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ENGINEERING.com Announces Q3 2012 Results

TORONTO, ONTARIO -- (MARKETWIRE) -- Nov 07, 2012 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the third quarter ended September 30, 2012.

Revenue was $383,485 for the three months ended September 30, 2012, compared to revenue of $437,982 for the third quarter of 2011. The net loss for the three months ended September 30, 2012, totaled ($63,634) and ($0.00) per Common Share compared to a net loss of ($25,919) and ($0.00) for the same period a year ago.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($56,780) or $0.00 per Common Share for the third quarter of 2012 compared with an operating loss of ($19,709) or $0.00 per Common Share for the three month period ended September 30, 2011. The operating expenses in the latest quarter were $263,408, compared to $260,350 in the third quarter a year earlier.

"During the third quarter, PLM industry expert Chad Jackson signed on as the Managing Editor of our new Engineering Software micro-site", said John Hayes, President of ENGINEERING.com. "Jackson also teamed up with leading analyst Jim Brown to create a new video series called Tech4PD. ENGINEERING.com is using this content to attract the high-value engineering audience that our advertisers crave."

As at September 30, 2012, the Company had a cash balance of $312,017 compared to a cash balance of $259,014 as at December 31, 2011.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE: EGN) inspires, informs and entertains a worldwide audience of engineers through the www.ENGINEERING.com web site, mobile and social distribution channels. ENGINEERING.com offers marketing services to manufacturers, technology inventors and engineering academia. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.

EBITDA

EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock - based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under International Financial Reporting Standards and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities as a measure of liquidity.

Forward Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.


STATEMENTS OF FINANCIAL POSITION                                            
Expressed in Canadian Dollars                                               
                                                                            
As at September 30, 2012                                                    
(With comparative amounts as at December 31, 2011)                          
                                                                            
                                      September 30, 2012  December 31, 2011 
                                                                            
ASSETS                                                                      
CURRENT ASSETS                                                              
  Cash                                $          312,017 $          259,014 
  Accounts receivable                            198,589            351,537 
  Prepaids expenses and deposits                  37,054             21,383 
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TOTAL CURRENT ASSETS                             547,660            631,934 
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NON-CURRENT ASSETS                                                          
  Property and equipment                          10,311             11,818 
  Intangible assets                              330,615            325,020 
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TOTAL NON-CURRENT ASSETS                         340,926            336,838 
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TOTAL ASSETS                          $          888,586 $          968,772 
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LIABILITIES AND SHAREHOLDER'S EQUITY                                        
CURRENT LIABILITIES                                                         
  Accounts payable & accrued                                                
   liabilities                        $          460,765 $          465,785 
  Deferred revenue                               156,098            156,922 
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TOTAL LIABILITIES                                616,863            622,707 
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SHAREHOLDER'S EQUITY                                                        
  Share capital                               15,450,966         15,450,966 
  Contributed surplus                            514,184            497,899 
  Deficit                                    (15,693,427)       (15,602,800)
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TOTAL SHAREHOLDERS EQUITY                        271,723            346,065 
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TOTAL LIABILITIES AND SHAREHOLDERS                                          
 EQUITY                               $          888,586 $          968,772 
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NOTICE: The Company's auditors have not audited or reviewed these financial 
statements.                                                                 
The accompanying notes are an integral part of these statements.            
                                                                            
                                                                            
STATEMENTS OF CHANGE IN SHAREHOLDERS' EQUITY                                
Expressed in Canadian Dollars                                               
                                                                            
For the period ended September 30, 2012                                     
(With comparative balances for the period ended September 30, 2011)         
                                                                            
                Number of                                                   
                   Common        Share  Contributed                         
                   Shares      Capital      Surplus      Deficit      Total 
----------------------------------------------------------------------------
At January 1,                                                               
 2011          36,870,623 $ 15,113,752 $    472,843 $(15,396,019) $ 190,576 
Share Issuance  7,000,000 $    337,214                              337,214 
Net loss for                                                                
 the period                                             (168,903)  (168,903)
Stock based                                                                 
 compensation                                14,493                  14,493 
----------------------------------------------------------------------------
At September                                                                
 30, 2011      43,870,623   15,450,966      487,336  (15,564,922)   373,380 
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At December                                                                 
 31, 2011      43,870,623 $ 15,450,966 $    497,899 $(15,602,800) $ 346,065 
Net loss for                                                                
 the period                                              (90,627)   (90,627)
Stock based                                                                 
 compensation                                16,285                  16,285 
----------------------------------------------------------------------------
At September                                                                
 30, 2012      43,870,623 $ 15,450,966 $    514,184 $(15,693,427) $ 271,723 
----------------------------------------------------------------------------
                                                                            
NOTICE: The Company's auditors have not audited or reviewed these financial 
statements.                                                                 
The accompanying notes are an integral part of these statements.            
                                                                            
                                                                            
STATEMENTS OF INCOME (LOSS)                                                 
AND COMPREHENSIVE INCOME (LOSS)                                             
Expressed in Canadian Dollars                                               
                                                                            
For the period ended September 30, 2012                                     
(With comparative amounts for the period September 30, 2011)                
                                                                            
                                                                            
                               Three months ended      Nine months ended    
                                   2012        2011        2012        2011 
                                                                            
REVENUE                     $   383,485 $   437,982 $ 1,437,075 $ 1,164,223 
COST OF SALES                   176,857     197,341     647,031     518,131 
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GROSS PROFIT                    206,628     240,641     790,044     646,092 
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OPERATING EXPENSES                                                          
  Salaries and benefits         139,927     141,617     458,145     418,600 
  Marketing expenses             22,093      22,731      71,756      66,902 
  Development costs              49,481      47,007     144,186     144,133 
  General and administrative     51,907      48,995     183,490     161,777 
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TOTAL OPERATING EXPENSES        263,408     260,350     857,577     791,412 
----------------------------------------------------------------------------
                                                                            
INCOME (LOSS) BEFORE                                                        
 UNDERNOTED ITEMS:              (56,780)    (19,709)    (67,533)   (145,320)
  Stock based compensation       (4,591)     (3,490)    (16,285)    (14,493)
  Amortization expense           (2,263)     (2,720)     (6,809)     (9,090)
----------------------------------------------------------------------------
NET INCOME (LOSS) &                                                         
 COMPREHENSIVE INCOME       $   (63,634)$   (25,919)$   (90,627)$  (168,903)
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Earnings (Loss) Per Share                                                   
  Basic                     $      0.00 $      0.00 $      0.00 $      0.00 
  Diluted                   $      0.00 $      0.00 $      0.00 $      0.00 
Weighted average number of                                                  
 common shares                                                              
(Basic and Diluted)          43,870,623  40,446,710  43,870,623  38,075,751 
----------------------------------------------------------------------------
                                                                            
NOTICE: The Company's auditors have not audited or reviewed these financial 
statements.                                                                 
The accompanying notes are an integral part of these statements.            
                                                                            
                                                                            
STATEMENTS OF CASH FLOWS                                                    
Expressed in Canadian Dollars                                               
                                                                            
For the period ended September 30, 2012                                     
(With comparative amounts for the period September 30, 2011)                
                                                                            
                                                                            
                                   Three months ended    Nine months ended  
                                      2012        2011      2012       2011 
OPERATING ACTIVITIES                                                        
Net Income (Loss)                 $(63,634) $  (25,919) $(90,627) $(168,903)
Add items not affecting cash                                                
  Stock based compensation           4,591       3,490    16,285     14,493 
  Amortization                       2,263       2,721     6,809      9,090 
  Changes in operating assets and                                           
   liabilities other than cash     (40,987)     47,974   131,432    131,315 
----------------------------------------------------------------------------
CASH FLOWS FROM OPERATING                                                   
 ACTIVITIES                        (97,767)     28,266    63,899    (14,005)
----------------------------------------------------------------------------
                                                                            
FINANCING ACTIVITIES                                                        
  Proceeds of Share Issuance             -     337,214         -    337,214 
----------------------------------------------------------------------------
CASH FLOWS FROM FINANCING                                                   
 ACTIVITIES                              -     337,214         -    337,214 
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INVESTING ACTIVITIES                                                        
  Additions to property and                                                 
   equipment                        (1,133)       (951)   (5,301)    (1,984)
  Additions to intangible assets      (527)     (2,091)   (5,595)    (6,396)
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CASH FLOWS FROM INVESTING                                                   
 ACTIVITIES                         (1,660)     (3,042)  (10,896)    (8,380)
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INCREASE (DECREASE) IN CASH        (99,427)    362,438    53,003    314,829 
                                                                            
CASH, Beginning of period          411,444      30,635   259,014     78,244 
                                                                            
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CASH, End of period               $312,017  $  393,073  $312,017  $ 393,073 
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NOTICE: The Company's auditors have not audited or reviewed these financial 
statements.                                                                 
The accompanying notes are an integral part of these statements.            

The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts:
ENGINEERING.com, Inc.
John Hayes
President & CFO

Email Contact

ENGINEERING.com, Inc.
5285 Solar Drive, Suite 101
Mississauga, ON Canada L4W 5B8
905-273-9991, ext. 3280 or Toll Free: 1-877-997-9917
905-273-6691 (FAX)
www.engineering.com