Route1 Inc. (TSX VENTURE:ROI), a digital security and identity management
company whose customers include the U.S. Department of Defense, the Department
of Homeland Security, the Department of Energy and the Government of Canada,
today announced its financial results for the year ended December 31, 2012.


Operating results for the 2012 year were positively affected by the proceeds of
an arbitration award which was received in January 2012.


For the year ended December 31, 2012, total revenue increased to $9.1 million
from $5.5 million in 2011. Gross profit also increased during the year to $7.5
million or 82% of revenue, versus gross profit of $4.5 million or 82% of revenue
during the previous year. The improvement in gross profit is attributable to the
arbitration award, a decrease in royalties paid on licenses, and increasing
sales of higher margin services revenue. Route1's 2012 total comprehensive net
income increased to $2.2 million from a loss of $1.9 million in 2011.


The arbitration award impacted the Company's operating results in fiscal years
2012 and 2011 as follows:




                                                                            
In 000s of CAD dollars                FY 2012  FY 2012     FY 2011  FY 2011 
                                   with Award  without  With Award  without 
                                  ------------------------------------------
Revenue                                 9,050    5,614       5,456    5,456 
Cost of revenue                         1,562    1,031         995      995 
                                  ------------------------------------------
Gross profit                            7,488    4,583       4,461    4,461 
Operating expenses                      4,751    4,751       5,852    4,370 
                                  ------------------------------------------
Operating profit (loss) for the                                             
 year                                   2,737     (168)     (1,391)      91 
Total other expenses                     (580)    (580)       (520)  (1,104)
                                  ------------------------------------------
Income (loss) from operations           2,157     (748)     (1,911)  (1,013)
                                  ------------------------------------------
                                                                            



Earnings before interest, tax, depreciation, and amortization (EBITDA) during
the year amounted to $2.9 million compared to an EBITDA loss of $1.2 million in
2011.




                                                                            
in 000s of CAD dollars                 Dec 31 Sept 30 June 30 Mar 31 Dec 31 
                                         2012    2012    2012   2012   2011 
                                      --------------------------------------
Revenue                                 2,277   1,933   1,888  2,952  1,401 
EBITDA                                    645     514     634  1,125 (1,464)
Amortization                               46      54      44     36     40 
Operating profit (loss) for the year      599     460     590  1,089 (1,504)
                                      --------------------------------------
                                                                            



During the 2012 year Route1 generated cash flow from operations of $1.6 million.
As at December 31, 2012, the Company had no bank debt and a cash balance of
$754,509.




                                                                            
in 000s of CAD dollars                             Dec 31            Dec 31 
                                                     2012              2011 
                                       -------------------------------------
Cash                                                  755                87 
Total current assets                                1,928             5,723 
Total current liabilities                           1,739             7,430 
Net working capital                                   189            (1,707)
Total assets                                        2,503             5,999 
Bank debt                                               0                 0 
Total liabilities                                   1,886             7,539 
                                       -------------------------------------
                                                                            



Paid, Active Subscribers

As at December 31, 2012, Route1 had 15,913 paying, active subscribers.



                                                                            
In 000s of CAD dollars for        Dec 31   Sep 30   Jun 30   Mar 31   Dec 31
 Revenue from subscribers           2012     2012     2012     2012     2011
----------------------------------------------------------------------------
Closing number of subscribers     15,913   14,615   14,876   15,794   15,903
Average Number of subscribers     14,870   14,779   14,911   15,837   15,845
Revenue per subscriber          $    259 $    258 $    253 $    248 $    243
Revenue from subscribers        $    964 $    954 $    942 $    983 $    963
============================================================================
                                                                            



During the fourth quarter of 2012 Route1's revenue per subscriber was $259, an
increase of $16 per subscriber or 6.6%, from the same period in 2011.


Investor Conference Call and Webcast

Route1 will hold a conference call today at 9:00 a.m. Eastern Standard Time
(EST) to discuss its reported 2012 financial results, and provide an update on
business and product development.


Participants should dial 1-888-430-8705 or 1-719-457-2628 at least ten (10)
minutes prior to the conference time. The webcast will be presented live at
http://public.viavid.com/index.php?id=104176. For those unable to attend the
call, a replay will be available after 12:00 p.m. EST at 1-877-870-5176 or
1-858-384-5517 pass code 3811499 until midnight, April 25, 2013.


ABOUT ROUTE1, INC.

Route1 delivers industry-leading security and identity management technologies
to corporations and government agencies who require universal, secure access to
digital resources and sensitive data. These customers depend on The Power of
MobiNET - Route1's universal identity management and service delivery platform.
MobiNET provides identity assurance and individualized access to applications,
data and networks. Headquartered in Toronto, Canada, Route1 is listed on the TSX
Venture Exchange.


For more information, visit our website at: www.route1.com.

This news release, required by applicable Canadian laws, does not constitute an
offer to sell or a solicitation of an offer to buy any of the securities in the
United States. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") or
any state securities laws and may not be offered or sold within the United
States or to U.S. Persons unless registered under the U.S. Securities Act and
applicable state securities laws or an exemption from such registration is
available.


(C) Route1 Inc., 2013. All rights reserved. Route1, the Route1 and shield design
Logo, SECURING THE DIGITAL WORLD, Mobi, MobiSecure, MobiLINK, Route1 MobiKEY,
Route1 MobiVDI, MobiKEY, MobiKEY IBAD, DEFIMNET, MobiNET, Route1 MobiNET,
TruOFFICE, TruFLASH, TruOFFICE VDI, MobiKEY Fusion, MobiNET Aggregation Gateway,
MobiNET Switching Array, MobiNET Secure Gateway, EnterpriseLIVE, EnterpriseLIVE
Virtualization Orchestrator, MobiNET Agent, MobiKEY Classic and MobiKEY Classic
2, are either registered trademarks or trademarks of Route1 Inc. in the United
States and or Canada. All other trademarks and trade names are the property of
their respective owners. The DEFIMNET and MobiNET platforms, the MobiKEY,
MobiKEY Classic, MobiKEY Classic 2 and MobiKEY Fusion devices, and MobiLINK are
protected by U.S. Patents 7,814,216 and 7,739,726, Canadian Patent 2,578,053,
and other patents pending.


Other product and company names mentioned herein may be trademarks of their
respective companies.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Route1 Inc.
Tony Busseri
CEO
+1 416 814-2635
tony.busseri@route1.com
www.route1.com

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