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Creative Vistas > Investor Relations > Headlines >May 15, 2007

Press Release

Creative Vistas, Inc. Announces Record First Quarter Results for 2007

Tuesday May 15, 11:00 am ET

Revenues Top Guidance at $7.8 Million, up 20% Year-Over-Year; EBITDA Doubles to $567,000

WHITBY, Ontario--(BUSINESS WIRE)--Creative Vistas, Inc., (OTCBB:CVAS - News), a leading provider of advanced video security and surveillance products as well as broadband-related services, today reported financial results for the first quarter ended March 31, 2007.

Revenues for the first quarter of 2007 totaled $7.8 million, up 20% from $6.5 million in the first quarter of 2006 and exceeding the Company's most recent guidance of $7.4 million. Net loss for the first quarter of 2007 was ($532,100), or ($0.02) per fully diluted share, compared to net loss of ($7,298,100), or ($0.23) per fully diluted share, in the first quarter of 2006.

Quarterly net income figures and comparisons for 2007 and 2006 were affected by non-cash and non-operating factors. For the first quarter of 2007, the Company reported non-cash stock compensation of $114,400, amortization and depreciation of $495,300 and a non-cash interest payment of $39,500. In the first quarter of 2006, it reported non-cash stock compensation of $148,000, amortization and depreciation of $323,700, derivative instrument expenses of $3,561,500 and non-cash payment interest of $1,913,000.

EBITDA(1) Trend Points to Profit Growth

The Company believes that EBITDA is an important measure of operating performance. It eliminates items that have less bearing on the Company's operating performance and thus highlights trends in its core business that may not otherwise be apparent when relying solely on GAAP financial measures. Including the addition of the depreciation of the capital assets in the amount of $345,300 and amortization of intangible assets in the amount of $150,000, EBITDA for the first quarter of 2007 was $567,700, up 102% from EBITDA of $280,700 in 2006, which also includes the addition of depreciation of the capital assets in the amount of $323,700. For the first quarter of 2007, operating income was $72,400, compared with an operating loss of ($43,000) for the year-ago quarter.

Included in the EBITDA for the first quarter of 2007 was non-cash stock compensation in the amount of $114,400 compared to $148,000 for fiscal 2006. The EBITDA excluding non-cash compensation amounted to $682,100 for the first quarter of 2007.

On the Company's balance sheet, cash and equivalents totaled $2,417,000 as of March 31, 2007, from $2,683,000 a year earlier.

Sayan Navaratnam, Chairman and CEO of Creative Vistas, said, "This is a strong start to 2007 both operationally and financially. We are well on track to deliver another year of strong growth in both revenues and operating profits. We believe that this is a year where financial performance alongside strategic investments and initiatives are needed in order to maintain our growth and improve shareholder value in the long-term. We plan to continue to invest in key strategic areas including research and development to further our organization. Our first quarter results, including 20% year-over-year growth in revenues and doubling of EBITDA, are strong indicators of the Company's capability and commitment to executing our growth plans."

For further information on Creative Vistas please visit . If you would like to be added to Creative Vistas' investor email lists or have additional questions, please contact Haris Tajyar with Investor Relations International at or

About Creative Vistas

Creative Vistas, Inc. is a leading provider of security-related technologies and systems, it also provisions the deployment of broadband services. Operating through its wholly-owned subsidiaries AC Technical Systems Ltd and Iview Digital Video Solutions Inc., it offers integrated electronic security and surveillance solutions. Its systems are used by numerous high-profile clients including government, school boards, retail outlets, banks and hospitals. Through its subsidiary Cancable Inc., the company also provisions the deployment and servicing of broadband technologies to the commercial and residential market. Creative Vistas is based in Ontario, Canada.

Forward-Looking Statements: Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results for reasons described from time to time in the Company's public filings. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events.

(1) EBITDA represents, for any relevant period, income (loss) before income taxes, depreciation of property, plant and equipment, interest expense (including amortization of debt issuance costs) and amortization of intangible assets.

Creative Vistas, Inc.
Condensed Consolidated Balance Sheet (Unaudited)        March 31, 2007
Current Assets
     Cash and bank balances                                $2,416,984
     Accounts receivable, net of allowance for doubtful
      accounts $203,742                                     4,581,677
     Income tax recoverable                                   354,399
     Inventory and supplies                                   715,215
     Prepaid expenses                                         338,662
     Due from related parties                                   2,222
Total current assets                                        8,409,159
Property plant and equipment, net of depreciation           4,690,262
Goodwill                                                    2,893,845
Intangible assets                                           1,450,000
Restricted cash                                               279,445
Deferred financing costs, net                                 606,731
Deferred income taxes                                          35,921
Liabilities and Shareholders' (Deficit)
Current Liabilities
     Accounts payable and accrued liabilities              $4,364,014
     Current portion of obligation under capital leases       853,046
     Deferred income                                          106,056
     Deferred income taxes                                     25,858
     Current portion of term notes                          2,730,708
     Due to related parties                                     2,610
Total current liabilities                                   8,082,292
Term notes                                                 13,885,603
Notes payable to related parties                            1,500,000
Obligation under capital lease                              2,517,791
Due to related parties                                        200,756
Shareholders' (deficit)
     Share capital
        50,000,000 no par value preferred shares
        100,000,000 no par value common shares
         33,511,858 issued and outstanding                          -
     Common stock                                             778,315
     Additional paid-in capital                             3,958,989
     Accumulated other comprehensive losses                  (162,424)
     Accumulated (deficit)                                (12,395,959)

Creative Vistas, Inc.
Condensed Consolidated Statements of Operations
                                                 Three months ended
                                                      March 31
                                                  2007        2006
Contract and service revenue
Contract                                       $1,327,247  $1,600,963
Service                                         6,453,929   4,845,979
Others                                             12,444       9,615
                                                7,793,620   6,456,557
Cost of sales
Contract                                          921,996     966,696
Service                                         4,609,700   3,217,795
                                                5,531,696   4,184,491
Gross margin                                    2,261,924   2,272,066
Operating expense
Project                                           281,666     402,413
Selling                                           175,844     138,289
General and administrative                      1,617,637   1,626,530
General and administrative - Non-cash stock
 compensation                                     114,401     147,950
                                                2,189,548   2,315,182
Income (Loss) from operations                      72,376     (43,116)
Interest and other expenses
Net financing expenses                            559,198   3,049,785
Amortization of deferred charges                   45,276     643,689
Derivative instruments                                  -   3,561,544
                                                  604,474   7,255,018
(Loss) before income taxes                       (532,098) (7,298,134)
Income taxes                                            -           -
Net (loss)                                       (532,098) (7,298,134)
Other comprehensive income (loss):
 Foreign currency translation adjustment          (44,688)     15,704
Comprehensive (loss)                            $(576,786)$(7,282,430)
Basic weighted-average shares                  33,382,608  32,210,327
Diluted weighted-average shares                33,382,608  32,210,327
Basic earnings (loss) per share                    $(0.02)     $(0.23)
Diluted earnings (loss) per share                  $(0.02)     $(0.23)

Investor Relations International
Haris Tajyar, 818-382-9700
Creative Vistas, Inc.
Sayan Navaratnam, 905-666-8676