IRVINE, Calif., Nov. 18 /PRNewswire-FirstCall/ -- DigitalPost Interactive, Inc. (OTC Bulletin Board: DGLP), www.dglp.com, a leader in web-based interactive digital media applications, reported financial results for the three months ended September 30, 2009.

DigitalPost Interactive Chief Executive Officer Michael Sawtell commented: "Revenues again more than doubled on a year-over-year basis, we continued to improve efficiencies and keep operating expenses under control at substantially lower levels than last year. We also continued to grow our base of subscribers from last year and since the end of the third quarter have added two significant new partners: Lucidiom and The Picture People, Inc., which we believe can help us grow subscribers and revenue in 2010."

Third-Quarter 2009 Financial Highlights

--Total revenue for the quarter grew 160% to $371,600, from $142,700 in third-quarter 2008. Revenue from subscriptions rose 180%, and revenue from professional services increased 147%.

--Operating expenses for the quarter declined by more than 52% to $379,000 from $808,700 in third-quarter 2008. The new operating structure that management implemented in late 2008 has resulted not only in effective control over costs but also improved operating efficiencies.

--Cash used in operations for the quarter improved to $75,600 from $279,200 in third-quarter 2008. The decline in cash usage is the result of the Company's revenue growth and reduced operating expenses.

--Net loss for the quarter narrowed to $600,900 from net losses of $883,800 in third-quarter 2008. Net loss for third-quarter 2009 includes non-cash items of $171,500 in stock-based compensation, $155,000 of amortization of debt discounts, $187,100 of beneficial conversion liability and $42,800 of depreciation and amortization. Net loss for third-quarter 2008 included non-cash items of $391,200 in stock-based compensation, $19,200 of amortization of debt discounts, and $19,400 of depreciation and amortization.

Other Highlights

Growth in All Business Segments: The Company's two business segments, family web site subscriptions and professional services, grew more than 150% for both the third quarter and nine months, compared to 2008. Retail subscribers to DigitalPost's and its marketing partners' family web sites continued to grow in number. The Company's professional services division saw larger-size contracts, compared to last year, and is seeing opportunities for its interactive digital media platform and technology in a number of new market verticals.



                       Third-          Third-          Nine-         Nine-
                      Quarter          Quarter        Months        Months
    Revenues from:     2009             2008           2009          2008
                    ---------        ----------     ---------     ---------
    Subscriptions  $  167,200      $    59,800     $   557,800    $ 170,200
    Professional
     Services      $  204,400      $    82,900     $   501,200    $ 168,000
                      -------          -------        --------      -------
    Total          $  371,600      $   142,700     $ 1,059,000    $ 338,200
                      -------          -------       ---------     --------

On a sequential quarterly basis the decrease of total revenue was $4,800 from $376,400 for the second-quarter 2009 to $371,600 for the third-quarter 2009. The decrease was due to the Company's growth in professional service revenues of $11,900 which was partially offset by a decrease in subscription revenues of $16,700.

Subscriber Base Growth: The number of recurring subscribers was 15,747 as of September 30, 2009, compared to 5,187 a year ago. Recurring subscribers include subscribers to TheFamilyPost.com, DigitalPost's direct B2C web property, and DigitalPost's B2B partners, including Kiddie Kandids. Recurring subscribers were 15,747 as of June 30, 2009, an increase from 5,187 recurring subscribers as of September 30, 2008. On a sequential quarterly basis the increase of recurring subscribers from 15,288 at June 30, 2009 to 15,747, was less than one percent, which the Company believes is due to the seasonal aspect of the photography studio business.

Professional Services Growth: During the quarter the Company announced three contracts to design custom interactive web sites for business customers in Internet search, family web sites and baseball photos. Businesses in all markets are moving to interactive digital media to not only strengthen relationships with customers but also extend their business models and add new revenue sources. Business services (B2B) providers are also seeking interactive media platforms to re-brand and offer to business customers.

Cash Used in Operations: Net cash used by operating activities for the first nine months of 2009 declined to $140,700 from $1,152,200 for the first nine months of 2008. The dramatic decline was attributable to continuing revenue growth and controlling operating expenses.

Sawtell said that the Company's two new partnerships are significant for future growth. "We are now providing digital media sharing platforms to two of the top five photography studio chains in the United States, Kiddie Kandids and The Picture People. And with our recent contract with Lucidiom, one of the largest photo kiosk providers in the world, we feel we are in an excellent position to pursue more business opportunities and revenue growth throughout 2010."

About DigitalPost Interactive, Inc.

DigitalPost Interactive is a SaaS (Software as a Service) and application provider that delivers B2B and B2C digital media-sharing solutions that are both easy to offer and easy to use. The company's visually-stunning, user-friendly Web 2.0 technology gives consumers a single, engaging place online for permanently storing and sharing a lifetime of digital media and memories, connecting with family and friends, and keeping organized in today's digital world.

Completely scaleable and re-brandable, DigitalPost Interactive's technology gives companies in the photo, travel, entertainment, sports, and other vertical markets a fast and efficient way to offer dynamic Web 2.0 products and services. This technology can create exciting new revenue streams for all companies looking to monetize this emerging new Internet opportunity. For more information about DigitalPost Interactive or its consumer site TheFamilyPost.com, please visit www.dglp.com.

Safe Harbor Statement

This press release contains forward-looking statements that may be subject to various risks and uncertainties. Such forward-looking statements are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and may include statements regarding our estimates, future contracts, future financial performance or results of operations, including the number of recurring subscribers, revenue growth, cost of revenues, operating expenses, interest expense, net loss and cash flow. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this press release. Additional information concerning risks and uncertainties that may cause actual results to differ materially from those projected or suggested in the forward-looking statements may be found in Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K filed with the U.S. Securities and Exchange Commission.

    Contact:

    DigitalPost Interactive-Investor Relations:
    Thad Morris
    866-492-3888
    ir@dglp.com

SOURCE DigitalPost Interactive, Inc.