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Atlantis Systems Corp. Reports Consolidated Financial Results for the Year Ended 2012

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HALIFAX, NOVA SCOTIA -- (Marketwired) -- 04/25/13 -- This news release may contain forward-looking statements. Reference should be made to "Forward-looking Statements" at the end of this news release. All amounts are stated in Canadian dollars except where otherwise noted.

Atlantis Systems Corp. ("Atlantis") (NEX: AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its audited consolidated financial results for the year ended 2012. Full results are available on www.sedar.com.

About Atlantis Systems Corp.

Atlantis Systems (NEX: AIQ.H) uses its core capabilities in simulation-aided design and engineering and e-learning, combined with various technology tools, to help customers in military and commercial markets to ensure the feasibility, capability, and effective utilization of their complex assets. In more than 30 years of operation, Atlantis has developed a solid reputation for its creative workforce and innovative solutions in supporting global OEM customers and defence organizations. To learn more, please visit the Company's web site at www.atlantissc.com.

Forward-Looking Statements

Atlantis assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason. Additional information regarding risks and uncertainties that could affect Atlantis' business is contained in the Business Risk Factors section of Atlantis's Annual MD&A available on SEDAR at www.sedar.com.

ATLANTIS SYSTEMS CORP.Consolidated Statements of Comprehensive LossFor the years ended December 31, 2012 and 2011(Expressed in thousands of Canadian dollars except per share amounts)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011----------------------------------------------------------------------------Revenue $ 10,672 $ 14,512Cost of revenue 7,243 10,853----------------------------------------------------------------------------Gross margin 3,429 3,659----------------------------------------------------------------------------Other income (Note 21) 2,343 871----------------------------------------------------------------------------Expenses General and administrative 3,569 3,419 Selling and marketing 851 615 Restructuring costs (Note 11) 728 203 5,148 4,237Operating income 624 293----------------------------------------------------------------------------Depreciation and amortization 167 206Finance costs (Note 7) 1,676 2,154(Gain) loss on derivative liability (537) 341Accretion expense 70 12Foreign currency (gain) loss (182) 233Write down of investments - 6(Gain) loss on disposal of capital assets (7) 6----------------------------------------------------------------------------Net and comprehensive loss $ (563) $ (2,665)--------------------------------------------------------------------------------------------------------------------------------------------------------Loss per share (Note 14) Basic $ (0.06) $ (0.26) Diluted $ (0.06) $ (0.26)----------------------------------------------------------------------------



Approved on behalf of the Board of Directors:

Signed: David Williams, Signed: Ken Howard,Director DirectorATLANTIS SYSTEMS CORP.Consolidated Statements of Financial PositionAs at December 31, 2012 and 2011(Expressed in thousands of Canadian dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011----------------------------------------------------------------------------ASSETSCurrent assets Cash $ 15 $ 1,610 Trade and other receivables (Note 8) 3,567 2,624 Note receivable (Note 9) - 100 Unbilled revenue 2,492 2,736 Prepaid expenses 21 299---------------------------------------------------------------------------- 6,095 7,369----------------------------------------------------------------------------Unbilled revenue 125 -Capital assets, net (Note 10) 370 521Long-term prepaid expenses - 1Other long term assets 67 67---------------------------------------------------------------------------- 562 589---------------------------------------------------------------------------- $ 6,657 $ 7,958--------------------------------------------------------------------------------------------------------------------------------------------------------LIABILITIESCurrent liabilities Accounts payable and accrued liabilities $ 1,898 $ 2,350 Deferred revenue 136 1,420 Provisions (Note 11) 627 46---------------------------------------------------------------------------- 2,661 3,816----------------------------------------------------------------------------Deferred revenue 248 -Term note (Note 12) 6,504 6,648Convertible note (Note 12) 6,747 5,897Derivative liability (Note 13) 17 554---------------------------------------------------------------------------- 13,516 13,099---------------------------------------------------------------------------- 16,177 16,915--------------------------------------------------------------------------------------------------------------------------------------------------------SHAREHOLDERS' DEFICIENCY Share capital and warrants (Note 14) 92,810 92,837 Share-based payments reserve 9,338 9,338 Deficit (111,668) (111,132)---------------------------------------------------------------------------- (9,520) (8,957)---------------------------------------------------------------------------- $ 6,657 $ 7,958--------------------------------------------------------------------------------------------------------------------------------------------------------ATLANTIS SYSTEMS CORP.Consolidated Statements of Changes in Shareholder's DeficiencyFor the years ended December 31, 2012 and 2011(Expressed in thousands of Canadian dollars except number of shares)--------------------------------------------------------------------------------------------------------------------------------------------------------



Number Common of shares stock Warrants----------------------------------------------------------------------------Balance January 1, 2011 10,233,683 $ 92,810 $ 27--------------------------------------------------------------------------------------------------------------------------------------------------------Net and comprehensive loss - - ---------------------------------------------------------------------------------------------------------------------------------------------------------Balance December 31, 2011 10,233,683 92,810 27--------------------------------------------------------------------------------------------------------------------------------------------------------Net and comprehensive loss - - -Expired warrants - - (27)--------------------------------------------------------------------------------------------------------------------------------------------------------Balance December 31, 2012 10,233,683 $ 92,810 $ --------------------------------------------------------------------------------------------------------------------------------------------------------- Share-based Total payments Accumulated shareholders' reserve deficit deficiency----------------------------------------------------------------------------Balance January 1, 2011 $ 9,338 $ (108,467) $ (6,292)--------------------------------------------------------------------------------------------------------------------------------------------------------Net and comprehensive loss - (2,665) (2,665)--------------------------------------------------------------------------------------------------------------------------------------------------------Balance December 31, 2011 9,338 (111,132) (8,957)--------------------------------------------------------------------------------------------------------------------------------------------------------Net and comprehensive loss - (563) (563)Expired warrants - 27 ---------------------------------------------------------------------------------------------------------------------------------------------------------Balance December 31, 2012 $ 9,338 $ (111,668) $ (9,520)--------------------------------------------------------------------------------------------------------------------------------------------------------ATLANTIS SYSTEMS CORP.Consolidated Statements of Cash FlowsFor the years ended December 31, 2012 and 2011(Expressed in thousands of Canadian dollars)-------------------------------------------------------------------------------------------------------------------------------------------------------- 2012 2011----------------------------------------------------------------------------Cash flows provided by (used in):Operating activities:Net and comprehensive loss $ (563) $ (2,665)Items not affecting cash: Depreciation and amortization 167 206 (Gain) loss on disposal of capital assets (7) 6 Write down of investments - 6 Foreign currency (gain) loss (182) 233 Finance costs 1,676 2,154 Accretion expense 70 12 Loss on derivative (537) 341Long-term prepaid expense 1 150Other long-term assets - 10Long-term receivable - 100Net change in non-cash working capital (Note 19) (1,443) (2,780)Realized foreign currency loss (79) -Finance costs paid (689) (1,939)----------------------------------------------------------------------------Net cash used in operating activities (1,586) (4,166)--------------------------------------------------------------------------------------------------------------------------------------------------------Investing activities:Investment in capital assets (16) (119)Proceeds from sale of capital assets 7 -----------------------------------------------------------------------------Net cash used in investing activities (9) (119)--------------------------------------------------------------------------------------------------------------------------------------------------------Financing activities:Term debt proceeds - 4,785----------------------------------------------------------------------------Net cash provided by financing activities - 4,785--------------------------------------------------------------------------------------------------------------------------------------------------------Net (decrease) increase in cash (1,595) 500Cash, beginning of year 1,610 1,110----------------------------------------------------------------------------Cash, end of year $ 15 $ 1,610--------------------------------------------------------------------------------------------------------------------------------------------------------



Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.



Contacts:
Atlantis Systems Corp.
Ellie Landale
Corporate Secretary
(416) 738-8074
elandale@atlantissc.com
www.atlantissc.com



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