Quorum Releases Fiscal Year 2010 Results

Quorum Information Technologies Inc. ("Quorum" or the "Company") (TSX
VENTURE:QIS) today released its Fiscal Year (FY) 2010 results. Quorum delivers
its dealership management system (DMS), XSellerator(TM), and related services to
automotive dealerships throughout North America. The Company is both an
Integrated Dealership Management System (IDMS) strategic partner with General
Motors Corporation (GM) and a strategic partner with Microsoft. Quorum's
XSellerator product is broadly promoted to its target dealerships throughout
North America by these prominent industry partners. 


Maury Marks, Quorum's President and CEO made the following remarks about the
Company's FY2010 results:


If 2009 was a year of contraction, 2010 was a year of change in the automotive
industry. In 2009 a new, leaner GM organization emerged from bankruptcy
protection. As part of the process it was announced that 42% of GM's franchised
dealerships in both Canada and the U.S. would not have their GM franchises
renewed. Prior to GM entering bankruptcy protection, over 90% of Quorum's 225
deployed dealership rooftops were GM dealerships. The impact to Quorum's
customers through the last half of 2009 and 2010 was as follows:




--  Although 42% of GM dealerships across North America lost their franchise
    in the process, only 24% of Quorum's customers were affected. 
--  Of the 24% affected, 28 customers changed their business model to
    another form of dealership still requiring Quorum's DMS, and 26 closed
    their businesses.  
--  To support the 28 customers that changed their business model, Quorum
    enhanced our product to support other makes and we now have GM, Isuzu,
    Chrysler, Hyundai, Kia, Nissan, Subaru, Saab, Suzuki, NAPA and Bumper to
    Bumper franchised dealership customers. 
--  In 2010, the Company installed 33 systems, up significantly from the
    seven installed in 2009 (the year the industry was in turmoil). 



At the end of FY2010, Quorum had 240 installed dealership rooftops and
approximately 75% of those rooftops are GM dealerships. GM's bankruptcy
accelerated Quorum's movement to an "all makes" strategy. Longer term, our "all
makes" strategy will continue to diversify our customer base, however, GM
franchises will remain a key focus for the organization. 


In 2010, the Company had a number of significant achievements as follows:



--  Customer Care - our semi-annual GM IDMS customer satisfaction survey
    results showed that two-thirds of our Dealer Principals would definitely
    recommend us and the remaining one-third would likely recommend us. 
--  Product - we completed two new releases during the year with the
    highlight being version 4.7.1, that was general released in the U.S.
    late in 2010 and in Canada early in 2011. The V4.7.1 release contains
    the largest number of key enhancements in a single release in the
    Company's history.  
--  Implementations - it was an amazing achievement to scale our
    implementations up from seven installs in 2009 to 33 in 2010. Great
    people and a continual drive to improve our process facilitated this
    achievement. To deliver more consistent, reliable implementations for
    new customers, we introduced a Quorum and Dealer scorecard to ensure all
    key implementation deliverables are accomplished.  
--  Support Services - our support desk improved their responsiveness yet
    again. On average, we now close 74% of all Support calls within 30
    minutes (up from 69% in 2009) and 87% of all calls within 24 hours (up
    from 85% in 2009).  
--  Our "We've got you covered" approach to our solution offering was
    launched in early FY2011; however, a lot of the development and process
    work took place in FY2010. This is a broad program designed to ensure
    that we offer our customers a comprehensive set of technology services
    to take the worry out of running their businesses. The offering includes
    a suite of network security and monitoring services as well as
    compliance solutions for the ever-increasing complexities of dealership
    Finance and Insurance ("F&I"). 
--  Sales - our "We've got you covered" marketing approach extends to sales
    with the recently announced groundbreaking DMS Assurance program that
    covers price, software and business assurance. These assurance programs
    include favorable contract terms for new customers including lifetime
    monthly price protection and all new versions of XSellerator and
    Microsoft server technology at no additional cost. The programs provide
    dealerships with price predictability for their DMS services - maximum
    value at the best possible prices.  
--  Financial - in Q4 FY2010 Quorum posted our sixth consecutive cash flow
    positive quarter. During the year, we paid off and retired our
    convertible debenture, four months before its original maturity date. On
    December 15, 2010, the Company also entered into a demand operating line
    of $525,000 with HSBC Bank. 
--  Employees - none of the Company's accomplishments are possible without
    highly motivated, engaged people. Our sincere thanks to the people that
    drive Quorum. In FY2010, we started measuring our staff engagement and
    taking action to improve our job satisfaction and engagement throughout
    the Company. 



Some of Quorum's key financial results are as follows:



--  Revenues increased by 6% from $7,268K in FY2009 to $7,696K in FY2010.
    The primary reasons were an increase in both: 
    --  Net new customer installations of 33 in FY2010, up from 7 in FY2009.
    --  Recurring support of $6,075K in FY2010, compared to $5,839K in
        FY2009, an increase of 4%. 
--  Earnings before interest, taxes and amortization (EBITDA) of $1,390K for
    FY2010 compared to $1,548K in FY2009. EBITDA decreased slightly because
    our cost structure increased to accommodate the much higher installation
    rate in FY2010 compared to FY2009. 
--  Net income before income taxes increased to $354K for FY2010 compared
    with $93K in FY2009. Although there was a slight decline in EBITDA for
    FY2010, this was offset by a significantly lower non-cash Foreign
    Exchange expense which was $163K in FY2010, down from $458K in FY2009.  
--  Net Income decreased to $95K for FY2010 compared with $236K in FY2009.
    This change was due to a significant increase of $402K in non-cash
    future income tax expense to $259K in FY2010 from a $143K recovery in
    FY2009.  



With a stronger balance sheet, an incredible product, excellent implementations
and support services, exceptional staff and customers and six consecutive
quarters of cash flow positive operations, the Company is well positioned to
take advantage of the challenging automotive market. For our dealership
customers, "We've got you covered". 


Quorum has filed its 2010 consolidated financial statements and notes thereto as
at and for the period ended December 31, 2010 and accompanying management's
discussion and analysis in accordance with National Instrument 51-102 -
Continuous Disclosure Obligations adopted by the Canadian securities regulatory
authorities. Additional information about Quorum will be available on Quorum's
SEDAR profile at www.sedar.com and Quorum's website at www.QuorumDMS.com.




Financial Highlights                                                        
                                                    (dollar figures in '000)
                                 Year ended      Year ended      Year ended 
                               December 31,    December 31,    December 31, 
                                       2010            2009            2008 
----------------------------------------------------------------------------
                                                                            
Gross revenue                 $   7,695,773   $   7,267,857   $   8,451,030 
Cost of products and                                                        
 services sold                    3,303,450       2,813,728       4,802,411 
                                                                            
Gross profit                      4,392,323       4,454,129       3,648,619 
                                                                            
Income (loss) before                                                        
 interest, taxes and                                                        
 amortization (EBITDA)            1,389,639       1,548,963         (39,931)
                                                                            
Net income (loss)                    95,083         236,045        (625,679)
                                                                            
Basic earnings (loss) per                                                   
 share                        $       0.002   $       0.006   $      (0.016)
Fully diluted earnings                                                      
 (loss) per share             $       0.002   $       0.006   $      (0.016)
                                                                            
Weighted average number of                                                  
 common shares                                                              
Basic                            39,298,438      39,298,438      39,298,438 
Diluted                          42,634,919      39,298,438      39,298,438 
                                                                            
XSellerator installations                                                   
- in the period                          33               7              31 
XSellerator active                                                          
 dealership rooftops                    240             222             226 
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About Quorum

Quorum is a North American company focused on developing, marketing,
implementing and supporting its XSellerator(TM) product for GM, Isuzu, Chrysler,
Hyundai, KIA, Nissan, Subaru, NAPA and Bumper to Bumper dealerships. XSellerator
is a dealership and customer management software product that automates,
integrates and streamlines every process across departments in a dealership. One
of the select North American suppliers under General Motors' IDMS program,
Quorum is the second largest DMS provider for GM's Canadian dealerships with 25%
of the market. Quorum is a Microsoft Gold Certified Partner and Field-Level
Managed ISV in both Canada and the United States. Quorum Information
Technologies Inc. is traded on the Toronto Venture Exchange (TSX-V) under the
symbol QIS. For additional information please go to www.QuorumDMS.com.


Forward-Looking Information 

This press release contains certain forward-looking statements and
forward-looking information ("forward-looking information") within the meaning
of applicable Canadian securities laws. Forward-looking information is often,
but not always, identified by the use of words such as "anticipate", "believe",
"plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect",
"may", "will", "project", "should" or similar words suggesting future outcomes.
In particular, this press release includes forward-looking information relating
to results of operations, plans and objectives, projected costs and business
strategy. Quorum believes the expectations reflected in such forward-looking
information are reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking information should not be
unduly relied upon.


Forward-looking information is not a guarantee of future performance and
involves a number of risks and uncertainties some of which are described herein.
Such forward-looking information necessarily involves known and unknown risks
and uncertainties, which may cause Quorum's actual performance and financial
results in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking information.
These risks and uncertainties include but are not limited to the risks
identified in Quorum's Management's Discussion and Analysis for the year ended
December 31, 2010. Any forward-looking information is made as of the date hereof
and, except as required by law, Quorum assumes no obligation to publicly update
or revise such information to reflect new information, subsequent or otherwise.