Millionaire500

NEW YORK, Sept. 24 /PRNewswire-FirstCall/ — Comtex News Network, Inc.
(OTC Bulletin Board: CMTX), a leading provider of economically useful
electronic real-time news, content and SmarTrend(R) market products, today
announced financial results for the fourth quarter and fiscal year ended
June 30, 2007.

For the fourth quarter of fiscal 2007, ended June 30, 2007, Comtex’s
revenues were $1.8 million, approximately the same as the fourth quarter of
fiscal 2006. The Company reported $85,000 of operating income and net
income of $86,000, or $0.01 per share for the fourth quarter of fiscal
2007, compared to a $(198,000) fourth quarter operating loss and a net loss
of approximately $(212,000), or $(0.02) per share, for the quarter ended
June 30, 2006.

For the year ended June 30, 2007, Comtex reported revenues of $7.1
million, down from $7.7 million for the fiscal year ended June 30, 2006.
The decline in revenues is primarily the result of business consolidations
among clients. For fiscal 2007, Comtex had operating income of $168,000 and
a net loss of $(107,000), or $(0.01) per share, versus an operating loss of
$(364,000) and a net loss of $(458,000), or $(0.03) per share, in the
previous year. The net loss for the 2007 fiscal year was primarily the
result of a non-cash charge associated with the accounting treatment of the
repayment of the Company’s $857,000 Note Payable. During fiscal 2007, in
order to save the Company the continuing costs of servicing its Note
Payable, Comtex entered into a Note Repayment Agreement to settle the Note
for a combination of cash and restricted stock. In accordance with SFAS No.
84, Induced Conversions of Convertible Debt, the Company recorded a
non-cash expense of $234,336 for this transaction.

For fiscal 2007, EBITDA (as defined and explained in the accompanying
note to the table below), excluding the effects of stock-based
compensation, was approximately $322,000 compared to $690,000 for the
previous fiscal year. For the fourth quarter of fiscal 2007, EBITDA was
$119,000 compared to negative EBITDA of $(142,000) for the fourth quarter
of 2006. The decline in annual EBITDA is primarily the result of decreased
revenues plus increased operating and other expenses in the current fiscal
year.

“During fiscal 2007, besides enhancing its core news products, Comtex
expanded its innovative, new SmarTrend(R) market product line to include a
daily stock market letter (Morning Call) and selected stock news (SmarTrend
Spotlights), in addition to our banner product, SmarTrend Alerts. All these
products are now available to consumers via subscription at our new website
http://www.mysmartrend.com,” stated Chip Brian, Comtex’s President and CEO. “We
are also pleased to have strengthened our balance sheet by repaying our
long term debt obligations during this past fiscal year,” he concluded.

About Comtex
Comtex (http://www.comtex.com) provides real-time news, Comtex SmarTrend(R)
Alerts and economically useful information. Comtex customers receive select
content from key sources which is further enhanced with stock tickers and
an extended lexicon of relevant terms. With a specialization in the
financial news and content marketplace, Comtex receives, enhances, combines
and filters news and content received from national and international news
bureaus, agencies and publications, and distributes more than one million
total stories per day. Comtex’s state-of-the-art technology delivers this
relevant content and reliable service in real-time. Comtex now also
provides several SmarTrend Alert products to consumers, including a daily
stock market letter (Morning Call), selected stock news (SmarTrend
Spotlights), and SmarTrend Alerts (via subscription at
http://www.mysmartrend.com). Comtex has offices in New York City and Alexandria,
Virginia.

SmarTrend(R) is a registered trademark of Comtex News Network, Inc.
Please Note: Except for the historical information contained herein,
this press release contains forward-looking statements within the meaning
of Section 21E of the Securities and Exchange Act of 1934, as amended, that
involve a number of risks and uncertainties. These forward-looking
statements may be identified by reference to a future period by use of
forward-looking terminology such as “anticipate,” “expect,” “could,”
“intend,” “may” and other words of a similar nature. These statements
involve risks and uncertainties that could cause actual results to differ
materially from those contemplated herein, including the occurrence of
unanticipated events or circumstances relating to the fact that Comtex is
in a highly competitive industry subject to rapid technological, product
and price changes. Other factors include the possibility that demand for
the Company’s products may not occur or continue at sufficient levels,
changing global economic and competitive conditions, technological risks
and other risks and uncertainties, including those detailed in the
Company’s filings with the Securities and Exchange Commission. Comtex
undertakes no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

Contact: Amber Gordon
agordon@comtex.com
703-797-8011

Comtex News Network, Inc.
Selected Financial Data
(amounts in thousands, except per share amounts)

Years Ended Quarters Ended
June 30 June 30
(audited) (unaudited)
2007 2006 2007 2006

Revenues $7,069 $7,677 $1,823 $1,781
Operating Income (Loss) 168 (364) 85 (198)
Net (Loss) Income $(107) $(458) $ 86 $(212)
Net (Loss) Income Per Share,
Basic and Diluted $(0.01) $(0.03) $0.01 $(0.02)
Weighted Avg. # Shares,
Basic and Diluted 14,238 13,675 15,294 13,700

Reconciliation to EBITDA:
Net (Loss) Income $(107) $(458) $ 86 $(212)
Stock-based compensation 44 772 11 15
Depreciation & Amortization 110 282 22 41
Interest/Other Expense 269 78 - 14
Income Taxes 6 16 - -
EBITDA $322 $690 $119 $(142)

Please Note: EBITDA consists of earnings before stock-based
compensation, debt conversion expense, interest expense, interest and other
income, unrealized and realized gains (losses) in marketable securities,
income taxes, and depreciation and amortization. EBITDA is not a term
defined by generally accepted accounting principles, and as a result, our
measure of EBITDA might not be comparable to similarly titled measures used
by other companies. However, we believe that EBITDA is relevant and useful
information, which is often reported and widely used by analysts, investors
and other interested parties in our industry. Accordingly, we are
disclosing this information to permit a more comprehensive analysis of our
operating performance.

SOURCE Comtex News Network, Inc.