Rare Method Establishes Record Of Net Earnings

Rare Method today announced consolidated financial results for the three months and six months ended December 31, 2006. For Q2, Rare Method recorded revenue of $2.04 million, up 59% from $1.28 million a year ago, and EBITDA (Earnings before interest, taxes, stock-based compensation, and depreciation and amortization) of $121,126 up $240,260 from a loss of $119,134 during the same period last year.

Net earnings for the three months ended December 31, 2006 were $66,470, up $241,489 from a loss of $175,019 a year ago.

"Significant new client wins, increased demand for Rare Method's interactive marketing services, and the strategic acquisition of companies with expertise in web software applications and website development helped fuel our growth and profitability in Q2," explains Rare Method president Roger Jewett.

Consistent with Rare Method's previously announced strategic objectives for fiscal 2007, the following are Q2 highlights:

- Rare Method achieved three significant client wins for interactive marketing services in Q2. These Agency of Record relationships are expected to generate combined annual revenues in excess of $1 million;

- Q2 2007 revenue increased by 59% to $2.04 million; up from $1.28 million last year. This growth was fueled by a rise in the demand for interactive marketing services. 83% of this growth was organic while 17% resulted from acquisitions made in the previous year;

- Q2 2007 EBITDA improved by $240,260 to $121,126 from a loss of $119,134 last year. The earnings improvement is directly attributable to strong revenue growth and an ongoing transition to larger, long- term clients with higher profit margins;

- Rare Method continued to make timely investments in Q2 to drive business for the second half of fiscal 2007. The company invested approximately $215,000 in capital assets, acquisitions (Stone Monkey and Ground Level) and new product development. The return on these investments will be realized over the next twelve months;

- Q2 EBITDA as a percentage of gross income improved to 7.5% this year, up from -11.3% in Q2 2006;

- Rare Method was ranked by Alberta Venture magazine (in January 2007), as Alberta's second fastest growing company with revenue less than $20 million;

- Rare Method's US revenue as a percentage of total revenue continued to grow and reached 16% of total revenue in Q2 2007, compared to 13.5% for the year ended June 30, 2006. -- www.cnxmarketlink.com