Inscape Corporation Announces Third Quarter Results

Business Wire, March 10, 2005

Effective May 1, 2004, the Company adopted the requirements of the CICA handbook accounting guideline AcG-13 which requires the Company to identify, designate, document and assess the effectiveness of their hedging relationships. Adoption of this section had no impact on the financial statements.

3. OTHER ASSETS

                                 As at January 31,   As at April 30,
                                             2005              2004
                                 ----------------    ----------------

Goodwill (Note 7)                          $    -            $2,593
Deferred pension asset                      1,105             1,452
Other (net of accumulated amortization
 of $903; 2004-$979)                          274               700
                                 ----------------    ----------------
                                           $1,379            $4,745
                                  ---------------    ---------------
                                  ---------------    ---------------

4. SHARE CAPITAL

The share capital which was unchanged from year-end, is as follows:

                                        Number of            Amount
                                           Shares            $000's

Class A multiple voting shares          5,345,881            $  376
Class B subordinated voting shares      9,750,936            56,683
                                      -----------    ---------------
Total outstanding at January 31, 2005  15,096,817           $57,059
                                      -----------    ---------------
                                      -----------    ---------------

Stock options outstanding as at January 31, 2005 have exercise prices ranging from $7.75 to $22.50 per share and expiry dates up to April 30, 2010. During the quarter 435,000 stock options were issued.

During the quarter and nine month period ended January 31, 2005, dividends of $1,661 and $4,983 were declared and paid, respectively.

Basic and diluted earnings per share calculations

The following tables set forth the computation of basic and diluted earnings per share for the quarters ended January 31, 2005 and January 31, 2004:

Numerator                            Three months      Three months
                                            ended             ended
                                       January 31,        January31,
                                             2005              2004
                                     ------------      -------------
Net (loss)/income for the                              (As restated)
 quarter ended for

  basic and diluted earnings per share    $(7,896)             $225

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Denominator

Denominator for basic
 earnings per share
  Weighted average shares              15,096,817        15,096,817

Effect of dilutive securities
  Stock options                            69,473                 0
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                                       15,166,290        15,096,817
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