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VIQ Solutions Announces Third Quarter 2005 Results

MARKHAM, ON, Nov. 29 /CNW/ - VIQ Solutions Inc. ("VIQ Solutions" or the "Corporation") (TSX Venture: VQS) today reported its financial results for the three and nine-month periods ended September 30, 2005.

Net sales were $2,630,976 for the three-month period ended September 30, 2005, down 19% from the previous quarter. Net sales for the nine-month period ended September 30, 2005 were $8,387,403. Selling and administrative expenses in the third quarter were $1,228,222, down 18% from the previous quarter. Net loss for the three and nine-month periods were $851,216 and $3,044,553 respectively. Net loss per common share was $0.01 and $0.05 for the three and nine month periods respectively.

"While our third quarter results reflect the seasonality of our business, we continue to see new market opportunities in the areas of digital recording, workflow management and transcription services," commented David Outhwaite, President and Chief Executive Officer of VIQ Solutions. "We are approaching the remainder of the year with enhanced financial flexibility and a more efficient operating structure. We look forward to sharing news of our continued progress as we finalise our acquisition of International Reporting and expand our North American distribution network," concluded Mr. Outhwaite.

Significant business developments in the third quarter:

  • VIQ Solutions completed the development, testing and deployment of its RecordIAB product, a new innovative enclosed recording console for the recording, playback and storing of digital audio;


  • During the quarter, VIQ Solutions announced that Digital Voice Processing Pty Limited ("DVP") has been appointed as the regional distributor of VIQ Solutions' products and services for sub-Saharan Africa and that DVP has purchased 15 RecordIAB digital recording systems for the High Courts in Delta States, Nigeria, as part of their mandate to upgrade court technology;


  • VIQ Solutions announced that its wholly-owned subsidiary Spark & Cannon had secured a five-year, Aus$2.5 million contract with the South Australian Industrial Relations Commission;


  • The Corporation announced that Netsound Pty. Limited has been appointed regional distributor of VIQ Solutions' products and services for the Asia-Pacific region;


  • The Corporation amended certain terms of its secured convertible debenture including the extension of the maturity date to April 2007 for no additional consideration; and


  • Subsequent to the quarter, the Corporation announced that it has entered into an agreement to acquire International Reporting Inc., a private company providing bilingual digital verbatim reporting and transcription services. The Corporation intends to complete the acquisition in the fourth quarter of 2005.

Selected Restated Financial Information

Certain selected financial information included in this release is qualified in its entirety and should be read together with the unaudited consolidated financial statements for the three and nine-month periods ended September 30, 2005, including the notes thereto.

About VIQ Solutions

VIQ Solutions is recognized as a global provider in the digital audio industry with innovative product and service-based solutions for voice-driven systems in the legal, medical, business, and government industries. VIQ Solutions provides an integrated range of digital record workflow solutions, including digital audio and video capture, workflow management software, transcription services, interactive electronic scheduling, and case management integration, all from one central, secure database.

Forward-looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. When used in this press release, the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "will," and "would" and similar expressions are intended to identify forward-looking statements. Such statements reflect VIQ Solutions Inc.'s current views with respect to future events and are subject to such risks and uncertainties. Many factors could cause our actual results to differ materially from the statements made including those factors detailed from time to time in filings made by VIQ Solutions Inc. with Canadian securities regulatory authorities. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. VIQ Solutions Inc. does not intend and does not assume any obligation to update these forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release.

For further information: David Outhwaite, President & CEO, VIQ Solutions, (905) 948-8266 ext. 250, email: douthwaite@viqsolutions.com, or Karen Hersh, Chief Financial Officer, VIQ Solutions, (905) 948-8266 ext. 240, email: khersh@viqsolutions.com

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