19.0%

- Gross profit increased 11.2%

- Contribution from operations (EBITDA) up 193.4% to $1.3 million, and

Profit before amortization and interest increased 251.6% to

$1.3 million

- Merchants participating in CIBC Advantex programs increase 36% to

just under 550

- Net loss improves from fiscal 2008, despite impact of recession on

merchants

- Outlook is for further growth in fiscal 2010.

- In first two months of 2010, company is experiencing significant

increase in Contribution from operations (EBITDA)

ADX: TSX

TORONTO, Sept. 28 /CNW/ - Advantex Marketing International Inc. (TSX:ADX), a leading specialist in merchant funding and loyalty marketing programs, today announced its results for the fiscal fourth quarter and year ended June 30, 2009. All references to quarters or years are for the fiscal periods and all currency amounts are in Canadian dollars unless otherwise noted.

2009 Overview

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"Advantex made very significant progress in 2009. Although we incurred a net loss for the year, in almost every other respect, we are proud of what we accomplished in a very challenging environment, building on the momentum that Advantex established in fiscal 2008," said Kelly Ambrose, Chief Executive Officer and President. "We believe that the progress that Advantex has made during its past two fiscal years, together with a gradually recovering economy, are reasons to be cautiously optimistic that our financial and operating performance will improve further in fiscal 2010."

Financial Performance - Highlights

(millions of $s, except per share amounts)

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Three Three

months months Year Year

Ended Ended Ended Ended

June 30, June 30, June 30, June 30,

2009 2008 2009 2008

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Revenue 3.2 3.0 12.2 11.5

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Gross profit 2.1 2.0 8.0 7.2

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Gross margin 65.9% 65.9% 65.7% 62.4%

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Contribution from Operations 0.5 0.4 1.3 0.5

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Profit/(Loss) before Amortization

And Interest 0.4 0.3 1.3 0.4

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Amortization 0.1 0.2 0.3 0.4

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Interest 0.5 0.4 1.8 1.4

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Net (Loss) (0.1) (0.3) (0.9) (1.4)

----------------------------------------------------------------- --------

Net (Loss) per common share ($0.00) ($0.00) ($0.01) ($0.01)

----------------------------------------------------------------- --------

----------------------------------------------------------------- --------

Some numbers in the above presentation may not add due to rounding.

"We began 2009 in strong fashion, building on the progress that Advantex made in 2008 and the momentum that we had established in the final months of that year. We were able to report a modest net profit for the first six months of the year, an impressive turnaround from the net loss in the first half of 2008. However, in the third quarter ended March 31, 2009, the recession significantly deepened resulting in a sharp drop in consumer spending in North America and effected revenues of our core businesses - CIBC Advantex program, and Online Shopping Malls - and although our CIBC Advantex Program revenues were up in the third quarter compared with a year earlier, our costs also were higher and this together with the drop in Online Shopping Malls business resulted in our incurring a net loss for the third quarter. During the fourth quarter we decisively implemented a plan to increase revenues and cut cost to mitigate impact of weakening economic environment. The result was a modest fourth quarter net loss of $135,000 compared to net loss of $794,000 in 2009 third quarter, and was an improvement over net loss of $282,000 for 2008 fourth quarter," Mr. Ambrose reported.

After taking into account interest expense, stock-based compensation, and amortization, Advantex reported a net loss for the year of $0.90 million, an improvement from the $1.4 million loss of 2008.

2009 Operational Successes and Challenges

-----------------------------------------

"Our most notable achievement for 2009 concerns the CIBC Advantex Programs which, in revenue terms, grew $1.5 million (19.0%) over 2008, and accounted for 79% of 2009 Company revenues (2008 70%). Within the CIBC Advantex programs, the Advance Purchase Marketing (APM) program has become the most-important growth driver of our business with revenue growth over 2008 of $1.1 million (21.4%)," Mr. Ambrose said.

"We realized that a weaker economic environment actually offered us an opportunity to accelerate the growth of the APM program as merchants would be eager to obtain working capital. With this in mind we made it our primary strategic focus to increase the number of credit- worthy merchants participating. Our efforts were highly successful as Advantex achieved approximately a 36 percent increase in the number of merchants participating in the CIBC Advantex programs from approximately 400 at the end of 2008 to just under 550 at the end of 2009. The growth was in both product offerings in this program; APM and Marketing Only, but more so in APM," he said

Under the APM program, Advantex acquires the rights to cash flow from future designated credit card transactions at a discount from participating merchants (Transaction Credits) and thereby it allows the merchant to obtain working capital. In addition, Advantex promotes the merchant, by way of cardholder incentives through its loyalty marketing programs, and targeted marketing programs, and the provision of these services is included in the costs of acquiring transaction credits. The Company's revenue is from the designated credit card receipts at participating establishments, net of the Company's costs to acquire the transaction credits, Proceeds from the spend on designated credit cards are received by the Company and a predetermined portion is applied to reduce the transaction credit balance that the merchant owes.

"The improvements made in the past couple of years in our support infrastructure, particularly business systems, helped us to carryout a 20% reduction in the number of people on staff with no negative impact on the service levels to our customers. That reduction together with salary cuts enabled us to achieve annualized cost savings of about $500,000. We expect many of these savings to continue into 2010, although as our business continues to grow we will need to add some staff, and as our performance continues to strengthen we will need to restore salaries judiciously," Mr. Ambrose said

"On the Online Shopping Mall side of the business, during 2009 we experienced a 24.4% decline in revenues. The actual decline in U.S. dollars, the currency used for the online malls transactions was 29%. The decline was due to the loss in August, 2008 of one customer, Delta Airlines, as well as the affect of the global recession on online shopping. The good news for this area of our business is that in August 2008 we signed an extension for our online agreement with United Airlines, our busiest mall, and we are continuing to develop increased online mall business with Lufthansa under an agreement to host its European online malls," Mr. Ambrose said

Working Capital and Liquidity Management

As at June 30, 2009, the Company had cash and cash equivalents of $0.3 million compared to $0.1 million as at June 30, 2008.

Transaction credits are a likely indicator of future revenues from CIBC Advantex APM program. The Company, therefore, attempts to maximize Transaction credits, and deploys cash, surplus to its operating needs, with participating merchants.

The company expects that it will have sufficient cash to fund operations at its current scale, however, it will require additional capital in the form of debt and/or equity to fund the continued expansion of its APM programs.

Movement in cash and cash equivalent during the year was a positive $0.2 million compared with a negative of $(0.8) million during 2008. For additional details refer to consolidated statements of cash flows which form a part of the audited financial statements for year ended June 30, 2009.

Expect Further Growth in 2010

"The Company expects the consumer spend trends prevalent since late fall of calendar 2008 to continue during Fiscal 2010. That being said the Company is cautiously optimistic for 2010. The goal for 2010 is to improve on the results of 2009 by building on fourth quarter of 2009, and during the first two months of 2010 we have firm indications that the Company's operational performance is moving in the right direction. Our goal is to sustain this throughout 2010. I will be able to share further details with you when the Company announces its 2010 first quarter results," said Mr. Ambrose.

Supporting our expectation for growth in 2010, at the end of 2009, we showed $8.2 million of transaction credits as an asset on our balance sheet, an 11.6% increase from the $7.3 million recorded at the end of 2008.

"We expect to be able to continue growing the number of merchants participating in the CIBC Advantex programs. We also recognize the desirability of broadening our partnerships and have been negotiating with a number of other affinity partners to launch APM product offerings in new business sectors in 2010. If Advantex is successful in this effort, it also will mean further growth in the number of merchants participating, with the consequent benefit to our revenues. We are negotiating for potential additional capital to support this expansion," he said.

We have enjoyed a lengthy, and mutually beneficial relationship with CIBC. Our current agreement with CIBC was set to expire on December 31, 2009. Both parties have reached an understanding that the agreement will be extended six months, through June 2010, while they evaluate and work on a longer renewal. The Company expects that the six month extension to the existing agreement will be executed shortly," he continued.

In 1998, the Canada Revenue Agency (CRA) conducted an audit and determined that the Company's core business was providing marketing services. Since 1998, the Company has continued in the same business. After completion of a recent audit, the CRA reversed its 1998 position. In April 2009, the Company received a notice of reassessment from the CRA for Goods and Services Tax owed related to the Company's CIBC Advantex program and the ability to claim certain Input Tax Credits during Fiscal years 2005-2007. The re-assessment is in the amount of $755,000. The Company has contested the CRA position, and has filed a notice of objection. Since this is a GST re-assessment, the amount of the re-assessment has to be paid in full, and is independent of the appeals process. The Company has worked out a 24 month payment plan with the CRA, and will record amounts paid under the payment plan as a recoverable asset. The amounts payable under the payment plan are $366,000 payable by June 30, 2010 and $416,000 payable by June 20, 2011.

On August 12, 2009, the Toronto Stock Exchange (TSX) announced that it will delist Advantex's common shares following the close of trading on September 11, 2009. As announced by Advantex on January 15, 2009, the TSX had then initiated a review of the company's listing. In citing its reasons for delisting Advantex, the TSX indicated that the common shares no longer met the continued listing requirements of the TSX, particularly with respect to the threshold of minimum market value of listed common shares. The TSX has extended the date for the delisting of the Company's common shares to close of trading on September 30, 2009. The extension period is to allow the TSX Venture Exchange ( TSXV) to complete its review of the Company's application to list its common shares on the TSXV prior to the delisting on the Toronto Stock Exchange. While the Company expects its application to list its common shares on the alternate exchange to be successful, there can be no assurance that such a listing will be obtained. If the TSXV grants the listing, common shares will then be tradable on the TSXV.

About Advantex Marketing International Inc.

Advantex is a specialist in the marketing services industry, managing white-labeled rewards accelerator programs for major affinity groups through which their members earn bonus frequent flyer miles and/or other rewards on purchases at participating merchants. Under the umbrella of each program, Advantex provides merchants with marketing, customer incentives, and secured future sales through its Advance Purchase Marketing model. Advantex partners include more than 1000 restaurants, online retailers, golf courses, small inns and resorts, and major organizations, including CIBC, United Airlines, Alaska Airlines, and Lufthansa Airlines. Advantex is traded on the Toronto Stock Exchange under the symbol "ADX". For additional information on Advantex, please visit www.advantex.com.

Forward-Looking Information

This Press Release contains certain "forward-looking information". All information, other than information comprised of historical fact, that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future constitutes forward-looking information. Such forward- looking information relates to, without limitation, information regarding: the Company's belief that it will be able to reach agreement with existing and or new affinity groups to launch its Advance Purchase Marketing (APM) product offering in new business segments/sectors during Fiscal 2010 and beyond; the size of the market for the Company's APM program in the new business segments; the Company's ability to renew and or extend its current agreement with CIBC beyond December, 2009; the Company's ability to expand its APM product in existing business segments (dining, golf, small inns and spas) allowed under the current CIBC agreement during Fiscal 2010 and beyond; the Company's ability to continue to access financing under its existing line of credit facility, and or its ability to access additional debt with respect to expanding the APM program within the existing business segments and launching and or expanding into new business segments/sectors during Fiscal 2010 and beyond; the impact of current market conditions on the Company's ability to access additional financing; the Company's ability to build on improvements in the existing support infrastructure, particularly systems, and its ability to achieve continuation of many of the cost savings, from measures implemented in Fiscal 2009, into Fiscal 2010; expectations that a weaker economic environment offers an opportunity to accelerate the growth of the APM program; expectations relating to consumer spending and trends; Company's belief that transaction credits are likely indicators of future revenue; the Company's expectation with regards to developing increased online business by hosting European online malls; the Company's anticipated increase in the number of merchants/ establishments with which it will do business; the anticipated strong demand for the APM program offered by the Company; the impact on the Company's revenues, results and cash flows that increased merchant participation would have; the continued impact of economic conditions on the Company's performance; the ability of the Company to satisfy payments under the 24 month payment plan agreed with CRA; the Company's expectations that it will be successful in its application to list its common shares on an alternate stock exchange; the Company's belief that first two months of Fiscal 2010 provide firm indications that the Company's operational performance is moving in the right direction; and other information regarding financial and business prospects and financial outlook is forward- looking information. Forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company. With respect to the forward- looking information contained in this Press Release, the Company has made assumptions regarding, among other things, its ability to access future financing; current and future economic and market conditions and the impact of same on the Company's business; ongoing revenue sources and future business levels; interest and currency rates; the impact of an extension of the agreement with CIBC on future business; the Company's ability to offer same rewards as CIBC; the appropriateness of the Company's tax filing position, ongoing consumer interest in accumulating frequent flyer miles; and the Company's ability to manage risks connected to collection of transaction credits. Forward-looking information is subject to a number of risks, uncertainties and assumptions that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, changes in general economic and market conditions, changes to regulations affecting the Company's activities, uncertainties relating to the availability and costs of financing needed in the future, delays in finalizing agreements that allow the Company to launch its products in new business segments, the termination or expiration of the CIBC agreement, the inability of the Company to transition listing of the Company's common shares from the TSX to an alternate exchange, any adverse change to the currently agreed payment plan with the CRA, currency risks, the inability of the Company to collect under its APM program, the Company's financial status, and other factors, including without limitation, those listed under "General Risks and Uncertainties" and "Economic Dependence" in the Company's Management Discussion and Analysis for the fiscal year ended June 30, 2009. All forward- looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward- looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

Management's Responsibility for Financial Reporting

To our Shareholders:

The accompanying consolidated financial statements have been prepared by management and approved by the Board of Directors of the Company. Management is responsible for the information and representations contained in these consolidated financial statements and other sections of this Annual Report.

The Company maintains appropriate processes to ensure that relevant and reliable financial information is produced. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in Canada. The significant accounting policies which management believes are appropriate for the Company are described in notes 1 and 2 to the consolidated financial statements.

The Board of Directors is responsible for reviewing and approving the consolidated financial statements and overseeing management's performance of its financial reporting responsibilities. An Audit Committee, the majority of whose members are non-management Directors, is appointed by the Board. The Audit Committee reviews the consolidated financial statements, adequacy and internal controls, the audit process and financial reporting with management and the external auditors. The Audit Committee reports to the Directors prior to the approval of the audited consolidated financial statements for publication.

PricewaterhouseCoopers LLP, the Company's external auditors, audited the consolidated financial statements in accordance with generally accepted auditing standards to enable them to express to the shareholders their opinion on the consolidated financial statements. Their report is set out on the following page.