Full Year Revenue Increased 78% to $18.7 Million; Operating Loss Narrows to $1.18 Million; Avensys Inc. Records Profit for the First Time MONTREAL, Sept. 27 /PRNewswire-FirstCall/ -- Manaris Corporation (OTC Bulletin Board: MANS; Frankfurt WKN: A0F5LD), a leading manufacturer and distributor of fiber optic components and integrator of instrumentation and turn-key systems for environmental monitoring, today reported its financial results for the fourth quarter and year ended June 30, 2007. Fiscal Year 2007 Highlights: -- Revenues climbed to $18.7 million versus $10.5 million for the same period last year; -- Operating loss, after impact of investment tax credit, narrowed to $1.18 million compared to $7.28 million a year earlier; -- Net cash used from Operating Activities totaled $2.42 million versus $4.26 million in the previous year; -- Holding company operating expenses significantly reduced compared to fiscal year 2006; and -- Avensys Inc., our main operating subsidiary, records a net profit for the first time in fiscal year 2007. Fourth Quarter 2007 Highlights: -- Revenues were $5.5 million versus $3.4 million in the same quarter a year earlier; -- Operating loss, after impact of investment tax credit was $0.16 million compared to an operating loss of $2.1 million; and -- Net cash generated from Operating Activities was $0.36 million compared to net cash used of $1.44 million in the same quarter of fiscal year 2006. President and Chief Executive Officer John Fraser of Manaris Corp said, "In the twelve months ended June 30, 2007, Manaris made further progress in sharpening our strategic focus. We improved the financial health of the Company as we nearly doubled our revenues. Our operating loss decreased significantly and our net working capital position was positive at year end. In our final quarter of the year ended June 30, 2007, we generated record quarterly revenue of $5.5 million." Segment Breakdown -- Avensys Inc. generated net income in excess of $1.5 million during fiscal year 2007. Revenues increased by 62.8% as compared to the same period a year ago. During the year, several new products, which had been under development at ITF Optical, reached a marketable stage and were transferred from R&D to production at the Avensys Tech division. Avensys Tech officially launched its 2+1 combiners in February 2007 with sales in the first five months exceeding 650 units. Avensys Tech also witnessed success with its DPSK demodulator modules. Avensys Solutions continued to grow at a rate of approximately 10%, well ahead of accepted growth figures for this marketplace of about 3%. During the year, Avensys Solutions renewed several contracts with key suppliers including ISCO and IDEXX. In addition, Avensys Solutions also signed new exclusive distribution agreements in Canada with four leading equipment manufacturers. -- The Company took steps to ensure profitability for its C-Chip Technologies (North America) business. By strengthening the relationship with its technology partner, i-Metrik, and leveraging its expertise and market presence, Manaris was able to eliminate costs and generate profits from royalties. The launch of the new GSM-based Credit Chip 200G provided a competitive alternative which resulted in increased sales and steady royalty revenues which were used to repay C- Chip's loan. C-Chip reported a profit of $56,000 during fiscal year 2007. C-Chip recorded royalties' income for the three and twelve month periods ended June 30, 2007 were $139,262 and $355,928, respectively. Subsequent to the fiscal year ended June 30, 2007, the Company focused on reducing the dilutive impact of past financings on its shareholders and establishing the platform for continued and sustainable growth. During the first quarter of fiscal 2008, Manaris redeemed the Series B Notes and Series B OID Notes ("Notes") issued in August 2006. The Company also redeemed a significant portion of the warrants attached to these Notes. In order to accomplish this redemption, on September 24, 2007, the Company entered into a Securities Purchase and Loan Agreement ("SPL Agreement") with Imperium for the sale of a 6% Original Issue Discount Senior Secured Convertible Note ("Convertible Note") in the amount of $4,708,900. The principal value and the gross proceeds of the Convertible Note is $4,000,000. The Convertible Note matures on September 24, 2012 and the original principal amount is convertible into common shares of the Company at a conversion price of $0.11 per share. The principal value will accrete to the value of the Convertible Note over a two year period and will subsequently accrue interest at 6%. Monthly installments of principal and interest will be payable commencing after the second year up to the maturity date. The SPL Agreement also provides the holder of the Convertible Note with a Warrant to purchase up to 20,276,190 shares of the Company's outstanding common stock on a fully diluted basis. On August 22, 2007, the Company issued to the holder of the Convertible Note a Warrant to purchase up to 5% of the Company's outstanding common stock on a fully diluted basis. In addition, the SPL Agreement provides the Company with a $2,500,000 Working Capital Facility which will enable the Company to meet any immediate working capital requirements and fund future growth. Mr. Fraser concluded, "We continue to improve our manufacturing process and streamline costs. The positive results from Avensys confirm the validity of our strategic decision to use Avensys as a primary vehicle for future growth. Our objective is to continue to grow revenues and execute on the business strategy we have outlined." In conjunction with the earnings release, Manaris Corp will host a conference call with John Fraser, President and CEO, and Tony Giuliano, Chief Financial Officer. The call will take place, Thursday, September 27, 2007 at 11:00am ET and will be simultaneously broadcast live over the Internet at http://www.manariscorp.com/ or http://www.vcall.com/. Please allow extra time prior to the call to visit the site and download the streaming media software required to listen to the Internet broadcast. The online archive of the broadcast will be available within one hour of the live call. Those who would like to participate on the conference call should dial +1-877-407-8033 (US and Canada) and +1-201-689-8033 (International). A replay of the call will be available on the Company's Web site or by dialing +1-877-660-6853 (US and Canada) and +1-201-612-7415 (International). When prompted please enter access code, 286 and conference ID 256704. The replay will be available for two weeks following the event. About Manaris Corporation Manaris operates two wholly-owned subsidiaries. Our Avensys subsidiary, through its manufacturing division Avensys Technologies, designs, manufactures, distributes, and markets high reliability optical components and modules as well as FBGs for the telecom market and high power devices and sub- assemblies for the industrial market. Avensys is also a pioneer in the development of packaged fiber-based sensors and possesses leading edge intellectual property. Avensys Solutions, is an industry leader in providing environmental monitoring solutions for air, water and soil, as well as geostructure in the Canadian. Our other subsidiary, C-Chip Technologies Corporation (North America) licensed its technology to its technology partner iMetrik Inc, whereby, C-Chip will receive royalties from iMetrik for its worldwide sales of GSM-based "locate and disable" products into the "Buy Here Pay Here" (BHPH) used car market Forward-Looking Statements: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations. For more information, please contact: DATASOURCE: Manaris Corporation CONTACT: Truc Nguyen, Deputy Managing Director of The Global Consulting Group, +1-646-284-9418, , for Manaris Corporation Web site: http://www.manariscorp.com/ http://www.vcall.com/

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