Press Release

Creative Vistas, Inc. Announces Record Revenues for Fiscal 2008

U.S. Expansion Strategy Generates Sales of Over $5.5 Million in First Year, Driving Overall Revenue Increase of 21%

Fourth Quarter and Year-End Highlights:

• Revenues for fiscal year 2008 were up 21.2% from 2007 and down 3% year-over-year from the fourth quarter of 2008.
• Sales growth came mainly from its Dependable HomeTech (DHT) Division, providing broadband-related services in Canada and U.S.
• Sales from services to U.S. cable providers totaled more than $5.5 million in the first year of the Company’s U.S. expansion strategy.
• As expected, start-up costs related to the U.S. expansion strategy resulted in a net loss of ($0.51) for all of 2008 and ($0.17) for the fourth quarter.

Sales Increase 21.2% for 2008; U.S. Revenues Grow from Zero to $5.5 Million

For the fourth quarter ended December 31, 2008, Company-wide revenues totaled $11.10 million, down 3% from $11.47 million in the fourth quarter of 2007. For the fiscal year 2008, revenues totaled $48.47 million, up 21.2% from $39.99 million in 2007.

The rise in full-year sales was due to increased business at the Company’s broadband-related service division, operating under the Dependable HomeTech brand. Revenues of this subsidiary rose 26% to $40.65 million in 2008 from $32.32 million in 2007. In the fourth quarter of 2008, DHT revenues were up slightly from a year earlier, rising to $9.57 million from $9.53 million in the fourth quarter of 2007. The Company said the flat-to-lower quarter sales comparisons for the Company as a whole showed the impact of economic slowdowns in Canada and the U.S., where a building slump and retrenchment in consumer spending reduced the volume of new cable or satellite installations and service upgrades.

For the full year, the revenue increases were due primarily to two major developments at DHT. One was the division’s purchase, in October 2007, of the Canadian broadband provisioning firm XL Digital Services Inc. This transaction gave DHT access to two territories of Rogers Cable Inc. where it previously did not have a presence. Total revenue of this segment for 2008 rose to $5.32 million from $1.08 million in 2007.

The other major development was DHT’s expansion into U.S. markets for the first time in 2008. During the year, the division signed service contracts with leading U.S. cable providers in three major metropolitan areas. Revenues from U.S. business, which were non-existent in 2007, totaled $5.54 million in 2008. In the fourth quarter of 2008 alone, they totaled $2.08 million.

Expansion Costs Impact Operating and Net Results

For the fourth quarter of 2008, direct cost of sales totaled $9.46 million, resulting in a gross profit excluding depreciation of $1.64 million. Operating expenses totaled $3.00 million, leading to an operating loss of ($1.37 million), compared to an operating profit of $341,500 in the fourth quarter of 2007.

For the fiscal year 2008, the direct cost of sales totaled $38.78 million, resulting in a gross profit excluding depreciation of $9.69 million. Operating expenses totaled $15.80 million, leading to an operating loss of ($6.11 million), compared to an operating profit of $1.49 million in 2007. The most significant increase in year-over-year expenses was from general and administrative expenses, which rose to $10.45 million in 2008 from $5.64 million in 2007. Within this category, salaries and training cost for management and administrative staff rose to $5.70 million in 2008 from $2.55 million in 2007, largely due to the need for additional staff required by DHT’s expansion into the U.S.

Net loss for the fourth quarter of 2008 was ($6.25 million) or ($0.17) per fully diluted share, compared to net loss of ($508,700), or ($0.02) per fully diluted share. For fiscal year 2008, the net loss was ($18.91 million) or ($0.51) per fully diluted share, compared to a net loss of ($581,606), or ($0.02) per fully diluted share, in fiscal 2007.

CEO Cites Success of U.S. Rollout

“Today’s results show that 2008, although a challenging year in the U.S. and Canadian economies, was also a time of growth and accomplishment for us,” says Creative Vistas CEO Dominic Burns. “The most significant initiative was the expansion of our Dependable HomeTech business. We have signed service contracts with the two largest cable providers in the U.S., and we have solidified our position as the largest provider of deployment and provisioning services to Canada’s top cable provider, Rogers Communications. The most tangible sign of success for this initiative has been the zero-to-$5.5 million growth in U.S. revenues for DHT. The costs of this rollout have been considerable, and they are reflected in the latest financial results. But we expect these to decline sharply, in terms of percentage of revenues, as our broadband-related business continues to expand.”

Mr. Burns continued, “In the coming year, we expect to continue facing the headwinds of a recession that has sharply reduced two key sources of revenue in cable and satellite-related business -- construction of new homes (leading to new hookups) and consumer spending on service upgrades. As the economy improves, our revenue growth should resume while our costs stay well-controlled. We also will continue developing our proprietary business intelligence (BI) software, which boosts the efficiency of the cable and satellite providers we serve and gives us a key advantage over less technologically advanced service firms. Ultimately, as we have said before, we intend to deploy and/or market our BI solutions in a much wider range of industries.”

EBITDA1 Shows Continued Sequential Improvements

Earnings before interest, taxes, depreciation and amortization (EBITDA) for the fourth quarter ended December 31, 2008 came to a loss of ($459,400), compared to positive EBITDA of $1.0 million in the fourth quarter of 2007. EBITDA, excluding non-cash items in the fourth quarter of 2008, was negative at ($39,900).

On a sequential basis, the Company’s fourth-quarter 2008 EBITDA results showed a narrowing loss from the first three quarters of 2008. Negative EBITDA was ($532,400) in the third quarter, ($831,573) in the second quarter and ($962,426) in the first quarter. Negative EBITDA, excluding non-cash items, was ($112,900) in the third quarter, ($513,387) in the second quarter and ($868,786) in the first quarter of 2008.

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. As in prior quarters, the net income and earnings per share results for the fourth quarter and the twelve months of 2008 have been affected substantially by non-cash adjustments related to the Company’s capital structure. For that reason, the Company believes EBITDA provides a useful tool, in conjunction with GAAP reporting, for gauging the ongoing performance of its operating units.

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 htajyar@irintl.com.

About Creative Vistas

Creative Vistas Inc. is a leading provider of broadband-related services as well as security technologies and systems. Through its subsidiary, Dependable HomeTech, Creative Vistas provisions the deployment and servicing of broadband technologies to the commercial and residential market in Canada and the U.S. Through its subsidiaries AC Technical Systems Ltd. and Iview Digital Video Solutions Inc., it offers proprietary and non-proprietary technologies to the integrated electronic security and surveillance market. Its growing list of customers for broadband-related services include major cable-system operators in Ontario, Canada and U.S. metropolitan markets including New Orleans and Baton Rouge, La., Charlotte, N.C. Its security and surveillance systems are used by numerous high-profile clients including government, school boards, retail outlets, banks and hospitals. 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.

1EBITDA 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.
	Consolidated Balance Sheets
	December 31							2008				2007
	Assets
	Current Assets
		Cash and bank balances					$	4,770,337			$	1,960,340
		Accounts receivable, net of allowance
		for doubtful accounts $323,183 (2007-$405,432)						4,571,327				6,187,551
		Income tax recoverable						188,525				448,126
		Inventory						829,318				1,043,815
		Prepaid expenses						289,638				270,930
		Due from related parties						2,094				2,581
	Total current assets							10,651,239				9,913,343
	Property and equipment, net of depreciation							9,214,623				6,352,014
	Deposits							460,376				125,498
	Goodwill							-				3,101,598
	Restricted cash							-				53,430
	Deferred financing costs, net							483,331				551,747
	Intangible assets							850,136				1,717,003
	Deferred income taxes							35,343				37,547
							$	21,695,048			$	21,852,180
	Liabilities and Stockholders’ (Deficiency)
	Current Liabilities
		Bank Indebtedness					$	1,581,912			$	-
		Accounts payable						2,611,951				3,328,740
		Accrued salaries and benefits						1,723,506				1,555,981
		Accrued commodity taxes						183,614				191,204
		Accrued liabilities						1,280,990				998,287
		Current portion of obligation under capital leases						2,125,312				1,195,366
		Deferred income						118,595				91,900
		Deferred income taxes						25,858				25,858
		Current portion of term notes						1,750,000				2,240,356
		Other notes payable						245,902				303,030
		Due to related parties						6,292				8,143
	Total current liabilities							11,653,932				9,938,865
	Term notes							14,062,290				13,565,421
	Notes payable to related parties							1,500,000				1,500,000
	Other payable							-				303,030
	Obligation under capital lease							4,554,240				3,184,103
	Due to related parties							189,237				233,203
								31,959,699				28,724,622
	Stockholders' (deficiency)
		Share capital
		Authorized
		50,000,000 no par value preferred shares undesignated, none issued or outstanding
		100,000,000 no par value common shares 37,224,926 at December 31, 2008 and 34,494,623 at December 31, 2007 shares issued and outstanding
		Common stock						6,488,137				1,439,307
		Additional paid-in capital						14,005,627				4,958,871
		Accumulated (deficit)						(31,357,923)				(12,445,468)
		Accumulated other comprehensive income (losses)						599,508				(825,152)
								(10,264,651)				(6,872,442)
								$ 21,695,048			$	21,852,180

Creative Vistas, Inc.
Consolidated Statement of Operations and Comprehensive (Loss)
For the years ended December 31
							2008				2007
Contract and service revenue
Contract						$	6,209,601			$	6,083,868
Service							42,188,944				33,860,869
Others							71,497				46,431
							48,470,042				39,991,068
Direct Expenses (excluding depreciation)
Contract							4,061,916				4,203,159
Service							34,714,119				24,126,027
Project Expenses							1,084,688				1,311,646
Selling Expenses							942,688				797,759
General and administrative expenses							10,452,417				5,639,760
Depreciation expense							2,571,426				1,783,129
Amortization of intangible assets							751,753				637,539
							54,579,007				38,499,019
Income (loss) from operations							(6,108,965)				1,492,049
Interest expenses and other expenses (income)
Net financing expenses							7,041,978				2,955,063
Goodwill impairment							3,062,432				-
Realized loss on disposal of available for sale securities							822,916				-
Amortization of deferred charges							234,835				182,430
Foreign currency translation (gain) loss							1,641,329				(1,063,838)
							12,803,490				2,073,655
(Loss) before income taxes							(18,912,455)				(581,606)
Income taxes							-				-
Net (loss)							(18,912,455)				(581,606)
Other comprehensive (loss):
Foreign currency translation adjustment							1,424,660				(707,416)
Comprehensive loss						$	(17,487,795)			$	(1,289,022)
Basic and diluted weighted-average shares							36,899,525				33,847,266
Basic and diluted earnings (loss) per share						$	(0.51)			$	(0.02)

Contact:
Investor Relations International
Haris Tajyar, 818-382-9700
htajyar@irintl.com