TORONTO, ONTARIO--(Marketwire - Feb. 27, 2013) - Advantex Marketing International Inc. (CNSX:ADX) ("Advantex" or the "Company"), a leading specialist in merchant funding and loyalty marketing programs, today announced its results for the three and six months ended December 31, 2012. All currency amounts are in Canadian dollars unless otherwise noted.

"We are pleased to report a net income under difficult economic conditions more severe than we have seen in sometime thereby affecting consumer spending. In addition, the NHL strike was also another factor that negatively affected the restaurant sector. Over half of merchants participating in our programs operate restaurants. This is reflected in our results. While revenues were ahead of corresponding periods previous year they were not what we expected, and this affected our profitability, said Kelly Ambrose, Advantex President and Chief Executive Officer.

I am excited by the recent acquisition which added about 700 merchants to our portfolio. This gives us an opportunity to expand the program as a re-seller of aeroplan miles across the small merchant market, and in time has the potential to strengthen the Company's relationship with Aeroplan and add to the Company's profitability," said Mr. Ambrose.

Financial Highlights:

	Three months ended December 31				Six months ended December 31
	2012	2011	Inc./		2012	2011	Inc./
			(Dec)				(Dec)
	$	$			$	$
Revenues	4,428,000	4,234,000	4.6	%	8,831,000	8,069,000	9.4	%
Earnings from operations before amortization and interest ("EBITDA" (i))	1,026,000	1,000,000	2.6	%	2,066,000	1,977,000	4.5	%
Net Income	124,000	247,000	(49.8	)%	398,000	508,000	(21.7	)%

(i) EBITDA is a non-GAAP financial measure which does not have any standardized meaning prescribed by the issuer's GAAP and is unlikely to be comparable to similar measures presented by other issuers. It is provided as additional information to assist readers in understanding a component of the Company's financial performance. In case of the Company per consolidated financial statements for three and six months ended December 31, 2012, earnings from operations before amortization and interest is the nearest equivalent to EBITDA.

"The Company's agreements with its affinity partners - Canadian Imperial Bank of Commerce ("CIBC"), and Aeroplan Canada Inc. ("Aeroplan") - and its financial partners - 14% and 12% debenture holders, and provider of loan payable - come up for renewal between August and December, 2013. The Company expects to successfully negotiate renewal and/or extension of the agreements," said Mr. Ambrose.

About Advantex Marketing International Inc.

Advantex is a specialist in the marketing services industry. Advantex partners with CIBC, and Aeroplan. On a combined basis, Advantex has contractual marketing access to more than five million Canadian consumers with above-average personal and household income. The Company's merchant partner base currently consists of just under 1,300 merchants operating restaurants; golf courses; independent inns, resorts and selected hotels; spas; retailers of men's and ladies fashion, footwear and accessories; retailers of sporting goods; florists and garden centres; book and newspaper stores; health and beauty centres; dry cleaners; gift stores; and home decor; many of which are leaders in their respective categories. Advantex is traded on the Canadian National Stock Exchange under the symbol "ADX". For additional information on Advantex, please visit [ www.advantex.com ].

Forward-Looking Information

This Press Release contains certain "forward-looking information". All information, other than information comprised of historical fact, that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Forward-looking information is typically identified by words such as: anticipate, believe, expect, goal, intend, plan, will, may, should, could and other similar expressions. Such forward-looking information relates to, without limitation, information regarding the Company's: expectation respecting the impact of the acquisition on its relationship with Aeroplan, and its profitability; expectation with regards to the renewal, including the timing and the terms of such renewal, of its agreements with its affinity and financial partners; and other information regarding financial and business prospects and financial outlook is forward-looking information.

Forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company.

Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include those listed under "General Risks and Uncertainties" and "Economic Dependence" in Management's Discussion and Analysis for the three and six month periods ended December 31, 2012.

All forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Advantex Marketing International Inc.
Consolidated Statements of Financial Position - (unaudited)
(expressed in Canadian dollars)

	December 31, 2012		June 30, 2012
Assets
Current assets
Cash and cash equivalents	5,000		1,084,773
Accounts receivable	1,164,254		966,437
Transaction credits	14,706,549		14,095,373
Inventory (note 5)	117,665		204,355
Prepaid expenses and sundry assets	588,862		315,454
	$16,582,330		$16,666,392
Non-current assets
Investment (note 6)	-		100,000
Property, plant and equipment (note 7a)	265,569		222,132
Intangibles (note 7b)	420,652		330,018
	686,221		652,150
Total assets	$17,268,551		$17,318,542

Liabilities
Current liabilities
Bank indebtedness	227,364		-
Loan payable (note 8)	6,529,891		6,715,691
Accounts payable and accrued liabilities	3,732,261		4,128,264
14% Non-convertible debentures payable (note 9)	1,719,712		-
12% Non-convertible debentures payable (note 10)	5,765,537		-
	$17,974,765		$10,843,955
Non-current liabilities
14% Non-convertible debentures payable (note 9)	-		1,770,606
12% Non-convertible debentures payable (note 10)	-		5,779,957
	$-		$7,550,563
Total Liabilities	$17,974,765		$18,394,518

Shareholders' deficiency
Share capital (note 11)	24,110,096		24,110,096
Contributed surplus (note 12)	793,198		793,198
Equity portion of debentures (note 10)	2,114,341		2,114,341
Warrants (note 9/10)	1,167,874		1,196,013
Deficit	(28,891,723	)	(29,289,624	)
Total deficiency	$(706,214	)	$(1,075,976	)
Total liabilities and deficiency	$17,268,551		$17,318,542

Economic and Financial dependence (note 2)

Commitments and Contingencies (note 14)

The accompanying notes are an integral part of these consolidated financial statements.

Approved by the Board:

Director:	Signed "William Polley"	Director:	Signed "Kelly Ambrose"
	William Polley		Kelly E. Ambrose



Advantex Marketing International Inc.
Consolidated Statements of Income and Comprehensive Income
For the three and six months ended December 31, 2012 and December 31, 2011 - (unaudited)
(expressed in Canadian dollars)

		For the three months		For the six months
		ended December 31		ended December 31

		2012	2011	2012	2011
		$	$	$	$
Revenues		4,427,976	4,234,322	8,831,393	8,069,429
Direct expenses		1,415,995	1,168,283	2,792,024	2,212,476

Operating Expenses
Selling and marketing		977,914	925,084	1,887,751	1,701,413
General and administrative		1,007,794	1,140,546	2,085,642	2,178,638
Earnings from operations before amortization and interest		1,026,273	1,000,409	2,065,976	1,976,902

Write-off of investment		100,000	-	100,000	-
Depreciation of property, plant and equipment, and intangibles		138,206	102,001	246,120	194,403
Interest expense:
Stated interest expense - loan payable, and debentures		514,079	517,890	1,030,675	1,008,724
Non-cash interest expense on loan payable, and debentures		149,991	133,658	291,280	265,662

Net income and Comprehensive income		123,997	246,860	397,901	508,113

Earnings per share
	Basic and Diluted (note 15)	0.00	0.00	0.00	0.00

The accompanying notes are an integral part of these consolidated financial statements.

Advantex Marketing International Inc.

Consolidated Statements of Changes in Deficiency

For the six months ended December 31, 2012 and December 31, 2011 - (unaudited)

(expressed in Canadian dollars)

	Class A			Equity
	preference	Common	Contributed	portion of
	shares	shares	surplus	debentures	Warrants		Deficit		Total
	$	$	$	$	$		$		$
Balance – July 1, 2011	3,815	24,106,281	726,795	2,114,341	1,196,013		(29,516,267	)	(1,369,022	)
Net income and comprehensive income for the period							508,113		508,113
Employee share options:
Value of services recognized			2,555						2,555
Balance – December 31, 2011	3,815	24,106,281	729,350	2,114,341	1,196,013		(29,008,154	)	(858,354	)

Balance – July 1, 2012	3,815	24,106,281	793,198	2,114,341	1,196,013		(29,289,624	)	(1,075,976	)
Net income and comprehensive income for the period							397,901		397,901
Employee share options:
Value of services recognized			-						-
Partial prepayment of debentures (notes 9 and 10)					(28,139	)			(28,139	)
Balance – December 31, 2012	3,815	24,106,281	793,198	2,114,341	1,167,874		(28,891,723	)	(706,214	)

The accompanying notes are an integral part of these consolidated financial statements.

Advantex Marketing International Inc.
Consolidated Statements of Cash Flow
For the six months ended December 31, 2012 and December 31, 2011 - (unaudited)
(expressed in Canadian dollars)

		31-12-2012		31-12-2011
		$		$
Cash flow provided by (used in)
Operating activities
Net income for the period		$397,901		$508,113
Adjustments for:
	Write-off of investment	100,000		-
	Depreciation of property, plant and equipment, and intangibles	246,120		194,403
	Stock-based compensation	-		2,555
	Accretion charge for debentures	291,280		265,662
		1,035,301		970,733
Changes in items of working capital
	Accounts receivable	(197,817	)	(221,717	)
	Transaction credits	(611,176	)	(692,454	)
	Inventory	86,690		66,451
	Prepaid expenses and sundry assets	(273,408	)	(27,724	)
	Accounts payable and accrued liabilities	(396,003	)	473,249
		(1,391,714	)	(402,195	)
Net cash provided by (used in) operating activities		(356,413	)	568,538

Investing activities
Purchase of property, plant and equipment, and intangibles		(380,191	)	(136,169	)
Net cash used in investing activities		(380,191	)	(136,169	)

Financing activities
(Repayment of)/proceeds from loan payable		(185,800	)	994,788
Partial prepayment of debentures		(376,033	)	-
Debenture partial prepayment / renewal - additional transaction costs		(8,700	)	(37,088	)
Net cash (used in) generated from financing activities		(570,533	)	957,700

Increase (decrease) in cash and cash equivalents during the period		$(1,307,137	)	$1,390,069
	- From continuing operations	(1,235,168	)	1,427,323
	- From discontinued operations (note 17)	(71,969	)	(37,254	)
Increase (decrease) in cash and cash equivalents during the period		$(1,307,137	)	$1,390,069
Cash and cash equivalents, including bank indebtedness - Beginning of period		1,084,773		(78,262	)
Cash and cash equivalents, including bank indebtedness - End of period		(222,364	)	1,311,807
Additional Information
Interest paid		$1,041,584		$892,103

For purposes of the cash flow statement, cash comprises:
Cash / (Bank indebtedness)		$(227,364	)	$1,306,807
Term deposits		$ 5,000		$5,000
		$(222,364	)	$1,311,807

The accompanying notes are an integral part of these consolidated financial statements.

Contributing Sources

Market Wire

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Advantex Announces Net Income

Advantex Announces Net Income