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RARE METHOD BUILDS ON GROWING MEDIA TREND IN Q2
February 28, 2008


Calgary, AB, February 28 /CNW/ - Rare Method today announced consolidated financial results for the 3 months and six months ending December 31, 2007. For Q2, Rare Method recorded revenue of $3.13 million, up 54% from $2.04 million a year ago, and EBITDA (Earnings before interest, taxes, stock-based compensation, and depreciation and amortization) of $351,803 up 190% from $121,126 a year ago. Comparisons of Rare Method’s Q2 2008 results to Q2 2007 and the 6 months ending are provided below:

Three months ended December 31st
Description 2007 2006 Increase
Revenue $3.13 million $2.04 million 54%
Gross Income $2.35 million $1.63 million 44%
EBITDA(1) $351,803 $121,126 190%
Normalized Earnings $177,749 $66,470 167%
EPS (2) $0.01 $0.003
Six months ended December 31st
Description 2007 2006 Increase
Revenue $6.52 million $3.88 million 68%
Gross Income $4.77 million $3.10 million 54%
EBITDA(1) $615,830 $225,547 173%
Normalized Earnings $293,453 $117,121 150%
EPS (2) $0.01 $0.005
(1) Excludes one time severance payment of $169,217 in Q1 of fiscal 2008
(2) Earnings Per Share (basic and diluted)


"Our results demonstrate that our strategy and new organizational structure is working" comments Tom Short, president of Rare Method, "the results go well beyond the financial success to the long term strategy of building one of the most comprehensive and accomplished marketing agencies in North America," says Tom Short.

Consistent with the strategic objectives, the following are some of the highlights of the second quarter:

  • Rare Method achieved record revenues of $3.13 million and $6.5 million for the quarter and our six month ended, which represents a 54% and 68% increase from the same period last year based on strong media growth;
  • Rare Method gross income increased 44% and 54% respectively as we continue to grow revenue on the success of building deeper relationships with our top accounts;
  • Rare Method EBITDA increased 190% over the same period last year based on greater revenues and increased efficiencies of a more focused team;
  • Rare Method working capital position improved to $751,190, which represents 55% increase over the same period last year providing us with the necessary resources to execute on our strategy;
  • Rare Method was recognized as one of the top 25 employers in Canada for small to medium sized businesses;

"Media dollars tell the whole story about how vibrant the marketing world will be for organizations that have the capabilities to offer advanced online marketing strategy and execution," explains Mr. Short, "online media expenditures will surpass all other major forms of media from print to broadcast by 2010 and organizations like Rare Method are well positioned to be leaders in the new marketing paradigm where agencies will be required to be as good in digital marketing as traditional marketing. Our organization is a Rare commodity in a $44 billion market," concludes Mr. Short.

For detailed financial statements, please visit: www.raremethod.com/investors_investors_financial.htm

About Rare Method Interactive Corp.

Rare Method (TSX-V: RAM) is a leading interactive marketing firm that designs, builds, implements and optimizes strategic interactive marketing programs that acquire, convert and retain customers. Rare Method offers a full range of interactive marketing services including interactive marketing strategies, creative development, technology development, implementation of interactive marketing programs and campaign optimization. Rare Method has offices in Calgary, Alberta and Salt Lake City, Utah and was recognized as Alberta's 2nd fastest growing company by Alberta Venture magazine in 2007.

For further information:

Investors and Media: Mr. Tom Short, President, Rare Method, (403) 543-4500 or investors@raremethod.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.



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