3rd QUARTER REPORT - For the period ending February 28, 2001 - Cenosis Announces 2000-2001 Third Quarter Results and Financial Guidance for 2001-2002 Fiscal Year

Apr 30, 2001, 01:00 ET from Cenosis Inc.

    MONTREAL, April 30 /PRNewswire/ - Cenosis Inc. (ME : CE) announced today
 its financial results for the third quarter and first nine months ended
 February 28, 2001. The Company also reaffirmed its expectations for strong
 internal growth and an improved financial performance for the 2001-2002 fiscal
 year.
 
     FINANCIAL RESULTS
     For the third quarter ended February 28, 2001, Cenosis posted revenues of
 $3,157,757, compared to $84,134 for the same period in 2000. For the nine
 months ended February 28, 2001, revenues increased to $8,208,606 compared to
 $675,608 last year. The significant increase in both periods is due mainly to
 the acquired operations, StanMont and Leading Graphics, which now offer a much
 wider range of services thanks to the solutions deployed by Cenosis and its
 KangaCom subsidiary.
     Gross margin for the third quarter is $432,042, compared to a negative
 margin of $58,313 for the corresponding period in 2000. The net loss is
 $1,582,915, or $0.12 per share for the three months ending February 28, 2001,
 versus a loss of $268,667, or $0.03 per share in the same period in 2000. This
 increase in the net loss is attributable to costs incurred in KangaCom's
 commercial launch activities, the new KangaXpress service available through
 the BellZinc.ca portal and costs associated with the integration of newly
 acquired subsidiaries.
     Over the course of the first three quarters, the company capitalized
 $484,059 in costs related to the development of new software solutions which
 will be marketed over the coming months. In addition to the KangaXpress
 service, these solutions include an information system which manages workflows
 in graphic communications and editorial content production, allowing for,
 among other benefits, the customization of business practices, cost
 calculations and the integration of different production workflows through
 LANs and WANs.
     "We are pleased with these results which were achieved despite a slowdown
 in the electronic business solutions market. Furthermore, the third quarter
 represents the slowest period of the year for the premedia industry," said
 Richard Corbo, President and Chief Executive Officer.
 
     FINANCIAL GUIDANCE
     Cenosis expects revenues of $12 million for fiscal 2000-2001 ending May
 31, 2001. For fiscal 2001-2002 beginning on June 1st, the Company forecasts
 revenues of over $20 million and positive cash flow which should allow it to
 reach break-even one year sooner than expected.
     Revenue growth in fiscal 2001-2002 is expected to come mainly from its
 wholly owned subsidiary KangaCom Inc., following the award of major contracts
 by large customers for the organization of advertising content bound for
 traditional print distribution and Web publication.
     Furthermore, the KangaCom subsidiary will launch digital file transport
 services in Europe towards the beginning of June 2001, in partnership with key
 players in that market. The subsidiaries supplying premedia services, StanMont
 and Leading Graphics, expect revenue growth of over 25% compared to fiscal
 2000-2001. This growth will be generated mainly by new clients attracted by
 the synergy with the KangaCom subsidiary and use of advanced Cenosis software
 solutions.
     These revenue projections do not take into account additional
 acquisitions which the Company may conclude over the course of fiscal 2001-
 2002.
     "Our growth in fiscal 2001-2002 will be driven by the integration of our
 premedia operations with KangaCom's and Cenosis's state-of-the-art solutions
 for the publishing and graphic communications industries. While achieving our
 revenue target, we will focus on continuing improvements in our financial
 performance with the objective to attain break-even for the year as a whole,"
 added Mr. Corbo.
 
     CENOSIS PURSUES BUSINESS PLAN
     Cenosis pursued its business plan in the third quarter by launching
 KangaXpress, a new digital file transport service available through Bell
 ActiMedia's BellZinc.ca SME portal. The Company also announced the signing of
 major new contracts with half the daily newspapers in Quebec and with Bell
 ActiMedia. It also extended its business relationships with major accounts
 such as White Rose Home & Garden Centres, Nissan, Canadian Tire, Molson and
 most of Canada's large advertising agencies.
 
     SIGNING OF ANNUAL CONTRACTS WITH HALF THE DAILIES IN QUEBEC
     On February 27, 2001, Cenosis announced that its KangaCom subsidiary had
 signed contracts with six dailies in Quebec for the use of KangaGraph service.
 Le Journal de Montreal, Le Droit, Le Quotidien, Le Devoir, Le Nouvelliste and
 The Record, which together represent half the daily newspaper market in
 Quebec, are now part of KangaGraph's subscriber base. KangaCom expects to
 finalize the interconnection of all Quebec dailies and thus ensure that its
 KangaGraph service will be used industry-wide for the transmission of
 advertising material.
 
     LAUNCH OF KANGAXPRESS
     On January 18, 2001, Cenosis launched its KangaXpress service, the first
 of a suite of services available via Internet. Accessible through BellZinc.ca,
 KangaXpress is a service as user-friendly as e-mail, requiring no hardware or
 software investment, while being more economical than traditional couriers.
 Thanks to this service, a user can now easily transfer via Internet heavy
 digital files of up to 100 megabytes, such as proofs, multimedia documents,
 architectural drawings, videos, high resolution photos, etc.
 
     $1.5 MILLION PRIVATE FINANCING AND ACQUISITION OF LEADING GRAPHICS
     In December 2000, Cenosis completed a private financing admissible under
 the Quebec Stock Savings Plan (QSSP) for $1.5 million with two institutional
 funds. The Company issued 600,000 units at $2.50, each composed of one common
 share and one half warrant for a common share of Cenosis, exercisable at
 $3.00. The funds were used to finance the acquisition of a 55% majority stake
 in the Leading Graphics group of companies in Toronto, a transaction which
 closed on January 24, 2001.
 
     ABOUT CENOSIS INC.
     Cenosis Inc. is a high technology company active in the development and
 integration of software solutions, mainly for the publishing and graphic
 communications industries. Its wholly owned subsidiary, KangaCom Inc., in
 partnership with Bell Nexxia, is an application service provider (ASP)
 offering software solutions for the transfer of large data files and digital
 workflow automation. Through its subsidiaries, StanMont in Montreal and
 Leading Graphics Inc. in Toronto, the Company offers an integrated suite of
 digital and traditional content management services.
 
     The common shares of Cenosis Inc. are traded on the Montreal Exchange
     under the symbol "CE". Consult its Web site: http://www.cenosis.com
 
                                 CENOSIS INC.
                        CONSOLIDATED INCOME STATEMENTS
                             (in canadian dollars)
                                  (unaudited)
     _________________________________________________________________________
 
                                                    Nine-month period ended
                                                          February 28th
                                                 _____________________________
                                                        2001            2000
                                                 _____________    ____________
                                                         $               $
     Revenues                                      8,208,606         675,608
 
     Cost of sales                                 6,207,737         560,033
                                                 _____________    ____________
 
     Gross income                                  2,000,869         115,575
 
     Expenses
       Sales and administration costs              4,168,530         459,817
       Interest on long-term debts                   210,769              --
       Depreciation of capital assets                572,182          77,568
       Amortization of start-up and development
        costs                                        529,575          35,506
     Amortization of goodwill                         48,805              --
                                                _____________    ____________
 
                                                   5,529,861         572,891
                                                _____________    ____________
 
     Loss before income taxes                     (3,528,992)       (457,316)
 
     Income taxes                                   (256,416)             --
                                                _____________    ____________
 
 
     Net loss                                     (3,272,576)       (457,316)
                                                _____________    ____________
                                                _____________    ____________
 
     Loss per common shares                            (0,25)          (0,05)
                                                _____________    ____________
                                                _____________    ____________
 
     Weighted average number of outstanding
      shares                                      12,945,838       9,969,250
                                                _____________    ____________
                                                _____________    ____________
 
 
                                 CENOSIS INC.
                            CONSOLIDATED CASH FLOWS
                             (in canadian dollars)
                                  (unaudited)
     ________________________________________________________________________
 
                                                      Nine-month period ended
                                                            February 28th
                                                _____________________________
                                                        2001            2000
                                                _____________    ____________
     Operating activities                                 $              $
     Net loss                                     (3,272,576)       (457,316)
     Items not affecting cash :
       Gain in disposal of capital assets              3,273            (426)
       Depreciation of capital-assets                572,182          77,568
       Amortization of start-up and
        development costs                            529,575          35,506
       Amortization of goodwill                       48,805              --
       Gain on write down of debt                   (195,513)             --
                                                _____________    ____________
                                                  (2,314,254)       (344,668)
 
     Net change in non-cash operation working
      capital balances
     Receivables                                     397,687         292,418
     Work in process                                 111,442         (38,115)
     Advances to shareholders                       (311,879)         90,630
     Income taxes and income tax credits
      recoverable                                   (298,231)        186,901
     Prepaid expenses                                   (437)           (818)
     Accounts payable                                572,747          78,590
     Deferred revenues                                    --         (30,879)
                                                _____________    ____________
                                                  (1,842,925)        234,059
                                                _____________    ____________
     INVESTMENT ACTIVITIES
     Purchase of businesses                       (4,679,374)             --
     Disposal of capital assets                           --           9,082
     Purchase of capital assets                     (506,016)       (105,196)
     Development and start-up costs                 (484,059)       (645,264)
                                                _____________    ____________
                                                  (5,669,449)       (741,378)
                                                _____________    ____________
     FINANCING ACTIVITIES
     Issue of common shares                        5,087,973       2,866,871
     Increase of long-term debts                     314,913          12,998
     Decrease of long-term debts                    (271,947)             --
                                                _____________    ____________
                                                   5,130,939       2,879,869
                                                _____________    ____________
 
     INCREASE (DECREASE) IN CASH                  (2,381,435)      2,372,550
                                                _____________    ____________
 
     OPENING CASH                                  1,949,972         269,562
                                                _____________    ____________
 
     CLOSING CASH                                   (431,463)      2,642,112
                                                _____________    ____________
                                                _____________    ____________
     Cash consists of :
     Cash and short-term investments                 724,177       2,642,112
     Bank indebtedness                            (1,155,640)             --
                                                _____________________________
                                                    (431,463)      2,642,112
                                                _____________________________
                                                _____________________________
 
 
                                 CENOSIS INC.
                        CONSOLIDATED INCOME STATEMENTS
                             (in canadian dollars)
                                  (unaudited)
     ________________________________________________________________________
 
                                                     Three-month period ended
                                                           February 28th
                                                _____________________________
                                                        2001            2000
                                                _____________    ____________
                                                          $              $
     Revenues                                      3,157,757          84,134
 
     Cost of sales                                 2,725,715         142,447
                                                _____________    ____________
 
     Gross income                                    432,042         (58,313)
 
     Expenses
       Sales and administration costs              1,566,308         160,108
       Interests on long-term debts                  153,757              --
       Depreciation of capital assets                262,233          24,279
       Amortization of start-up and development
        costs                                        187,868          25,967
       Amortization of goodwill                       24,899              --
                                                _____________    ____________
                                                   2,195,065         210,354
                                                _____________    ____________
 
     Loss before income taxes                     (1,763,023)       (268,667)
 
     Income taxes                                   (180,108)             --
                                                _____________    ____________
 
     Net loss                                     (1,582,915)       (268,667)
                                                _____________    ____________
                                                _____________    ____________
 
     Loss per common share                             (0,12)           0,03
                                                _____________    ____________
                                                _____________    ____________
     Weighted average number of outstanding
      shares                                      13,575,775      10,258,438
                                                _____________    ____________
                                                _____________    ____________
 
 
 

SOURCE Cenosis Inc.
    MONTREAL, April 30 /PRNewswire/ - Cenosis Inc. (ME : CE) announced today
 its financial results for the third quarter and first nine months ended
 February 28, 2001. The Company also reaffirmed its expectations for strong
 internal growth and an improved financial performance for the 2001-2002 fiscal
 year.
 
     FINANCIAL RESULTS
     For the third quarter ended February 28, 2001, Cenosis posted revenues of
 $3,157,757, compared to $84,134 for the same period in 2000. For the nine
 months ended February 28, 2001, revenues increased to $8,208,606 compared to
 $675,608 last year. The significant increase in both periods is due mainly to
 the acquired operations, StanMont and Leading Graphics, which now offer a much
 wider range of services thanks to the solutions deployed by Cenosis and its
 KangaCom subsidiary.
     Gross margin for the third quarter is $432,042, compared to a negative
 margin of $58,313 for the corresponding period in 2000. The net loss is
 $1,582,915, or $0.12 per share for the three months ending February 28, 2001,
 versus a loss of $268,667, or $0.03 per share in the same period in 2000. This
 increase in the net loss is attributable to costs incurred in KangaCom's
 commercial launch activities, the new KangaXpress service available through
 the BellZinc.ca portal and costs associated with the integration of newly
 acquired subsidiaries.
     Over the course of the first three quarters, the company capitalized
 $484,059 in costs related to the development of new software solutions which
 will be marketed over the coming months. In addition to the KangaXpress
 service, these solutions include an information system which manages workflows
 in graphic communications and editorial content production, allowing for,
 among other benefits, the customization of business practices, cost
 calculations and the integration of different production workflows through
 LANs and WANs.
     "We are pleased with these results which were achieved despite a slowdown
 in the electronic business solutions market. Furthermore, the third quarter
 represents the slowest period of the year for the premedia industry," said
 Richard Corbo, President and Chief Executive Officer.
 
     FINANCIAL GUIDANCE
     Cenosis expects revenues of $12 million for fiscal 2000-2001 ending May
 31, 2001. For fiscal 2001-2002 beginning on June 1st, the Company forecasts
 revenues of over $20 million and positive cash flow which should allow it to
 reach break-even one year sooner than expected.
     Revenue growth in fiscal 2001-2002 is expected to come mainly from its
 wholly owned subsidiary KangaCom Inc., following the award of major contracts
 by large customers for the organization of advertising content bound for
 traditional print distribution and Web publication.
     Furthermore, the KangaCom subsidiary will launch digital file transport
 services in Europe towards the beginning of June 2001, in partnership with key
 players in that market. The subsidiaries supplying premedia services, StanMont
 and Leading Graphics, expect revenue growth of over 25% compared to fiscal
 2000-2001. This growth will be generated mainly by new clients attracted by
 the synergy with the KangaCom subsidiary and use of advanced Cenosis software
 solutions.
     These revenue projections do not take into account additional
 acquisitions which the Company may conclude over the course of fiscal 2001-
 2002.
     "Our growth in fiscal 2001-2002 will be driven by the integration of our
 premedia operations with KangaCom's and Cenosis's state-of-the-art solutions
 for the publishing and graphic communications industries. While achieving our
 revenue target, we will focus on continuing improvements in our financial
 performance with the objective to attain break-even for the year as a whole,"
 added Mr. Corbo.
 
     CENOSIS PURSUES BUSINESS PLAN
     Cenosis pursued its business plan in the third quarter by launching
 KangaXpress, a new digital file transport service available through Bell
 ActiMedia's BellZinc.ca SME portal. The Company also announced the signing of
 major new contracts with half the daily newspapers in Quebec and with Bell
 ActiMedia. It also extended its business relationships with major accounts
 such as White Rose Home & Garden Centres, Nissan, Canadian Tire, Molson and
 most of Canada's large advertising agencies.
 
     SIGNING OF ANNUAL CONTRACTS WITH HALF THE DAILIES IN QUEBEC
     On February 27, 2001, Cenosis announced that its KangaCom subsidiary had
 signed contracts with six dailies in Quebec for the use of KangaGraph service.
 Le Journal de Montreal, Le Droit, Le Quotidien, Le Devoir, Le Nouvelliste and
 The Record, which together represent half the daily newspaper market in
 Quebec, are now part of KangaGraph's subscriber base. KangaCom expects to
 finalize the interconnection of all Quebec dailies and thus ensure that its
 KangaGraph service will be used industry-wide for the transmission of
 advertising material.
 
     LAUNCH OF KANGAXPRESS
     On January 18, 2001, Cenosis launched its KangaXpress service, the first
 of a suite of services available via Internet. Accessible through BellZinc.ca,
 KangaXpress is a service as user-friendly as e-mail, requiring no hardware or
 software investment, while being more economical than traditional couriers.
 Thanks to this service, a user can now easily transfer via Internet heavy
 digital files of up to 100 megabytes, such as proofs, multimedia documents,
 architectural drawings, videos, high resolution photos, etc.
 
     $1.5 MILLION PRIVATE FINANCING AND ACQUISITION OF LEADING GRAPHICS
     In December 2000, Cenosis completed a private financing admissible under
 the Quebec Stock Savings Plan (QSSP) for $1.5 million with two institutional
 funds. The Company issued 600,000 units at $2.50, each composed of one common
 share and one half warrant for a common share of Cenosis, exercisable at
 $3.00. The funds were used to finance the acquisition of a 55% majority stake
 in the Leading Graphics group of companies in Toronto, a transaction which
 closed on January 24, 2001.
 
     ABOUT CENOSIS INC.
     Cenosis Inc. is a high technology company active in the development and
 integration of software solutions, mainly for the publishing and graphic
 communications industries. Its wholly owned subsidiary, KangaCom Inc., in
 partnership with Bell Nexxia, is an application service provider (ASP)
 offering software solutions for the transfer of large data files and digital
 workflow automation. Through its subsidiaries, StanMont in Montreal and
 Leading Graphics Inc. in Toronto, the Company offers an integrated suite of
 digital and traditional content management services.
 
     The common shares of Cenosis Inc. are traded on the Montreal Exchange
     under the symbol "CE". Consult its Web site: http://www.cenosis.com
 
                                 CENOSIS INC.
                        CONSOLIDATED INCOME STATEMENTS
                             (in canadian dollars)
                                  (unaudited)
     _________________________________________________________________________
 
                                                    Nine-month period ended
                                                          February 28th
                                                 _____________________________
                                                        2001            2000
                                                 _____________    ____________
                                                         $               $
     Revenues                                      8,208,606         675,608
 
     Cost of sales                                 6,207,737         560,033
                                                 _____________    ____________
 
     Gross income                                  2,000,869         115,575
 
     Expenses
       Sales and administration costs              4,168,530         459,817
       Interest on long-term debts                   210,769              --
       Depreciation of capital assets                572,182          77,568
       Amortization of start-up and development
        costs                                        529,575          35,506
     Amortization of goodwill                         48,805              --
                                                _____________    ____________
 
                                                   5,529,861         572,891
                                                _____________    ____________
 
     Loss before income taxes                     (3,528,992)       (457,316)
 
     Income taxes                                   (256,416)             --
                                                _____________    ____________
 
 
     Net loss                                     (3,272,576)       (457,316)
                                                _____________    ____________
                                                _____________    ____________
 
     Loss per common shares                            (0,25)          (0,05)
                                                _____________    ____________
                                                _____________    ____________
 
     Weighted average number of outstanding
      shares                                      12,945,838       9,969,250
                                                _____________    ____________
                                                _____________    ____________
 
 
                                 CENOSIS INC.
                            CONSOLIDATED CASH FLOWS
                             (in canadian dollars)
                                  (unaudited)
     ________________________________________________________________________
 
                                                      Nine-month period ended
                                                            February 28th
                                                _____________________________
                                                        2001            2000
                                                _____________    ____________
     Operating activities                                 $              $
     Net loss                                     (3,272,576)       (457,316)
     Items not affecting cash :
       Gain in disposal of capital assets              3,273            (426)
       Depreciation of capital-assets                572,182          77,568
       Amortization of start-up and
        development costs                            529,575          35,506
       Amortization of goodwill                       48,805              --
       Gain on write down of debt                   (195,513)             --
                                                _____________    ____________
                                                  (2,314,254)       (344,668)
 
     Net change in non-cash operation working
      capital balances
     Receivables                                     397,687         292,418
     Work in process                                 111,442         (38,115)
     Advances to shareholders                       (311,879)         90,630
     Income taxes and income tax credits
      recoverable                                   (298,231)        186,901
     Prepaid expenses                                   (437)           (818)
     Accounts payable                                572,747          78,590
     Deferred revenues                                    --         (30,879)
                                                _____________    ____________
                                                  (1,842,925)        234,059
                                                _____________    ____________
     INVESTMENT ACTIVITIES
     Purchase of businesses                       (4,679,374)             --
     Disposal of capital assets                           --           9,082
     Purchase of capital assets                     (506,016)       (105,196)
     Development and start-up costs                 (484,059)       (645,264)
                                                _____________    ____________
                                                  (5,669,449)       (741,378)
                                                _____________    ____________
     FINANCING ACTIVITIES
     Issue of common shares                        5,087,973       2,866,871
     Increase of long-term debts                     314,913          12,998
     Decrease of long-term debts                    (271,947)             --
                                                _____________    ____________
                                                   5,130,939       2,879,869
                                                _____________    ____________
 
     INCREASE (DECREASE) IN CASH                  (2,381,435)      2,372,550
                                                _____________    ____________
 
     OPENING CASH                                  1,949,972         269,562
                                                _____________    ____________
 
     CLOSING CASH                                   (431,463)      2,642,112
                                                _____________    ____________
                                                _____________    ____________
     Cash consists of :
     Cash and short-term investments                 724,177       2,642,112
     Bank indebtedness                            (1,155,640)             --
                                                _____________________________
                                                    (431,463)      2,642,112
                                                _____________________________
                                                _____________________________
 
 
                                 CENOSIS INC.
                        CONSOLIDATED INCOME STATEMENTS
                             (in canadian dollars)
                                  (unaudited)
     ________________________________________________________________________
 
                                                     Three-month period ended
                                                           February 28th
                                                _____________________________
                                                        2001            2000
                                                _____________    ____________
                                                          $              $
     Revenues                                      3,157,757          84,134
 
     Cost of sales                                 2,725,715         142,447
                                                _____________    ____________
 
     Gross income                                    432,042         (58,313)
 
     Expenses
       Sales and administration costs              1,566,308         160,108
       Interests on long-term debts                  153,757              --
       Depreciation of capital assets                262,233          24,279
       Amortization of start-up and development
        costs                                        187,868          25,967
       Amortization of goodwill                       24,899              --
                                                _____________    ____________
                                                   2,195,065         210,354
                                                _____________    ____________
 
     Loss before income taxes                     (1,763,023)       (268,667)
 
     Income taxes                                   (180,108)             --
                                                _____________    ____________
 
     Net loss                                     (1,582,915)       (268,667)
                                                _____________    ____________
                                                _____________    ____________
 
     Loss per common share                             (0,12)           0,03
                                                _____________    ____________
                                                _____________    ____________
     Weighted average number of outstanding
      shares                                      13,575,775      10,258,438
                                                _____________    ____________
                                                _____________    ____________
 
 
 SOURCE Cenosis Inc.