Stockgroup Announces First Quarter Results

Revenue Increases 36% Year Over Year and 9% Quarter Over Quarter


VANCOUVER, British Columbia, May 16, 2003 (PRIMEZONE) -- Stockgroup Information Systems Inc. (OTCBB:SWEB) (TSX Venture Exchange:SWB), a financial media and technology company, today announced its financial results for the first quarter ended March 31, 2003.

Operating highlights Q1, 2003 compared to Q1, 2002:

-- Revenue US$0.602 million, improved 36% from $0.442 million in Q1 2002, and increased 9% over Q4 2002

-- Gross profit US$0.444 million, improved 60% from $0.278 million in Q1 2002, and increased 11% over Q4 2002

-- Loss from operations US$0.252 million compared to $0.196 million in Q1, 2002

-- Company Debt was reduced from US$1.8 million to US$1.4 million

Revenue was US$0.602 million in Q1 compared to $0.442 million in Q1 2002. The increase in revenue was primarily the result of increased sales in both Financial Software and Content Systems and Public Company Disclosure and Awareness Products revenue.

The company also reduced its debt by US$0.4 million during the quarter. "This is a significant move to improve our balance sheet. We have been working aggressively to reduce our long-term debt and have reduced it by 23% through conversion of convertible notes and repayment of a short-term note, while continuing our focus on high margin, more predictable revenue streams," said Marcus New, CEO of Stockgroup.

The conversion of convertible notes created a one time US$0.145 million non-cash interest expense.

Financial Software and Content Systems

In the first quarter the Company continued to implement its objective to expand its reseller strategy by announcing an agreement with The Associated Press to market and resell Stockgroup's market information and financial content management and software system to AP's worldwide network of members and customers. AP was founded in 1848 and is the world's oldest and largest newsgathering organization, providing news content in text, audio, video, graphics and photos to more than 15,000 news outlets with a daily reach of more than 1 billion people worldwide. Since entering into the agreement a number of new agreements to supply financial content to AP customers have been reached. The most notable is with the Time Warner's Road Runner cable television division.

Other leading customers added this quarter include: Global Securities Information Inc, an award-winning specialty provider of public-record business transaction information to law and accounting firms, investment banks, corporations, and the business press, The Union Bank of California, the third-largest commercial bank in California with assets of $40.2 billion. During the quarter the company also announced the launch of a new financial resource portal for National Bank Financial's clients. National Bank Financial is one of the leading securities dealers in Canada.

"Our objective continues to be one of providing our customers with the highest quality products and services at a fraction of the cost of them doing it for themselves," said Marcus New. "We are extremely excited about the opportunities that exist in the rapidly growing Outsourced Financial Content Management field. We continue to add industry leading partners who are now packaging our software and content systems with their own products to provide a more complete financial content offering to their customers"

Stockgroup licenses its Financial Software and Content Systems to enterprise customers to give them the ability to provide financial content, data, and tools to their customers on a private labeled basis for a fraction of the cost of doing it themselves. Stockgroup delivers more than 30 different financial tools including quotes, charts, portfolio, technical analysis, wireless applications, watch lists, and others. Stockgroup also provides specialized tools for the publishing, public company (CFO/IRO) and corporate employee intranet markets.

Public Company Disclosure and Awareness Products

During the quarter the company continued to generate revenues through its IntegrateIR software system for CFO/IRO's which includes 12 basic components ranging from company overview, stock quotes and charts to automated SEC filings. The IntegrateIR gives the CFO/IRO the ability to add or change up to 40 additional components that can be displayed for small incremental price increases on the Investor Relations section of their web site. These include automated press releases, embedded news systems, company fundamentals and interactive financial reports. With recent changes in SEC reporting standards and recommendations, the IntegratIR assists the public company in complying with these disclosure requirements.

Stockgroup's Public Company Disclosure and Awareness Products are proving to be an increasingly significant source of recurring monthly revenue for the company. Over two hundred corporations in Canada and the United States are now licensing or using Stockgroup products under annual or multi-year contractual agreements.

ABOUT STOCKGROUP

Stockgroup Information Systems Inc. is a financial media and technology company. It is a leading provider of private labeled Financial Software and Content Systems to media, corporate and financial services companies. Stockgroup employs proprietary technologies which enable its clients to provide financial data streams and news combined with cutting-edge fundamental, technical, productivity and disclosure tools to their customers, shareholders and employees at a fraction of the cost of traditional internal methods. Stockgroup is also a provider of Public Company Disclosure and Awareness Products. Its financial Web sites, including www.stockhouse.com, www.stockhouse.ca and www.smallcapcenter.com, are state-of-the-art online research centers for the investment community. To find out more about Stockgroup (OTC BB: SWEB, TSX-V: SWB), visit www.stockgroup.com.


 Signed, David Gillard 

 David Gillard, CFO
 Stockgroup Information Systems Inc. 
 800-650-1211 

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward-looking statements in this action may be identified through the use of words such as "expects," "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur.

This release has neither been approved or disapproved by the TSX


                  Stockgroup Information Systems Inc.
                 CONSOLIDATED STATEMENTS OF OPERATIONS
                (UNAUDITED - Expressed in U.S. Dollars)



                                              Three Months Ended 
                                                   March 31,
                                               2003          2002
                                            ----------    ----------
 REVENUE
     Revenues                               $  601,712    $  442,241
     Cost of revenues                          157,354       164,248
                                            ----------    ----------
     Gross profit                           $  444,358    $  277,993

 EXPENSES
     Sales and marketing                    $  158,774    $   92,060
     Product development                         7,451        18,498
     General and administrative                530,288       363,540
                                            ----------    ----------
                                            $  696,512    $  474,098
                                            ----------    ----------
 LOSS FROM OPERATIONS                       $ (252,155)   $ (196,105)

 Interest income                                  --             146
 Interest expense                             (216,502)     (184,359)
 Loss on warrants liability                       --         (55,000)
 Gain on restructuring
     of convertible notes                         --       1,088,586
 Other income                                      472         3,951
                                            ----------    ----------
 NET LOSS                                   $ (468,185)   $  657,219
                                            ==========    ==========
 BASIC AND DILUTED EARNINGS
 (LOSS) PER SHARE:
 Net loss before gain on restructuring of
     convertible notes                      $    (0.02)   $    (0.03)
 Gain on restructuring of convertible notes       0.00          0.10
                                            ----------    ----------
 Net income (loss)                          $    (0.02)   $     0.06
                                            ==========    ==========


            

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