Lemontonic(TM) Announces Second Quarter 2005 Results

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TORONTO, Aug. 29 /CNW/ - LEMONTONIC INC. ("Corporation") (TSX-VEN: LEM)
Lemontonic announced today financial results for its second quarter 2005.
For the quarter ended June 30, 2005 revenue of $17,650 comprised of
earned subscriber revenue from our online dating property at
www.lemontonic.com compared to nil in the same quarter of 2004 and $19,546 in
the prior quarter ended March 31, 2005. Billed subscriber revenue in the
quarter amounted to $15,588 compared to $21,398 in the prior quarter. $5,357
is deferred on the balance sheet and decreased from $7,419 as at March 31,
2005 and will be earned over the coming quarters. For the six months ended
June 30, 2005 revenue amounted to $37,196 compared to nil in the same period
in 2004. Billed subscriber revenue in the period amounted to $36,986 compared
to nil in the same period in 2004.
Operating costs for the quarter ended June 30, 2005 decreased to
$1,064,005 from $1,722,862 in the same quarter of 2004 due primarily to the
reduction in marketing for customer acquisition and due to product development
being performed in-house. For the six month period ended June 30, 2005
operating costs decreased to $2,429,422 from $2,610,057 in the same period in
2004 due to product development being performed in-house and other cost
reductions in consulting and general and administration.
The net loss for quarter ended June 30, 2005 was $1,046,355 or $0.01 per
share compared to a loss of $1,722,862 or $0.05 per share in 2004. For the six
month period ended June 30, 2005 the net loss was $2,392,227 or $0.03 per
share compared to a loss of $2,610,057 or $0.08 per share in 2004.
As at the end of June 30, 2005 the number of members totaled
approximately 145,000. The number of active paying subscribers at the end of
the quarter totaled 350.
The Company announced two separate transactions on May 24, 2005. The
first announcement detailed the sale of the Lemontonic online dating business
to Silverback Media Limited (Lemontonic Reorganization) and the second
announcement detailed the Business Combination of Lemontonic Inc. with
Pioneering Technology Inc. ("Pioneering").
With the anticipated Lemontonic Reorganization with Silverback, and the
Business Combination with Pioneering, the Company will no longer exist in its
current form.
In management's opinion, the largest material risk to the completion of
the two transactions remains Lemontonic's ability to deliver the agreed funds
upon closing. The delivery of these funds is contingent upon the successful
restructuring of a payable to a large supplier. The negotiation of the
restructuring is ongoing with the supplier; however, a determination has not
yet been reached. Without a favorable restructuring, the terms of the business
combination cannot be met by Lemontonic.
To find out more about Lemontonic Inc. (TSX-VEN: LEM), visit
www.lemontonic.com.

The TSX Venture Exchange Inc. has not reviewed and does not accept
responsibility for the adequacy and accuracy of this release.

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