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SEB Reports Financial Results for the Quarter Ending February 28, 2013

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TORONTO, ONTARIO -- (Marketwired) -- 04/26/13 -- Smart Employee Benefits Inc. ("SEB" or "Company") (TSX VENTURE: SEB), today reported its financial results for the three month period ending February 28, 2013.

SEB is a technology company providing "business processes software solutions and services" to corporate and government clients with specialty practices focused on "managing group benefit solutions and health claims processing environments."

Background on the SEB Business Model and Business Strategy

John McKimm, President and CEO states:

"For the past 21 months SEB has been focused on developing its technology platform for managing group benefit solutions and health claims processing environments. SEB has automated the administration, payment processing and reporting environment around an already-proven adjudication environment. SEB has a development team in Canada and also uses offshore resources to continue to enhance the automation and integration. There are two primary target markets in Canada - employee group benefits which exceed $33.0 billion annually and government funded benefits (federal and provincial) which are in excess of $23.0 billion. SEB's technology platform is easily adaptable to managing the end-to-end business processes in both environments. These markets are in excess of $56.0 billion in Canada, with the employee group benefit portion growing over 80% in the past decade.

SEB has spent over $4.0 million since 2011 automating the administration, payment processing/billing and reporting modules of its platform and integrating these modules into an already proven leading edge adjudication platform. Current management of SEB has also changed the revenue model to a "SaaS" model where services can be provided in either a private or public cloud. Previously, the adjudication software was primarily being sold in the traditional software "license and maintenance" revenue model. The SaaS model changes the purchase decision to an "operating budget" decision from a "capital budget" decision and the revenue becomes a more stable, long-term annuity stream. Through acquisitions, SEB intends to acquire the client relationships and vendor status to support a complementary organic growth model with both employers and government business opportunities.

SEB's technology platform manages the total business processing services for group benefit solutions and health claims processing on one fully-integrated technology environment. The SEB technology platform is open architecture, rules based and modular, and allows clients to utilize either a fully integrated solution or modules. SEB's "rules-based adjudication" environment is very unique and when combined with a fully-integrated Administration - Payment Processing/Billing - Real-Time, Self-Serve Reporting modules will provide unique and highly competitive solutions to the marketplace, both in Canada and globally. SEB can administer, adjudicate and report for all benefit types in one fully integrated environment. Rules creation is an administrative, not a programming exercise. Highly customized and flexible processing solutions can be created easily and cost effectively. The largest current implementation of the SEB Adjudication Environment is Oman Insurance in Dubai.

The health benefits division of SEB operates as a licensed TPA and broker. The opportunity for SEB is to increase the capture of revenue by providing fully integrated services and solutions, currently being outsourced by most TPAs and Insurers to third parties, and turn cost centres to profit centres.

SEB's growth strategy is acquisitions driven. On the employee group benefit side, acquisitions target TPAs (Third Party Administrators), as well as broker and consultant organizations that provide solutions and services to employers. The objective is to secure the client relationships and transition many of the front and back-office business processes to the SEB technology environment over time; in effect, turning cost centres into profit centres. On the government side, SEB is targeting technology companies (primarily IT) that have established vendor relationships, security clearances and project references that are required to bid on government contracts. All government contracts are competitive RFP (Request for Proposal) processes, which require the requisite credentials to be eligible to bid. SEB's acquisition strategy with government is to establish the essential credentials required to bid competitively.

The initial growth plan for 2013 is acquisition-based, with the objective of reaching consolidated profitability quickly and establishing a solid base of business and clients from which to launch organic growth initiatives. In the past 75 days, SEB has closed two acquisitions and announced a third. Historically, the consolidated annual revenues for these companies exceeded $12.0 million. These transactions bring both a solid profitable base of business and clients, and they expand technology operations and infrastructure in both Toronto and Ottawa. Both are major centres of growth targeted by SEB."

Recent Announcements

Following the Company's year end of November 30, 2012, the following have occurred:

-- December 27, 2012---SEB closed a private placement consisting of $554,000 in principal amount of convertible notes-- February 7, 2013---SEB announced that it had closed the acquisition of Logitek Technology Ltd.-- February 7, 2013---Latiq Qureshi, President and CEO of Logitek, joined the Board of Directors.-- February 27, 2013---SEB closed an equity placement of $1,106,000 at $0.35 per unit.-- March 5, 2013---SEB announced that it had closed the acquisition of the SOMOS Group of Companies.-- March 19, 2013---SEB announced that SEB's Board of Directors approved a Memorandum of Agreement to acquire a 50% interest in the Inforica Group.-- April 1, 2013---Christine Hrudka joined the Board of Directors.



Approval of Options

On April 23, 2013, the Board of Directors of SEB approved the issuance of 1,219,000 options allocated over 57 key employees within SEB and subsidiaries SOMOS Group and Logitek Technology Ltd. and SEB's new Director, Christine Hrudka. SEB's objective is for every key employee of the company to benefit from the growth in the value of the equities of the Company.

Financial Results for Quarter Ending February 28, 2013

For the 3 month period ending February 28, 2013, SEB recorded a loss of $879,709, which included non-cash costs of $99,988, made up of a Stock-based compensation cost of $36,650, accretion of non-cash interest of $15,634 related to the Convertible Financing, and amortization of $47,704. Of the other costs the largest was Salaries and other compensation costs of $672,128 (the largest portion of which was related to software development and maintenance); the next was Professional Fees of $146,120, much of which was related to the costs of closing of the financings and acquisitions. Revenue for the quarter was $343,141 compared to $54,342 in the comparable quarter last year.

The quarterly comparative in the financial statements is the period January 1, 2012 to March 31, 2012. Following completion of the RTO in July, 2012, the Company elected to use November 30 as its year-end for financial reporting purposes. The comparative is that of Smart Employee Solutions Inc., the target company in the RTO, which was using September 30 as its year end.

The consolidated financial statements and related MD&A for the period ended February 28, 2013, can be found on SEDAR at www.sedar.com under the profile of Smart Employee Benefits Inc.

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



Contacts:
Smart Employee Benefits Inc.
John McKimm
Chief Executive Officer
(416) 460-2817
john.mckimm@seb-inc.com

Smart Employee Benefits Inc.
Shelly Frank
VP Marketing
(888) 939-8885
shelly.frank@seb-inc.com



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