Vigil Health Solutions Reports Q3 Results

Vigil Health Solutions Inc. ("Vigil") (TSX VENTURE:VGL) announces the results of
operations for the quarter ending December 31, 2011.


Business Highlights



--  Bookings for the quarter were $1.02 million up 12% compared to $913
    thousand in the three-month period ended December 31, 2010. 
--  Revenue was $787 thousand, down 31% from $1.13 million in the three-
    months ended December 31, 2010. 
--  Gross margin percentage was 47% compared to 46% for the quarter ended
    December 31, 2010. 
--  Revenue from service and maintenance agreements and one-offs grew by 19%
    to $361 thousand from the same quarter ended December 31, 2010.



"The improvement in bookings is encouraging and in line with the slow recovery
being seen in seniors' housing. The continued growth in follow on service and
product sales is also a positive sign although unfortunately not enough to build
the revenue numbers which continue to be affected by the poor bookings seen in
earlier quarters," stated Troy Griffiths, President and CEO of Vigil Health
Solutions Inc.


Financial Results

Unless otherwise indicated, all financial information presented in this press
release has been prepared in accordance with International Financial Reporting
Standards ("IFRS"). The conversion to IFRS from


Canadian generally accepted accounting principles became effective on or after
January 1, 2011. Please refer to the Company's most recently issued financial
statements for further discussion.


Bookings for the quarter were $1.02 million up 12% compared to $913 thousand in
the three-month period ended December 31, 2010.


At December 31, 2011 Vigil had a backlog of approximately $2.08 million
(including $611 thousand in deposits and progress billings, recorded as deferred
revenue on the balance sheet) compared to approximately $2.36 million (including
$1.20 million in deposits and progress billings, recorded as deferred revenue on
the balance sheet) at December 31, 2010. Vigil's backlog includes all signed
contracts at varying stages of installation and progress billing. At December
31, 2011 there were 23 projects with an average value of $91 thousand compared
to 28 with an average value of $84 thousand at December 31, 2010.


Revenue for the three-months ended December 31, 2011 was $787 thousand compared
to $1.13 million in the three-month period ended December 31, 2010, a decrease
of 31%. The decrease in revenue is due to low bookings in earlier quarters
reflecting the US economic downturn. Project revenue made up 54% of total
revenue; the remaining revenue came from follow on sales to existing customers.


The gross margin percentage for the three months ended December 31, 2011 was 47%
compared to 46% for the three months ended December 31, 2010. The gross margin
during the period was within management's expectations of margins of between 42%
and 47%.


Expenditures for the three months ended December 31, 2011 were $452 thousand,
down 3% from $468 thousand for the period ended December 31, 2010.


Net loss for the three month period ended December 31, 2011 was $68 thousand, or
$0.005 per share compared to a profit of $24 thousand, or $0.005 per share for
the previous year. The increase in losses is attributable to the 31% decrease in
revenues reflecting the lower number of projects completed during the period.
Management believes this is the result of lower bookings in prior quarters,
which was due to the low construction activity and lack of financing available
to senior housing.


Detailed financial statements along with Management Discussion and Analysis have
been filed with SEDAR and may be viewed at (www.sedar.com).


Financial information will be mailed to entitled security holders on February
16, 2012. Or, upon notice to the Company, entitled security holders may request
a copy of financials in advance.


Summary Financial Information



----------------------------------------------------------------------------
                                               December 31,     December 31,
                                                       2011             2010
----------------------------------------------------------------------------
                                                (unaudited)      (unaudited)
                                                                            
Revenue                                    $        786,737 $      1,133,230
Cost of sales                                       420,835          611,470
----------------------------------------------------------------------------
                                                    365,902          521,760
                                                                            
Expenses                                            451,894          467,806
Income (loss) before the following items           (85,992)           53,953
                                                                            
Other income (expense):                              18,167         (29,557)
----------------------------------------------------------------------------
                                                                            
Loss for the period                        $       (67,825) $         24,396
----------------------------------------------------------------------------



Non-IFRS Measure

For the three months ended December 31, 2011, we are disclosing Adjusted EBITDA,
a non-IFRS financial measure, as a supplementary indicator of operating
performance. We define Adjusted EBITDA as net income before, interest, income
taxes, amortization, stock based compensation and currency gains or losses
including derivative foreign exchange differences. We are presenting the
non-IFRS financial measure in our filings because we use it internally to make
strategic decisions, forecast future results and to evaluate our performance and
because we believe that our current and potential investors and analysts use the
measure to assess current and future operating results and to make investment
decisions. It is a non-IFRS measure, may not be comparable to other companies
and it is not intended as a substitute for IFRS measures.


Adjusted EBITDA Reconciliation



----------------------------------------------------------------------------
                                                Three months ended          
                                       December 31, 2011   December 31, 2010
----------------------------------------------------------------------------
                                                                            
Income / (loss) for the period       $          (67,825) $            24,396
                                                                            
Add / (deduct)                                                              
  Foreign exchange gain (loss)                    14,168              13,667
  Derivative exchange gain                      (34,337)                   -
  Interest                                         2,002              15,890
  Stock based compensation                         (924)               7,145
  Amortization                                     5,274               7,263
  --------------------------------------------------------------------------
                                                (13,817)              43,965
----------------------------------------------------------------------------
                                                                            
Adjusted EBITDA                      $          (81,642) $            68,361
----------------------------------------------------------------------------



About Vigil Health Solutions Inc.

Vigil offers a proprietary technology platform combining software and hardware
to provide comprehensive solutions to the expanding seniors' housing market.
Vigil has established a growing presence in North America and an international
reputation for being on the leading edge of systems design and integration.


Vigil's objective is to offer solutions for the full continuum of care. Vigil's
product range includes the innovative wireless VitalityCare System(TM) featuring
discreet 'mini pendants', a nurse call system, mobile fall, incontinence
monitoring, resident check and the award-winning Vigil Dementia System.


Certain statements contained in this news release that are not based on
historical facts may constitute forward-looking statements or forward-looking
information within the meaning of applicable securities laws ("forward-looking
statements"). These forward-looking statements are not promises or guarantees of
future performance but are only predictions that relate to future events,
conditions or circumstances or our future results, performance, achievements or
developments and are subject to substantial known and unknown risks,
assumptions, uncertainties and other factors that could cause our actual
results, performance, achievements or developments in our business or in our
industry to differ materially from those expressed, anticipated or implied by
such forward-looking statements.


Forward-looking statements include all financial guidance, disclosure regarding
possible events, conditions, circumstances or results of operations that are
based on assumptions about future economic conditions, courses of action and
other future events. We caution you not to place undue reliance upon any such
forward -looking statements, which speak only as of the date they are made.
These forward-looking statements appear in a number of different places in this
presentation and can be identified by words such as "may", "estimates",
"projects", "expects", "intends", "believes", "plans", "anticipates", or their
negatives or other comparable words. Forward-looking statements include
statements regarding the outlook for our future operations, plans and timing for
the introduction or enhancement of our services and products, statements
concerning strategies or developments, statements about future market
conditions, supply conditions, end customer demand conditions, channel inventory
and sell through, revenue, gross margin, operating expenses, profits, forecasts
of future costs and expenditures, the outcome of legal proceedings, and other
expectations, intentions and plans that are not historical fact.


The risk factors and uncertainties that may affect our actual results,
performance, achievements or developments are many and include, amongst others,
our ability to develop our sales force and generate revenue, the length of the
sales cycle, management of the Company's growth, ability to recruit and retain
staff, fluctuations in demand for current and future products, our ability to
develop, manufacture, supply and market existing and new products that meet the
needs of customers, volatility in the exchange rate, ability to secure
financing, ability to secure product liability insurance, the continuous
commitment of our customers, increased competition, changes in regulation and
reliance on third party suppliers. These risk factors and others are discussed
in the Risks and Uncertainties section of our "Management Discussion and
Analysis" segment of our fiscal 2009 Annual Report. Many of these factors and
uncertainties are beyond the control of the Company. Consequently, all
forward-looking statements in this news release are qualified by this cautionary
statement and there can be no assurance that actual results, performance,
achievements or developments anticipated by the Company will be realized.


Forward-looking statements are based on management's current plans, estimates,
projections, beliefs and opinions and, except as required by law, the Company
does not undertake any obligation to update forward-looking statements should
the assumptions related to these plans, estimates, projections, beliefs and
opinions change.