Logibec Groupe Informatique Ltd. : Increase in Revenue and Earnings for 2007

HIGHLIGHTS

- Revenue for the fiscal year 2007 increased 11% to $45.3million compared to $40.8 million for the previous year.

- Revenue for the fourth quarter increased 11% to $11.5million compared to $10.5 million for the same period inthe previous year.

- Recurring revenue increased 10% to stand at $36.7 millioncompared to $33.2 million in 2006.

- Operating income increased 15% to stand at $18.4 millioncompared to $15.9 million in 2006.

- Operating income for the fourth quarter increased 11%to stand at $4.7 million compared to $4.3 million for thesame period in the previous year.

- Net earnings increased 33% to $7.5 million, or 0.85 pershare, for the year ended September 30, 2007, compared to$5.6 million, or $0.63 per share, for the same period lastyear, after restatement.

- Acquisition by our subsidiary, MDI Technologies, Inc.,of the business activities of Choice Systems Enterprise,Inc. and REPS Software, increasing the number of clientfacilities and communities using our software in the UnitedStates to 3,400.

- Acquisition on November 19, 2007, of the assets of AchieveHealthcare Technologies L.P., increasing the number of clientfacilities and communities using our software in the UnitedStates to approximately 6,000.

- Restatement of the 2006 consolidated financial statementsso as to correct the understatement of the income tax expense,namely the recognition of additional income tax expensein the amount of $1.1 million.

OPERATING RESULTS

This press release compares the operating results for thefiscal year 2007 with those of the fiscal year 2006. Theresults of the fiscal year ended on September 30, 2007,include the results of REPS Software from May 14, 2007,and the acquired business activities of Choice Systems Enterprise,Inc. from March 15, 2007.

REVENUE

           Geographical Revenue Breakdown        (in thousands of Canadian dollars)                2006     2007    Variation  Growth-----------------------------    ----------------------------------------------    -----------------Canada        30,982   33,407        2,425       8%United States  9,774   11,846        2,072      21%-----------------------------    -----------------Consolidated Revenue      40,756   45,253        4,497      11%-----------------------------    -----------------

In 2007, revenue reached a new high to stand at $45.3 millioncompared to $40.8 million in 2006, representing an 11% increase.Canadian activities generated $2.4 million of the total$4.5 million increase and American activities generatedthe remaining $2.1 million. Revenue by sector is presentedas follows:

To view the Revenue by Segment chart, please visit the followinglink:

For the fiscal year 2007, revenue from American activitiesrepresents 26% of consolidated revenue compared to 24% forthe previous year. This progression stems from the Company'sgrowth strategy that is aimed at creating significant marketshare for the Company in the elder care market in the UnitedStates.

                    Recurring Revenue          (in thousands of Canadian dollars)                 2006    2007    Variance   Growth-----------------------------    ----------------------------------------------    -----------------Canada         24,284  25,538       1,254        5%United States   8,933  11,220       2,287       26%-----------------------------    -----------------Consolidated Revenue       33,217  36,758       3,541       11%-----------------------------    -----------------

Revenue from Canadian activities

In Canada, revenue increased $2.4 million, representingan increase of 8% compared to the previous year. Recurringrevenue from the Canadian segment contributed $1.3 millionto this increase, due mainly to the software rights of usefor clinical administrative solutions, eClinibase and Med-Echo.

Non-recurring revenue increased by $1.2 million, or 17%,mainly due to special projects carried out in order to applythe new pay equity measures ordered by the Quebec governmentfor civil servants and particularly for employees in healthand social services facilities using the Company's payrollservices.

As at September 30, 2007, the Canadian segment had $1.8million in current deferred license and professional servicesrevenue and $3.6 million in long-term deferred revenue.This revenue as well as the related costs will be recognizedover the average term of the related agreements which isgenerally three years. As at the same date, this segmenthad current deferred revenue from annual rights of use andsupport in the amount of $11.9 million.

Revenue from American activities

For the fiscal year 2007, revenue from the American segmentincreased by $2.1 million or 21%. This increase is due mainlyto the inclusion of Monette Information Systems Corporation'sresults during the whole fiscal year compared to a contributionof 192 days in 2006; it is also due to the inclusion ofthe business activities of Choice Systems beginning March15, 2007 and the activities of REPS Software beginning May14, 2007. The increase in revenue from the American segmentis due to an increase of $2.3 million in recurring revenue,reflecting the importance of recurring revenue in the businessmodel used in the United States.

As at September 30, 2007, the American segment had $2.5million in current deferred license and professional servicesrevenue and $2.3 million in non-current deferred revenue.This revenue as well as the related costs will be recognizedover the average term of the related agreements which ison average five years.

OPERATING EXPENSES

Operating expenses, which are composed of service costsand selling and administrative expenses, increased 8%, representing59% of revenue for the fiscal year 2007 compared to 61%for the fiscal year 2006.

Service costs. Service costs increased by $2.2 million,or 13%, and represent 41% of revenue whereas they represented40% of revenue in 2006. An analysis of service costs ispresented in the following table.

                 Service Costs                       Service Costs / Revenue        (in thousands of Canadian dollars)                 2006    2007   Variation                       2006   2007------------------------------------------------------------------------------------------------------------------------------------------------------Canada         12,829  13,501         672         Canada          41%    40%United States   3,439   4,962       1,523         United States   35%    42%---------------------------------------------------------------------------Consolidated Service Costs 16,268  18,463       2,195         Consolidated    40%    41%---------------------------------------------------------------------------

The increase in service costs is mainly attributable toan increase in the American segment resulting from the inclusionof Monette activities for a full year and REPS Softwarefrom May 15, 2006. Service costs for the Canadian segmentwent from $12.8 million in 2006 to $13.4 million in 2007.This increase is mainly a result of an increase in the costof equipment intended for resale. However, service costshave decreased as a ratio of revenue. This ratio for theCanadian segment stands at 40% in 2007 compared to 41% in2006. The improvement in this ratio is due to Management'sability to generate increased revenue despite having a stableworkforce.

Selling and administrative expenses. Selling and administrativeexpenses for the fiscal year 2007 stood at $8.4 millioncompared to $8.5 million for the fiscal year 2006, representinga decrease of $0.1 million. Selling and administrative expensesstood at 18% of revenue for 2007 compared to 21% for 2006.

Operating income before depreciation and amortization, losson disposition of fixed assets, income on temporary investments,financial expenses and income tax stood at $18.4 millionfor the fiscal year 2007, up 15% compared to the previousyear and yielding a margin of 41% of revenue. This marginwas 39% in 2006. The increase in operating income is dueto the significant increase in revenue from the Canadiansegment without there being a significant increase in operatingexpenses in this segment as well as due to improved profitabilityin the American segment.

AMORTIZATION OF FIXED ASSETS, INTANGIBLE ASSETS AND OTHERLONG-TERM ASSETS

Depreciation and amortization of fixed assets, intangibleassets and other long-term assets for the year ended September30, 2007 rose to $6.3 million, increasing by 4% from the$6.1 million for 2006.

The depreciation of fixed assets is similar to the amountrecorded in 2006.

The depreciation of intangible assets and other long-termassets rose $0.2 million or 5% since this charge also includesthe depreciation of the customer relationships and technologiesacquired from Monette for the full year, Choice Systemsfrom March 15, 2007, and REPS Software from May 14, 2007.Depreciation of Canadian intangible assets and other Canadianlong-term assets decreased by approximately $0.1 millionin 2007. This decrease is due primarily to a decrease inthe depreciation of developed technology.

FINANCIAL EXPENSES

Financial expenses decreased by 17% and are mainly composedof interest charges on the Company's term loans, stand-byfees for the unused portion of these credit facilities anda loss on foreign exchange. The decrease is mainly due toa decrease in interest charges on the Canadian revolvingreducing term loans following repayment of these loans,despite the additional charge of interest on the Americanrevolving term loan.

INCOME TAXES

The Company provisioned income tax expense at a rate of34.6% of its earnings before income taxes for the fiscalyear 2007, that is, $4.0 million, compared to a provisionof 38.2% for the previous year.

NET EARNINGS

Net earnings for the fiscal year ended September 30, 2007,increased by 33% to stand at $7.5 million or $0.85 per share($0.84 on a diluted basis), compared to $5.6 million or$0.63 per share ($0.62 on a diluted basis) for the fiscalyear 2006, after restatement.

The growth in net earnings is due to the contribution throughoutthe fiscal year 2007 of the acquired Monette operations,the contribution of Choice System's activities from March15, 2007, the contribution of REPS Software from May 14,2007, as well as the profitable growth of the Company'sCanadian activities.

LIQUIDITY AND SOURCES OF FINANCING

OPERATING ACTIVITIES

For the year ended September 30, 2007, cash flow from operatingactivities stood at $12.3 million compared to $19.3 millionfor 2006. The significant decrease of $7.1 million is attributableto changes in non-cash working capital items, namely thepayment of income tax during the fiscal year 2007.

INVESTING ACTIVITIES

The Company's main investing activities were the acquisitionsof REPS Software and Choice Systems, capital expendituresand amounts capitalized as software development costs.

On March 15, 2007, the Company acquired the business activitiesof Choice Systems for cash consideration of $2.7 millionand a promissory note of $0.2 million.

On May 14, 2007, the Company acquired all outstanding commonshares of REPS Software for cash consideration of $6.7 million.

The Company invested $0.7 million in fixed assets duringthe fiscal year 2007 compared to an investment of $0.6 millionin 2006. The investment in 2007 includes $0.3 million forthe Canadian segment and $0.4 million for the American segment.The increase is mainly due to the purchase of equipmentand to leasehold improvements following the relocation ofSmithfield (VA) offices during the fiscal year 2007.

Furthermore, Logibec invested $2.3 million in intangibleassets, $2.0 million of which was in the form of capitalizedtechnology development costs. The Company maintains in effectits policy for the capitalization of technology developmentcosts to ensure that only the software packages with thegreatest potential for generating future revenues are capitalized.

FINANCING ACTIVITIES

The amounts redrawn by the Company on its Canadian revolvingreducing term loans when operating cash flow was low totaled$7.7 million. This generally occurs during the second quartersince most of the Canadian recurring revenue is billed annuallyon April 1. During the fiscal year, the Company repaid infull all amounts redrawn under these facilities.

During 2007, MDI signed an agreement for a credit facilitywith an American financial institution for a rotating termloan of US$10.0 million to be used to finance the acquisitionsof companies or assets in the American market. During thefiscal year 2007, US$1.3 million was borrowed to financethe acquisition of the assets of Choice Systems and US$6.0million was borrowed to finance the acquisition of all theoutstanding shares of REPS Software. These loans representa total of $8.2 million, of which $0.8 million has beenrepaid.

Under a normal course issuer bid, the Company repurchased205,600 common shares for cash consideration of $4.0 million.Management uses the issuer bid program to counter the dilutiveeffects of stock option exercises.

As of September 30, 2007, the Company had cash and cashequivalents of $7.0 million. Of the $8.4 million availablein accordance with Canadian credit facilities as at September30, 2007, $0.4 million was used for letters of guarantee.On this date, the Company had drawn $6.5 million pursuantto its American rotating term loan.

On November 19, 2007, the Company amended its Canadian creditfacilities to increase the total availability to $24 million.On this date, the Company borrowed US$20 million to partiallyfinance the acquisition of the assets and business activitiesof Achieve Healthcare Technologies, L.P.

Management believes that it is able to continue to growthe Company while remaining in compliance with the covenantsof its credit facilities. The Company's current cash positionand its ability to generate operating cash flow from itsactivities in Canada as well as in the United States provideLogibec with the cash required to integrate the recent acquisitionof Achieve Healthcare. However, Management is working atsetting up larger credit facilities in Canada to providethe Company with the flexibility required to continue itsgrowth.

ABOUT LOGIBEC

Logibec is among the ten largest Canadian companies specializingin the development, marketing, implementation and supportof information systems for the health and social servicessector. Logibec serves over 200 clients throughout Quebecand the rest of Canada. Through its wholly-owned subsidiaryMDI Technologies, Inc., Logibec also serves approximately6,000 senior living communities and long-term care facilitiesthroughout the United States. These services are deliveredby an experienced team of some 390 employees. The Companyhas its head office in Montreal as well as offices in QuebecCity, Edmonton, St. Louis, Minneapolis, Tampa and Smithfield(VA).

This news release contains forward-looking statements reflectingLogibec Groupe Informatique Ltd. objectives, estimates andexpectations. Such statements may be marked by the use ofverbs such as "believe", "anticipate", "estimate" and "expect"as well as the use of the future or conditional tense. Bytheir very nature, such statements involve risks and uncertainty.Actual results may differ significantly from the Company'sforecasts or expectations.

 LOGIBEC GROUPE INFORMATIQUE LTD.CONSOLIDATED STATEMENTS OF EARNINGS                             Three months ended       Twelve months ended                                   September 30              September 30-------------------------------------------------------------------------                             2007          2006        2007          2006--------------------------------------------------------------------------------------------------------------------------------------------------                                $             $           $             $                                   (As restated)             (As restated)Revenue                11,568,956    10,468,451  45,253,191    40,756,036-------------------------------------------------------------------------Operating expenses Service costs          4,743,715     4,135,318  18,463,053    16,267,711 Selling and  administrative  expenses              2,105,890     2,068,651   8,371,391     8,540,231-------------------------------------------------------------------------                        6,849,605     6,203,969  26,834,444    24,807,942-------------------------------------------------------------------------Earnings before the following items        4,719,351     4,264,482  18,418,747    15,948,094Amortization of fixed assets                   274,792       255,681   1,066,457     1,076,845Amortization of intangible assets and other long-term assets                 1,271,112     1,218,106   5,256,244     5,013,151Loss on disposal of fixed assets               9,196             -     134,843        36,080Income on temporary investments              (70,948)      (32,697)   (165,619)      (99,878)Financial expenses        364,975       210,766     645,400       782,012-------------------------------------------------------------------------Earnings before income taxes                  2,870,224     2,612,626  11,481,422     9,139,884Income taxes            1,174,000       998,023   3,976,000     3,492,000-------------------------------------------------------------------------Net earnings            1,696,224     1,614,603   7,505,422     5,647,884--------------------------------------------------------------------------------------------------------------------------------------------------Net earnings per share Basic                       0.19          0.18        0.85          0.63 Diluted                     0.19          0.18        0.84          0.62-------------------------------------------------------------------------Weighted average number of common shares outstanding  Basic                 8,726,157     8,963,625   8,843,608     8,976,322  Diluted               8,803,297     9,018,411   8,913,483     9,049,909-------------------------------------------------------------------------LOGIBEC GROUPE INFORMATIQUE LTD.CONSOLIDATED BALANCE SHEETS                                                     2007          2006----------------------------------------------------------------------------------------------------------------------------------------------                                                        $             $                                                           (As restated)AssetsCurrent assets Cash and cash equivalents                      6,974,398     3,098,433 Accounts receivable                            4,820,699     4,252,261 Income tax credits receivable                  1,565,451     2,025,471 Income taxes receivable                            2,226       165,148 Future income taxes                            1,746,757       388,000 Other current assets                           1,526,715     1,391,897-----------------------------------------------------------------------                                               16,636,246    11,321,210Fixed assets                                    3,535,084     4,086,812Goodwill                                       33,836,280    31,654,862Intangible assets and other long-term assets   24,336,051    25,296,737-----------------------------------------------------------------------                                               78,343,661    72,359,621----------------------------------------------------------------------------------------------------------------------------------------------LiabilitiesCurrent liabilities Accounts payable and accrued liabilities       4,907,036     5,668,776 Income taxes                                   2,424,369     4,943,774 Future income taxes                              232,000       232,000 Current portion of long-term debt              1,066,406         4,236-----------------------------------------------------------------------                                                8,629,811    10,848,786 Deferred revenue                              14,428,909    11,307,157-----------------------------------------------------------------------                                               23,058,720    22,155,943Long-term deferred revenue                      6,072,968     5,823,432Long-term debt                                  5,277,742         4,581Future income taxes                             6,910,000     7,714,100-----------------------------------------------------------------------                                               41,319,430    35,698,056-----------------------------------------------------------------------Commitments and contingenciesShareholders' equity Share capital                                 27,780,598    28,435,149 Contributed surplus                              474,368       415,072 Retained earnings                             15,268,966    11,133,490 Accumulated other comprehensive loss          (6,499,701)   (3,322,146)-----------------------------------------------------------------------                                                8,769,265     7,811,344-----------------------------------------------------------------------                                               37,024,231    36,661,565-----------------------------------------------------------------------                                               78,343,661    72,359,621----------------------------------------------------------------------------------------------------------------------------------------------LOGIBEC GROUPE INFORMATIQUE LTD.CONSOLIDATED STATEMENTS OF CASH FLOWS                             Three months ended        Twelve months ended                                   September 30               September 30--------------------------------------------------------------------------                             2007          2006         2007          2006----------------------------------------------------------------------------------------------------------------------------------------------------                                $             $            $             $                                   (As restated)              (As restated)Operating activitiesNet earnings            1,696,224     1,033,908    7,505,422     5,647,884Adjustments for: Amortization of fixed  assets                  274,792       255,681    1,066,457     1,076,845 Amortization of  intangible assets  and other long-term  assets                1,271,112     1,218,106    5,256,244     5,013,151 Amortization of  deferred  financing costs         112,752       136,966      112,752       136,966 Stock-based  compensation                  -        29,648       59,296       237,184 Loss on disposal of  fixed assets              9,196             -      134,843        36,080 Future income taxes   (1,970,388)   (1,672,703)  (1,970,388)   (1,672,703)--------------------------------------------------------------------------                        1,393,688     1,001,606   12,164,626    10,475,407Changes in non-cash operating working capital items           (993,672)    5,156,556      128,307     8,868,595--------------------------------------------------------------------------                          400,016     6,158,162   12,292,933    19,344,002--------------------------------------------------------------------------Investing activitiesBusiness acquisition, net of cash and cash-equivalents acquired                 (43,943)     (614,738)  (9,025,785)   (3,223,835)Proceeds from disposal of fixed assets           23,742          (326)      49,729        32,000Acquisition of fixed assets                  (158,584)     (160,754)    (728,308)     (588,326)Increase in intangible assets and other long-term assets, net of investment tax credits                 (660,075)     (676,384)  (2,074,931)   (2,093,982)--------------------------------------------------------------------------                         (838,860)   (1,452,202) (11,779,295)   (5,874,143)--------------------------------------------------------------------------Financing activitiesIncrease in long-term debt                    (125,212)            -   15,898,480     3,100,000Repayment of long-term debt                    (296,442)   (2,467,746)  (8,556,781)  (15,447,550)Redemption of shares       (2,013)     (978,663)  (4,024,498)   (2,329,698)Credit facilities financing costs         (216,654)            -     (216,654)            -Issuance of shares              -             -            -     1,001,000--------------------------------------------------------------------------                         (640,321)   (3,446,409)   3,100,547   (13,676,248)--------------------------------------------------------------------------Effect of exchange rate changes on cash denominated in foreign currency         315,781       (43,223)     261,780       112,983Increase (decrease) in cash and cash equivalents             (763,384)    1,216,328    3,875,965       (93,406)Cash and cash equivalents, beginning of year      7,737,782     1,882,105    3,098,433     3,191,839--------------------------------------------------------------------------Cash and cash equivalents, end of year            6,974,398     3,098,433    6,974,398     3,098,433----------------------------------------------------------------------------------------------------------------------------------------------------

The TSX Venture accepts no responsibility for the truthor accuracy of this press release.