Kangaroo Media Announces 2nd Quarter 08 Financial Results

HIGHLIGHTS:

- Revenues totaled close to $1.4 million

- Revenues from rental and activations up 32% over Q2 2007

- Activations per event up 30% in NASCAR and 84% in F1

- Liquidity and capital resources amount to $14.4 million

For the second quarter ended June 30, 2008, revenues totaled $1.4 million. Q2 2008 revenues can be segmented as follows: $1.2 million from the rental and activation of units, an increase of 32% over Q2 2007; $150,000 stemming from services, compared to $289,000 in Q2 2007; $5,000 from the sales of devices and accessories, compared to $313,000 in Q2 2007. The Company incurred a slightly higher net loss of $4.7 million or $0.13 per share, compared to a loss of $4.2 million or $0.15 per share in the second quarter of 2007.

As at June 30, 2008, the Company's cash, cash equivalents and short-term investments totaled $14.4 million.

"The 2nd quarter 2008, was active on several fronts. Operationally, delivering and further building our motor racing activities segment captured a large part of our focus. Efforts at better execution and broader penetration, especially in F1, led to increased activation levels and new revenue sources through sponsorship and exclusive content delivery. We are encouraged by the traction we are experiencing. In golf, an area we are aggressively targeting, we successfully showcased Kangaroo TV at THE PLAYERS golf tournament. While we are focused on the top line, our drive for better execution is also helping us review our costs and strive for more effective returns on these costs," said Robert Mimeault , President and COO of Kangaroo Media Inc.

Commenting on the new business perspective, Mimeault added: "We have been engaging current and prospective partners along the lines of a more sustainable and profitable business model for the company. As a result, discussions have been more extensive and more time-consuming but the new business perspective remains positive. Our principal focus for the balance of 2008 is to continue to develop additional revenue streams both through deeper market penetration of the properties in which we operate and through the addition of new top tier sports properties." -- www.cnxmarketlink.com