Aptilon Announces 2008 First Quarter Financial Results

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    Q1 2008 Highlights

    -   Recognized revenues of $2.02 million in the first quarter of 2008
    -   Gross profit increased 26% to $1.35 million from $1.07 million in the
        first quarter of 2007
    -   Gross profit as a percentage of revenue improved to 67% in the
        quarter ended March 31, 2008 versus 48% in the same period last year
    -   Net loss totaled $1.4 million compared to $3.04 million in the
        quarter ended December 31, 2007 and to a net loss of $0.85 million in
        the first quarter of 2007
    -   Signed agreements with three of the top ten U.S. pharmaceutical
        companies for AxcelRx Live Video Detailing implementation
    -   At the end of the quarter, announced positive results of an
        independent physician prescription tracking study conducted to
        confirm the effectiveness of AxcelRx Live Video Detailing program
    >>

"Q1 results put us solidly on our 2008 Plan. The marked improvement in gross margins clearly demonstrates the benefit of our acquisitions in late Q4 2007 and in Q1 2008, and puts us on a clear path to profitability," said Denis Martineau, President of Aptilon. "Our AxcelRx platform is becoming the gold standard in the pharmaceutical live video sales channel with six out of the top ten U.S. pharmaceutical companies now employing it. We will continue to expand its footprint through the kind of licensing agreement we signed in the first quarter with Skura.

Financial Review

For the first quarter of 2008 revenues totaled $2,023,866, compared to $2,252,425 for the same period a year ago. Revenue in the quarter was impacted by a lower exchange rate during the period for U.S billings and slower revenue recognition associated with implementing large scale projects for Top 10 US pharmaceutical manufacturers. The large scale of the projects required longer lead time than Q1 2007 projects, which were faster to implement, but with smaller long-term potential.

Gross profit for the three-month period ended March 31, 2008 increased $280,624 to $1,351,751, compared to $1,071,117 for the three months ended March 31, 2007. When expressed as a percentage of revenue, gross margins increased to 67% for the first quarter of 2008 from 48% in 2007. This significant improvement in gross margins was primarily due to the acquisitions of Mikich Company and Tinderbox Partners Inc. in December 2007 and January 2008 respectively and the subsequent integration of operations during the first quarter, 2008. Upon completion of the acquisitions, the Company has adjusted the presentation to account for costs associated with the physician database acquisition and maintenance. Comparative figures were adjusted in the same manner.

Selling, general and administrative ("SG&A") expenses for the first quarter of 2008 were $2,800,031 or 138% of revenues, compared to $2,004,143 or 89% of revenues in the first quarter of 2007. SG&A expenses consist primarily of salaries (including commissions and bonuses), physician advertising, personnel expenses of executive management and administrative personnel, and related office, premises, and other infrastructure support costs. Sales and promotion expenses increased from $1,043,160 in the quarter ended March 31, 2007 to $1,402,411 in the same period in 2008 due to increased sales personnel to capitalize on emerging U.S. market opportunities and additional physician promotion expenses. Significantly in the quarter ended March 31, 2008, R&D expenses increased to $506,707 from $135,237 in the same quarter in 2007. This increase is primarily attributed to increased investment in new platform technologies that are intended to increase sales in future quarters.

Net loss for the three months ended March 31, 2008, was $1,399,310 or $0.0083 per share, compared to $845,800 or $0.0061 per share for the comparable period a year ago and a significant improvement from the net loss of $3,038,093 during the previous quarter ended December 31, 2007.

As at March 31, 2008, the Company had working capital of $5,956,213, including cash and cash equivalents of $4,634,291 compared to $8,872,196, including cash and cash equivalents of $8,085,215 at December 31, 2007. The Company disbursed $1,612,717 to complete acquisitions during the quarter.

The Company had 190,608,522 common shares outstanding (fully diluted) at March 31, 2008.

About Aptilon Corporation

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Aptilon enables pharmaceutical, biotech and medical device companies to effectively reach and interact with physicians via the Internet through its innovative AxcelRx Live video detailing (with company reps), virtual programs, peer selling and other sales and marketing programs. Leading health care companies have adopted Aptilon's ReachNet physician access channel, driving tens of thousands of high-quality rep-physician interactions averaging eight to 10 minutes in length for primary care physicians. Aptilon provides the infrastructure necessary for sales representatives to build physician awareness, understanding and preference during all stages of a product's life cycle, from pre-launch education through end stage support. For more information, visit www.aptilon.com.

AxcelRx(SM) and ReachNet(SM) are service marks of Aptilon Corporation.

Forward-Looking Statements

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This news release contains forward-looking information. These statements relate to future events or future performance and reflect management's current expectations and assumptions. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management of Aptilon. A number of factors could cause actual events, performance or results to differ materially from the events performance and results discussed in the forward-looking statements. These forward-looking statements are made as of the date hereof and Aptilon does not assume any obligation to update or revise them to reflect new events or circumstances.

The TSX Venture Exchange Inc. has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release.

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