Optimal Geomatics Reports Fourth Quarter and Fiscal Year 2008 Financial Results

• Press Release
• Source: Optimal Geomatics Inc.
• On 7:00 pm EST, Tuesday February 24, 2009

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2009) - Optimal Geomatics Inc. (TSX VENTURE:OPG - News; "Optimal") announces its financial results for the fourth fiscal quarter ending October 31, 2008. Except as otherwise noted, financial information is reported in Canadian dollars.

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Financial Results

Revenue for the fourth quarter of fiscal year 2008 was $4.0 million, a 5.6% increase as compared to revenue of $3.8 million for the comparable period in 2007, and a 31% increase when compared to the prior quarter of the current fiscal year. The year-over-year revenue increase was primarily due to the completion of a major North American contract in the current quarter which also contributed to the quarter-over-quarter increase in the current fiscal year.

Gross margin for the three month period ending October 31, 2008 was 24%, as compared to a gross margin of 19% for the third quarter of the current fiscal year and 23% for the comparable three month period in 2007. The increase in the current quarter gross margin was the result of a mix change in contract margins.

Operating expenses, including amortization, were $1.2 million which resulted in a loss from operations of $308 thousand for the fourth quarter of fiscal 2008. The comparable figure for 2007 operating expenses, $1.2 million, resulted in operating loss of $359 thousand for the fourth quarter 2007. Net earnings for the fourth quarter of 2008 were $558 thousand, $0.01 per share, as compared to net loss of $1.0 million, ($0.02) per share, for the comparable period in 2007.

Revenue for the year ended October 31, 2008 was $13.9 million, a 10% decrease from $15.5 million for 2007. The operating loss for the twelve months ended October 31, 2008 was $1.7 million, down marginally from an operating loss of $1.8 million for the same period of the last fiscal year. The net loss for the twelve months ended October 31, 2008 was $590 thousand, a decrease of $2.1 million, from a loss of $2.7 million in 2007. The year-over-year $2.1 million decrease in net loss was due to a corresponding swing in the foreign exchange gain/(loss) from a loss of $854 thousand in 2007 to a gain of $1.3 million in 2008 due to the strength of the US dollar in 2008.

As at October 31, 2008, Optimal had cash and equivalents of $1.6 million with net working capital of $1.4 million, compared to cash and equivalents of $3.1 million with net working capital of $2.4 million as at October 31, 2007. The decrease in cash and working capital was primarily due to the principal repayment of US $1.0 million, plus accrued interest due, on the notes payable, and a $271 thousand usage of working capital by operations.

"We will continue to review our strategic and operational options on an on-going basis," said Mr. Caldwell, President and Chief Executive Officer.

Subsequent Event

Subsequent to the year-end, the noteholder has agreed to the deferral to April 30, 2009 of the US $500 thousand, plus interest, payment previously due February 28, 2009.

Quarterly Teleconference Call:

Optimal will hold its fourth quarter 2008 teleconference call on Wednesday, February 25, 2009 at 8:00am PDT (11:00am EDT). To participate dial 604-899-4201 for Vancouver participants and 416-883-7132 for participants outside Vancouver, then dial pass code 52689#. Alternatively, you can listen to the playback by visiting our website after the call at www.optimalgeo.com.

About Optimal Geomatics Inc.:

Optimal Geomatics, a geospatial mapping company, provides engineering and geospatial professionals with customized products designed to meet their mapping needs.

Optimal Geomatics specializes in the science and technology of gathering, analyzing, interpreting, distributing, and using geographic information. Optimal applies the disciplines of aerial surveying, mapping, remote sensing, geographic information systems (GIS), and global positioning systems (GPS) to translate remotely-acquired raw imagery into intelligent digitally-mapped data for use according to the application involved, such as land management, environmental information management and engineering design.

Forward-Looking Statements:

This document may contain forward-looking statements. These statements present management's expectations, beliefs, plans and objectives regarding future events and conditions and, as such, involve inherent risks and uncertainties. Actual results could be significantly different from those projected.

These forward-looking statements are not guarantees of future performance and actual results could differ materially as a result of changes to Optimal's plans and the impact of factors, risks and uncertainties, known and unknown, to which Optimal's business is subject. The forward-looking statements in this news release speak only as the date hereof. Readers are also referred to risk factors and uncertainties described in filings made by Optimal from time to time with securities regulators.

For more information visit our website www.optimalgeo.com.

For additional financial information: http://www.optimalgeo.com/financials.html

Summary of Financial Information

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Consolidated Balance Sheets                       October 31,   October 31,
                                                        2008          2007
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Assets
 Cash                                           $  1,641,512  $  3,099,743
 Accounts receivable                               3,559,352     3,351,121
 Inventory                                             9,457         8,195
 Work in progress                                     50,336       152,317
 Prepaid expense                                     256,560       185,880
 Property & equipment                              1,751,085     1,981,762
 Deferred acquisition costs                                -        36,959
 Other long-term assets                                6,883         6,482
 Intangible assets                                   113,230       240,044
--------------------------------------------------------------------------

Total Assets                                    $  7,388,415  $  9,062,503
--------------------------------------------------------------------------

Liabilities & Shareholders Equity
 Accounts payable and accrued liabilities       $  1,870,793  $  1,727,479
 Deferred revenue                                    821,649       624,458
 Notes payable                                     1,259,811     1,932,781
 Obligation under capital leases                     456,384       342,334
 Share capital & subscriptions                    23,231,543    23,231,543
 Contributed surplus                                 772,589       772,589
 Accumulated other comprehensive income             (423,999)      441,566
 Deficit                                         (20,600,355)  (20,010,247)
--------------------------------------------------------------------------

Total Liabilities & Shareholders Equity         $  7,388,415  $  9,062,503

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--------------------------------------------------------------------------
Consolidated         3 months       3 months      12 months      12 months
Statements             ending         ending         ending         ending
of                    Oct. 31,       Oct. 31,       Oct. 31,       Oct. 31,
Operations               2008           2007           2008           2007
--------------------------------------------------------------------------

Revenues        $   3,964,900  $   3,752,939  $  13,939,411  $  15,503,716
Cost of sales       3,029,105      2,888,690     10,735,353     11,613,110
--------------------------------------------------------------------------

Gross profit          935,795        864,249      3,204,058      3,890,606
--------------------------------------------------------------------------

Expenses
 Administration       478,704        511,543      1,900,058      2,425,541
 Marketing &
  sales               345,878        405,543      1,386,798      2,018,380
 Research &
  development          89,539         67,978        301,437        273,911
 Amortization         329,593        238,226      1,094,529        972,199
 Writedown of
  intangible
  assets                    -              -        229,592              -
--------------------------------------------------------------------------
                    1,243,714      1,223,290      4,912,414      5,690,031
--------------------------------------------------------------------------

Operating
 Income (loss)       (307,919)      (359,041)    (1,708,356)    (1,799,425)

Other income
 (expenses)
 Foreign
  exchange
  gain (loss)         930,550       (629,042)     1,252,965       (854,137)
 Interest expense     (42,100)       (56,780)      (169,163)      (222,736)
 Interest income        2,897         33,833         45,702        131,308
 Gain (loss) on
  equipment
  disposal                  -              -           (915)         2,770
 Loss on disposal
  of subsidiaries     (27,701)             -        (27,701)             -
 Other income           1,986          7,850         17,360          7,850
--------------------------------------------------------------------------
                      865,632       (644,139)     1,118,248       (934,945)
--------------------------------------------------------------------------

Net Income (Loss)
 for the Period $     557,713   ($ 1,003,180)    ($ 590,108)  ($ 2,734,370)
--------------------------------------------------------------------------

Net gain (loss)
 per share:
 Basic and
  diluted       $        0.01        ($ 0.02)       ($ 0.01)       ($ 0.04)
--------------------------------------------------------------------------

Weighted Average
 Common Shares
 Outstanding
 Basic and
  diluted          61,387,398     61,387,398     61,387,398     61,387,398
--------------------------------------------------------------------------

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

Colum Caldwell
Optimal Geomatics Inc.
President & CEO
(604) 654-1860
Email: ccaldwell@optimalgeo.com

Caren Holtby
Optimal Geomatics Inc.
Corporate Communications Manager
(604) 805-8772
Email: choltby@optimalgeo.com
Website: www.optimalgeo.com