Softchoice Corp. (TSX: SO), a North American provider of technology solutions and services, announced revenue and record net income results for the third quarter of 2007. For the three-month period ended September 30, 2007 the Company reported third quarter net income of US$3.0 million or US$0.18 per share basic (US$0.17 per share fully diluted) on revenue of US$159.4 million compared to net income of US$1.2 million or US$0.07 per share basic (US$0.07 per share fully diluted) on revenue of US$141.4 million recorded during the same period the year prior.

Revenues increased by 13 percent in the quarter while net income grew by 147 percent, reflecting strong sales of Microsoft Enterprise Agreements and robust margin performance across all product lines.

On a rolling 12-month basis, year-over-year net income has grown by 73 percent while net income for the third quarter alone increased by 147 percent over the third quarter of 2006.

Hardware sales demonstrated strong growth in the quarter, increasing by 28 percent over the same period in 2006 to US$52.7 million. Hardware sales were made to 42 percent of customers, up from 38 percent for the third quarter of 2006.

For the nine-month period ended September 30, 2007, Softchoice reported record net income of US$16.8 million or US$0.97 per share basic (US$0.96 per share fully diluted) on revenue of US$510.9 million compared to net income of US$9.6 million or US$0.56 per share basic (US$0.56 per share fully diluted) on revenue of US$489.0 million in the prior year.

During the first nine months of 2007, hardware sales grew by 19 percent on a consolidated basis compared to the same period in the year prior. Growth in hardware sales in the U.S. was 16 percent, while Canadian growth in hardware sales was 21 percent compared to the same period last year.

Subsequent to the end of the quarter, on October 12, 2007 Softchoice announced it had completed the acquisition of the Technology Solutions and Professionals Services divisions of NexInnovations Inc., a leading provider of technology products and services to the Canadian enterprise market.

NexInnovations had been in a CCAA process since October 2, 2007. On October 16, 2007 Softchoice and Brains II, one of Canada’s foremost providers of mission critical maintenance and technical support services, announced a partnership to provide NexInnovations customers with integrated solutions fulfillment and break/fix warranty services support.

Since the close of the acquisition, Softchoice has been able to hire approximately 83 full time employees of NexInnovations and has received strong endorsement from their customers. Sales to former NexInnovations customers since the acquisition have been at approximately half the level of a year ago as a result of the CCAA process. Management expects that sales levels will grow significantly as we integrate the NexInnovations employees and customers into our organization.

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