CORRECTION FROM SOURCE: Route1 Reports Second Quarter 2013 Financial Results

A correction from source is being issued with respect to the press release for
Route1 Inc. that was disseminated today, Thursday August 29 at 11 am EST. There
are three big changes from the original press release: 1) The beginning of the
first sentence in the section named "Q2 2013 Financial Results Summary" has been
changed from "For the six month period ended..." to "For the three month period
ended..." 2) The end of the first sentence in the section named "Year-to-date
2013 Financial Results Summary" has been changed from "... in the second quarter
of 2012" to "... in the first half of 2012." 3) The original release did not
include the section named "Paid, Active Subscribers", which includes a small
table and two paragraphs directly underneath. The corrected release follows.


Route1 Inc. (TSX VENTURE:ROI), a digital security and identity management
company whose customers include the U.S. Department of Defense, the Department
of Homeland Security, the Department of Energy, and the Government of Canada,
today announced its financial results for the three and six month period ended
June 30, 2013.




                             For the Three Months                           
Statement of Operations                     Ended  For the Six Months Ended 
(in 000s of CAD dollars)  Jun 30   Jun 30  Jun 30   Jun 30   Jun 30  Jun 30 
                            2013     2012    2012     2013     2012    2012 
                                           before                    before 
                                            award                     award 
----------------------------------------------------------------------------
Revenue                    1,366    1,888   1,297    2,423    4,840   2,585 
Cost of revenue              223      185     185      415      872     312 
Gross profit               1,143    1,703   1,112    2,008    3,968   2,273 
Operating expenses         1,222    1,113   1,113    2,128    2,288   2,288 
Operating profit (loss)      (79)     590      (1)    (120)   1,679     (15)
Net profit (loss)            (73)     500     (91)    (219)   1,483    (211)
----------------------------------------------------------------------------



Operating results for the three and six month period ended June 30, 2012 were
positively affected by the proceeds of an arbitration award which was received
in January 2012. For additional information, please see Route1's June 30, 2013
Financial Statements and Management's Discussion & Analysis.


Q2 2013 Financial Results Summary

For the three month period ended June 30, 2013, total revenue decreased to $1.4
million from $1.9 million in the second quarter of 2012. The decrease was a
result of recognizing $0.6 million of services revenue from the arbitration
award during the second quarter of 2012.




Services revenue by quarter           Jun 30  Mar 31  Dec 31  Sep 30  Jun 30
(in 000s of CAD dollars)                2013    2013    2012    2012    2012
----------------------------------------------------------------------------
MobiKEY application software revenue   1,158     853     964     954     942
Other services revenue                   175     174     792     856     886
Total                                  1,333   1,027   1,756   1,810   1,828
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Gross profit decreased during the second quarter to $1.1 million compared from
$1.7 million during the same period in the prior year. The decrease in gross
profit is attributable to the arbitration award. Operating expenses for the
three months ended June 30, 2013 were $1.2 million compared to $1.1 million for
the same period in 2012. The increase was primarily a result of:




--  An increase in research and development expense - In the 2012 fiscal
    year, the Scientific Research and Experimental Development (SR&ED)
    credit was recorded during the three months ended June 30, 2012. The
    amount of $174,612 reduced the reported research and development expense
    in the second quarter of 2012. In the 2013 fiscal year, the SR&ED credit
    was recorded during the three months ended March 31, 2013 in the amount
    of $218,635; which reduced the reported research and development
    expense. 
--  A decrease in general administration expense - Professional fees
    decreased by approximately $0.1 million for the three months ended June
    30, 2013 as compared to the same period in 2012, as a result of reducing
    outsourced human resource and investor relations activities. 



As a result, Route1's second quarter 2013 total comprehensive net loss was $0.1
million compared to total comprehensive net income of $0.5 million during the
same period in the prior year. Earnings before interest, tax, depreciation, and
amortization (EBITDA) during the three-month period amounted to ($7,000)
compared to an EBITDA of $0.6 million in the second quarter of 2012.


As at June 30, 2013, Route1 had no bank debt and a cash balance of $2.6 million.

Year-to-date 2013 Financial Results Summary

For the six month period ended June 30, 2013, total revenue decreased to $2.4
million from $4.8 million in the first half of 2012. Gross profit also decreased
for the six month period ended June 30, 2013 to $2.0 million from $4.0 million
during the same period in the prior year. The decrease in total revenue and
gross profit is a result of the arbitration award.


Operating expenses for the six months ended June 30, 2013 were $2.1 million
compared to $2.3 million for the same period in 2012. The reduction in operating
expenses was driven by lower professional fees, an increase in the SR&ED tax
credit amount, and lower salaries and benefits costs.




in 000s of CAD dollars              Jun 30   Mar 31   Dec 31  Sep 30  Jun 30
                                      2013     2013     2012    2012    2012
----------------------------------------------------------------------------
Revenue                              1,366    1,057    2,277   1,933   1,888
EBITDA                                  (7)       9      645     514     634
Amortization                            72       50       47      54      44
Operating profit (loss)                (79)     (41)     598     460     590
----------------------------------------------------------------------------
----------------------------------------------------------------------------



As a result, Route1's year-to-date 2013 total comprehensive net loss was $0.2
million compared to total comprehensive net income of $1.5 million during the
same period in the prior year.


Paid, Active Subscribers

As at June 30, 2013, Route1 had 14,784 paying, active subscribers.



MobiKEY Subscribers                  June 30  Mar 31  Dec 31 Sept 30 June 30
(in 000s of CAD dollars for Revenue)    2013    2013    2012    2012    2012
----------------------------------------------------------------------------
Closing Number                        14,784  13,989  15,913  14,615  14,876
Revenue per Subscriber                  $306    $245    $259    $258    $253
Revenue                               $1,158    $853    $964    $954    $942
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Services revenue for the three months ended June 30, 2013 includes the impact of
Route1's November 20, 2012 press release where Route1 announced that it had
received a second purchase order from a component of the United States
Department of Defense.


"We continue to make progress in growing our MobiKEY application software
revenue base. Over the last four quarters we have grown our recurring, services
revenue base by more than 22%," said Tony P. Busseri, CEO of Route1. "We
continue to aggressively pursue business opportunities that will grow our paid
user base and where possible, improve the quality of our services revenue."


Business Development Outlook

Route1 has advanced the plan it laid out to shareholders on April 11, 2013
during its fiscal year 2012 investor conference call and webcast. For
confidentiality and competition reasons, Route1 is limited in what it can
communicate to the market on any one specific business development opportunity
but the below overview describes at a high level, current business development
activity.


U.S. Department of Defense (DoD)



--  Route1 continues to work with its two key DoD accounts. The focus has
    been to improve direct relationships with key decision makers and reduce
    the dependency on channel partners. 
--  Government wide budget cutbacks have slowed growth in defense spending
    and funding of technology projects. The deployment of the MobiKEY
    technology saves enterprises money - in most cases saving more than the
    investment in the MobiKEY technology. MobiKEY is an effective solution
    in the current budget environment without compromising on security or
    functionality. 
--  Route1 is targeting continued services revenue growth from its DoD
    accounts. 



U.S. Government Civilian



--  Adoption of the usage of PIV and FRAC cards as part of the
    authentication process for remote access sessions (HSPD-12 compliancy)
    has gained traction during fiscal year 2013, at least from a planning
    perspective. 
--  Route1 is targeting new sales from MobiKEY Fusion devices and a broader
    usage of its MobiKEY technology within DHS and the U.S. Department of
    Interior. 



Canadian Government



--  Route1 has focused on informing Shared Services Canada about its MobiKEY
    technology and is aggressively pushing to close on a couple of limited
    operational deployments prior to one or more request for proposals under
    the Workplace Technology Services (WTS) program being issued. 
--  Two of the primary goals of the WTS initiative, based on Government of
    Canada documentation, are to improve cyber security and data
    sovereignty, and reduce costs. 



Enterprise



--  Route1 is experiencing an increase in unsolicited, inbound communication
    over the last 60 days. 
--  A message being repeated to us from prospective clients is the challenge
    they are having in putting in place a cost effective and safe BYOD
    program. Specifically causing issues for industry is the legal
    implication associated with enterprise data being placed on a personal
    device and the high cost of supporting a BYOD campaign. 
--  Route1 is targeting growth from the financial services sector as this
    sector seems to be a leader in deploying secure, mobile technology. 



Product Development Progress

Recent Releases:



--  On April 2, 2013, Route1 announced the immediate availability of the
    MobiKEY technology for the Apple iPad. MobiKEY subscribers will now be
    able to use MobiKEY on an Apple iPad running iOS 6 and higher. The
    MobiKEY technology includes the use of both Route1's universal identity
    management and service delivery platform and MobiKEY application
    software. 
--  On April 5, 2013, Route1 announced that the Canadian Intellectual
    Property Office has issued Route1's first Canadian patent titled,
    "System and Method for Accessing Host Computer Via Remote Computer." The
    Canadian patent application was originally filed on February 26, 2007,
    claiming priority from a corresponding U.S. patent application (now U.S.
    Patent No. 7,814,216), filed on September 7, 2004. 



Route1 Design Axioms:



--  Authenticate - Prior to providing any access or entitlements to a
    worker, the user first must be authenticated by not less than two
    factors. Preferably, the "something you have" is discrete and separate
    from the device you are using for the remote access data session. 
--  Secure the fortress - Accessing data when you are remote does not mean
    that data needs to be transferred to the remote device you are working
    from. Data is best protected, and the network secured, when there is no
    movement of the data outside of the enterprise network, period. 
--  Reduce costs - The technology offerings will need to be delivered to
    enterprise based on no capital costs, and a reduced annual operating
    cost. The cost savings must be real and immediate; there can be no
    hidden or "add-on" costs to the enterprise. 



Upcoming Releases:



1.  MobiKEY for iOS - Integrate third party smart card reader technology
    with MobiKEY technology to offer unique hardware based multifactor
    authentication for tablets. 
2.  MAP 2.0 - Integrate administration and provisioning tool with reports
    module, feature enhancements and bug fixes. 



2013 and 2014 Releases Target



A.  MobiKEY technology feature addition - Audio support. 
B.  MobiKEY for Android. 
C.  Derived Credentials as per FIPS 201-2 - Level 2 to 4 credentials for
    mobile devices. Leveraging TPM or SIM enabled devices. Credential
    lifecycle management. Policies and authentication/authorization
    assertions. 
D.  Map 3.0 (Enhanced policy management) - Allow organizations to establish
    and implement MobiKEY policy management with real-time implementation of
    changes. Group policy support. Features include security settings
    (encryption settings), default connection settings, password policy,
    permissible operating systems and versions on remote computer, and
    mobile devices. Support for Derived Credentials policies and lifecycle
    management. 
E.  EnterpriseLIVE Virtualization Orchestrator (ELVO) 3.0. Enhanced
    functionality and improved integration with features available from the
    virtualization provider. 
F.  MobiLINK 2 (TCP Protocol Suite Support) - Support for native mobile
    applications. 
G.  Mobile Connection Persistence Technology. 



There are also a number of additional product development projects being
considered or at a premature stage to detail as part of Route1's Releases
Target.


Product development plans are subject to change without notice, based on market
factors and/or client demands.


Website

On august 26, 2013 Route1 launched a new website at www.route1.com.

ABOUT ROUTE1, INC.

Route1 delivers industry-leading security and identity management technologies
to corporations and government agencies that require universal, secure access to
digital resources and sensitive data. These customers depend on The Power of
MobiNET - Route1's universal identity management and service delivery platform.
MobiNET provides identity assurance and individualized access to applications,
data and networks. Headquartered in Toronto, Canada, Route1 is listed on the TSX
Venture Exchange.


For more information, visit our website at: www.route1.com.

This news release, required by applicable Canadian laws, does not constitute an
offer to sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the United
States or to U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.


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.


(C) Route1 Inc., 2013. All rights reserved. Route1, the Route1 and shield design
Logo, SECURING THE DIGITAL WORLD, Mobi, MobiSecure, MobiLINK, Route1 MobiKEY,
Route1 MobiVDI, MobiKEY, MobiKEY IBAD, DEFIMNET, MobiNET, Route1 MobiNET,
TruOFFICE, TruFLASH, TruOFFICE VDI, MobiKEY Fusion, MobiNET Aggregation Gateway,
MobiNET Switching Array, MobiNET Secure Gateway, EnterpriseLIVE, EnterpriseLIVE
Virtualization Orchestrator, MobiNET Agent, MobiKEY Classic and MobiKEY Classic
2, are either registered trademarks or trademarks of Route1 Inc. in the United
States and or Canada. All other trademarks and trade names are the property of
their respective owners. The DEFIMNET and MobiNET platforms, the MobiKEY,
MobiKEY Classic, MobiKEY Classic 2 and MobiKEY Fusion devices, and MobiLINK are
protected by U.S. Patents 7,814,216 and 7,739,726, Canadian Patent 2,578,053,
and other patents pending.


Other product and company names mentioned herein may be trademarks of their
respective companies.



FOR FURTHER INFORMATION PLEASE CONTACT: 
Route1 Inc.
Tony Busseri
CEO
[phone]
[e-mail]
www.route1.com