Pioneering Technology Announces Q2 2011 Financial Results

Jun. 1, 2011 (Canada NewsWire Group) --

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

MISSISSAUGA, ON, June 1, 2011 /CNW/ - Pioneering Technology Corp. (TSX-V: PTE), ("Pioneering" or the "Company"), an energy smart product innovation and consumer goods company, announced today that it has recorded its seventh consecutive quarter with an operating profit (or EBITDA) of $1,822 in the second quarter of its fiscal 2011 year, which ended March 30, 2011.   The Company's unaudited financial statements for the quarter, together with its Management's Discussion and Analysis of these results, are available for review under the Company's profile at www.sedar.com.

"The Company is continuing to focus on  developing  a sales resource and channel partnership business model that is scaled  for meeting the increased demand for our  Safe-T-element product and  capitalizing on the initial success of our new Safe-T-sensor product" said Kevin Callahan, President and CEO of Pioneering. "The Company is  focused on increasing direct sales resources in both the US and Canada, creating new end user demand in its traditional social and military housing markets, targeting larger channel partnerships with broader "feet-on-the-street" sales coverage that are committed to marketing and selling the Company's products, developing retail sales opportunities to augment the current  commercial channels and marketing the launch success of the Safe-T-sensor product at Ohio University to other universities, colleges and channel targets throughout North America.

Financial Highlights for the Second Quarter Ended March 31, 2011

• Revenue for Q2 FY2011 totaled $627,646, down 17% from the same quarter in the previous fiscal year (Q2 FY2010 - $761,223) but an increase of 3% from the immediately preceding quarter (Q1 FY2011 - $609,495).  Canadian sales of the Safe-T-element continue to grow, but U.S. revenues are down significantly year to date largely due to the delay in passing this year's U.S. federal budget.  The majority of Safe-T-element sales in the U.S. are to government funded institutions (affordable, seniors, university and military housing) and so the delay in passing the budget resulted in many institutions waiting on budget approval before committing to purchases.
• The Company generated positive EBITDA for the seventh consecutive quarter (EBITDA is defined as earnings excluding non-recurring items, non-cash items, taxes, interest and financing fees and amortization).
• An operating expense increase of $48,841 and decrease in gross profit of $53,771 due to the decline in revenue discussed previously led to a net loss during the quarter of $(36,762) versus a net profit of $28,126 in Q2 FY 2010.

Sale of Adenyo

As previously disclosed, Pioneering owns 2,750,000 common shares of Adenyo, Inc.  On April 14, 2011, Motricity Inc. (Nasdaq:MOTR) completed its previously announced acquisition of substantially all of the assets of Adenyo Inc. for initial consideration of US$100 million in cash and common stock of Motricity.  The transaction also included an earn-out provision pursuant to which Motricity would pay Adenyo up to an additional $50 million, in cash, common stock, or a combination thereof, at Motricity's election, based on Adenyo's financial performance during the 12 month period following closing of the transaction.

In connection with the transaction, the Company has received US$550,784 in cash and 56,606 common shares of Motricity, representing its pro rata share of the initial consideration that Adenyo distributed its shareholders.  There can be no assurance as to the amount of additional consideration, if any, that Adenyo will receive pursuant to the earn-out provision.

About Pioneering Technology Corp:

Pioneering is an "Energy Smart" product innovation company based in Mississauga, Ontario, that engineers and brings to market energy smart solutions for consumer products making them safer, smarter and/or more efficient.  The patented Safe-T-element® cooking system is engineered to help prevent stove top cooking fires, the number one cause of fire in North America, and to reduce the amount of electricity required to cook.  The patent pending Safe-T-sensor is designed to detect burning conditions in microwave ovens shutting the device off before it triggers a fire alarm.  Pioneering trademarks include Safe-T-element®, Safe-T-Sensor™, Powergrill™, Battery Eliminator®, Powerpak™ and the Hydro-free Furnace Fan™.  For more information visit: www.pioneeringtech.com.

Forward Looking Statements

The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in the Corporation's target markets, the demand for the Corporation's products, the availability of funding, the efficacy of the Corporation's technology and governmental regulation. These forward-looking statements are made as of the date hereof an, except as required by applicable law, the Corporation does not assume any obligation to update or revise them to reflect new events or circumstances.  Actual events or results could differ materially from the Corporation's expectations and projections.

Non-GAAP Measures

EBITDA is not a measure recognized under Canadian generally accepted accounting principles ("GAAP"). However, management of Pioneering believes that most shareholders, creditors, other stakeholders and investment analysts prefer to have these measures included as reported measures of operating performance, a proxy for cash flow, and to facilitate valuation analysis. EBITDA does not have any standard meanings prescribed by GAAP and therefore may not be comparable to similar measures presented by other issuers. Readers are cautioned that EBITDA is not an alternative to measures determined in accordance with GAAP and should not, on its own, be construed as indicators of performance, cash flow or profitability. References to the Corporation's EBITDA should be read in conjunction with the financial statements and management's discussion and analysis of the Corporation posted on SEDAR (www.sedar.com).

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

contact:  Kevin Callahan, President & CEO at (905) 712-2061 ext. 222.