ENGINEERING.com Incorporated Announces Second Quarter 2010 Results

TORONTO, ONTARIO -- (MARKET WIRE) -- Aug 17, 2010 -- ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource and business for engineers today announced its financial results for the second quarter of 2010.

ENGINEERING.com revenue was $412,667 for the three months ended June 30, 2010, compared to revenue of $329,396 for the second quarter of 2009. The increase in overall revenue is the result of revenue growth in the Internet advertising business. The net loss for the three months ended June 30, 2010, totaled ($112,767) and ($0.00) per Common Share compared with a net loss of ($145,478) and ($0.00) for the same period a year ago.

Operating losses (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($58,402) or $0.00 per Common Share for the second quarter of 2010 compared with an operating loss of ($87,257) or ($0.00) per Common Share for the three months ended June 30, 2009. The operating expenses in the latest period were $285,875, down from $308,594 in the second quarter a year earlier.

"During the second quarter our Internet advertising revenue grew by 88% compared to the same period last year. Unfortunately, software revenues and gross profit margins were under pressure during that time," said John Hayes, President of ENGINEERING.com. "We also experienced increasing numbers of visitors, pages viewed and member registrations."

As at June 30, 2010, the Company had a cash balance of $197,445 compared to a cash balance of $383,412 as at June 30, 2009.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer-owner of the www.ENGINEERING.com Web site and Internet-based business. ENGINEERING.com offers engineering content and services to manufacturers, design consultants and engineering academia around the world. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.

EBITDA

Operating Income (EBITDA) is defined by the Company as operating income before interest expense, income taxes, amortization stock-based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under Canadian generally accepted accounting principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to net income or to cash flows from operating activities (as determined in accordance with Canadian generally accepted accounting principles) as a measure of liquidity.

Forward Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.


Engineering.Com                                                             
Balance Sheet                                                               

                                                   Unaudited        Audited 
                                                    June 30,   December 31, 
                                                        2010           2009 
ASSETS                                                                      
Current Assets                                                              
 Cash                                                197,445        106,118 
 Accounts Receivable                                 277,311        291,761 
 Prepaid Expenses and Deposits                        24,707         30,391 
                                                ------------   ------------ 
  Total Current Assets                               499,463        428,270 
                                                ------------   ------------ 

 Capital Assets, net                                  23,429         27,916 
 Intangible Assets, net                              328,346        412,993 
                                                ------------   ------------ 
  TOTAL ASSETS                                       851,238        869,179 
                                                                         ------------      ------------  
                                                                                                ------------      ------------  

LIABILITIES  AND  SHAREHOLDERS  EQUITY                                                                                  
LIABILITIES                                                                                                                                  
  Accounts  Payable  &  Accrued  Liabilities                            913,445                707,147  
  Deferred  Income                                                                            64,161                  46,614  
  Promissory  notes  -  short-term                                                  4,031                  24,999  
                                                                                                ------------      ------------  
    TOTAL  LIABILITIES                                                                    981,637                778,760  
                                                                                                ------------      ------------  
                                                                                                ------------      ------------  

SHAREHOLDERS  EQUITY                                                                                                                  
  Share  Capital                                                                        15,113,752          15,113,752  
  Contributed  Surplus                                                                  430,439                417,959  
  Deficit                                                                                  (15,674,590)      (15,441,292)
                                                                                                ------------      ------------  
    TOTAL  SHAREHOLDERS  EQUITY                                                  (130,399)                90,419  
                                                                                                ------------      ------------  

                                                                                                ------------      ------------  
TOTAL  LIABILITIES  AND  SHAREHOLDERS  EQUITY                        851,238                869,179  
                                                                                                ------------      ------------  
                                                                                                ------------      ------------  



Engineering.Com                                                                                                                          
Statements  of  Operations  and  Deficit                                                                                
                                                                                                                Three                  Three  
(Unaudited)                                                                                        months                months  
                                                                                                                ended                  ended  
                                                                                                          June  30,            June  30,  
                                                                                                                  2010                    2009  

REVENUE                                                                                              412,667              329,396  
COST  OF  SALES                                                                                  185,194              108,059  
                                                                                                    -----------      -----------  
GROSS  PROFIT                                                                                    227,473              221,337  

GROSS  PROFIT  %                                                                                      55.1%                  67.2%

EXPENSES  (INCOME)                                                                                                                      
  Salaries  &  benefits                                                                    145,179              133,931  
  Marketing  expenses                                                                        28,702                22,579  
  Development  costs                                                                          56,154                67,166  
  General  &  Administrative                                                            55,840                84,918  
                                                                                                    -----------      -----------  
                                                                                                            285,875              308,594  
                                                                                                    -----------      -----------  

Operating  Income  (Loss)  (EBITDA)  before  under                                                              
  noted  items:                                                                                  (58,402)            (87,257)

Stock  based  compensation                                                              (6,239)              (9,061)
Amortization  Expense                                                                    (48,126)            (49,160)
                                                                                                    -----------      -----------  
                                                                                                            (54,365)            (58,221)
                                                                                                    -----------      -----------  

                                                                                                    -----------      -----------  
NET  LOSS                                                                                          (112,767)          (145,478)
                                                                                                    -----------      -----------  
                                                                                                    -----------      -----------  

BASIC  AND  DILUTED  LOSS  PER  SHARE                                                (0.00)                (0.00)

Weighted  Average  Number  of  Common  Shares  (basic                                                          
  and  diluted)                                                                            36,870,623        36,870,623  

Consolidated  Statements  of  Deficit                                                                                    
                                                                                                    -----------      -----------  
  DEFICIT,  beginning  of  period                                          (15,561,823)    (15,153,206)
                                                                                                    -----------      -----------  
  Net  Loss                                                                                        (112,767)          (145,478)
  DEFICIT,  end  of  period                                                      (15,674,590)    (15,298,684)
                                                                                                    -----------      -----------  
                                                                                                    -----------      -----------  



Engineering.Com  Inc.                                                                                                                
Cash  Flow  Statements                                                                                                                
(Unaudited)                                                                                                                                  
                                                                                                                    Three              Three  
                                                                                                                  Months            Months  
                                                                                                                    Ended              Ended  
                                                                                                              June  30,        June  30,  
                                                                                                                      2010                2009  
OPERATING  ACTIVITIES                                                                                                                

Net  Loss                                                                                              (112,767)      (145,478)
ADD  -  Items  not  affecting  cash                                                                                            
  Stock  based  compensation                                                                  6,239              9,061  
  Amortization                                                                                        48,126            49,160  
Changes  in  operating  assets  and  liabilities  other                                                      
  than  cash                                                                                            122,906            56,292  
                                                                                                            ---------      ---------  
  CASH  FLOWS  FROM  OPERATING  ACTIVITIES                                        64,504          (30,965)
                                                                                                            ---------      ---------  

FINANCING  ACTIVITIES                                                                                                                

  Promissory  notes                                                                              (12,004)        (19,863)
  Proceeds  of  share  issuance                                                                    --            (2,962)
                                                                                                            ---------      ---------  
    CASH  FLOWS  FROM  FINANCING  ACTIVITIES                                    (12,004)        (22,825)
                                                                                                            ---------      ---------  

INVESTING  ACTIVITIES                                                                                                                

  Fixed  Assets                                                                                        (3,076)          (3,271)
                                                                                                            ---------      ---------  
  CASH  FLOWS  FROM  INVESTING  ACTIVITIES                                        (3,076)          (3,271)
                                                                                                            ---------      ---------  

Net  increase  (decrease)  in  cash                                                    49,424          (57,061)

CASH,  beginning  of  period                                                              148,021          440,473  

                                                                                                            ---------      ---------  
CASH,  end  of  period                                                                          197,445          383,412  
                                                                                                            ---------      ---------  
                                                                                                            ---------      ---------  

 
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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