Single Touch Systems Inc : Single Touch Reports Fiscal 2012 Results with Revenues Increasing 39% to $6,300,000

Single Touch Systems, Inc. (OTC BB: SITO), a technology based mobile media solutions provider, today reported financial results for its 2012 fiscal year ended September 30, 2012.

Fiscal 2012 Highlights Include:

• Revenues up nearly 40%, or $1.8 million over 2011, to $6.3 million
• Gross margins improve to 54% from 44% in 2011
• Adjusted EBITDA improves by nearly 25%
• Over 500,000,000 mobile messages sent on behalf of retail clients by December 20, 2012
• Formed Single Touch Interactive R&D IP to consolidate IP assets and related activities

"I am pleased to report that we achieved substantial year-over-year organic revenue growth in fiscal 2012 and expect this trend to continue in 2013," said Mr. James Orsini, Chief Executive Officer of Single Touch. "Having recently surpassed a record 500 million mobile messages sent, we have fortified our position as a leader in the industry for sending opt-in mobile messaging for retailers. As mobile messaging evolves into a major distribution channel for marketing and advertising content, we are positioned for continued growth."

"Our move to form Single Touch Interactive R&D IP, a wholly owned subsidiary, in fiscal 2012 marks a key milestone in our strategy to unlock the value of our IP assets for the benefit our Company and our shareholders," added Mr. Anthony Macaluso, Chairman and Chief Innovation Officer of Single Touch. "A majority of our intellectual property rights will be transferred to Single Touch R&D IP, Inc., which will be responsible and bear the expense for all research, development, patent filings and patent maintenance as well as continuing to identify, notify and, where circumstances warrant, enforce against companies we believe are infringing on the intellectual property protected by our growing patent portfolio."

Fiscal Year Ended September 30, 2012 Financial Results Highlights

During the fiscal year ended September 30, 2012, revenue increased 39%, or $1,767,057, to $6,346,919 compared to revenue of $4,579,862 for fiscal 2011. The growth, all of which was organic, was attributable to continuing mobile adoption and new programs for existing and new client relationships.

Royalties and application costs which represent the direct out-of-pocket costs associated with our operating revenues totaled $2,907,110 in 2012, compared to $2,543,885 in 2011, an increase of 14%. Because a portion of royalties and application costs are fixed and all such costs are being monitored and reduced wherever possible, net margin continues to increase. The resulting gross margin improved from 44% in fiscal 2011 to 54% in fiscal 2012.

Adjusted compensation expense grew from $1,834,375 to $2,679,008 during fiscal 2012. This increase reflects the addition of headcount necessary to support business expansion, while concurrently relying less on outside consultants.

Adjusted EBITDA improved by 24% to ($1,573,382) in fiscal 2012, as compared to ($2,080,846) in fiscal 2011. The Company's net loss for the fiscal year ended September 30, 2012 narrowed by 59% to ($3,255,186), from a net loss of ($7,985,163) incurred during the fiscal year ended September 30, 2011.

-Financial Tables to Follow-

When considering the information contained in this press release, refer to the complete financial statements and the accompanying notes contained in our recent Annual Report on Form 10-K filed with the Securities and Exchange Commission at www.sec.gov.

About Single Touch Systems, Inc.

Single Touch Systems, Inc. is a technology based mobile solutions provider serving businesses, advertisers and brands. Through patented technologies and a modular, adaptable platform, Single Touch's multi-channel messaging gateway enables marketers to reach consumers on all types of connected devices, with information that engages interest, drives transactions and strengthens relationships and loyalty.

For more information about Single Touch Systems, Inc. visit: www.singletouch.net

Safe Harbor Statement

This news release may contain forward-looking statements that involve risks and uncertainties and reflect Single Touch's judgment as of the date of this release. These statements may include those regarding strategy, growth and future operations. Actual events or results may differ from Single Touch's expectations. The risks and uncertainties include reliance on brand owners and wireless carriers, the possible need for additional capital, as well as other risks identified in Single Touch's filings with the SEC. Single Touch disclaims any intent or obligation to update these forward-looking statements beyond the date of this press release, except as may be required by law.

SINGLE TOUCH SYSTEMS, INC. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
					For the Years Ended
					September 30,
					2012				2011
Revenue
Wireless applications				$	6,346,919			$	4,579,862
Operating Expenses
Royalties and application costs					2,907,110				2,543,885
Research and development					84,658				78,860
Compensation expense (including stock based
compensation of $365,422 in 2012 and $3,634,268 in 2011)					3,044,430				5,468,643
Depreciation and amortization					690,293				633,535
General and administrative (including stock based
compensation of $137,169 in 2012 and $958,162 in 2011)					2,386,694				3,161,751
					9,113,185				11,886,674
Loss from operations					(2,766,266	)			(7,306,812	)
Other Income (Expenses)
Net (loss) on settlement of indebtedness					-				(651,315	)
Interest expense					(488,120	)			(26,236	)
Net (loss) before income taxes					(3,254,386	)			(7,984,363	)
Provision for income taxes					(800	)			(800	)
Net income (loss)				$	(3,255,186	)		$	(7,985,163	)
Basic and diluted loss per share				$	(0.02	)		$	(0.06	)
Weighted average shares outstanding					131,192,693				127,817,223

SINGLE TOUCH SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS
					September 30,
					2012			2011
Assets
Current assets
Cash and cash equivalents				$	2,157,707		$	523,801
Accounts receivable - trade					1,085,840			907,275
Prepaid expenses					129,290			93,872
Total current assets					3,372,837			1,524,948
Property and equipment, net					228,499			303,214
Other assets
Capitalized software development costs, net					383,227			395,188
Intangible assets:
Patents					602,056			714,623
Patent applications cost					667,858			544,240
Software license					76,000			-
Deposit - related party					155,000			155,000
Other assets including security deposits					84,278			99,481
Total other assets					1,968,419			1,908,532
Total assets				$	5,569,755		$	3,736,694

SINGLE TOUCH SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS - continued
					September 30,
					2012			2011
Liabilities and Stockholders' Equity (Deficit)
Current liabilities
Accounts payable				$	768,263		$	1,178,057
Accrued expenses					200,591			176,232
Accrued compensation - related party					72,730			36,410
Current obligation on patent acquisitions					87,500			163,680
Convertible debentures - unrelated parties, including accrued interest of
$21,342 net of discounts of $27,101					294,241			-
Total current liabilities					1,423,325			1,554,379
Long-term liabilities
Deferred revenue					25,000			-
Convertible debentures - related party, including accrued interest of
$43,973 net of discounts of $16,461					527,512			-
Convertible debentures - unrelated parties, including accrued interest of
$100,479 net of discounts and loan fees of $927,199					2,685,280			-
Total long-term liabilities					3,237,792			-
Total liabilities					4,661,117			1,554,379
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized;
none outstanding					-			-
Common stock, $.001 par value; 200,000,000 shares authorized,
132,472,392 shares issued and outstanding as of September 30, 2012
and 130,182,392 issued and outstanding as of September 30, 2011					132,472			130,182
Additional paid-in capital					125,425,617			123,446,398
Accumulated deficit					(124,649,451)			(121,394,265)
Total stockholders' equity					908,638			2,182,315
Total liabilities and stockholders' equity				$	5,569,755		$	3,736,694

RECONCILIATION OF NON-GAAP MEASURES
				For the Year Ended September 30,
				2012														2011												GAAP							Adjusted EBITDA
								Adjust-				Adjusted										Adjust-				Adjusted				Change							Change
				GAAP				ments				EBITDA						GAAP				ments				EBITDA				$				%			$				%
Revenue
Wireless Applications				$	6,346,919			$	-			$	6,346,919					$	4,579,862			$	-			$	4,579,862			$	1,767,057			39	%		$	1,767,057			39	%
Operating Expenses
Royalties and Application Costs				$	2,907,110			$	-			$	2,907,110					$	2,543,885			$	-			$	2,543,885			$	363,225			14	%		$	363,225			14	%
Research and Development				$	84,658			$	-			$	84,658					$	78,860			$	-			$	78,860			$	5,798			7	%		$	5,798			7	%
Compensation expense (including
stock-based compensation)				$	3,044,430			$	(365,422	)		$	2,679,008					$	5,468,643			$	(3,634,268	)		$	1,834,375		*	$	(2,424,213	)		-44	%		$	844,633			46	%
Depreciation and amortization				$	690,293			$	(690,293	)		$	-					$	633,535			$	(633,535	)		$	-			$	56,758			9	%
General and administrative (including
stock-based compensation)				$	2,386,694			$	(137,169	)		$	2,249,525					$	3,161,751			$	(958,163	)		$	2,203,588			$	(775,057	)		-25	%		$	45,937			2	%
				$	9,113,185			$	(1,192,884	)		$	7,920,301					$	11,886,674			$	(5,225,966	)		$	6,660,708			$	(2,773,489	)		-23	%		$	1,259,593			19	%
Loss from Operations/Adjusted EBITDA				$	(2,766,266	)		$	1,192,884			$	(1,573,382	)				$	(7,306,812	)		$	5,225,966			$	(2,080,846	)		$	4,540,546			-62	%		$	507,464			-24	%
				For the Year Ended September 30,
				2012														2011												GAAP							Adjusted EBITDA
								Adjust-				Adjusted										Adjust-				Adjusted				Change							Change
				GAAP				ments				EBITDA						GAAP				ments				EBITDA				$				%			$				%
Professional Fees				$	779,541			$	(47,450	)		$	732,091			*		$	821,022			$	(58,050	)		$	762,972		*	$	(41,481	)		-5	%		$	(30,881	)		-4	%
Travel				$	499,576			$	-			$	499,576					$	322,951			$	-			$	322,951			$	176,625			55	%		$	176,625			55	%
Consulting expense				$	565,349			$	(89,719	)		$	475,630			*		$	1,448,613			$	(900,113	)		$	548,500		*	$	(883,264	)		-61	%		$	(72,870	)		-13	%
Office rent				$	205,639			$	-			$	205,639					$	121,681			$	-			$	121,681			$	83,958			69	%		$	83,958			69	%
Insurance expense				$	120,236			$	-			$	120,236					$	83,953			$	-			$	83,953			$	36,283			43	%		$	36,283			43	%
Equipment lease				$	-			$	-			$	-					$	45,000			$	-			$	45,000			$	(45,000	)		-100	%		$	(45,000	)		-100	%
Trade shows				$	21,213			$	-			$	21,213					$	78,324			$	-			$	78,324			$	(57,111	)		-73	%		$	(57,111	)		-73	%
Telephone				$	61,729			$	-			$	61,729					$	38,820			$	-			$	38,820			$	22,909			59	%		$	22,909			59	%
Office expense				$	31,356			$	-			$	31,356					$	7,949			$	-			$	7,949			$	23,407			294	%		$	23,407			294	%
Other				$	102,055			$	-			$	102,055					$	193,438			$	-			$	193,438			$	(91,383	)		-47	%		$	(91,383	)		-47	%
Total General and Administrative Expenses				$	2,386,694			$	(137,169	)		$	2,249,525					$	3,161,751			$	(958,163	)		$	2,203,588			$	(775,057	)		-25	%		$	45,937			2	%

* Adjustments for each of these items represents the elimination of stock-based compensation included within the GAAP expense amount to arrive at the Adjusted EBITDA amount.

Investor and Media:
Hampton Growth
Robert Haag, 877-368-3566
[e-mail]
or
KCSA Strategic Communications
Rob Fink / Jeffrey Goldberger
Phone: [phone]
Email: [e-mail] / [e-mail]