Pioneering Technology Announces Q3 2011 Financial Results

/NOT FOR DISSEMINATION IN THE UNITED STATES OF AMERICA/

TORONTO, Aug. 30, 2011 /CNW/ - Pioneering Technology Corp. (TSX-V: PTE), ("Pioneering" or the "Company"), an energy smart product innovation and consumer goods company, announced today its financial results for the third quarter of its fiscal 2011 year, which ended June 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.

After reporting seven consecutive quarters of operating profits, the Company reported an operating loss of $311,752 for the three months ended June 30, 2011 versus operating income of $71,890 during the same period a year ago. The operating loss was a result of lower sales during the quarter to publicly funded institutions in the U.S., many of whom deferred planned spending due to the delay in passing the U.S. budget and uncertainties surrounding the increase to the U.S. debt ceiling. With those matters now resolved, the Company anticipates that its U.S. institutional customers will proceed with previously planned purchases, which should be reflected in significantly higher sales over the balance of fiscal 2011 and into fiscal 2012.

During the period the Company reported net income of $371,181 and fully diluted earnings per share of $0.02. During the same period in 2010 the Company realized net income of $19,448 and earnings per share of $0.001. For the 9 months ended June 30th 2011, the Company reported net income of $277,308 and earnings per share of $0.02 versus $113,277 and $0.01 during the same period in 2010. The increase in net income for the period is due primarily to an extraordinary gain of $703,927 on the sale of the Company's common shares of Adenyo Inc., which is explained in greater detail in the financial statements and the MDA.

Financial Highlights for the Third Quarter Ended August 29, 2011

U.S. revenues for the Safe-T-element® cooking system ("STE") are down year to date largely due to the spending stress created by both the delay in the passing of the U.S. budget earlier this year and more recently the debt ceiling debate, both of which put previously approved budgets on hold. A large percentage of STE sales are to U.S. government funded institutions (affordable, seniors, university and military housing) and so these delays resulted in many institutions holding on to cash and others waiting on budget approval before committing to purchases. With these issues resolved, funds are now being released for the purchase of both the STE and the Safe-T-sensor™ microwave oven technology ("STS") which is resulting in a significant increase in U.S. sales, which the Company expects will be booked in Q4 and beyond.

As an example, the U.S. Department of Homeland Security recently began awarding grants as part of their Fire Prevention and Safety grant program. To date in 2011 Pioneering is aware of approximately $1.3M awarded to the University of North Carolina, the South St. Paul Housing and Redevelopment Authority in St. Paul Minnesota, Portland State University in Oregon and West Chester University in Pennsylvania, of which over $500K is for the purchase and installation of the STE and the STS. These should be shipped soon but have not yet been included in revenue.

More importantly, the patented Safe-T-element technology is fast becoming a requirement with housing providers and with legislators not only because it protects properties, saves lives and conserves energy but it also delivers a return on investment to the housing provider and the greater community. This is significant because it represents a fundamental shift in the way housing providers and legislators view the product; as an investment as opposed to a capital expense, alleviating potential concerns that a downturn in the economy might adversely affect the growth of the product in its tax-based multi-residential channels.

"We have achieved several significant milestones this quarter. For the first time in our history we have a city (Wilson, North Carolina) enacting an ordinance requiring 'high end heat limiting technology' on all electric coil cooking devices in tax supported housing, and a resolution from the Southeastern Association of Fire Chiefs supporting high end heat limiting technology on coil ranges and the STE is the only technology that exists today that controls high end heat," said Kevin Callahan, President CEO. "Financially we have strengthened our balance sheet with the sale of our Adenyo investment and we have a solid pipeline of U.S. and Canadian based opportunities as a result of these lobbying efforts for Q4 and beyond".

The Company's Safe-T-sensor for microwave ovens now has a proven track record of success on university campuses and is now being mandated by some schools for those students who want to a have a microwave oven in their dorm room. The STS is also currently being purchased by hospital organizations and senior`s facilities. As this product gains momentum Pioneering is now looking to introduce the product at retail.

In addition, the Company is in the process of commercializing a new product(s) that are extensions of the Company`s current value chain proposition, are relevant to the same and a broader group of customers, channels and distributors and will also be relevant at retail. Pioneering expects to announce this product(s) shortly.

The Company believes that its strong and growing sales pipeline for both the STE and the STS and its plan to introduce new products will mean a return to the growth levels it has previously achieved. As such the Company is investing in people on both sides of the border to help support this future growth.

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
The Company defines EBITDA as earnings before interest, taxes, depreciation, amortization, stock-based compensation and extraordinary items. EBITDA equals "Operating Income(Loss)" in the Q3 FY 2011 Statement of Operations and Deficit posted on SEDAR . 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.