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Lingo Media Reports Third Quarter Results

TORONTO, ONTARIO--(Marketwire - Nov 23, 2012) - Lingo Media Corporation (TSX VENTURE:LM)(LMDCF) ("Lingo Media" or the "Company"), an ESL industry acquisition company that is Changing the way the world learns English, announces its financial results for the third quarter ended September 30, 2012. All figures are reported in Canadian Dollars, and are in accordance with International Financial Reporting Standards unless otherwise noted.

Operational Highlights

  • Print-Based English Language Learning:
    • started product revisions for the 5th and 6th levels of PEP Primary English program
    • renewed agreements to develop, publish, distribute and sell PEP Primary English and Starting Line programs with People''s Education Press and Peoples Education Electronic & Audiovisual Press

  • Online English Language Learning:
    • completed development and testing of newly commercialized speech recognition technology
    • advanced the development of new English Proficiency Assessment Platform
    • initiated the redevelopment of ELL Technologies Q Group product portfolio including product upgrade and redesign
    • advanced negotiations of strategic development partnership for Speak2Me to enhance existing site and complete development of a multi-platform application

Corporate Highlights

  • renewed the $890,000 loan by an additional one year term

  • evaluating ESL and other education assets for acquisition and also pursuing M&A opportunities

Financial Highlights

Third Quarter Ended September 30,   2012     2011
Revenue $ 129,424   $ 349,544
Operating expenses   508,158     677,110
Amortization, share-based payments, and depreciation   231,516     660,417
Interest, foreign exchange, taxes and other comprehensive income   79,802     11,568
Total expenses   819,476     1,349,095
Total comprehensive loss  (690,052)    (999,551)

Revenue for the third quarter totalled $129,424 compared to $349,544 for the same period in 2011, a decrease of 63%. In the third quarter, the Company initiated the redevelopment of its Q Group product portfolio to meet market needs. During this development process, ELL Technologies sales efforts have been reduced to enable the development team to complete the product upgrade and redesign. The Company expects to complete the first phase of this redevelopment process by the year end and the sales efforts will resume in January 2013.

  • Total expenses for the quarter totalled $819,476, as compared to $1,349,095 in 2011, due to the benefits of cost rationalization and a reduction in amortization of intangibles.
  • Total comprehensive loss totalled $690,052 or $0.03 per share based on 20.6 million shares outstanding compared to a total comprehensive loss of $999,551 or $0.05 per share based on 20.5 million shares outstanding.

The financial statements for the nine months ended September 30, 2012 and accompanying Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX VENTURE:LM)(LMDCF)

Lingo Media Corporation (www.lingomedia.com) is an ESL industry acquisition company that is Changing the way the world learns English, focused on English language learning ("ELL") on an international scale through its four distinct business units: ELL Technologies; Parlo; Speak2Me; and Lingo Learning. ELL Technologies is a globally-established ELL multi-media and online training company marketed under the Q Group brand (www.elltechnologies.com). Parlo is a fee-based online ELL training and assessment service (www.parlo.com). Speak2Me is a free-to-consumer advertising-based online ELL service in China (www.speak2me.cn). Lingo Learning is a print-based publisher of ELL programs in China. Lingo Media has formed successful relationships with key government and industry organizations, establishing a strong presence in China''s education market of more than 300 million students. The Company continues to expand its ELL offerings and is extending its reach globally.