Angoss Expands Finance & ICT Client Base in 2nd Quarter. Introduces Predictive Leads. On Demand (TM) for Salesforce.com

Toronto, Canada, July 06, 2007 --(PR.com)-- For the six months ended May 31, 2007 revenues of $3,484,636 were up 5% over 2006 results ($3,345,778). Expanding predictive analytics solutions sales and opportunities in the retail and small business banking, mutual funds, insurance and ICT industries continue to be the Company's primary focus of activity. Revenue growth was achieved primarily from the FundGUARD(TM) predictive sales targeting system for mutual funds, from the ClaimGUARD(TM) insurance claims fraud detection system, and from expanding sales of the company's predictive credit risk analytics suite KnowledgeSEEKER(R), KnowledgeSTUDIO(R) and StrategyBUILDER(TM) for financial services marketing and credit risk management applications.

During the second quarter, revenues of $1,726,657 were down 2% from 2005 results ($1,771,168). Sales and contract negotiation cycles, the timing of contract billings and recognition of revenues from existing solution delivery contracts, and foreign exchange volatility all impacted on second quarter results. However, during the second quarter the Company continued to expand its focus on and business with the world's leading financial services organizations, signed two new FundGUARD(TM) clients to trial subscriptions with ongoing recurring business from existing clients, successfully completed the initial implementation phase for its ClaimGUARD(TM) solution with a leading North American benefits insurance provider, and introduced a new sales analytics solution for the popular Salesforce.com on demand sales force automation suite.

The Company's business model is increasingly shifting to the provision of predictive analytics solutions combining software licensing or subscription services with associated industry specific implementation and configuration services. The Company's billed revenues in the quarter were approximately $1,750,000 compared with prior year second quarter billed revenues of $1,950,000. Quarterly billed revenues reflect implementation specific payment cycles for solution delivery, and will fluctuate from quarter to quarter while the Company expands its opportunity pipeline and backlog of signed contracts for future period deliveries. Since completion of the second quarter, for example, the Company has completed work under certain contracts and has also signed several additional solutions contracts that will result in additional recording of billed and earned revenues over the balance of 2007.

Operating expenses of $1,638,673 were up 8% from the second quarter of 2005 ($1,531,166). For the year to date operating expenses were $3,206,376 up 10% from 2005 year to date expenses of $2,889,447. First half operating expenses reflect continued research and development expense which resulted in the completion of a major software platform upgrade, administrative costs associated with the Company's relocation to new premises as well as ongoing patent and intellectual property investment costs, and investments in automated demand generation and sales force automation tools, as well as investments in data center infrastructure to support the Company's expanding on demand predictive analytics solutions business made to support scalable, profitable growth in this segment. These investments should support higher revenue growth and improved operating margins on both packaged software sales and for delivery of Angoss on demand analytics solutions as the Company's business base expands.

Second quarter revenues results and operating expenses growth resulted in operating profit of $87,984 compared with prior year operating profit of $240,002. Similarly the Company recorded a net loss of $231,242 compared with second quarter 2005 net income of $195,098. The most significant contributors to this shift were foreign exchange and increased amortization expenses associated with expansion of the Company's infrastructure to support on demand business development.

"Our second quarter results reflect our continuing transition to focus on higher value, but longer sales cycle, analytics solution sales in the financial services and ICT industries, and away from one-off lower transaction value sales of packaged software outside those areas" commented Angoss President Eric Apps. "During the second half of 2007 we expect to continue to strengthen our leadership position as a data mining systems vendor of choice in the finance industry and to expand our solutions business with additional
implementations, and associated expansion of headcount for our sales, business development and solution delivery teams in the financial services and ICT industries."

Following completion of the second quarter, the Company's head of packaged software sales left the Company to pursue other interests. The Company plans to expand its analytics solutions sales team with seasoned sales professionals experienced in the sale of enterprise solutions for the North American insurance and information and communications technology markets.

Full Report http://www.angoss.com/files/news/2007/2007_Q2_NR.pdf

###