Emergis Reports Fourth Quarter Financial Results

Business Wire, Feb 2, 2005

MONTREAL -- Emergis Inc. (TSX:EME)

- Q4 revenue at $45.6 M, up 6% from Q4 2003 core revenue
- Q4 EBITDA excluding restructuring charges at $5.9 M, up 11% from Q4
  2003
- New restructuring initiative undertaken in quarter positions
  Company for 2005
- Signed contracts with Desjardins Group, Fiserv Lending Solutions
  and MAXIMUS Canada

Emergis Inc. (TSX:EME) today announced its unaudited financial results for the three-month period ended December 31, 2004.

Revenue for the quarter was $45.6 million compared to $68.0 million ($43.1 million excluding non-core revenue) in the fourth quarter of 2003.Non-core operations1 ceased as of June 30, 2004. Excluding one-time items, EBITDA2 was $5.9 million compared to $5.3 million in the fourth quarter last year, and the net loss from continuing operations was $(4.9) million ($(0.05) per share) compared to a net loss of $(3.9) million ($(0.04) per share) in 2003. One-time items consisted of restructuring charges totalling $21.4 million taken during the current quarter and charges of $38.2 million taken in the corresponding quarter of 2003.Reported total net loss for the quarter was reduced to $(22.9) million ($(0.22) per share) compared to $(113.7) million ($(1.10) per share) in 2003.Per-share data is on a fully diluted basis.

"Our results for this quarter reflect continued growth in our eHealth operations and improved results in eFinance," said Francois Cote, President and CEO of Emergis."The new streamlining initiative we undertook in November responded to an anticipated decline in revenue in certain areas of eFinance in 2005, and should allow us to meet our EBITDA target for the year."

"We met our revenue target for 2004, coming in near the midpoint of the range," Cote added."In 2005, our focus is clearly on growing the business, both organically and through acquisitions, and on positioning the company to take advantage of market expansion in the eHealth area."

The presentation of the Company's financial results, including both the current and historical periods, reflects the sale of the following operations: U.S. Health in March 2004, eSecurity practice in June 2004 and webdoxs electronic bill presentment operations in July 2004.As a result, these operations have been reported as discontinued operations and their total contribution to Emergis' consolidated results has been included as a single line item above net income, and both revenue and EBITDA exclude their contribution. The contribution of discontinued operations to fourth quarter 2004 results was $3.4 million.