For the three-month period ended September 30, 2009, revenues increased by 225 percent to $1.5 million versus $458,075 during the corresponding period in 2008. Gross margin for the third quarter of 2009 increased to $1.0 million versus $172,073 during the same period in 2008. Net loss for the third quarter amounted to $1.1 million or $(0.00) per share, compared to a net loss of $1.3 million or $(0.00) per share. During the third quarter of 2009, the Company incurred a one-time charge of $514,694 in connection with the shareholder proxy battle. Excluding the impact of this one-time charge, the net loss for the quarter would have amounted to $578,223 or $(0.00) per share.

For the nine-month period ended September 30, 2009, revenues increased by 320 percent to $3.5 million compared to $837,309 for the same period in 2008. Gross margin for the nine-month period increased to $2.0 million versus $199,777 during the third quarter of 2008. Net loss for the nine months ended September 30, 2009 was $2.7 million or $(0.01) per share, compared to a net loss of $4.6 million or $(0.01) per share for the same period in 2008. Excluding the impact of the on-time charge in connection with the proxy battle, the net loss for the quarter would have amounted to $2.1 million or $(0.01) per share.

As at September 30, 2009, Route1 had cash and cash equivalents amounting to $304,067 and $2.5 million in accounts receivable. On October 19, 2009, the Company announced the closing of a $2.5 million senior bank debt financing to satisfy the Company's working capital requirements. With the current cash balance, receivables and adequate working capital available to the Company, management is confident in Route1's ability to service its customer orders and generate free cash flow to strengthen the balance sheet in the near term.

As of September 30, 2009, Route1 had 350,388,115 common shares outstanding.

"The third quarter results are indicative of our ability to penetrate large enterprise customers; in time we can significantly ramp up volume sales of our proven technology. I am pleased with our efforts and the financial results are certainly moving Route1 in the right direction to set us up for a strong year in 2010," said Andrew White, President and CEO, Route1 Inc.