HOP

TORONTO, Aug. 23, 2011 /CNW/ -- TORONTO, Aug. 23, 2011 /CNW/ - Telehop Communications Inc. (TSXV:HOP) is a full-service long distance provider operating within the telecommunications industry and is registered with the Canadian Radio-television and Telecommunications Commission ("CRTC") as a licensed Class "A" Telecom Carrier. During the first half of 2011, the Company's financials reflected a number of non-operational and non-recurring events. Details of these events are summarized below: • Increased costs incurred in the amount of $71,618 as a result of a dissident shareholder proxy challenge, • Incurred $14,730 in duplicate CEO salaries during the management transition period, • The Company continued to pay its obligations to the Estate of its founder in the amount of $132,692. During the first two quarters the Company also incurred losses in the amount of $86,585 in the launching of its prepaid calling card. Performance is being continually monitored to assess the effectiveness of this delivery method. Without the additional costs detailed above, the year to date loss would have been $134,947 which is an improvement of $36,096 or 21.1% as compared to the same period last year. __________________________________________________________________ |Consolidated Highlights |Three months ended|Six months ended | |_____________________________|__________________|_________________| | |June 30,| June 30,|June 30,|June 30,| |($000's CAD except EPS) | 2011| 2010| 2011| 2010| |_____________________________|________|_________|________|________| |Consolidated Income Statement| | | | | |Operating revenues | $ 2,647| $ 3,060| $ 5,319| $ 5,982| |Gross margin | 1,174| 1,302| 2,312| 2,493| |Gross margin % | 44.3%| 42.5%| 43.5%| 41.7%| | | | | | | |EBITDA | (142)| 21| (290)| (55)| | | | | | | |Net income (loss) | (150)| (63)| (308)| (171)| | | | | | | |Earnings (loss) per share | (0.01)| 0.00| (0.02)| (0.01)| |_____________________________|________|_________|________|________| Revenue for the second quarter 2011 was $2,647,490 with a net loss of $149,901 or $0.01 per common share compared to revenue of $3,060,274 with a net loss of $62,991 or $0.00 per common share for the second quarter 2010. Revenue was $412,784 or 13.5% less quarter for quarter which is attributable to a reduction in our retail long-distance business of $353,238 and a reduction in our wholesale long-distance business of $59,546. Year to date revenue was $5,318,594 with a net loss of $307,880 or $0.02 per common share compared to revenue of $5,982,019 with a net loss of $171,043 or $0.01 per common share for the first six months of 2010. Our gross margin for the second quarter was $1,173,560 or 44.3% compared to $1,302,183 or 42.5% for the same quarter in 2010. Year to date margin has shown a 1.8% increase to 43.5% over 2010. With new management engaged, and moving into the third and fourth quarter, the Company's focus will be to continue to grow and drive sales of subscription services, namely, Long Distance, VoIP Home Phone, and High Speed Internet. The strategy is to aggressively expand the Company's network of Agents including ethnic market agents, individual sales agents, retail agents, and telemarketing agents. Furthermore, the Company will continue to dedicate focus on the Research & Development of new products and services for launch in 2012. A complete financial reporting package is available on Sedar http://www.sedar.com, http://www.telehop.com or by contacting the company directly. Certain statements in this press release may constitute "forward looking statements" and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Corporation to be materially different from any performance or achievement expressed or implied by such "forward looking statements". The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/August2011/23/c5672.html p Mr. Rajiv Jagotabr/ President and CEObr/ (416) 494 4490br/ a href="mailto:rjagota@telehop.com"rjagota@telehop.com/a /p

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