BRANCHEZ-VOUS! increased its sales by 48 % in the second quarter of 2006
Montréal, August 24, 2006 -- BRANCHEZ-VOUS! inc. (TSX Venture Exchange : BZV) disclosed its interim financial results for the quarter ended June 30, 2006. Compared to the quarter ended June 30, 2005, revenues increased by 48 % and gross profit increased by 38 %, while net earnings decreased by 46 % - mostly due to investment in product development and marketing. Earnings per share decreased from 1 cent to zero.Table summarizing the main financial results
| Quarter ended June 30, 2006 | Quarter ended June 30, 2005 | Six months ended June 30, 2006 | Six months ended June 30, 2005 | |
| Revenues | $ 1,092,147 | $ 738,862 | $ 1,703.777 | $ 1,169,013 |
| Gross profit | $ 668,881 | $ 485,027 | $ 1,072,853 | $ 798,489 |
| Net earnings | $ 113,827 | $ 210,438 | $ 164,311 | $ 282,834 |
| Basic and diluted earnings per share | $ 0.00 | $ 0.01 | $ 0.01 | $ 0.01 |
The increase in sales and gross profit is due to the sustained growth of the Internet advertising market. The decrease in net earnings is due to an increase in salaries, content development and acquisition expenses and marketing expenses. "The renewed intensity of competition for business, traffic and human resources leads us to reinvest in the business on a continuous basis", says Patrick Pierra, CEO of BRANCHEZ-VOUS!. "We are confident that our assets, resources and performance will allow us to stay on a profitable growth path."
In order to strengthen its sales department, BRANCHEZ-VOUS! names Sébastien Goulet as Vice-President, Sales. Sébastien Goulet has worked for BRANCHEZ-VOUS! since 1997 and, in the past few years acted in the capacity of Sales Director. "We are extremely fortunate to have such a talented sales executive with us, says Patrick Pierra. His nomination is just a recognition of his outstanding performance in the past few years and of the strong sales team he has built."
The Corporation plans to hold a special shareholders' meeting on October 30, 2006, to seek from shareholders an authorization (i) to change in the by-laws of the Corporation, in order to change the quorum for Board meetings from a fixed number of four board members to a simple majority of Board members, and (ii) to issue one million common shares, or approximately 3.4% of outstanding shares, to Mr. Goulet as a bonus for his past performance. These shares would be issued for a consideration of $1.00 and services rendered during the 2006 and 2007 financial years. The shares would be issued in two installments, a first installment of 500,000 shares at $0.30 per share, to be issued before the 2006 year end and which would be subject to a 12 month hold period, and a second installment of 500,000 shares to be issued in January 2008, which would be subject to a 6 month hold period. The record date of that shareholders' meeting will be Monday, September 25, 2006.
Also, the Board of directors has entered into an employment agreement with Mr. Goulet, which provides, amongst other, for the issuance of 300,000 options to Mr. Goulet at the price of $ 0.30 per share, to be exercised according to the option plan of the Corporation. This now brings to 1,402,600 the total number of options which are currently active.
About BRANCHEZ-VOUS! inc.
BRANCHEZ-VOUS! inc. is a leading Montreal-based Internet media company. It owns and operates BRANCHEZ-VOUS.com (www.branchez-vous.com), the largest independent portal in Quebec, which primarily targets an audience of active adult users working in and/or interested by technology; and it operates the BRANCHEZ-VOUS! Network, the largest French-language Internet advertising network, comprised of approximately 50 web sites - including the French version of Canada411, LesPAC.com and ten sites owned and operated by Astral Media. The BRANCHEZ-VOUS! Network reaches over 2.5 million French Canadians every month.
BRANCHEZ-VOUS! is listed on the TSX Venture exchange under the symbol BZV and has approximately 29.2 million shares outstanding. Additional information on the Corporation can be obtained on SEDAR (www.sedar.com) and at www.branchez-vous.com/inc/english
The TSX Venture exchange has neither approved nor disapproved the contents of this press release.
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Contact:
Patrick Pierra
President and CEO
Phone: 514-842-3838 ext. 249
or
Nicholas Powell
Investor Relations Consultant
Phone: 514-904-0084
http://www.branchez-vous.com/contacts/




