CALGARY, ALBERTA--(Marketwire - Jan. 24, 2012) - Cortex Business Solutions Inc. ("Cortex" or the "Company") (TSX VENTURE:CBX) is pleased to announce the Company's quarter ended October 31st 2011 ("Q1 2012") Financial and Operational Highlights

Operational Highlights

The Company's most recent fiscal quarter ended October 31, 2011 has been a period of exceptional growth for Cortex. The Company has established itself as a reputable player in the relatively new eInvoicing industry.

During fiscal Q1 2012, Cortex signed agreements with 4 new buying organizations ("Hubs"), for a total of 19 signed to date. Of these, 12 have progressed through the pilot phase and were available to receive invoices from their suppliers electronically. Hubs are the main driving force for the growth in the Company as each new hub brings a list of additional customers to the Cortex Trading Partner Network ("CTPN" or "the Network") and provides an additional destination for existing Network users to send invoices to.

The following table depicts highlevel highlights of the Company's financial results for the current fiscal quarter, Q1 2012, compared to most recent fiscal quarter, Q4 2011 and the same fiscal quarter last year Q1 2011.

Q1 2012
Oct 31 2011 		Q4 2011
Jul 31 2011 		$ Change % Change Q1 2012
Oct 31 2011 		Q1 2011
Oct 31 2010 		$ Change % Change
Revenue $ 1,204,692 $ 844,756 $ 359,936 43 % $ 1,204,692 $ 731,573 $ 473,119 65 %
Expenses $ 3,269,883 $ 3,055,165 $ 214,718 7 % $ 3,269,883 $ 3,230,899 $ 38,984 1 %
Net Loss $ (2,065,191 ) $ (2,210,409 ) $ (145,218 ) (7 )% $ (2,065,191 ) $ (2,499,326 ) $ (434,135 ) (17 )%

Cortex exited the October 31, 2011 with 5857 suppliers, an increase of 790 new suppliers in fiscal Q1 2012. Baseline revenue, consisting of access and usage fees, set-up fees and integration fees increased 43% Q1 2012 compared to Q4 2011 as a result of the increase in suppliers and Hubs available on the Network. The baseline revenue growth for fiscal Q1 2012 compared to fiscal Q1 2011 was 90% reflecting the Network growth over the last year.

The following map illustrates the growth of the Cortex network and customers across North America: http://media3.marketwire.com/docs/cbxgraphs.pdf

The following table illustrates the growth in some key metrics: http://media3.marketwire.com/docs/cbxgraphs.pdf

The daily volume of documents sent through the Network continues to grow consistently, as can be seen from the following graph. The graph includes a 2 year moving average line as well as a linear trend line.: http://media3.marketwire.com/docs/cbxgraphs.pdf

Financial Highlights

Revenue

The increase in number of Hubs active on the Network and the rapid on-boarding of their suppliers translated into an increase in recurring revenue.

The Company earns four types of revenue from its Network;

  1. Set-up revenue when we first enable a customer to use the Network;
  2. Access revenue that consists of monthly per user fees;
  3. Integration fees that consist of integration project fees ; and
  4. Usage revenue charged per document initiated by the customer.

Together, these make up our base revenue, access and usage revenue has a recurring nature whereas set-up and integration fees are project specific.

The addition of a Hub creates the opportunity to onboard two types of customers. The first type is a crossover customer, which means they are already on the Network, transacting with one of Cortex's existing Hubs. The second type of customer is a net new customer to the Network. The crossover customers increase the billable transactions per customer and the net new customers increase the number of customers transacting on a daily basis. Both types of customers add to our base revenue and overall document volumes.

The following graph shows the make-up of our revenue stream. Access and usage fee revenue provides the foundation for our base revenue and grew by 25% fiscal Q1 2012 over fiscal Q4 2011.: http://media3.marketwire.com/docs/cbxgraphs.pdf

Expenses

During the quarter ended October 31, 2011, the Company continued its program to expand into the U.S. This program continues with five Hubs signed and a strong pipeline of potential sales. To date Cortex has invested in setting up a U.S. subsidiary and has contracted a senior sales executive in Denver to set up a satellite sales office. Revenues from U.S. customers started in fiscal Q3 2011 and we expect the U.S. to become a major portion of the Company's growth strategy, understanding that the lead time for expenses will remain ahead of the revenue rewards.

The following graph depicts an analysis of the Company's spend profile. Project spending began in fiscal Q1 2011 and continued through fiscal Q1 2012. Market expansion and product development remains consistent between 13% - 16% of total expenses for the previous five quarters.

http://media3.marketwire.com/docs/cbxgraphs.pdf

Includes 100% of the annual bonus approved in Q4 2010

Baseline expenditures

Contracted Suppliers

Development continues on the conversion and upgrade of our core system to convert it into a Cloud based system. U.S. based suppliers have started to transact in the new environment and the feedback has been positive. This is essential in order to handle increased volumes and to increase efficiencies. A Cloud based system will also allow the Company to expand internationally without additional system expenses.

Management intends to continue investing in system enhancements that will allow us to automate labour intensive processes, further improving our productivity, as witnessed in a reduced average cost per supplier.

The graph above clearly depicts the trend of our baseline expenditures which have leveled out quarter over quarter since Q1 2011. Given the investments in productivity improvements and technology, management expects the baseline expenditures to stay relatively flat over the upcoming fiscal year.

Cash position

The Company has a solid cash position at October 31 2011 at $7.6M. These available resources will assist our go forward strategy of growth and acceleration into the US as well as funding operations.

Outlook

Building on the strong start to fiscal 2012, Cortex will continue to expand the Network by adding buying organizations (Hubs) and their supplier groups through current and new partnerships in the coming quarters. Cortex will explore new revenue, industry and partnership opportunities in Canada and the U.S.

Organic Network growth, both in the number of customers connected and the number of transactions they do, has provided a solid revenue foundation for the Company. Management expects to see an acceleration of Hub signing in fiscal 2012 and exit the fiscal year with over 25 Hub customers.

Strategic partnerships with Full Circle, Basware, Verian Technologies, Amex and Powervision are providing numerous opportunities to add buying organizations in both Canada and the U.S.

Management is investing in market expansion and product development to incorporate new technology in our core service, expanding sales efforts in both Canada and the U.S. and into new industries. These investments are important for accelerating growth of the Network and will provide significant opportunities for the Company in the future.

The validation of Cortex Solutions in the marketplace together with a strong statement of financial position has increased the credibility and acceptance of the Cortex Solution resulting in numerous opportunities to expand.

With the addition of multiple buying organizations to the Cortex Network, management expects the growth of access and usage fee revenue stream to accelerate. Our U.S. expansion is contributing to significant increases in customers connected to the Network with over 2,000 suppliers expected to be connected in the U.S. by the end of fiscal Q2 2012.

Cortex is also starting to experience the "Network effect", with significant increases in monthly revenue per supplier from customers transacting with multiple buying organizations on the Network. Recurring revenue growth has accelerated and management expects this to continue for fiscal 2012.

In the coming year, Management expects to complete more partnerships, announce more buying organizations joining the Network in both Canada and the U.S. and continue increasing recurring revenue.

About Cortex Business Solutions

Cortex Business Solutions Inc. is a leading eCommerce service company that improves efficiencies, reduces costs and streamlines procurement and supply chain processes for its customers. Accessing the Cortex Network enhances the exchange of business critical documents, such as purchase orders, receipts and invoices resulting in improved cash flow management and business controls, while reducing day's outstanding and administrative costs. Cortex is a low cost, low risk solution that can be implemented quickly by leveraging its customers existing business environment - evolving business. For more information please visit our website at www.cortex.net.

Forward-Looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement.

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

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