Copernic Announces 2007 Fourth Quarter and Year-End Results

Market Wire, March, 2008

Copernic Inc.
Condensed Consolidated Balance Sheets
As at December 31, 2007 and 2006

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(unaudited) (expressed in U.S. dollars and in accordance with
 generally accepted accounting principles in Canada)

                                                2007                  2006
                                                   $                     $

Assets

Current assets
Cash and cash equivalents                  2,099,560             2,379,617
Restricted cash                              807,468                     -
Temporary investments                      3,965,384             5,591,842
Accounts receivable                          918,033             2,734,172
Income taxes receivable                      221,205               110,002
Prepaid expenses                             208,655               261,885
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                                           8,220,305            11,077,518

Investments                                        -               150,000

Property and equipment                       459,872               503,828

Intangible assets                          2,320,676             6,190,298

Goodwill                                   7,357,003            15,417,844
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                                          18,357,856            33,339,488
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Liabilities

Current liabilities
Accounts payable and accrued liabilities   1,520,619             2,289,686
Deferred revenue                             211,455               227,660
Deferred rent                                 11,016                12,273
Income taxes payable                           8,100                 8,100
Liabilities of discontinued operations             -                 6,253
Current portion of obligations under
 capital leases                               56,071                     -
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                                           1,807,261             2,543,972
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Obligations under capital leases              99,788                     -

Future income taxes                          650,413             1,900,866
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Shareholders' Equity

Capital stock
Authorized
 Unlimited common shares, no par value
Issued and outstanding
 14,637,531 common shares
 (14,340,864 in 2006)                     96,556,485            95,298,234

Additional paid-in ca                      5,784,502             5,706,183

Cumulative translation adjustment            561,137               561,137

Accumulated deficit                      (87,101,730)          (72,670,904)
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                                          15,800,394            28,894,650
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                                          18,357,856            33,339,488
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Copernic Inc.
Condensed Consolidated Statements of Operations

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(unaudited) (expressed in U.S. dollars and in accordance
 with generally accepted accounting principles in Canada)

                       For the twelve months          For the three months
                           ended December 31             ended December 31
                          2007          2006            2007          2006
                             $             $               $             $

Revenues             8,116,408     9,596,402       1,654,352     3,566,421

Cost of revenues     2,636,410     2,704,101         543,763       918,920
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Gross Margin         5,479,998     6,892,301       1,110,589     2,647,501
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Expenses
Marketing, sales
 and services        1,897,822     1,850,176         480,531       502,416
General and
 administration      4,691,572     3,996,327       1,020,709     1,029,243
Product development
 and technical
 support             2,416,410     2,538,867         651,830       614,340
Amortization of
 property and
 equipment             302,509       178,192         119,220        48,968
Amortization of
 intangible assets   1,991,286     2,067,009         511,384       487,914
Write-downs and
 settlement costs   10,146,311     1,683,238      10,146,311             -
Interest and other
 income               (401,183)     (415,950)        (74,078)     (102,978)
Loss on foreign
 exchange              115,071        82,203          41,164       (51,392)
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                    21,159,798    11,980,062      12,897,071     2,528,511
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Earnings (loss) from
 continuing
 operations before
 income taxes and
 discontinued
 operations        (15,679,800)   (5,087,761)    (11,786,482)      118,990

Recovery of future
 income taxes       (1,250,453)     (724,177)       (796,926)     (246,356)
Current income
 taxes                   1,479        (4,876)            525             -
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Earnings (loss)
 from continuing
 operations before
 discontinued
 operations        (14,430,826)   (4,358,708)     (10,990,081)     365,346

Results of
 Discontinued
 operations, net
 of income taxes             -        89,328                -       54,828
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Net earnings (loss)
 for the period    (14,430,826)   (4,269,380)     (10,990,081)     420,174
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Basic and diluted
 earnings (loss)
 per share
 from continuing
 operations              (0.99)        (0.31)           (0.75)        0.02
Basic and diluted
 earnings (loss)
 per share
 from discontinued
 operations                  -          0.01                -            -
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Basic and diluted net
 earnings (loss)
 per share               (0.99)        (0.30)           (0.75)        0.02
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Copernic Inc.
Condensed Consolidated Statements of Cash Flows

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(unaudited) (expressed in U.S. dollars and in accordance
 with generally accepted accounting principles in Canada)

                        For the twelve months         For the three months
                            ended December 31            ended December 31
                         2007            2006          2007           2006
                            $               $             $              $

Cash flows from
 (used for)

Operating activities
Earnings (loss)
 from continuing
 operations       (14,430,826)     (4,358,708)  (10,990,081)       365,346
Adjustments for
 Amortization of
  property and
  equipment           302,509         178,192       119,220         48,968
 Amortization of
  intangible assets 1,991,286       2,067,009       511,384        487,914
 Employee stock-
  based compensation  660,312         456,281       175,568         66,703
 Write-down of
  goodwill          8,060,841               -     8,060,841              -
 Write-down of
  intangible assets 1,985,470         403,425     1,985,470              -
 Write-down of
  investment          150,000         570,000       150,000              -
 Write-down of
  property and
  equipment                 -           9,813             -              -
 Long-term income
  tax credits               -          54,912             -         54,912
 Future income
  taxes            (1,250,453)       (724,177)     (796,926)      (246,356)
 Unrealized loss
  on foreign
  exchange             12,813               -        (1,271)        (1,151)
Net change in
  non-cash working
  capital items       990,158         515,619        17,391     (1,291,098)
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Cash used for
 Operating
 activities        (1,527,890)       (827,634)     (768,404)      (514,762)
Cash used for
 operating activi-
 ties from
 discontinued
 operations            (6,253)        (83,948)            -         (9,396)
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                   (1,534,143)       (911,582)     (768,404)      (524,158)
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Investing
 activities
Reimbursement
 related to
 Copernic Techno-
 logies Inc.'s
 business
 acquisition                -         379,382             -              -
Purchase of
 intangible assets    (68,433)        (51,400)       (3,431)        (8,373)
Purchase of
 property and
 equipment           (149,658)        (76,104)      (12,903)       (26,513)
Net decrease
 (increase) in
 temporary
 investments        1,626,458      (1,578,530)   (3,965,384)    (2,557,521)
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Cash from
 (used for)
 investing
 activities         1,408,367      (1,326,652)   (3,981,718)    (2,592,407)
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Financing
 activities
Issuance of capital
 stock                676,258               -             -              -
Repayment of
 obligations under
 capital leases       (23,071)              -        (9,941)             -
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Cash provided from
 (used for)
 financing
 activities           653,187               -        (9,941)             -
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Effect of foreign
 exchange rate changes
 on cash
 and cash
 equivalents                -         116,650             -          5,890
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Net change in cash,
 cash equivalents
 and restricted
 cash during
 the period           527,411      (2,121,584)   (4,760,063)    (3,110,675)
Cash, cash
 equivalents and
 restricted cash -
 Beginning of
 period             2,379,617       4,501,201     7,667,091      5,490,292
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Cash, cash
 Equivalents
 and restricted
 cash - End of
 period             2,907,028       2,379,617     2,907,028      2,379,617
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Cash and cash
 Equivalents
 comprise:
  Cash                596,493         777,637        596,493        77,637
  Short-term
   investments      1,503,067       1,601,980      1,503,067     1,601,980
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                    2,099,560       2,379,617      2,099,560     2,379,617
Restricted cash       807,468               -        807,468             -
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                    2,907,028       2,379,617      2,907,028     2,379,617
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