Company

KANGAROO MEDIA INC. reports $3 million revenues for the first quarter and solid business development performance

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(All amounts in this press release are in Canadian dollars unless otherwise indicated.)
 
·   Revenues of $3 million
·   Cash and cash equivalents of $23 million
·   Recent orders totaling $8.6 million raised the backlog to $12.6 million
 
Montréal, May 12 th, 2006 – Kangaroo Media Inc. today announced its revenues had reached $3 million during the first quarter of fiscal year 2006. The Corporation’s cash position is also very strong at $23 million compared with $7 million for the same period last year.
 
Growth in  the past quarter was driven by deliveries following the commercial launch of Kangaroo TV Generation II™ (KTV) at the Daytona 500 in February 2006. Operating losses were reduced to $109,000 compared with $671,000 for the same period in 2005. The increase in operating costs from $654,000 to $1.4 million for the quarter was expected and related to the increases in resources, expenses and costs in the development of new markets.
 
“In line with our business plan, activities and results of our first quarter have strengthened our market position and topline growth,” stated Normand Chartrand, Chief Financial Officer, Kangaroo Media. “We have markedly reduced our operating losses as compared to those of the same period last year. We also completed a $20 million private placement of common shares that will permit us to acquire additional licensing rights of sporting series and further extend our reach in a multi-billion dollar market.”
 
Kangaroo partners report an impressive 99 per cent satisfaction rate with the Kangaroo TV Generation II (KTV), branded NASCAR NEXTEL FanView. “Recent orders totaling $8.6 million raised our backlog to $12.6 million and attest to the success of our product,” added Marc Arseneau, President and CEO of Kangaroo Media. In this period of expansion, our goal is the long-term profitability of the Corporation and we are progressing steadily towards that goal. We will continue to implement proactive measures to increase our business, manage risk and continue creating value.”
 
 
About Kangaroo Media Inc.  
Kangaroo Media Inc., through its wholly-owned subsidiary Kangaroo TV, gives fans the superstar experience by letting them create their own live-action sporting event. Our unique technology delivers video, audio and data in real-time to each fan’s hand-held KTV. Our content-rich invention conceals proprietary, patented technology, Fan-tested and approved. Kangaroo Media Inc., headquartered near Montreal, Canada, is listed on the Toronto Stock Exchange TSX (www.tsx.com) as KTV.  For more information, visit www.kangaroo.tv
Forward-looking statements
This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Kangaroo Media. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Kangaroo Media does not assume any obligation to update or revise them to reflect new events or circumstances. (The TSX Exchange does not accept responsibility for the adequacy or accuracy of this release.)
 
Management Reports and Financial Statements are available at www.kangaroo.tv
 
™ Trademark(s) of Kangaroo Media Inc. or its subsidiaries.
 
Information:                         
 
Kangaroo TV:
Normand Chartrand, Chief Financial Officer
(450) 430-7474, ext. 103
 

Investor Relations:
Sylvain Archambault
Additional info
 
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Media relations contact
François Taschereau
Edelman

514-844-6665