CALGARY, Alberta, Aug. 22 /PRNewswire-FirstCall/ -- Securac Corp. ("Securac") (OTC:SECU) (BULLETIN BOARD: SECU) an enterprise governance, risk assessment and compliance software and services vendor and provider of Acertus(TM), the leading integrated software platform for governance, risk and compliance ("GRC"), announced financial results for the second quarter of its 2006 fiscal year. Financial Highlights (Dollar amounts are in Canadian Dollars) Total revenue for the second quarter was $633,391 up 120% from the same period last year. During the quarter, license revenue of $17,505 grew by 775% and services revenue increased 109% to $596,261. Revenue results were based on growth of professional services with new and existing customers, and licensing revenue and maintenance fees from contracts booked in prior periods. Revenue from our business consists of annual subscription based License Fees to our risk management, governance and compliance software products. Our licensing revenue is augmented with related revenue in annual maintenance, installation, training and professional services. Total operating expenses for the quarter were $1,214,404, a decrease of 204% over the same period last year. This decrease was primarily attributable to reduced payroll and associated overhead as we continue to focus on growing our business without substantive reliance on debt and equity financing, and achieving profitability. Stock-based compensation, a non-cash outlay, decreased significantly from $245,698 in Q2 last year to $171,542, together resulting in a Q2 loss from operations of $581,013 compared to $3,401,843 in the same period last year. Marketing and sales expenditures were $263,384 in the second quarter of 2006 compared to $118,408 in the same period in 2005. This increase is attributable to us not having significant sales and marketing staff in the comparable period in the prior fiscal year, as we were just completing the commercial ready version of our integrated governance and risk software in Q2 of 2005. Our current sales team is focused on increasing distribution channels with our current partners, and are experiencing lower lead times in the sales cycle as the market for our software and services continues to mature, consistent with our 2006 business plan expectations. Terry Allen, Securac's chief executive officer, commented, "We are satisfied with our continued growth and execution of our business plan in 2006. Our results are evidence that Securac is gaining a very positive trajectory in our financial performance and look forward to additional successes as we solidify and enhance our position in the GRC market for the remainder of 2006. To achieve this success, we will need to continue to fuel our channel and direct sales efforts." Allen further explained, "Our first 6 months revenue has nearly surpassed our total revenue for 2005 and, as we reported in our 10-KSB, our 2005 annual revenue was up 88% from 2004." About Securac Securac is a vendor of corporate governance, risk assessment and compliance management software and services to corporate and public enterprises, consultants and regulated organizations. Acertus(TM), our integrated software platform for risk management and decision support, along with our professional services team of risk/governance experts and compliance specialists provide comprehensive governance, risk assessment and compliance programs from the boardroom to the operational level. Securac's principal office is located in Calgary, Alberta and it maintains a sales presence throughout North America. Statements in this Press Release that are not statements of historical fact, including statements regarding potential market size, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risk and uncertainties which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties include but are not limited to changing market conditions, the successful and timely completion of financing, the establishment of corporate alliances, the impact of competitive products and pricing, new product development and uncertainties related to the regulatory environment. Reference is made to the Company's Annual Report on Form 10-KSB for the year ended December 31, 2005 for a description of these, as well as other, risks and uncertainties. Contact Terry W. Allen Chief Executive Officer Securac Corp. Tel: 403-225-0403 DATASOURCE: Securac Corp. CONTACT: Terry W. Allen, Chief Executive Officer of Securac Corp., +1-403-225-0403,

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