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Advantex Announces Net Income

Page 3 of 5

Economic and Financial dependence (note 2)

Commitments and Contingencies (note 14)

The accompanying notes are an integral part of these consolidated financial statements.

Approved by the Board:

Director: Signed "William Polley"     Director: Signed "Kelly Ambrose"          ----------------------------          ----------------------------          William Polley                        Kelly E. AmbroseAdvantex Marketing International Inc.Consolidated Statements of Income and Comprehensive IncomeFor the three and six months ended December 31, 2012 and December 31, 2011 - (unaudited)(expressed in Canadian dollars)                              For the three months        For the six months                                 ended December 31         ended December 31----------------------------------------------------------------------------                                 2012         2011         2012         2011----------------------------------------------------------------------------                                    $            $            $            $----------------------------------------------------------------------------Revenues                    4,427,976    4,234,322    8,831,393    8,069,429----------------------------------------------------------------------------Direct expenses             1,415,995    1,168,283    2,792,024    2,212,476--------------------------------------------------------------------------------------------------------------------------------------------------------Operating Expenses----------------------------------------------------------------------------Selling and marketing         977,914      925,084    1,887,751    1,701,413----------------------------------------------------------------------------General and administrative             1,007,794    1,140,546    2,085,642    2,178,638----------------------------------------------------------------------------Earnings from operations before amortization and interest                   1,026,273    1,000,409    2,065,976    1,976,902--------------------------------------------------------------------------------------------------------------------------------------------------------Write-off of investment       100,000            -      100,000            -----------------------------------------------------------------------------Depreciation of property, plant and equipment, and intangibles                  138,206      102,001      246,120      194,403----------------------------------------------------------------------------Interest expense:----------------------------------------------------------------------------Stated interest expense - loan payable, and debentures                   514,079      517,890    1,030,675    1,008,724----------------------------------------------------------------------------Non-cash interest expense on loan payable, and debentures      149,991      133,658      291,280      265,662--------------------------------------------------------------------------------------------------------------------------------------------------------Net income and Comprehensive income         123,997      246,860      397,901      508,113--------------------------------------------------------------------------------------------------------------------------------------------------------Earnings per share----------------------------------------------------------------------------  Basic and Diluted   (note 15)                     0.00         0.00         0.00         0.00----------------------------------------------------------------------------

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