Gokis Kiosk Self-Service

Bill Payment - TIO NETWORKS 2010 ANNUAL REVENUE INCREASED 29%

The Company reported another solid year of growth and finished the year with a record-setting fourth quarter that sets the foundation for continued growth into 2011,” said Hamed Shahbazi, Chairman and CEO of TIO Networks. “Our business is rapidly transforming from a walkup kiosk based platform to a true multi-channel bill payment network.

TIO NETWORKS 2010 ANNUAL REVENUE INCREASED 29%

~Q4 revenue increased 61%~

Vancouver, BC, November 24, 2010 – TIO Networks Corp. (TSX-V: TNC) today announced 2010 audited annual and fourth quarter financial results for the period ended July 31, 2010.

annual and fourth quarter highlights

1) Fourth quarter revenue increased 61%.

2) Fourth quarter EBITDA* of $284,000.

3) Generated $447,770 in cash flow from operations annually before non-cash working capital items.

4) Reduced annual operating expenses.

5) Network activated endpoints increased by 81% to 23,982.

6) Currency devaluation impacted the fourth quarter’s revenue by $775,000 as compared with last year and impacted full year results by $3,500,000 as compared with last year

7) TIO experienced its 32nd consecutive quarter of growth in transactions and ended the fourth quarter with a total of 3,480,026 transactions.

8) Revenue and EBITDA* accelerated during the year – Q1 revenue and EBITDA* was $5,158,000 and $35,000 respectively while Q4 revenue and EBITDA* was $8,750,000 and $284,000 respectively representing a growth of 70% in revenue and 711% increase in EBITDA*.

Business Development Highlights for fiscal 2010:

· TIO launched payment processing services in Canada via its partnership with Mobilicity.

· TIO announced that it has been selected to provide bill payment services via web and IVR to First Data’s Money Network payroll card program.

· TIO launched its “biller direct” mobile bill payment platform.

· TIO announced that it will provide a “pay by smartphone” biller direct mobile bill payment program for Pacific Gas & Electric (PG&E).

Quarter ended July 31
Year ended July 31

2010
2009
2010
2009
Revenue
$ 8,749,941
$ 5,437,902
$ 27,771,194
$ 21,471,403
EBITDA*
$ 284,000
$ 226,000
$ 595,000
$ 793,000
Net Income
$ (278,424)
$ (477,636)
$ (1,954,062)
$ (2,164,849)
Weighted average number of shares outstanding
46,439,905
46,149,585
46,382,913
46,117,711

The Company had a total of cash & cash equivalents and restricted cash of $2,799,010 and no long-term debt at year-end.

The Company reported another solid year of growth and finished the year with a record-setting fourth quarter that sets the foundation for continued growth into 2011,” said Hamed Shahbazi, Chairman and CEO of TIO Networks. “Our business is rapidly transforming from a walkup kiosk based platform to a true multi-channel bill payment network. As TIO transitions to multi-channel, we anticipate a return to higher overall profit margins as we generate revenue from new channels including mobile and web. During fiscal 2010, TIO announced substantial agreements with Fortune 1000 companies for both its mobile and web channels of business. We continue to leverage our growing prominence in the payments industry to partner with some of the most successful corporations in the world to rapidly grow the TIO Network.”

Conference Call:

You are invited to attend a conference call on Wednesday November 24, 2010 at 1:30 pm EST to review the financial results. The dial-in numbers are (416) 644-3426 in Toronto, or toll free 1-800-731-5319. Callers should request the TIO Networks Conference.

TIO Networks Corp.

TIO is the leading multi-channel expedited bill payment processor serving the largest Telecom, Wireless, Cable and Utility bill issuers in North America. With over 23,000 endpoints to its processing network, TIO symbolizes fast, convenient and secure access to expedited payment services.

CONTACT:

Derek Lai – Acting CFO – TIO Networks

Tel: 604.298.4636, Ext. 269

Email: [email protected]

John Lewis Business Development – TIO Networks

Tel: 416-364-2266 / 1-877-954-6327

Email: [email protected]

The TSX Venture Exchange has not reviewed this news release and does not accept responsibility for its adequacy and accuracy.

This news release contains forward-looking statements that involve risks and uncertainties, which may cause actual results to differ materially from the statements made. Potentially, many factors could cause our actual results to vary materially from those described herein as intended, planned, anticipated or expected. TIO Networks Corp. does not intend and does not assume any obligation to update these forward-looking statements.

*EBITDA (Earnings before interest, tax, depreciation, amortization, and stock-based compensation) is not a defined term under Canadian generally accepted accounting principles, nor does it have a standard, agreed upon meaning. Accordingly, the Company’s EBITDA may not be directly comparable to EBITDA reported by other issuers. Management had determined EBITDA is a useful supplemental measure in evaluating the Company’s performance as it provides investors with an indication of cash available for debt service, working capital needs and capital expenditures. This non-GAAP measure is intended to provide additional information on the Company’s performance and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Posted by keefner at November 24, 2010 02:07 PM