935,869    $ 1,120,259    $ 4,202,974    $ 4,730,892 
                                                                            
Cost of sales          458,325        483,342      2,082,498      2,253,405 
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Gross margin           477,544        636,917      2,120,476      2,477,487 
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Expenses                                                                    
  General and                                                               
   administration      359,272        377,756      1,418,174      1,579,627 
  Sales and                                                                 
   marketing           447,093        227,266      1,350,590      1,036,886 
  Product                                                                   
   development         149,159        112,631        596,828        495,450 
  Amortization of                                                           
   property, plant                                                          
   and equipment         2,918         10,105         34,295         57,767 
  Net finance                                                               
   charges              25,959          8,315         84,118         48,902 
  Stock based                                                               
   compensation          9,185          5,425         34,426         39,630 
  Foreign exchange       7,640         18,296         84,833         71,987 
  Interest                                                                  
   accretion             2,128              -          5,674              - 
  Severance costs            -         19,324              -         56,784 
----------------------------------------------------------------------------
                                                                            
                     1,003,354        779,118      3,608,938      3,387,033 
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Net loss for the                                                            
 period               (525,810)      (142,201)    (1,488,462)      (909,546)
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----------------------------------------------------------------------------
                                                                            
Loss per share -                                                            
 basic and diluted $     (0.02)   $     (0.01)   $     (0.06)   $     (0.05)
----------------------------------------------------------------------------
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Results of Operations for the year ended September 30, 2011

Revenue

Revenue for the year ended September 30, 2011 decreased $527,918 or 11% to
$4,202,974 compared with $4,730,892 in the same period last year. The decrease
in revenue was due to the stronger Canadian dollar, which negatively impacted
revenue for the year ended September 30, 2011 by approximately $257,000 and by
decreased sales.


Gross Margin

The gross margin for the year ended September 30, 2011 decreased $357,011 or 14%
to $2,120,476 as compared with $2,477,487 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 year ended September 30, 2011 decreased to 50%
compared with 52% in the same period last year. The decrease was due mainly to
the lower productively of staff due to lower volumes of project work.


General and administration

General and administration expenses for the year ended September 30, 2011
decreased $161,453 or 10% to $1,418,174 compared with $1,579,627 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 year ended September 30, 2011 increased
$313,704 or 30% to $1,350,590 compared with $1,036,886 in the same period last
year. The increase is due primarily to the opening of the representative office
in Shanghai for the new marketing initiatives in China.


Product development

Product development expenses for the year ended September 30, 2011 increased
$101,378 or 21% to $596,828 compared with $495,450 in the same period last year.
The increase 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 year compared to last year.


Net finance charges

Net finance charges for the year ended September 30, 2011 increased $35,216 or
72% to $84,118 compared with $48,902 in the same period last year. The increase
is due to the interest charged on the term loan.


Interest accretion

Interest accretion for the year ended September 30, 2011 was $5,674 compared
with $Nil in the same period last year. The increase is due to the interest
accretion expense related to the warrants issued in connection with the term
loan financing.


Net loss

Net loss for the year ended September 30, 2011 increased $578,916 or 64% to
$1,488,462 compared with $909,546 in the same period last year.


Results of operations for the fourth quarter

Revenue for the three months ended September 2011 decreased $184,390 or 17% to
$935,869 compared with $1,120,259 in the same period of the prior year. The
decrease was due to the continued slow down in business in 2011. 


Expenses for the three months ended September 2011 increased $224,236 or 29% to
$1,003,354 compared with $779,118 in the same period of the prior year. In
general the expenses for the three months ended September 30, 2011 are higher
than last year due to the sales and marketing activities in China.


Net loss for the three months ended September 30, 2011 increased $383,609 to a
loss of $525,810 compared with a loss of $142,201 in the same period of the
prior year. The increase was due to lower sales and increased costs primarily as
of result of sales and marketing activities in China.


Grant of Stock Options

The Company announces that effective December 20, 2011 it has granted 225,000
stock options to employees. The term of the options will be 7 years and the
exercise price will be the greater of the closing price on December 19, 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.