Futura Announces Financial Results for the Three-Month Period Ended March 31, 2012

The Futura Loyalty Group Inc. (TSX VENTURE:FUT) ("Futura" or the "Company") has
released its financial results for the three-month period ending March 31, 2012.


Financial Overview 

Futura's revenue for the three-month period ending March 31, 2012 grew to
$506,651 from $403,318 in 2011. Revenues, excluding breakage, for the same
periods were $451,318 and $315,307 respectively, representing an annual increase
of 43%. This increase in revenue was almost entirely the result of increased
third party loyalty currency sales which rose 45% to $415,331 in the first
quarter of 2012, compared to $287,267 in the same period in 2011. 


Gross margins for the three-month period ended March 31, 2012 and 2011 were
$237,728 and $221,617 respectively. Gross margins, excluding breakage revenue
and expense, for the three-month period ended March 31, 2012 and 2011 were
$197,927 and $133,606, representing 43.8% and 42.3% of sales respectively.  


Operating expenses for the three-month period ended March 31, 2012 and 2011 were
$1,007,413 and $436,440 respectively. The increase in operating expenses was
primarily the result of restructuring costs accruals and increased operating
costs as the Company ramped up operations in the US.  


Loss before financial activities for the three-month period ended March 31, 2012
was $769,685 compared to $214,823 for 2011. Excluding breakage, the loss before
financial activities was $809,486 and $302,834 respectively for the quarters in
2012 and 2011.  


The net loss for three-month period ended March 31, 2012 was $1,023,907 in
comparison to a net loss of $264,731 for the same quarter in 2011. Net loss per
share was $0.01 per share for three-month period ended March 31, 2012 and $Nil
for 2011. There were 184,915,651 shares outstanding at period end. 


Business Overview 



--  Futura continued to build its recurring revenue business in Canada with
    its core revenue base coming from selling branded loyalty currencies to
    mid size retailers, leveraging its loyalty marketing expertise in
    combination with its proprietary technology platform.
    
    
--  During the first quarter of 2012, the Company grew the Canadian business
    by adding new car dealers and during March signed its 130th Canadian new
    car dealer to issue its third party loyalty currency to consumers on the
    purchase or service of vehicles.  
    
    
--  During the month of March, the Company also completed training of and
    deployed 6 sales reps into the US market and raised $550,000 of debt
    financing to help facilitate the US growth plan.  
    
    
--  At the end of March 2012, Futura promoted David Campbell from CFO to
    President & CEO to lead the Company into its next growth phase.
    
    
--  At the end of May 2012, Ted Dzialowski assumed the role of Chairman of
    the board of directors (the "Board"). Ted has been a director of the
    Company since February, 2010 and throughout his tenure has provided
    valuable operating and strategic value to the Company. David Beutel has
    stepped down as Chairman but will remain a member of the Board. 



"We are very pleased that Ted is assuming the Chairman position as the Company
launches into a new growth phase which includes US expansion. David Beutel has
served in this role since 2006 and we thank him for his valuable contribution
and are very pleased that he will remain a committed member of the Board," said
David Campbell, President and CEO of Futura. 


Financial Summary 



----------------------------------------------------------------------------
                                           3 months ending  3 months ending 
                                            March 31, 2012   March 31, 2011 
----------------------------------------------------------------------------
Revenue                                            506,651        $ 403,318 
----------------------------------------------------------------------------
Gross Margin                                       237,728          221,617 
----------------------------------------------------------------------------
Expenses                                         1,007,413          436,440 
----------------------------------------------------------------------------
Loss Before Financial Activities                  (769,685)        (214,823)
----------------------------------------------------------------------------
Net Loss                                        (1,023,907)      $ (264,731)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Numbers Excluding Breakage                                                  
----------------------------------------------------------------------------
Revenue                                            451,318        $ 315,307 
----------------------------------------------------------------------------
Gross Margin                                       197,927          133,606 
----------------------------------------------------------------------------
Expenses                                         1,007,413          436,440 
----------------------------------------------------------------------------
Loss Before Financial Activities                  (809,486)        (302,834)
----------------------------------------------------------------------------
Net Loss                                        (1,063,708)      $ (352,742)
----------------------------------------------------------------------------



The Company has defined the term "Loss Before Financial Activities" in its
consolidated financial statements as this is an effective measure of the
operating business, independent of how the business is financed. The Company has
also chosen to break out its results herein by showing the numbers independent
of breakage revenue and expense, as breakage can randomly and significantly vary
from quarter to quarter, thereby making it difficult for readers of the
consolidated financial statements to get a clear picture of the business,
independent of breakage. Breakage revenue is recorded when a Futura Rewards
member has not experienced an eligible transaction for a period of 24
consecutive months.


Share Consolidation

Futura also announced that all shareholders (of record date May 25, 2012) will
be asked to consider and approve a resolution consolidating the Company's issued
and outstanding common shares, along with other items of business to be
presented at its annual and special meeting to be held on June 26, 2012 (the
"Meeting").


The Company proposes to consolidate its issued and outstanding common shares on
the basis of one (1) new post-consolidation common share for every forty (40)
pre-consolidation common shares outstanding or on the basis of such lesser
consolidation ratio as may be approved by the Board and accepted by the TSX
Venture Exchange (the "Exchange"). Approval by shareholders of the resolution
will give the Board the option, but not the obligation, to proceed with the
consolidation.


In the event that the proposed consolidation is conducted on a 1 for 40 basis,
based on the Company's currently outstanding common shares of 184,915,656, the
Company would have approximately 4,622,891 common shares outstanding following
the consolidation. 


The Board believes that it is in the best interests of the Company for the Board
to have the authority to implement the share consolidation so that the share
price exceeds the minimum share and warrant price at which shares and warrants
can be issued under Exchange rules as the current share price has made it
difficult for the Company to secure funding that it requires. 


The Company does not intend to change its name in connection with the proposed
consolidation. The proposed consolidation is subject to shareholder approval and
acceptance for filing by the Exchange. Additional information regarding the
proposed consolidation is provided in the Company's management information
circular for the Meeting. The management information circular and other
materials relating to the Meeting will be mailed to registered shareholders and
available for review under the Company's profile on SEDAR at www.sedar.com on or
about June 5, 2012.


To see the Company's full financial statements, please go to www.tflg.ca or
www.sedar.com. 


About Futura Loyalty Group

The Futura Loyalty Group Inc. is an industry-leading provider of integrated and
stand-alone loyalty solutions for Canadian and American businesses. The company
offers a comprehensive suite of loyalty products and services including access
to two existing branded loyalty currencies in Canada and three in the United
States. Futura also develops custom loyalty marketing and administration
programs for companies wishing to develop proprietary loyalty solutions.
Futura's loyalty services include member account set up, management and reward
redemption platform, a web-based program transaction reporting interface for
merchants, a robust offer management system, retail POS Integration for card
swipe issuance, customer loyalty analytics and a proprietary web based reward
issuance solution. For more information regarding The Futura Loyalty Group,
visit www.futuraloyaltygroup.com or www.tflg.ca.


Forward-Looking Information

This news release includes certain forward-looking information that is based
upon current expectations, which involve risks and uncertainties associated with
our business and the environment in which the business operates. Any statements
contained herein that are not statements of historical facts may be deemed to be
forward-looking information, including those identified by the expressions
"anticipate", "believe", "plan", "estimate", "expect", "intend", "will", "may",
"should", "could", and similar expressions to the extent they relate to the
Company or its management. The forward looking information is not historical
facts, but reflects the Company's current expectations regarding future results
or events. Forward-looking information is subject to a number of risks,
uncertainties and assumptions that may cause the actual results of the Company
to differ materially from those discussed in the forward-looking information,
and even if such actual results are realized or substantially realized, there
can be no assurance that they will have the expected consequences to, or effects
on the Company. Factors that could cause actual results or events to differ
materially from current expectations include, among other things, changes in
general economic and market conditions; changes to regulations affecting the
Company's activities; level of merchant participation in the Company's programs;
uncertainties relating to the availability and costs of financing needed in the
future; and other factors, including without limitation, those listed under
"Economic Dependence" and "Risks and Uncertainties" in MD&A for the three and
twelve month periods ended December 31, 2011.