Emergis Reports Financial Results for the Third Quarter of 2006

Market Wire, November, 2006

Emergis Inc. (TSX: EME)

- Revenue at $43.3 M, up 8% from Q3 05

- Health revenue growth at 25% from Q3 05

- EBITDA(1) at $9.2 M, up 42% from Q3 05

- EPS from continuing operations at $0.06

- Financial targets for 2006 updated and positive direction given for 2007

Emergis Inc. (TSX: EME) today announced its unaudited financial results for the three months ended September 30, 2006. All dollar figures in this release are expressed in Canadian dollars, unless otherwise indicated.

"Emergis has made significant advances in its financial performance compared to last year, and we are anticipating further improvements in our financials next year," said Francois Cote, President and Chief Executive Officer of Emergis. "Our Health operations continue to grow and provide a solid contribution to the bottom line. The recent acquisition of DINMAR is showing every indication that it will accelerate this trend."

"We continued to invest in the business through acquisition and solutions development and announced some important contract wins and renewals. Overall, we had a very solid quarter, despite some seasonal impacts on both Health and Finance revenue," Cote added.

Net income from continuing operations for the quarter was $5.1 million or $0.06 per share compared to $0.1 million or $0.00 per share in the third quarter of 2005. The increase was mainly due to the stronger operating performance of the Company and the absence of a foreign exchange loss present in 2005. The corresponding figure for the second quarter of 2006 was $3.2 million or $0.03 per share.

Net income for the quarter was $5.2 million or $0.06 per share compared to $(1.2) million or $(0.01) per share in the third quarter of 2005, and to $10.2 million or $0.11 per share in the second quarter of 2006. Included in the net income for the second quarter was a contribution of $7.0 million or $0.08 per share from discontinued operations related to a price adjustment associated with the sale in 2004 of the Company's former U.S. Health operations.

Note: The descriptions of the Company's financial performance compared to historical periods in this news release summarize those described in its third quarter 2006 Management's Discussion and Analysis, which has been posted on Emergis' corporate web site along with this release and other financial information.

(1) See definition of EBITDA at the bottom of page 3

Revenue summary for the quarter
Three-month periods ended September 30, 2006, June 30, 2006, and
September 30, 2005,
in millions of Canadian dollars:

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                                Q3 2006   Q2 2006   Q3 2005
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Health                             29.2      25.6      23.3
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Finance                            14.1      14.6      16.8
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Total revenue                      43.3      40.2      40.1
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- Revenue for the quarter was $43.3 million compared to $40.1 million in the third quarter of 2005 and compared to $40.2 million in the second quarter of 2006. In the year-over-year and sequential quarterly comparisons, growth in Health operations was offset by lower Finance revenue.

- Recurring revenue represented 84% of total revenue in the quarter compared to 93% in the third quarter last year and to 91% in the second quarter of 2006. The change from the historical quarters is mainly due to the acquisition of DINMAR, a portion of whose revenue is derived from consulting services which the Company classifies as non-recurring. It is expected that recurring revenue in the future will continue to represent a level more consistent with that of the current quarter than in past quarters.

- Health revenue increased 25% on a year-over-year basis due mainly to the acquisitions of DINMAR in July and of FrontLine in June, to organic growth in claims processing, and to license revenue related to the Company's drug information system initiative with the government of Newfoundland and Labrador. These increases were partly offset by the expiry of a claims transport contract in 2005.

- On a sequential quarterly basis, the 14% increase in Health revenue was due mainly to the acquisitions mentioned above. This growth was partly offset by seasonally lower claims processing activities and by lower professional service revenue.

- Compared to the third quarter of 2005, Finance revenue decreased due mainly to the expiry of a transition services contract related to the webdoxs consumer bill presentment service, to lower professional service revenue related to Visa Commerce activities and to the wind-down of the Company's eInvoicing operations, partly offset by higher license revenue related to its patented electronic invoicing technology.