Quorum Releases Q1 Fiscal Year 2010 Results

Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the
"Company") today released its First Quarter (Q1) Fiscal Year (FY) 2010 results.
Quorum delivers its dealership management system (DMS), XSellerator(TM), and
related services to 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 Q1 FY2010 results:


Quorum entered 2010 focused on responsible growth and exceptional customer care.
Our overriding strategic goals are to continue to expand our customer base
through new sales while generating sustained positive cash flow every quarter.
At the same time, we are committed to providing outstanding service and support
to our loyal customers. Following are highlights of our progress towards those
goals in Q1 FY2010:




--  Marketing - during the quarter we initiated campaigns to Canadian
    Chrysler dealerships, an entirely new market for Quorum. We also
    completed an exclusive supplier arrangement with Co-Auto (a cooperative
    buying group), to market our XSellerator product to Ontario and Quebec
    dealerships. Finally, under GM IDMS we initiated a new marketing
    campaign, in partnership with GM through their communication channel,
    directly to GM dealerships.  
--  Installations - we installed ten new dealership rooftops and expect to
    install another ten new dealership rooftops in Q2 FY2010. In Q1 FY2010,
    the last 11 dealerships that lost their GM franchises closed their
    businesses. As reported in our 2009 annual report: 
    --  Prior to GM entering bankruptcy protection, Quorum had 225
        dealership rooftops. 
    --  Although 42% of GM Dealerships across North America lost their
        franchises, only 23% of Quorum's customers were affected. 
    --  Of the 23% affected, approximately one-third (8% of our total
        dealerships), closed their businesses  
    --  With the effects of GM's bankruptcy and dealership closures behind
        us, Quorum is back to 225 dealership rooftops as of May 2010.  



As our customer base continues to grow in Q2 FY2010, we expect to see a
corresponding growth in recurring support revenues.




--  In our Q1 FY2010 customer survey, dealer principal customer satisfaction
    increased by 26% when compared to the survey from Q3 FY2009. 



With our focus on responsible growth, the following is a summary of our Q1
FY2010 financial performance:




--  Revenue increased by 3% compared to both Q1 FY2009 and Q4 FY2009. When
    compared to Q4 FY2009, our increase in installation revenue was offset
    by lower support revenues and reduced migrations revenue. Our recurring
    XSellerator support revenue declined by 2% compared to Q1 FY2009 due to
    dealership closures. Our change-over revenue (fees for reconfiguring
    XSellerator to allow a dealership to move to a new franchise) and
    migrations revenue both declined as expected due to the wind-down of
    those activities. 
--  Gross Margin percent was reduced to 55% in Q1 FY2010 from 58% in Q1
    FY2009 and 65% in Q4 FY2009. Gross Margin percent is derived from our
    support, installation and integration revenue. In Q1 FY2010, Quorum
    installed ten systems compared to one system in Q4 FY2009. As our lower
    margin installation revenue increases as a percentage of total revenue,
    it drives our gross margin percent down. With increased installation
    capacity, our customer base and support revenues will continue to grow
    as a percentage of total revenue and the higher margin support revenue
    will drive our gross margin percentages up over the longer term.  
--  EBITDA (earnings before interest, taxes, depreciation and amortization)
    in Q1 FY2010 was $297K versus $369K in Q1 FY2009 and $400K in Q4 FY2009.
    Quorum incurred some added costs (including staffing) related to
    increasing our implementation capacity to provide for future growth.  
--  Net income before taxes for Q1 FY2010 was $11K compared to $168K in Q1
    FY2009 and $75K for Q4 FY2009. In Q1 FY2010, Quorum incurred an $89K
    foreign exchange loss compared to a Q1 FY2009 foreign exchange gain of
    $91K. 
--  Positive quarterly cash flow from operating activities of $285K in Q1
    FY2010 versus $289K in Q1 FY2009. Cash expenditures for investing and
    financing activities were $244K in Q1 FY2010 for an increase in cash of
    $41K. Quorum typically incurs a number of annual cash costs in the first
    half of the year such as: tax, audit, price file, warranty labour time
    guide data and annual state taxes. Typically our cash payments to
    suppliers decline throughout the year. 



With our sales and installation activity restored, we are focused on balancing
the growth of the Company while remaining fiscally responsible and providing
exceptional customer care. We are excited about the prospects for the rest of
2010.


Quorum has filed its 2010 Q1 consolidated financial statements and notes thereto
as at and for the period ended March 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



                                              Three Months     Three Months
                                            Ended March 31,  Ended March 31,
                                                      2010             2009
----------------------------------------------------------------------------
                                                                            
Gross revenue                              $     1,945,599  $     1,896,352
Cost of products and services sold                 869,169          789,270
                                                                            
Gross profit                                     1,076,430        1,107,082
                                                                            
Loss before interest, taxes and                                             
 amortization (EBITDA)                             296,777          369,137
Net income                                          15,271          188,818
                                                                            
Basic earnings per share                           0.00039          0.00480
Fully diluted earnings per share           $       0.00036  $       0.00480
                                                                            
Weighted average number of common shares                                    
  Basic                                         39,298,438       39,298,438
  Diluted                                       42,398,938       39,298,438
                                                                            
XSellerator installations - in the period               10                2
XSellerator active dealership rooftops                 221              225
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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 which 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, 2009. 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.