The 2007 fiscal year marked a turning point in the evolution of the Company. During this year, the Company moved from the research and development phase into commercialisation. The transition began with the hiring of an Executive Vice President of Sales and Business Development, on November 22, 2006.

The Company sold two licences during the fiscal year. The first of these, completed during the first quarter, was to a systems integrator partner and was valued at $150,000. The second sale, made during the third quarter, was to the Government of Québec for $1,012,000, including $75,000 in training and installation services. As a result of the latter agreement, the SmartGuide suite is now available to Government of Québec ministries and departments wishing to implement online solutions that give the public direct access to their services.

The company reported revenue of $341,060 for the fiscal year; sales balances are recorded as deferred revenue collected in advance. Of $851,750 in deferred revenue, $576,875 in sales licences will be recognized as revenue for the 2008 fiscal year. In addition, $262,500 in services will be recognized in accordance with the percentage-of-completion method.

While the financial statements indicate a loss of $890,969, cash flow for fiscal 2007 was positive, with $357,780 from operating activities.

Alphinat's financial statements and Management's Discussion and Analysis for the period ending August 31, 2007 can be found on SEDAR, at www.sedar.com.

About Alphinat

Alphinat is a software publisher that has developed the SmartGuide suite. These products allow organizations to better serve their clients by rolling out low-cost online services based entirely on clients' needs and expectations. The innovative "Guided interaction" concept, integral to Alphinat's SmartGuide solution, allows organizations to easily and cost-effectively deploy web-based tools automating all steps of a process, and responding fully to client needs.

Alphinat technology could also prove useful to the healthcare, banking, insurance, and telecommunications sectors, in modernizing, automating and rendering cost-effective a number of business processes at a fraction of the cost associated with conventional customized solutions. -- www.cnxmarketlink.com