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CALGARY, November 19, 2004 - Solium Capital Inc. ("Solium" or the "Company") today announced its financial results for the quarter ended September 30, 2004. Solium achieved the following milestones during the third quarter of 2004:
Highlights of Solium's financial and operating results for the quarter ended September 30, 2004 are as follows:
Quarterly Review Gross revenue in the third quarter of 2004 of $763,137 grew 279% from $201,187 in the third quarter of 2003. The increase is largely due to the introduction of Share Purchase channel revenue beginning in April 2004 from the relationship with GRS Securities Inc. ("GRS Securities"), a subsidiary of The Great-West Life Assurance Company. In addition, the Company experienced increased E-SOAP and Share Purchase license fees from new clients added through direct sales. Increased exercise and other transaction volumes also contributed to the growth in revenue. Gross revenue of $763,137 in the third quarter declined from $803,902 in the second quarter of 2004, as a result of a negative adjustment recorded in the third quarter of approximately $35,000 for Share Purchase revenue from GRS Securities. This adjustment reflects a difference in the amount accrued for the second quarter of 2004, and the actual number that subsequently became known. Total expenses of $727,864 in the third quarter of 2004 increased by 20% from $608,428 in the third quarter of 2003. The increase is mainly attributable to an increase of approximately $83,000 in salaries and wages expense, and an increase of approximately $35,000 in general and administrative expense. Activity Update and Outlook To date in 2004, Solium has added five corporate clients with approximately 4,200 participants through direct sales onto E-SOAP and three corporate clients with approximately 2,200 participants onto Share Purchase. In addition, the Company has in progress, six direct sales clients with approximately 4,000 participants being implemented onto E-SOAP and three direct sales clients with approximately 11,000 participants being implemented onto Share Purchase. Implementation of these clients is expected to be completed by the end of the first quarter in 2005. The Company has been exploring the establishment of a small business office in New York in early 2005 to begin seeking out sales in the United States. No commitments have been made to date. The Company is in the process of finalizing an operating line of credit with a major financial institution. The line of credit will initially be for a maximum of $500,000. The credit facility will be available to fund working capital requirements as operations continue to expand. Solium has recently introduced some new investor information to the Investor Relations portion of the Solium website (solium.com). There is a Client List which will be updated regularly as well as two investor presentations:
About Solium Capital Inc. Solium Capital Inc. (TSX Venture: SUM) specializes in technology and services for the administration of equity-based incentive and savings programs for public corporations and their employees. Through its web-based applications, Solium is focused on re-defining the product and service standards in this sector. Solium's flagship products are Employee Stock Option Administration Platform (E-SOAP) and Share Purchase. Both are web-based and real-time applications. Certain information set forth in this document and Management's Discussion and Analysis contain forward-looking statements. By its nature, forward-looking statements are subject to numerous risks and uncertainties which could cause actual results to differ materially from those anticipated by Solium and described in the forward-looking statements contained herein. The risks, uncertainties and other factors, both know and unknown, that could influence actual results may be substantial, which may include, among others, inaccurate assumptions on the size and/or economic parameters of the market; changes in economic or business conditions in general; changes in the competitive environment; changes in services provided by Solium's suppliers, alliance partners, and channel partners; changes in customer needs and expectations; product capability and acceptance; and any governmental or regulatory actions. Accordingly, no assurances can be given that any of the events anticipated by these forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. For more information, please visit www.solium.com. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. ###
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