Versatile Systems Inc. (TSX VENTURE: VV)(AIM: VVS), announces its results for the fourth quarter and the 2011 fiscal year.

Revenue for the year ended June 30, 2011 was $45,903,472 generating a gross profit of $10,129,378 or 22.1% of sales compared to $44,188,021 generating a gross profit of $10,036,501 or 22.7% of sales for the previous fiscal year. The Net Loss for the period amounted to $98,762 ($0.00 per share) compared to a Net Loss of $1,236,621 ($0.01 per share) for the previous fiscal year, an improvement of $1,137,859.

The Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) for the year ended June 30, 2011 was $112,195 compared to an EBITDA loss of $1,291,424 for the previous fiscal year, an improvement of $1,403,619.

"While economic conditions continue to be challenging, we are pleased with the significant turnaround from the previous fiscal year," said John Hardy, Chairman and CEO of Versatile. "Heading into fiscal 2012 we remain committed to improving profitability, while carefully managing our expenses."

Revenue for the three months ended June 30, 2011 was $10,180,289 generating a gross profit of $2,381,728 or 23.4% of sales compared to $11,517,023 generating a gross profit of $2,419,338 or 21.0% of sales for the same quarter last year. The Net Loss for the quarter amounted to $221,251 ($0.00 per share) compared to a Net Loss of $292,335 ($0.01 per share) for the same period last year.

Highlights for the quarter included:


--  Revenue for the three months ended June 30, 2011 was $10,180,289
    compared to $11,517,023 for the same quarter last year;
--  The normalized EBITDA for the quarter was $45,167, compared to a
    normalized EBITDA loss of $398,232 for the same quarter last year.
    Normalized EBITDA excludes the non- recurring expenses and the non-cash
    stock based compensation charge;
--  The research and development expense for the quarter amounted to
    $210,996 compared to $177,744 for the same quarter last year;
--  Deferred revenue at June 30, 2011 was $6,320,199 (of which $5,670,932 is
    expected to be recognized in the next four quarters) compared to
    $8,142,479 at June 30, 2010; and
--  The Investment in Equus consists of 962,962 shares of Equus Total
    Return, Inc. which is a public company trading on the NYSE under the
    symbol EQS. The net asset value of Equus at June 30, 2011 was $3.92 per
    share.

During the current quarter, the Company incurred $116,328 for research and development activities related to Mobiquity Route™, DEX and related mobile software products and $53,181 related toMobiquity Transaction Engine 3.0™ and Mobiquity Kiosk™.

Subsequent to the year-end the Company changed its banking facilities for its U.S. based operations to a new financial institution, which is providing a credit facility for up to $4,500,000 on more favorable terms than the former bank.

"Versatile generated cash flow from operations before non-cash operating balance sheet items of $319,649 for the current fiscal year compared to cash flow used in operations before non-cash operating balance sheet items of $1,164,160 for last year," said Fraser Atkinson, CFO of Versatile. "This is an improvement of $1,483,809 and has helped to strengthen the Company's financial position."

About Versatile

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computer environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information: www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's operations or to the environment in which it operates, which are based on Versatile's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

All amounts are expressed in U.S. dollars unless otherwise stated. © 2011 Versatile Systems Inc. All rights reserved.


----------------------------------------------------------------------------
Versatile Systems Inc.
Consolidated Balance Sheets
----------------------------------------------------------------------------

                                                  June 30,         June 30,
Expressed in U.S. dollars                             2011             2010
                                              ------------------------------


ASSETS
Current Assets
  Cash and cash equivalents                   $    978,656     $  1,738,036
  Investment in Equus                            2,311,109        2,203,043
  Accounts receivable                            7,134,328       10,580,706
  Current portion of deferred contract costs     4,469,066        5,793,180
  Prepaid expenses                                 228,062          236,993
  Inventory                                      1,849,635        1,719,477
  Future income tax benefits                       546,252          721,975
                                              ------------------------------
                                                17,517,108       22,993,410

Long-term accounts receivable                      401,742          265,612
Deferred contract costs                            579,710          598,366
Capital Assets                                     270,437          519,391
Intangible assets                                        -              459
Future income tax benefits                       6,454,904        6,243,875
Goodwill                                         9,914,350        9,914,350
                                              ------------------------------
                                              $ 35,138,251     $ 40,535,463
                                              ------------------------------
                                              ------------------------------
LIABILITIES
Current Liabilities
  Line of credit and bank overdraft           $  1,007,767     $  1,353,312
  Accounts payable and accrued liabilities       6,823,643        9,955,342
  Current portion of deferred revenue            5,670,932        7,432,210
                                              ------------------------------
                                                13,502,342       18,740,864

Deferred Revenue                                   649,267          710,269
                                              ------------------------------
                                                14,151,609       19,451,133
                                              ------------------------------
SHAREHOLDERS' EQUITY
  Share Capital                                 54,433,709       54,433,709
  Warrants                                          42,000          186,367
  Contributed surplus                            4,578,470        4,231,539
  Deficit                                      (37,064,598)     (36,965,836)
  Accumulated other comprehensive loss          (1,002,939)        (801,449)
                                              ------------------------------
                                                20,986,642       21,084,330
                                              ------------------------------
                                              $ 35,138,251     $ 40,535,463
                                              ------------------------------
                                              ------------------------------

----------------------------------------------------------------------------
Versatile Systems Inc.
Consolidated Statements of Operations and Deficit
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S. dollars                 Three months ended June 30
                                                 2011                 2010
                                    ----------------------------------------
                                    ----------------------------------------
                                          (unaudited)          (unaudited)

SALES                                $     10,180,289     $     11,517,023
COST OF SALES                               7,798,561            9,097,685
                                    ----------------------------------------
                                            2,381,728            2,419,338
                                    ----------------------------------------
EXPENSES
  Selling and marketing                     1,186,724            1,497,988
  General and administrative                  929,913            1,140,105
  Research and development                    210,996              177,744
  Non recurrring expenses                     199,293             (214,924)
  Stock-based compensation                    141,658               23,887
  Foreign exchange loss (gain)                  8,928                1,733
                                    ----------------------------------------
                                            2,677,512            2,626,533
                                    ----------------------------------------
                                    ----------------------------------------
Earnings (loss) before interest,
 taxes and amortization                      (295,784)            (207,195)
  Amortization of capital assets               51,473               67,874
  Amortization of intangible
   assets                                           -               60,191
  Interest expense                              2,616               10,248
  Goodwill Impairment                               -               63,309
  Loss (Gain) on sale of capital
   assets and investments                       1,410                    -
                                    ----------------------------------------
LOSS BEFORE INCOME TAXES                     (351,283)            (408,817)
Current income tax recovery
 (expense)                                       (995)               2,985
Future income tax benefit                     131,027              113,497
                                    ----------------------------------------
NET LOSS                                     (221,251)            (292,335)
                                    ----------------------------------------

DEFICIT, BEGINNING OF PERIOD              (36,843,347)         (36,673,501)
                                    ----------------------------------------

DEFICIT, END OF PERIOD                    (37,064,598)         (36,965,836)
                                    ----------------------------------------
                                    ----------------------------------------

EARNINGS (LOSS) PER SHARE (basic
 and diluted)                        $          (0.00)    $          (0.00)
                                    ----------------------------------------
                                    ----------------------------------------


--------------------------------------------------------------------------
Versatile Systems Inc.
Consolidated Statements of Operations and Deficit
(Unaudited - Prepared by Management)
--------------------------------------------------------------------------

Expressed in U.S. dollars                     Year ended June 30
                                                 2011                 2010
                                  -----------------------------------------
                                  -----------------------------------------


SALES                                $     45,903,472     $     44,188,021
COST OF SALES                              35,774,094           34,151,520
                                  -----------------------------------------
                                           10,129,378           10,036,501
                                  -----------------------------------------
EXPENSES
  Selling and marketing                     4,659,897            5,969,542
  General and administrative                3,702,160            4,058,864
  Research and development                    960,399              856,787
  Non recurrring expenses                     492,950              358,811
  Stock-based compensation                    202,564               93,102
  Foreign exchange loss (gain)                   (787)              (9,181)
                                  -----------------------------------------
                                           10,017,183           11,327,925
                                  -----------------------------------------
                                  -----------------------------------------
Earnings (loss) before interest,
 taxes and amortization                       112,195           (1,291,424)
  Amortization of capital assets              225,227              258,742
  Amortization of intangible
   assets                                           -              332,214
  Interest expense                             16,426               32,239
  Goodwill Impairment                               -               63,309
  Loss (Gain) on sale of capital
   assets and investments                       4,610               (4,952)
                                  -----------------------------------------
LOSS BEFORE INCOME TAXES                     (134,068)          (1,972,976)
Current income tax recovery
 (expense)                                          -                 (756)
Future income tax benefit                      35,306              737,111
                                  -----------------------------------------
NET LOSS                                      (98,762)          (1,236,621)
                                  -----------------------------------------

DEFICIT, BEGINNING OF PERIOD              (36,965,836)         (35,729,215)
                                  -----------------------------------------

DEFICIT, END OF PERIOD                    (37,064,598)         (36,965,836)
                                  -----------------------------------------
                                  -----------------------------------------

EARNINGS (LOSS) PER SHARE (basic
 and diluted)                        $          (0.00)    $          (0.01)
                                  -----------------------------------------
                                  -----------------------------------------

----------------------------------------------------------------------------
Versatile Systems Inc.
Consolidated Statements of Comprehensive Loss
(Unaudited - Prepared by Management)
----------------------------------------------------------------------------

Expressed in U.S.
 dollars             Three months ended June 30          Year ended June 30
                             2011          2010          2011          2010
                     -------------------------------------------------------
                      (unaudited)   (unaudited)

Net earnings (loss)      (221,251)     (292,335)      (98,762)   (1,236,621)

Other comprehensive
 (loss) income
  Net change in fair
   value of
   available-for-sale
   investments           (192,592)     (519,670)     (201,490)     (519,670)
                     -------------------------------------------------------

Comprehensive (loss)
 income                  (413,843)     (812,005)     (300,252)   (1,756,291)
                     -------------------------------------------------------
                     -------------------------------------------------------

---------------------------------------------------------------------------
Versatile Systems Inc.
Consolidated Statements of Cash Flows
(Unaudited - Prepared by Management)
---------------------------------------------------------------------------

Expressed in U.S.
 dollars             Three months ended June 30          Year ended June 30
                             2011          2010          2011          2010
                     -------------------------------------------------------
                     -------------------------------------------------------
                      (unaudited)   (unaudited)

OPERATING ACTIVITIES
  Net loss           $   (221,251) $   (292,335) $    (98,762) $ (1,236,621)
  Items not affecting
   cash
  Amortization of
   capital and
   intangible assets       56,998       144,719       256,075       665,091
  Stock-based
   compensation           141,658        23,887       202,564        93,102
  Goodwill Impairment           -        63,309             -        63,309
  Loss (Gain) on sale
   of capital assets
   and investments          1,410             -         4,610       ( 4,952)
  Unrealized foreign
   exchange gain         ( 10,765)     ( 20,135)      ( 9,532)      ( 6,978)
  Future income tax
   benefit              ( 131,027)    ( 113,497)     ( 35,306)    ( 737,111)
                     -------------------------------------------------------
Cash flow used in
 operations before
 other items            ( 162,977)    ( 194,052)      319,649   ( 1,164,160)
  Net change in non-
   cash operating
   balance sheet
   items                  523,092     ( 593,002)    ( 418,517)  ( 1,538,546)
                     -------------------------------------------------------
                          360,115     ( 787,054)     ( 98,868)  ( 2,702,706)

INVESTING ACTIVITIES
  Purchase of
   investment in
   Equus                        -         3,447      (309,556)   (2,722,713)
  Proceeds from
   disposition of
   capital assets         (30,387)       33,519        76,968        57,253
  Purchase of capital
   assets                  26,465      ( 26,390)     ( 82,379)     ( 99,606)
                     -------------------------------------------------------
                          ( 3,922)       10,576     ( 314,967)  ( 2,765,066)
                     -------------------------------------------------------

FINANCING ACTIVITIES
  Proceeds from
   issuance of shares           -             -             -     3,876,257
  Share issue costs             -             -             -       (26,291)
  Proceeds from
   (repayment of)
   line of credit        (131,060)      584,976      (345,545)    1,353,312
                     -------------------------------------------------------
                     -------------------------------------------------------
                        ( 131,060)      584,976     ( 345,545)    5,203,278
                     -------------------------------------------------------

Increase (decrease)
 in cash and cash
 equivalents              225,133     ( 191,502)    ( 759,380)    ( 264,494)

CASH and cash
 equivalents,
 beginning of period      753,523     1,929,538     1,738,036     2,002,530

                     -------------------------------------------------------
                     -------------------------------------------------------
CASH and cash
 equivalents, end of
 period              $    978,656  $  1,738,036  $    978,656  $  1,738,036
                     -------------------------------------------------------
                     -------------------------------------------------------

The TSX Venture Exchange and the AIM market of the London Stock Exchange have not reviewed and do not accept responsibility for the adequacy or accuracy of this release. All amounts are expressed in U.S. dollars unless otherwise stated.

Contacts: Versatile Systems Inc. John Hardy Chairman and CEO 1-800-262-1633 International: 001-206-979-6760 Versatile Systems Inc. Fraser Atkinson CFO 1-800-262-1633 www.versatile.com