October 29, 2010 at 16:01 PM EDT
Copernic Inc. Announces 2010 Third Quarter Results

QUEBEC CITY, CANADA -- (Marketwire) -- 10/29/10 -- Copernic Inc., (the "Company"), (NASDAQ: CNIC), a leading software development company in the technology sector, specializing in internet, desktop and mobile search products, today reported its financial results for the third quarter ended September 30, 2010 ("Q3 2010"). Unless otherwise stated, all figures in this release are in US dollars.

Financial Highlights


--  Revenues from continuing operations were $0.35 million for Q3 2010, the
    same as for Q3 2009.

--  Gross margin from continuing operations in Q3 2010 was 98% compared to
    93% for Q3 2009.

--  Expenses from continuing operations in the third quarter of 2010 were at
    $1.4 million compared to 1.1 million in the comparable period in 2009.
    During Q3 2010, an amount of $0.7 million was spent in relation with
    potential business acquisitions. Excluding these fees, expenses for Q3
    2010 amounted to 0.7 million.

--  Net loss from continuing operations in Q3 2010 was $1.1 million ($0.52
    per share) compared to a net loss of $0.78 million ($0.37 per share) for
    the same period in 2009.

--  Liquidities sufficient to meet normal operating requirements until end
    of 2010 were at $1.9 million as of September 30, 2010, compared to $4.4
    million as of September 30, 2009.


Recent Highlights


--  Copernic Inc. announced on October 25th that its shareholders have
    approved the sale of Copernic to N. Harris Computer Corporation
    ("Harris"), a wholly-owned subsidiary of Constellation Software Inc.
    (TSX: CSU), pursuant to a plan of arrangement (the "Plan of
    Arrangement"). On August 25, 2010, Copernic and Harris jointly announced
    that they had entered into an arrangement agreement with Comamtech Inc.
    ("Comamtech"), a newly incorporated corporation, with respect to an
    arrangement (the "Arrangement") pursuant to which Copernic will
    ultimately be acquired and taken private by Harris and current
    shareholders of Copernic will become shareholders of Comamtech, which
    shall retain certain non-operating assets of Copernic.

    A special meeting of shareholders was held at 10:00 a.m. (EDT) on
    October 25, 2010 (the "Special Meeting"), whereby a special resolution
    approving the Plan of Arrangement was approved by 98 % of the votes cast
    by shareholders of Copernic represented in person or by proxy at the
    Special Meeting. Copernic's board of directors had previously
    unanimously recommended that holders of Copernic common shares vote in
    favour of the Plan of Arrangement.

--  On October 20, 2010, Copernic announced that its wholly-owned
    subsidiary, Comamtech Inc. ("Comamtech"), entered into a definitive
    arrangement agreement (the "Arrangement Agreement") with DecisionPoint
    Systems, Inc. ("DNPI"), with respect to an arrangement (the
    "Arrangement") to acquire all the outstanding shares of DNPI in a
    reverse take-over with the result, that at closing DNPI shareholders
    shall hold approximately 70.6% of the issued and outstanding shares of
    Comamtech, on a fully diluted basis.


The Arrangement will be completed by way of a plan of arrangement under the Business Corporations Act (Ontario) (the "Plan of Arrangement") and provides for the amalgamation of DNPI with 2259736 Ontario Inc., a wholly-owned subsidiary of Comamtech.

Completion of the Arrangement will be subject to certain customary conditions, including approval of the Arrangement by not less than 66 2/3 percent of the votes cast at a special meeting of the shareholders of Comamtech. The shareholders of Comamtech will be asked, at the special meeting, to approve the continuance of Comamtech under the General Corporation Law of the State of Delaware. The completion of the Arrangement is also subject to court approvals, the approval of the amalgamation by DNPI shareholders, the closing of the transaction with Harris and certain regulatory approvals.

Pursuant to the Arrangement Agreement, Comamtech has agreed to pay DNPI a termination fee of $500,000 in certain circumstances if the proposed Arrangement is not completed. DNPI, likewise, has agreed to pay Copernic a termination fee of $500,000 in the event of a material breach or non-performance by DNPI of its obligations under the Arrangement Agreement. The Arrangement Agreement also contains mutual non-solicitation covenants and mutual rights to match any superior proposal.

About Copernic Inc.

Copernic Inc. specializes in developing, marketing and selling cutting-edge search technology, providing innovative home and business software products and solutions for desktop, web and mobile users, through its online properties www.copernic.com and www.mycopernic.com. With its award winning Copernic Desktop Search software search engine product, the Company brings the power of a sophisticated, yet easy-to-use search engine to the user's PC.

More information can be found at www.copernic.com.

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties that can cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission and the Ontario Securities Commission. The Company expressly disclaims any intent or obligation to update any description of the scope, focus or subject matter of the statements in this press release.


Copernic Inc.
Condensed Consolidated Balance Sheet
(expressed in U.S. dollars and in accordance with generally accepted
accounting principles in Canada)


                                                    As at           As at
                                            September 30,    December 31,
                                                     2010            2009
                                              (unaudited)       (audited)
                                                        $               $
Assets

Current assets
Cash                                              503,245         465,949
Temporary investments                           1,457,102       3,504,930
Accounts receivable                               433,212         256,110
Income taxes receivable                           273,410         337,802
Balance of sale receivable                              -         655,131
Prepaid expenses                                  295,106         118,149
Other assets                                    2,700,637               -
--------------------------------------------------------------------------
                                                5,662,712       5,338,071
Balance of sale receivable                              -       3,694,060

Property and equipment                             79,206         115,110

Intangible assets                                 146,251         202,597

Goodwill                                        3,362,003       3,362,003
--------------------------------------------------------------------------
                                                9,250,172      12,711,841
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Liabilities

Current liabilities
Accounts payable and accrued liabilities        1,174,124       1,010,140
Deferred revenue                                   79,953         103,668
Deferred rent                                         869           1,534
Current portion of obligations under
 capital leases                                    10,621          50,630
--------------------------------------------------------------------------
                                                1,265,567       1,165,972
--------------------------------------------------------------------------
Obligations under capital leases                    9,289           7,906

Future income taxes                                32,293          45,146
--------------------------------------------------------------------------
Commitments

Shareholders' Equity

Capital stock
Authorized
  Unlimited number of common shares, no
   par value
Issued and outstanding
  2,096,913 (2,091,437 as at December 31,
   2009) common shares                         96,565,618      96,556,485

Contributed Surplus                             5,930,663       5,853,737

Accumulated other comprehensive income            561,137         561,137

Accumulated deficit                           (95,114,395)    (91,478,542)
--------------------------------------------------------------------------
                                                7,943,023      11,492,817
--------------------------------------------------------------------------
                                                9,250,172      12,711,841
--------------------------------------------------------------------------
--------------------------------------------------------------------------



Copernic Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(expressed in U.S. dollars and in accordance with generally accepted
accounting principles in Canada)


                              For the nine months    For the three months
                                            ended                   ended
                                    September 30,           September 30,
                          ------------------------------------------------
                                 2010        2009        2010        2009
                                    $           $           $           $

Revenues                    1,079,965   1,280,083     355,273     353,293

Cost of revenues               22,405      55,168       5,224      25,725
--------------------------------------------------------------------------
Gross Margin                1,057,560   1,224,915     350,049     327,568
--------------------------------------------------------------------------
Expenses
Marketing, sales and
 services                     372,448     431,931      73,978     146,777
General and administration  2,325,717   1,763,411   1,154,741     616,796
Product development and
 technical support            636,391     854,017     174,481     297,076
Amortization of property
 and equipment                 45,374      87,075      14,127      32,845
Amortization of intangible
 assets                        58,444     538,394      19,607     182,531
Gain on disposal of
 property and equipment        (2,827)          -           -           -
Gain on disposal of
 intangible assets             (9,960)          -           -           -
Restructuring charges               -      20,624           -      (4,998)
Interest and other income    (224,261)   (184,707)       (314)   (161,025)
Gain on disposal of an
 investment                         -    (169,239)          -           -
Loss on foreign exchange       49,577      47,129       7,964      37,118
--------------------------------------------------------------------------
                            3,250,903   3,388,635   1,444,584   1,147,120
--------------------------------------------------------------------------
Loss from continuing
 operations before income
 taxes and discontinued
 operations                (2,193,343) (2,163,720) (1,094,535)   (819,552)

Current income taxes                -       1,498           -           -
Future income taxes           (12,853)   (594,990)     (4,284)    (36,416)
--------------------------------------------------------------------------
                              (12,853)   (593,492)     (4,284)    (36,416)
--------------------------------------------------------------------------
Loss from continuing
 operations                (2,180,490) (1,570,228) (1,090,251)   (783,136)

Results of discontinued
 operations, net of income
 taxes                     (1,455,363)  4,386,401     (12,092)    (38,598)
--------------------------------------------------------------------------
Net income (loss) for the
 period                    (3,635,853)  2,816,173  (1,102,343)   (821,734)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Basic and diluted loss /
 share - continuing
 operations                     (1.04)      (0.75)      (0.52)      (0.37)

Basic and diluted earnings
 (loss)/ share -
 discontinued operations        (0.69)       2.10           -       (0.02)
--------------------------------------------------------------------------
Basic and diluted net
 earnings (loss)/ share         (1.73)       1.35       (0.52)      (0.39)
--------------------------------------------------------------------------
--------------------------------------------------------------------------



Copernic Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(expressed in U.S. dollars and in accordance with generally accepted
accounting principles in Canada)


                              For the nine months    For the three months
                                            ended                   ended
                                    September 30,           September 30,


                          ------------------------------------------------
                                 2010        2009        2010        2009
                                    $           $           $           $
Cash flows from (used for)

Operating activities

Loss from continuing
 operations                (2,180,490) (1,570,228) (1,090,251)   (783,136)
Adjustments for
  Amortization of property
   and equipment               45,374      87,075      14,127      32,845
  Amortization of
   intangible assets           58,444     538,394      19,607     182,531
  Employee stock-based
   compensation                76,926      84,718       2,063      29,493
  Gain on disposal of an
   investment                       -    (169,239)          -           -
  Gain on disposal of
   intangible                  (9,960)          -           -           -
  Future income taxes         (12,853)   (594,990)     (4,284)    (36,416)
  Accreted interest on
   balance of sale
   receivable                (217,603)   (126,093)          -    (126,093)
  Unrealized loss on
   foreign exchange               542       8,502         379       4,785
Net change in non-cash
 working capital items       (150,063)    178,939     278,583     137,571
--------------------------------------------------------------------------
Cash used for operating
 activities from
 continuing operations     (2,389,683) (1,562,922)   (779,776)   (558,420)
Cash provided by (used
 for) discontinued
 operations                   (17,076)    765,357     (12,092)    181,648
--------------------------------------------------------------------------
Cash used for operations   (2,406,759)   (797,565)   (791,868)   (376,772)
--------------------------------------------------------------------------

Investing activities

Increase in Other assets      (65,637)          -           -           -
Proceeds on the disposal
 of an investment                   -     169,239           -           -
Proceeds on the disposal
 of an intangible               9,960           -           -           -
Purchase of intangible
 assets                        (2,098)     (3,224)          -           -
Purchase of property and
 equipment                     (3,357)    (28,897)          -      (5,423)
Net decrease in temporary
 investments                        -   3,005,227           -      (3,406)
--------------------------------------------------------------------------
Cash provided by (used
 for) continuing
 operations                   (61,132)  3,142,345           -      (8,829)
Cash provided by
 discontinued operations      493,507      74,297     200,000      74,297
--------------------------------------------------------------------------
Cash provided by investing
 activities                   432,375   3,216,642     200,000      65,468
--------------------------------------------------------------------------

Financing activities

Issuance of capital stock       9,133           -       8,400           -
Repayment of obligations
 under capital leases         (45,281)    (44,465)     (6,554)    (16,922)
--------------------------------------------------------------------------
Cash provided by (used
 for) financing activities    (36,148)    (44,465)      1,846     (16,922)
--------------------------------------------------------------------------
Net change in cash and
 cash equivalents during
 theperiod                 (2,010,532)  2,374,612    (590,022)   (328,226)

Cash and cash equivalents
 - Beginning of period      3,970,879   2,067,705   2,550,369   4,770,543
--------------------------------------------------------------------------
Cash and cash equivalents
 - End of period            1,960,347   4,442,317   1,960,347   4,442,317
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Cash and cash equivalents
 comprise:
  Cash                        503,245     438,556     503,245     438,556
  Temporary investments     1,457,102   4,003,761   1,457,102   4,003,761
--------------------------------------------------------------------------
                            1,960,347   4,442,317   1,960,347   4,442,317
Supplemental cash flow
 information - continuing
operations
Cash paid for interest          4,006       7,469         800       2,470
Cash paid for income taxes          -       1,498           -           -
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Contacts:
Copernic Inc.
Jean-Rock Fournier, CA
Executive Vice President and Chief Financial Officer
418-527-0528 ext. 1271 / Toll Free: 877-289-4682
jrfournier@copernic.com
www.copernic.com

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