Cistera Networks Delivers Increased First Quarter Net Operating Income and Increased EBITDA

   Cistera Networks® (PINKSHEETS: CNWT), a leading provider of enterprise application platforms and engines for unified communications, today reported results for the three months ended June 30th, 2011 (all figures in U.S. dollars and U.S. GAAP except EBITDA).

Revenue for the first quarter of fiscal 2012 was $0.454 million, up 6% from $0.43 million in the previous quarter. Support and maintenance contracts were $0.337 million, up 16% from $0.29 million in the same quarter last year.

Net operating income for the quarter was $0.039 million, or $0.00 per share, compared with net operating income of $0.016 million or $0.00 per share, a 240% improvement, over same quarter last year. Earnings before Interest, Depreciation and Amortization, and Taxes (EBITDA) were positive $0.064 million or 14.2% of revenue.

"Our efforts to control costs while growing our pipeline have been successful. Our pipeline is now bigger than it has been in the last two and a half years," says Cistera CEO Greg Royal. "We continue to grow our partnerships and deliver new capability to our customers. We have expanded our development capability through near-sourcing and released a number of highly successful features for global security and healthcare.

"New license revenue, however, has been difficult to achieve because of the weakness in the United States economy and a slowdown in federal government spending," says Royal. "However the highlight is the strong growth in Support and Maintenance business, up over 16% year on year. However the company is in the best position it has been in since this recession started. Once business spending recovers we should see a dramatic improvement in profitability," he added.

Highlights this quarter include the delivery of MedQMS Healthcare Quality Management System, the successful installation of Redline system for a major global securities group and the formation of a partnership with New World Communications for the delivery of telecommunications expense management solutions.

About Cistera Networks, Inc.

Cistera Networks is a leading provider of enterprise application communications platforms and services. The company blends powerful application infrastructure with industry-specific business processes, to deliver the benefits of voice, video and data convergence to the user. Cistera's industry-leading platform delivers the most reliable, scalable and secure application services for IP-based network environments. Its broad portfolio of application services enables users to improve customer service and satisfaction, increase productivity and collaboration, improve responsiveness to critical incidents and to provide a safer environment. For more information, please see www.cistera.com

Media and Investor Contact: Cistera Networks, Inc. 972-381-4699 x75003 Email Contact