Miranda Reports Results for the Fourth Quarter and Fiscal Year Ended December 31, 2007

Miranda Technologies Inc. (TSX: MT), a global developer, manufacturer and marketer of high-performance hardware and software for the television broadcast industry, today reported results for the fourth quarter and its 2007 fiscal year ended December 31.

Revenue

In the fourth quarter of 2007, sales reached $31.7 million, an increase of 10% compared to the corresponding period in 2006. On a constant currency basis year over year sales increased by 26%, compared with the fourth quarter of 2006. Relative to the same year ago period, foreign currency fluctuations negatively impacted the Company's revenue by $4.6 million or 16% of revenue.

For the full year, sales reached $112.2 million, a 5% increase over last year. On a constant currency basis the sales increase was 11% ahead of last year; foreign currency fluctuations negatively impacted the Company's revenue by approximately $6 million or 6% of revenue.

"In the fourth quarter of 2007, we continued to witness the impact of our accelerating product introductions and targeting of specific regions", said Strath Goodship, President and CEO of Miranda. "All product lines have shown growth in the quarter. Our new products such as the Kaleido-X multiviewer, the Vertigo Graphics Series and the Imagestore-750 Master Control have helped us gain market share and boost revenue levels in the second half of the year. We also made important progress in new markets such as Latin America, Eastern Europe and the Middle-East. We are also pleased with our performance in Asia, where sales in 2006 had been under acute pressure."

Gross Margin

Gross margin as a percentage of sales was 56% for the fourth quarter of 2007 compared to 64% in 2006. For the full year, the gross margin decreased from 61% in 2006 to 56% this year. The sharp decline of the US dollar has affected gross margin by 1.4 percentage points for the year. Gross margin was also affected by aggressive pricing in new markets, increased sales to large customers and a different product mix.

Operating Expenses

Operating expenses in the fourth quarter were higher than expected mostly due to a foreign exchange loss compared with a gain in the same quarter last year and a one-time cost related to the settlement of an intellectual property (IP) litigation. On November 30, 2007 Miranda settled the IP litigation which had been the subject of a complaint against the Company alleging patent infringement, filed in September 2005 in the United States District Court for the Northern District of Illinois Eastern Division. The settlement, for an undisclosed one-time payment, covers all past and future products of Miranda and its affiliates and subsidiaries. The Company spent approximately $4.1 million in 2007 in relation to this matter, including fees related to the preparation for its defence and payment of the agreed settlement amount.

Net Income

EBITDA was $4.9 million in the fourth quarter of 2007, compared to $10.4 million for the same period in 2006. The decrease in EBITDA is for the most part explained by a decrease in gross margin and higher operating expenses. For the year, EBITDA was $16.3 million compared to $28.5 million in 2006.

Net income for the fourth quarter was $3.3 million compared to $7.1 million in the same period last year, translating in fully diluted earnings per share (EPS) of $0.13 compared to $0.28. For the year, fully diluted EPS were $0.38 compared to $0.76 in 2006.

Liquidity and Capital Resources

At December 31, 2007, Miranda had a stronger balance sheet than last year, with working capital of $97.8 million compared to $85.3 million at the end of 2006. Cash, cash equivalents and temporary investments totaled $75 million at the end of 2007, an increase of $12.5 million over the previous year.

The Company's cash, cash equivalents and temporary investments are held in AAA and R1 rated instruments issued mainly by Canadian chartered banks and federal Crown corporations. The Company has no exposure to any asset-backed securities.

Management Changes

In an effort to focus further on acquisitions and strategic alliances, Rene Vachon will be taking on the role of Executive Vice-President, Corporate Development effective February 20, 2008. Mr. Vachon's role of CFO, which he has held since January 2003, will be taken over by Mario Settino, effective the same day.

Mr. Settino is a seasoned professional with over 25 years of financial and operational experience in various industries such as services, manufacturing and high-end technology. Most recently, he was Senior Vice President Finance of Provigo Inc., an operating unit of Loblaw Companies. Prior to this, he held senior financial roles at Bombardier Aerospace and LGS Group (an IBM Company). Mr. Settino is a chartered accountant and began his career at Deloitte.

Mr. Goodship commented: "We have been successful with the acquisition and integration of VertigoXmedia. We now want to accelerate the pace of acquisitions to reinforce our market positioning. I am pleased that Rene has accepted the challenge of this new and key role. It will allow us to put Rene's drive, considerable talents and industry knowledge to this most strategic pursuit. Mario's experience in established and successful organisations will be invaluable in preparing Miranda for further growth."