SEB Reports Financial Results for the Quarter Ending May 31, 2014

Smart Employee Benefits Inc. ("SEB" or "Company") (TSX VENTURE:SEB), today
reported its financial results for the quarter ending May 31, 2014.


SEB Overview 

SEB is a technology company with two divisions, the Benefits Division and the
Technology Division, providing business processes software, solutions and
services to corporate and government clients with specialty practices focused on
managing group benefit solutions and health claims processing environments. The
core expertise of the SEB Group of Companies is managing and reporting on Big
Data, including transaction processing in complex global Supply Chain
environments. This expertise is uniquely adaptable to the "Benefits" and
"Health-Care" industries.


SEB's Benefits Practice is focused on two primary target markets in Canada -
employee group health benefits which exceed $37.0 billion annually and
government funded health benefits (federal and provincial) which are in excess
of $25.0 billion. SEB's technology platform is easily adaptable to managing the
end-to-end business processes in both environments. Of the $60.0 plus billion
market in Canada, the employee group benefit portion has grown over 80% in the
past decade. 


SEB's business growth strategy for developing the benefits business has the
following components:




--  Maintaining the leading technology platform for managing group benefit
    solutions and health claims processing environments. This includes
    developing unique benefit solutions made possible by the technology
    platform. 
--  Acquiring and making investments in existing benefit administration
    businesses and technology companies serving the corporate and government
    markets with the objective of expanding SEB's health benefit footprint
    across Canada. 
--  Transitioning to the SEB technology environment the benefits-processing
    (administration, claims-adjudication and reporting) currently outsourced
    by the acquired businesses to third parties. 
--  Creating new unique benefits solutions made possible by the SEB
    technology platform. 



The progress SEB has made in 2011 through the early part of fiscal 2014 has
positioned the company to achieve strong growth and sustainable profitability.


SEB's Technology Platform Provides Competitive Advantage in Benefits Management 

SEB has spent over $6 million since 2011 automating the administration, payment
processing/billing and reporting modules of its platform and integrating these
modules into an already proven leading edge adjudication platform. 


SEB's technology platform manages the total business processing services for
group benefit solutions and health claims processing on one fully-integrated
technology environment. The SEB technology platform is open architecture, rules
based and modular, and allows clients to utilize either a fully integrated
solution or modules. SEB's real time "rules-based adjudication" environment is
very unique, and when combined with the fully-integrated Administration, Payment
Processing, Billing and Reporting modules, will provide very sophisticated and
highly competitive solutions to the marketplace, both in Canada and globally.
SEB can administer, adjudicate and report for all benefit types in one fully
integrated environment. Rules creation is an administrative, not a programming
exercise. Highly customized and flexible processing solutions can be created
easily and cost effectively. Reporting is the most detailed in the industry with
self-serve functionality including real time access to standard reports and data
mining capabilities for customized reports.  


The health benefits division of SEB operates as a Third Party Administrator
("TPA") and technology provider supporting unique benefit solutions. The
immediate opportunity for SEB is to increase the capture and retention of
revenue by providing fully integrated services and solutions, currently being
outsourced by most TPAs and Insurers to third parties.


SEB's Growth Strategy based on acquisitions and organic initiatives

Through acquisitions, SEB is acquiring the client relationships and vendor
status to support a complementary organic growth model with both employers and
government business opportunities. On the employee group benefit side,
acquisitions and investments target TPAs, as well as broker and consultant
organizations that provide solutions and services to employers. The objective is
to secure the client relationships and transition many of the front and
back-office business processes to the SEB technology environment over time; in
effect, capturing revenue that was previously being outsourced. On the
government side, SEB is targeting technology companies (primarily IT) that have
established vendor relationships, security clearances and project references
that are required to bid on government outsourcing contracts. 


The growth plan for 2014 is acquisition-based, complemented by organic growth
initiatives, with the objective of reaching consolidated profitability within
the fiscal year 2014 and establishing a solid base of business and clients from
which to launch stronger organic growth initiatives. From the beginning of
Fiscal 2013 until now, SEB has closed 5 acquisitions and has announced a sixth
that is expected to give the company a solid base of sustainable profitable
revenue in excess of $25 million and established offices in Toronto, Ottawa,
North Bay, UAE and India. Historically, the consolidated annual revenues for
these six acquisitions exceed $25 million. These transactions bring a solid
profitable base of business and clients, both corporate and government.


Company developments during the quarter ending May 31, 2014



--  March 14, 2014-SEB acquired Adeeva Nutritionals Canada Inc. and the
    wellness assets and business of Dr. James Meschino Health and Wellness. 
--  March 18, 2014-SEB's wholly owned subsidiary, Somos Consulting Group
    Ltd., acquired APS - Antian Professional Services Inc. 
--  May, 2014-4,216,000 shares were issued upon exercise of share purchase
    warrants resulting in a cash inflow of $1,366,850. The exercise price of
    the warrants ranged from $0.30 to $0.50. Insiders represented $1,000,000
    of the proceeds of the warrants exercised of which $560,500 were
    proceeds from warrants executed at $0.50. 



Company developments subsequent to May 31, 2014

June 11, 2014-SEB acquired 100% of Stroma Service Consulting Inc.

Financial Results for the quarter ended May 31, 2014 

For the quarter ending May 31, 2014, SEB recorded a loss of $1,183,017 compared
to a loss of $1,281,475 for the comparable period in Fiscal 2013. The results
included non-cash costs of $620,649, made up of accretion of non-cash interest
of $122,960 related to SEB's Convertible Financings, share-based compensation of
$275,080 relating to options issued to employees and consultants, amortization
of $194,378 and depreciation of $28,231. Results also included non-operating
acquisition-related professional fees of $84,482. The adding back of the
non-cash and acquisition-related items results in an adjusted loss of $477,886.


Revenue 

Revenue for the quarter was $5,754,539 compared to $3,299,472 in the comparable
period ending May 31, 2013. The increase in revenue was due to the inclusion of
the revenues of the Inforica group and revenues of Antian Professional Services
and Adeeva Nutritionals (Canada).


Cost of revenues 

The Compensation portion of Cost of revenues primarily reflects the cost of
contractors of Somos, Inforica and Antian.


Operating costs 

Of the other operations costs, the largest was salaries and other compensation
costs of $1,108,346 (a portion of which was related to software development and
maintenance); the next single type of expense was professional fees of $128,192,
some of which was related to the one-time costs of closing of the Antian and
Adeeva acquisitions as well as some audit and valuation costs.


The major source of cash during the quarter was proceeds from the exercise of
4,216,000 warrants in the amount of $1,366,850, being an average exercise price
of $0.32 per share. 


The unaudited condensed interim consolidated financial statements and related
MD&A for the period ended May 31, 2014, can be found on SEDAR at www.sedar.com
under the profile of Smart Employee Benefits.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
MEDIA CONTACTS: Smart Employee Benefits Inc.
John McKimm
President/Chief Executive Officer
[phone]
[e-mail]


Smart Employee Benefits Inc.
Shelly Frank
Vice-President, Marketing
[phone] x 358
[e-mail]


First Canadian Capital Corp.
Dan Boase
416-742-5600 or 1-866-580-8891
[e-mail]


First Canadian Capital Corp.
Eric Balog
416-742-5600 or 1-866-580-8891
[e-mail]