Lingo Media Reports First Quarter 2017 Results

FOR: LINGO MEDIA CORPORATION
OTCQB Symbol: LMDCF
TSX VENTURE Symbol: LM

Date issue: May 29, 2017
Time in: 8:44 PM e

Attention:

TORONTO, ON --(Marketwired - May 29, 2017) - Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) ("Lingo Media" or the "Company"), an EdTech company that is 'Changing the way the world learns English' through innovative online and print-based technologies and solutions, announces its financial results for the first quarter ended March 31, 2017. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Michael Kraft, President & CEO of Lingo Media, commented, "During the first quarter of 2017, we invested approximately $875,000 in our digital content library to position the company for future growth. In Q1, we collected $685,695 and subsequent to the quarter, we collected a further $691,880, in aggregate $1.37 million of accounts recievable from 2016 publishing royalties. In addition, we extended the publishing royalty contract by three years with People's Education Press in China till August 2022. As of March 31, 2017, our cash position increased to $300,042 as compared to $84,303 as of the year end and our book value increased by $1.7 million to $6.4 million or $0.18 per share compared to March 31, 2016. While our Q1-17 sales year over year declined by 21%, our ELL Technologies digital sales actually increased, excluding SENA revenue from Q1-16."

Q1 2017 Operational Highlights

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-- Online English Language Learning:

-- initiated the localization in Spanish for English For Success -- advanced the development of ELL Technologies' new online Mandarin course -- continued to market and sell, English For Success, a series of lessons and activities derived from ELL Library as a premium solution for governments and educational institutions -- entered into a software licensing contract for ELL Technologies' programs with a new distributor group in Peru

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-- Print-Based English Language Learning:

-- extended the publishing agreements for PEP Primary English and Starting Line programs with People's Education Press in China by three additional years till August 2022.

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Financial Highlights for the First Quarter Ended March 31, 2017 ---------------------------------------------------------------------------- First Quarter Ended March 31st 2017 2016 ---------------------------------------------------------------------------- Revenue $ 597,977 $ 756,858 ---------------------------------------------------------------------------- Operating expenses 269,618 262,922 ---------------------------------------------------------------------------- Income before amortization, share-based payments, depreciation, finance charges and taxes 328,359 493,936 ---------------------------------------------------------------------------- Amortization, share-based payments, and depreciation 295,661 225,732 ---------------------------------------------------------------------------- Finance charges, taxes, foreign exchange 28,753 217,374 ---------------------------------------------------------------------------- Total expenses 594,032 706,028 ---------------------------------------------------------------------------- Net profit 3,945 50,830 ---------------------------------------------------------------------------- Total comprehensive income 3,727 111,788 ---------------------------------------------------------------------------- Earnings per share $ 0.00 $ 0.00 ----------------------------------------------------------------------------

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-- Revenue for the period ended March 31, 2017 totalled $597,977 as

compared to $756,858 in 2016, a 21% decrease. -- Operating expenses for the period ended March 31, 2017 totalled $269,618 compared to $262,922 in 2016 -- Net profit for the period ended March 31, 2017 was $3,945 or $0.00 per share (basic) based on 35.5 million weighted number of common shares as compared to $50,830 for 2016 or $0.00 per share (basic) on 29.7 million shares. -- Income before amortization, share-based payments, depreciation, finance charges and taxes was $328,359 compared to $493,936 in 2016.

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Balance Sheet as at March 31, 2017

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-- Cash and cash equivalents as at March 31, 2017 totalled $300,042 as

compared to $121,208 as at March 31, 2016, an increase of $178,834 -- Current ratio improved to 3.67:1 for the period ended March 31, 2017 as compared to 2.65:1 as at March 31, 2016. -- Total liabilities as at March 31, 2017 totalled $899,151 as compared to $1,207,199 as at March 31, 2016, an improvement of $308,048 after loans payable of $580,000 were repaid in full and retired. -- Book value improved to $6,448,760 as at March 31, 2017 as compared to $4,737,605 as at March 31, 2016.

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"Our on the ground presence with a new strategic hire in Mexico City is gaining significant traction, aggressively signing up distributors, managing sales channels and advancing our sales pipeline throughout Mexico and Central America. At the same time, we continue our efforts through various initiatives to expand our sales in Peru and Colombia. We are on the right track with a very deep and active sales pipeline. Management also remains excited about the proposed merger with Schoold, announced at the end March, and will be providing an update in the coming weeks", said Michael Kraft.

The unaudited condensed interim financial statements for the quarter ended March 31, 2017 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX VENTURE: LM) (OTCQB: LMDCF)

Lingo Media is a global EdTech company that is 'Changing the way the world learns English', developing and marketing products for learners of English through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers English language educators to easily transition from traditional teaching methods to digital learning.

Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies provides online training and assessment for English language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.

Lingo Media has formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China, and continues to both extend its global reach and expand its product offerings.

Follow Lingo Media On:

Facebook: https://www.facebook.com/LingoMedia
Twitter: @LingoMediaCorp
YouTube: https://www.youtube.com/lingomedialm
LinkedIn: https://www.linkedin.com/company/lingo-media-corporation
RSS: http://feeds.feedburner.com/LingoMedia

Portions of this press release may include "forward-looking statements" within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management's current expectations and involve certain risks and uncertainties. Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements. Lingo Media has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. Lingo Media's expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

- END RELEASE - 29/05/2017

For further information:

For further information, contact:
Lingo Media
Michael Kraft
President & CEO
Tel: (+1) 416-927-7000 Ext. 23
Toll Free: 1-866-927-7011
Email: mkraft@lingomedia.com
To learn more, visit us at www.lingomedia.com

COMPANY:
FOR: LINGO MEDIA CORPORATION
OTCQB Symbol: LMDCF
TSX VENTURE Symbol: LM

INDUSTRY: Media and Entertainment - Books and Publishing, Education and Training - Education Aids and Products, Education and Training - Schools and Courses, Colleges/Universities, Computers and Software - Software, Education and Training - Training/Online

RELEASE ID: 20170529CC025

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