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Lingo Media Reports Financial Results for the Second Quarter and First Six Months Ended June 30, 2016

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TORONTO, ON --(Marketwired - August 30, 2016) - Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) ("Lingo Media" or the "Company"), an EdTech company that is 'Changing the way the world learns English' through innovative online and print-based technologies and solutions, announces its financial results for the second quarter ended June 30, 2016 reporting revenues of $1,549,397 and a net profit of $631,183 or $0.02 per share. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

Michael Kraft, President & CEO of Lingo Media, stated, "We are pleased to report our financial results for the second quarter of 2016 during which we earned $0.02 per share, while investing over $1 million in our digital content library, and significantly improving our balance sheet since the beginning of this year. For the period ended June 30, 2015, we reported a foreign exchange gain of $132,633 as compared to a loss of $215,571 for the same period in 2016, which negatively impacted our financial results by $348,204 period-over-period. However, we were able to generate significant cash during the period, which allowed us to invest $1,081,157 towards development of our digital content library, a key focus of our product strategy to position the company for future growth. Additionally, for the period ended June 30, 2016, our cash and cash equivalents increased to $1.5 million as compared to $409,000 as of December 31, 2015. Likewise, our book value increased by $3 million to $7 million or $0.21 per share as of June 30, 2016 as compared to December 31, 2015."

Mr. Kraft added, "Lingo Media continues to increase its investment in its sales management and marketing efforts. During the quarter, we focused on expanding our sales network, including new partnerships with Telefonica in Peru and Gale Cengage globally. Additionally, we are making progress in opening new markets beyond Latin America including Asia, where we are beginning to generate incremental revenues from our suite of digital learning products."

Q2 2016 Operational Highlights



-- Online English Language Learning:
-- released ELL Studio, a speech recognition and practice pronunciation
mobile app that enables learners to practice their spoken English
skills anywhere, any time
-- launched partnership with Telefonica EducaciĆ³n Digital S.L.U. to
market, sell and distribute ELL Technologies' full suite of English
language training products in Peru
-- entered into a distribution agreement with Gale, a subsidiary of
Cengage Learning, whereby Gale is marketing and selling a co-branded
version of ELL Scholar, named Gale-Lingo, as a self-study solution
for digital libraries world wide, excluding Latin America
-- started marketing and selling, English for Success, a series of
lessons and activities derived from ELL Library as a premium
solution for governments and other institutions





-- Print-Based English Language Learning:
-- Continued expanding the market for PEP Primary English and Starting
Line textbook programs in China



Financial Highlights for the Second Quarter Ended June 30, 2016



Second Quarter Ended June 30th 2016 2015
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Revenue $ 1,549,397 $ 1,794,659
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Operating expenses 495,282 422,569
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Income before amortization, share-based
payments, depreciation, finance charges
and taxes 1,054,115 1,372,090
----------------------------------------------------------------------------
Amortization, share-based payments, and
depreciation 249,733 183,145
----------------------------------------------------------------------------
Finance charges, taxes, foreign exchange 173,199 209,842
----------------------------------------------------------------------------
Total expenses 918,214 815,556
----------------------------------------------------------------------------
Net profit 631,183 979,103
----------------------------------------------------------------------------
Total comprehensive income 624,319 993,552
----------------------------------------------------------------------------
Earnings per share $ 0.02 $ 0.04
----------------------------------------------------------------------------





-- Revenue for the period ended June 30, 2016 totalled $1,549,397 as
compared to $1,794,659 in 2015, a 14% decrease.
-- Operating expenses for the period ended June 30, 2016 totalled $495,282
compared to $422,569 in 2015, a 17% increase reflecting sales and
marketing efforts.
-- Net profit for the period ended June 30, 2016 was $631,183 or $0.02 per
share (basic) based on 32.9 million weighted number of common shares as
compared to 979,103 for 2015 or $0.04 per share (basic) on 25.9 million
weighted number of common shares.
-- Income before amortization, share-based payments, depreciation, finance
charges and taxes was $1,054,115 compared to $1,372,090 in 2015.



Financial Highlights for the Six Month Period Ended June 30, 2015



Six Month Period Ended June 30 2016 2015
----------------------------------------------------------------------------
Revenue $ 2,306,255 $ 2,446,286
----------------------------------------------------------------------------
Operating expenses 758,204 742,032
----------------------------------------------------------------------------
Income before amortization, share-based
payments, depreciation, finance charges
and taxes 1,548,051 1,704,254
----------------------------------------------------------------------------
Amortization, share-based payments and
depreciation 475,465 394,143
----------------------------------------------------------------------------
Finance charges, taxes and foreign
exchange 390,573 105,579
----------------------------------------------------------------------------
Total expenses 1,624,242 1,241,754
----------------------------------------------------------------------------
Net profit 682,013 1,204,532
----------------------------------------------------------------------------
Total comprehensive income $ 736,107 $ 1,140,150
----------------------------------------------------------------------------
Earnings per share $ 0.02 $ 0.05
----------------------------------------------------------------------------





-- Revenue for the six months ended June 30, 2016 totalled $2,306,255
compared to $2,446,286 for the same period in 2015, a 6% decrease.
-- Operating expenses for the six months ended June 30, 2016 totalled
$758,204 as compared to $742,032 for the same period in 2015, a 2%
increase.
-- Net profit for the six months was $682,013 or $0.02 earnings per share
(basic) based on 31.0 million weighted number of common shares as
compared to net profit $1,204,532 or $0.05 per share (basic) on 23.3
million weighted number of common shares for the same period in 2015.
-- Income before amortization, share-based payments, depreciation, finance
charges and taxes was $1,548,051, compared to $1,704,254 in 2015.



Balance Sheet as at June 30, 2016



-- Cash and cash equivalents as at June 30, 2016 totalled $1,479,831 as
compared to $409,022 as at December 31, 2015, an increase of $1,070,809
from operations and from the exercise of warrants and stock options.
-- Current ratio improved to 4.68:1 for the period ended June 30, 2016 as
compared to 2.86:1 as at December 31, 2015.
-- Total liabilities as at June 30, 2016 totalled $629,212 as compared to
$1,186,167 as at December 31, 2015, an improvement of $556,955 after
loans payable of $580,000 were repaid in full and retired.
-- Book value improved to $7,034,519 as at June 30, 2016 as compared to
$4,046,784 as at December 31, 2015.



Mr. Kraft continued, "During the second half of 2016, we expect our revenue and profitability to trend in a similar fashion or greater as we gain sales transaction in Latin America and new markets in Asia. We look forward to providing our shareholders with updates as we continue to enter new markets, secure sales contracts and achieve revenue and earnings milestones."

The unaudited condensed interim financial statements for the quarter ended June 30, 2016 and Management Discussion & Analysis are available at www.sedar.com.

About Lingo Media (TSX VENTURE: LM) (OTCQB: LMDCF)

Lingo Media is a global EdTech company that is 'Changing the way the world learns English', developing and marketing products for learners of English through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers English language educators to easily transition from traditional teaching methods to digital learning.

Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies provides online training and assessment for English language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.

Lingo Media has formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China, and continues to both extend its global reach and expand its product offerings.

Follow Lingo Media On:

Facebook: https://www.facebook.com/LingoMedia
Twitter: @LingoMediaCorp
YouTube: https://www.youtube.com/lingomedialm
LinkedIn: https://www.linkedin.com/company/lingo-media-corporation
RSS: http://feeds.feedburner.com/LingoMedia

To learn more, visit us at www.lingomedia.com.

Portions of this press release may include "forward-looking statements" within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management's current expectations and involve certain risks and uncertainties. Actual results may vary materially from management's expectations and projections and thus readers should not place undue reliance on forward-looking statements. Lingo Media has tried to identify these forward-looking statements by using words such as "may," "should," "expect," "hope," "anticipate," "believe," "intend," "plan," "estimate" and similar expressions. Lingo Media's expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. Certain factors that can affect the Company's ability to achieve projected results are described in the Company's filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE


FOR FURTHER INFORMATION PLEASE CONTACT:

For further information, contact:

Lingo Media
Michael Kraft
President & CEO
Tel: (+1) 416-927-7000 Ext. 23
Toll Free: 1-866-927-7011
Email: mkraft@lingomedia.com

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