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Intrinsyc Reports Second Quarter Financial Results

Company Achieves positive EBITDA Ahead of Plan

VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/13/09 -- Intrinsyc Software International, Inc. (TSX: ICS), a leading provider of software solutions for mobile devices, today announced its financial results for the second quarter ended June 30, 2009, reported in United States dollars and in accordance with Canadian Generally Accepted Accounting Principles ("GAAP"). The Company's results are presented in comparison to the three-month period ended March 31, 2009 and the three-month period ended June 30, 2008.

The Company reported second quarter revenue of $4.9 million as compared to $4.4 million for the three months ended March 31, 2009 and $5.6 million in the three months ended June 30, 2008. Total revenue attributable to the Company's software solutions was 43 percent of revenues, including software licensing, maintenance/support and software-related services, as compared to 40 percent and 23 percent in the respective comparative quarters. Gross margin was 56 percent in the second quarter of 2009 representing an increase from 48 percent in the three months ended March 31, 2009 and 47 percent in the three months ended June 30, 2008.

Total operating expenses, excluding amortization, Technology Partnerships Canada ("TPC") funding investment, stock-based compensation and loss on disposal of equipment, for the three months ended June 30, 2009 were $2.4 million representing a decrease of 27 percent and 62 percent from the $3.3 million and $6.3 million in the quarter ended March 31, 2009 and the three months ended June 30, 2008, respectively. Earnings before interest, amortization, foreign exchange gains or losses, stock-based compensation expense, loss on disposal of equipment, TPC funding investment and income tax ("EBITDA") for the three months ended June 30, 2009 was $310,242 compared to EBITDA of ($1.2 million) for the three months ended March 31, 2009 and ($3.7 million) for the three months ended June 30, 2008. Cash and cash equivalents were $10.6 million with net working capital of $9.9 million as of June 30, 2009 compared to cash and cash equivalents of $12.4 million with net working capital of $10.7 million as of December 31, 2008.

"We successfully executed our operational restructuring plan begun in the fourth quarter of 2008, and achieved our goals of business stabilization," stated Tracy Rees, President and Chief Executive Officer. "The achievement of positive EBITDA is a major milestone for Intrinsyc. We expanded our solution offering with the launch of a substantial version upgrade to our Destinator navigation software, as well as new solutions to aid in development of Android based mobile devices. The enhancement of our product line and relationships with industry leaders like LG Electronics helps establish a solid foundation for future growth."

The Company reported revenue of $9.3 million for the six-month period ended June 30, 2009 as compared to $11.1 million for the six month period ended June 30, 2008. Total revenue attributable to the Company's software solutions increased to 41 percent of revenues, including software licensing, maintenance/support and software-related services, as compared to 20 percent in the respective comparative period. Gross margin was 52 percent for the six month period ended June 30, 2009, up from 46 percent in the six months ended June 30, 2008.

Total operating expenses, excluding amortization, stock-based compensation, loss on disposal of equipment and TPC funding investment, for the six months ended June 30, 2009 were $5.7 million, compared to $12.5 million for the six months ended June 30, 2008. EBITDA for the six months ended June 30, 2008 was ($880,160) compared to ($7.4 million) for the six months ended June 30, 2008.

Business Highlights

During the second quarter, the Company made progress in expanding its product offering and securing new business as indicated in the following announcements:

- Launched Destinator 9, the newest version of Destinator that offers the industry's best navigation experience for Microsoft Windows and Android mobile operating systems

- Announced an extension to the agreement with Fortune 500 company for Android device development

- Opened development center in Beijing, China to support Android handset makers

- Launched UX-Zone in partnership with Ubiquisys - UX-Zone is the wireless industry's first solution for Android that automatically detects femtocells and puts relevant applications and services at the end user's fingertips

- Announced partnership with the BLOM Group for the integration of the Blom 3D PhotoNav Technology into the Destinator routing engine to cover more than 1000 cities in Europe

- Launched Android platform development tools including RapidRIL and Telephony Test Suite

Conference call

Consolidated unaudited financial statements are attached and a conference call to discuss these results will be held at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time), August 13, 2009. To listen to the conference call live by telephone, dial +1-866-610-8602 toll free for participants in North America, and +1-212-401-8152 for international participants, approximately 10 minutes before the start time. A telephone playback will be available for three business days, beginning approximately two hours after the call. To listen to the telephone replay please dial +1-866-245-6755 toll free, and for international callers, dial +1-416-915-1035. Enter access code 984490.

The Audit Committee of the Company has reviewed the contents of this news release.

Forward-Looking Statements

This press release contains statements which, to the extent that they are not recitations of historical fact, may constitute forward-looking information under applicable Canadian securities legislation that involve risks and uncertainties. Such forward-looking statements or information may include financial and other projections as well as statements regarding the Company's future plans, objectives, performance, revenues, growth, profits, operating expenses or the company's underlying assumptions. The words "may", "would", "could", "will", "likely", "expect", "anticipate", "intend", "plan", "forecast", "project", "estimate" and "believe" or other similar words and phrases may identify forward-looking statements or information. Persons reading this press release are cautioned that such statements or information are only predictions, and that the Company's actual future results or performance may be materially different. Factors that could cause actual events or results to differ materially from those suggested by these forward-looking statements include, but are not limited to: the need to develop, integrate and deploy software solutions to meet the Company's customer's requirements; the possibility of development or deployment difficulties or delays; the dependence on the Company's customer's satisfaction; the timing of entering into significant contracts; customers' continued commitment to the deployment of the Company's solutions; the performance of the global economy and growth in software industry sales; market acceptance of the Company's products and services; the success of certain business combinations engaged in by the Company or by its competitors; possible disruptive effects of organizational or personnel changes; technological change, new products and standards; risks related to international expansion; concentration of sales; international operations and sales; dependence upon key personnel and hiring; reliance on a limited number of suppliers; industry growth; competition; intellectual property; product defects and product liability; currency exchange rate risk; and other factors described in the Company's reports filed on SEDAR, including its Annual Information Form and financial report for the year ended December 31, 2008. This list is not exhaustive of the factors that may affect the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. All forward-looking statements made in this press release are qualified by this cautionary statement and there can be no assurance that actual results or developments anticipated by the Company will be realized. The Company disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

About Intrinsyc Software International, Inc.

Intrinsyc provides software solutions that enable next-generation mobile devices. The company provides award winning software and services for mobile device design and development and industry leading navigation and location based services software. Intrinsyc helps device makers, mobile operators, and silicon vendors deliver compelling mobile products with faster time-to-market, higher quality, and differentiating innovation. Intrinsyc supports customers globally with solutions that span all major mobile operating systems and platforms, including Windows CE, Windows Mobile, Linux, Android, and Symbian. Intrinsyc is a Microsoft Windows Embedded Gold Partner and a winner of Windows Embedded Excellence Awards in 2007 and 2008, and S60 and Symbian Competence Centers. Intrinsyc is publicly traded (TSX: ICS) and headquartered in Vancouver, Canada, with offices in China, Israel, Taiwan, U.K., and the United States. www.intrinsyc.com.

INTRINSYC SOFTWARE INTERNATIONAL, INC.
Consolidated Balance Sheets
(Unaudited and expressed in U.S. dollars)
---------------------------------------------------------------------------
                                                      June         December
As at                                             30, 2009         31, 2008
---------------------------------------------------------------------------

ASSETS
Current assets
  Cash and cash equivalents                $    10,604,074  $    12,391,452
  Restricted cash                                  118,712          207,755
  Accounts receivable                            4,335,457        6,083,190
  Inventory                                              -           14,649
  Prepaid expenses - current                       284,553          523,916
---------------------------------------------------------------------------
Total current assets                            15,342,796       19,220,962

Restricted cash                                     85,984                -
Prepaid expenses                                    43,342           18,998
Equipment                                          868,126        1,567,464
Intangible assets                                3,843,086        4,034,000
---------------------------------------------------------------------------
Total assets                               $    20,183,334  $    24,841,424
---------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable and accrued
   liabilities                             $     4,577,686  $     7,727,497
  Capital lease obligation - current                40,026           82,911
  Deferred revenue                                 789,281          754,301
---------------------------------------------------------------------------
Total current liabilities                        5,406,993        8,564,709

Long-term capital lease obligation                  21,038           39,483
---------------------------------------------------------------------------
Total liabilities                                5,428,031        8,604,192
---------------------------------------------------------------------------

Shareholders' equity
  Share capital                                108,288,133      108,288,133
  Warrants and underwriters' options             4,047,763        4,489,508
  Contributed surplus                            4,895,749        4,260,625
  Accumulated other comprehensive (loss)
   income                                          498,424         (159,400)
  Deficit                                     (102,974,766)    (100,641,634)
---------------------------------------------------------------------------
Total shareholders' equity                      14,755,303       16,237,232
---------------------------------------------------------------------------
Total liabilities and shareholders'
 equity                                    $    20,183,334  $    24,841,424
---------------------------------------------------------------------------



INTRINSYC SOFTWARE INTERNATIONAL, INC.
Consolidated Statements of Operations and Deficit
(Unaudited and expressed in U.S. dollars)
---------------------------------------------------------------------------
                         Three          Three
                        months         months     Six months     Six months
                    ended June     ended June     ended June     ended June
For the               30, 2009       30, 2008       30, 2009       30, 2008
---------------------------------------------------------------------------

Revenues         $   4,874,621  $   5,566,017  $   9,275,428  $  11,121,551
Cost of sales        2,144,748      2,956,178      4,425,363      5,975,526
---------------------------------------------------------------------------
                     2,729,873      2,609,839      4,850,065      5,146,025
---------------------------------------------------------------------------

Expenses
  Sales and
   marketing           744,602      1,822,475      1,888,517      3,650,850
  Research and
   development       1,140,993      2,694,824      2,504,082      5,241,471
  Administration       534,036      1,794,631      1,337,626      3,615,608
  Amortization         339,417        210,896        658,746        422,704
  Stock-based
   compensation        108,871        283,367        193,379        567,626
  Technology
   Partnerships
   Canada
   Funding
   Investment          143,135        158,682        278,069        182,101
  Loss on disposal
   of equipment        199,793              -        220,345              -
---------------------------------------------------------------------------
                     3,210,847      6,964,875      7,080,764     13,680,360
---------------------------------------------------------------------------

Loss before
 other expense
 (earnings)
 and income taxes      480,974      4,355,036      2,230,699      8,534,335
Other expense
 (earnings)
  Foreign exchange
   (gain) loss         310,261         52,604        197,078       (161,889)
  Interest expense
   (income)              3,898       (254,420)       (33,931)      (426,365)
---------------------------------------------------------------------------
Loss before
 income taxes          795,133      4,153,220      2,393,846      7,946,081
---------------------------------------------------------------------------

Income tax
 expense
 (recovery)
  Current              (86,463)       110,817        (60,714)       178,392
  Future                     -        (12,852)             -        (36,407)
---------------------------------------------------------------------------
                       (86,463)        97,965        (60,714)       141,985
---------------------------------------------------------------------------

Net loss for the
 period                708,670      4,251,185      2,333,132      8,088,066

Deficit,
 beginning of
 period            102,266,096     65,618,633    100,641,634     61,781,752
---------------------------------------------------------------------------

Deficit, end of
 period            102,974,766     69,869,818    102,974,766     69,869,818
---------------------------------------------------------------------------

Loss per share
 (basic and
 diluted)        $        0.01  $        0.03  $        0.02  $        0.06
---------------------------------------------------------------------------

Weighted average
 number of shares
 outstanding       163,254,903    151,002,445    163,254,903    141,273,052
---------------------------------------------------------------------------



INTRINSYC SOFTWARE INTERNATIONAL, INC.
Consolidated Statements of Comprehensive Loss
(Unaudited and expressed in U.S. dollars)
---------------------------------------------------------------------------
                         Three          Three
                        months         months     Six months     Six months
                    ended June     ended June     ended June     ended June
For the               30, 2009       30, 2008       30, 2009       30, 2008
---------------------------------------------------------------------------

Net loss for the
 period              ($708,670)   ($4,251,185)   ($2,333,132)   ($8,088,066)

Other
 comprehensive
 gain (loss):

Unrealized gains
 (losses) on
 translating
 financial
 statements from
 functional
 currency to
 reporting
 currency            1,194,857        389,183        657,824     (1,433,793)
---------------------------------------------------------------------------

Comprehensive
 income (loss)   $     486,187    ($3,862,002)   ($1,675,308)   ($9,521,859)
---------------------------------------------------------------------------



INTRINSYC SOFTWARE INTERNATIONAL, INC.
Consolidated Statements of EBITDA and Loss
(Unaudited and expressed in U.S. dollars)
---------------------------------------------------------------------------
                         Three          Three
                        months         months     Six months     Six months
                    ended June     ended June     ended June     ended June
For the               30, 2009       30, 2008       30, 2009       30, 2008
---------------------------------------------------------------------------

Revenues         $   4,874,621  $   5,566,017  $   9,275,428  $  11,121,551
Cost of sales        2,144,748      2,956,178      4,425,363      5,975,526
---------------------------------------------------------------------------
                     2,729,873      2,609,839      4,850,065      5,146,025
---------------------------------------------------------------------------

Expenses
  Sales and
   marketing           744,602      1,822,475      1,888,517      3,650,850
  Research and
   development       1,140,993      2,694,824      2,504,082      5,241,471
  Administration       534,036      1,794,631      1,337,626      3,615,608
---------------------------------------------------------------------------
                     2,419,631      6,311,930      5,730,225     12,507,929
---------------------------------------------------------------------------

EBITDA Income
 (Loss)                310,242     (3,702,091)      (880,160)    (7,361,904)

Amortization           339,417        210,896        658,746        422,704
Stock-based
 compensation          108,871        283,367        193,379        567,626
Technology
 Partnerships
 Canada Funding
 Investment            143,135        158,682        278,069        182,101
Foreign exchange
 (gain) loss           310,261         52,604        197,078       (161,889)
Interest expense
 (income)                3,898       (254,420)       (33,931)      (426,365)
Loss on disposal
 of equipment          199,793              -        220,345              -
Income tax
 expense
 (recovery)
  Current              (86,463)       110,817        (60,714)       178,392
  Future                     -        (12,852)             -        (36,407)
---------------------------------------------------------------------------
                     1,018,912        549,094      1,452,972        726,162
---------------------------------------------------------------------------

Net loss for the
 period under
 Canadian GAAP       ($708,670)   ($4,251,185)   ($2,333,132)   ($8,088,066)
---------------------------------------------------------------------------



INTRINSYC SOFTWARE INTERNATIONAL, INC.
Consolidated Statements of Cash Flows
(Unaudited and expressed in U.S. dollars)
---------------------------------------------------------------------------
                         Three          Three
                        months         months     Six months     Six months
                    ended June     ended June     ended June     ended June
For the               30, 2009       30, 2008       30, 2009       30, 2008
---------------------------------------------------------------------------

OPERATING
 ACTIVITIES
Net loss for the
 period              ($708,670)   ($4,251,185)   ($2,333,132)   ($8,088,066)
Items not
 involving cash:
  Amortization         339,417        210,896        658,746        422,704
  Future income
   taxes               (41,694)       (13,351)        (2,603)       (34,305)
  Stock-based
   compensation        108,871        283,367        193,379        567,626
  Loss on disposal
   of equipment        199,793              -        220,345              -
Changes in
 non-cash
 operating
 working
 capital:
  Accounts
   receivable          593,489        972,849      1,939,018     (1,058,705)
  Inventory                  -         52,034         14,336        102,443
  Prepaid expenses      48,000       (707,881)       227,909       (614,872)
  Accounts payable
   and accrued
   liabilities      (1,457,154)     1,261,775     (3,116,015)     1,466,765
  Deferred revenue    (115,051)       (46,037)        (7,828)        81,012
---------------------------------------------------------------------------
Cash used in
 operating
 activities         (1,032,999)    (2,237,533)    (2,205,845)    (7,155,398)
---------------------------------------------------------------------------

INVESTING
 ACTIVITIES
Purchase of
 equipment              (3,075)      (312,248)       (25,941)      (558,696)
Loan receivable              -     (1,998,562)             -     (1,998,562)
Deferred
 acquisition
 costs                       -     (1,021,461)             -     (1,448,983)
---------------------------------------------------------------------------
Cash used in
 investing
 activities             (3,075)    (3,332,271)       (25,941)    (4,006,241)
---------------------------------------------------------------------------

FINANCING
 ACTIVITIES
Issuance of
 common shares
 and warrants                -         53,957              -     32,173,707
Share issuance
 costs                       -              -              -     (2,186,676)
Repayment of
 capital lease
 obligation             (9,596)       (12,437)       (63,318)       (16,260)
Restricted cash          1,035              -         12,104              -
---------------------------------------------------------------------------
Cash provided by
 (used in)
 financing
 activities             (8,561)        41,520        (51,214)    29,970,771
---------------------------------------------------------------------------

Effect of
 exchange rate
 changes on cash
 and cash
 equivalents           904,620        287,105        495,622       (957,110)
---------------------------------------------------------------------------

Increase
 (decrease) in
 cash and cash
 equivalents          (140,015)    (5,241,179)    (1,787,378)    17,852,022
Cash and cash
 equivalents,
 beginning of
 period             10,744,089     35,246,802     12,391,452     12,153,601
---------------------------------------------------------------------------
Cash and cash
 equivalents,
 end of period   $  10,604,074  $  30,005,623  $  10,604,074  $  30,005,623
---------------------------------------------------------------------------

Contacts:
Intrinsyc Software International, Inc.
George Reznik
Chief Financial Officer
+1-604-678-3734
[email protected]
www.intrinsyc.com

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