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Sitebrand Announces Second Quarter 2009 Results

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^{Published in Business and Finance on Friday, October 30th 2009 at 14:30 GMT by Market Wire}  

GATINEAU, QUEBEC--(Marketwire - Oct. 30, 2009) - Sitebrand Inc (TSX VENTURE:SIB), a leader in online marketing solutions today announced results for its three months and nine months ending August 31, 2009.

Highlights for the second quarter include:

- A quarterly loss of $212,926 compared to $564,330 in the same period last year, a decrease of 62%.

- A loss of $404,791 for first nine months of fiscal 2009 as compared to $1,509,675 for the first nine months of last year, a reduction of 73%.

"Sitebrand, like others serving the North American community, has been affected by the soft economy compounded with unfavorable swings in currencies. In the third quarter of this year, the company continued to add new clients, reshape itself, and make continued progress on its new personalization offering, Relevance, which is scheduled for launch later this fall." said Chris Corman, President and CEO.

Sitebrand delivered the following results for the three and nine months ended August 31, 2009:

Revenue: Revenue for the three months ended August 31, 2009 was $462,135, a decrease of $102,852 (18%) over the $564,987 in revenue for third quarter of fiscal year 2008. Revenue for the nine months ended August 31, 2009 was $1,668,276, an increase of $70,114 (4%) over the $1,598,162 in revenue for the year-to-date ended August 31, 2008. This three month period decrease is primarily due to reductions in revenue per customer as a result of the general economic conditions affecting North America and reductions in new customer acquisitions as a result of weak consumer confidence.

Net loss and Earnings per Share: Net loss for the three months ended August 31, 2009, was $212,926 as compared to $564,330 in the same period of the prior year, a 62% reduction and the net loss for the nine months ended August 31, 2009, was $467,622 as compared to $1,899,789 in the same period of the prior year, a decrease of 75%. The reduced loss was a result of cost reductions including decreased staffing levels and improved operating efficiencies.

The cash provided for operations in the three months ended August 31, 2009 was $8,973 as compared to cash used of $999,872 in the three months ended August 31, 2008. Cash used from operations in the first three quarters of fiscal 2009 was $404,791 as opposed to $1,509,675 in the same period of the prior year, a decrease of 73%. The basic and diluted loss per share for the third quarter of 2009 and the same time last year were $0.01 and $0.03 respectively.

Subsequent to the end of the second quarter, Sitebrand secured a line of credit of up to $300,000 from certain of its officers and directors in order to improve its liquidity and capital resources. On October 16, 2009, certain officers and directors of the Company advanced approximately $50,000 to the Company as part of this credit facility, which is repayable on demand with an interest rate of 15% per annum. The disinterested directors approved the credit facility, which will be used for short term working capital requirements. Sitebrand expects to be able to service the debt with cash generated from operations.

About Sitebrand

Sitebrand Inc. provides online marketing solutions and related services to major retailers across North America and Europe. Based on its proprietary software, Sitebrand's Segment&Serve^TM personalization solution delivers personalized online marketing campaigns for websites, email, search engine marketing, blogs, banners, point of sale, or any other web medium. Using Sitebrand, online retailers are able to develop customized marketing campaigns that leverage anonymous web analytics and visitor behavior, providing each visitor with a personalized experience to that particular visitor in real-time-generating more customers, more profit per customer, more customer loyalty, and more conversions. Sitebrand was founded in 2000 and is headquartered in Gatineau, Quebec.

Disclaimer: Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to be materially different from any future performance that may be suggested in this release. The company assumes no obligation to update any forward-looking statements contained in this release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.