XeDAR Announces Positive EBITDA for July

August 18, 2008 - XeDAR announced that in July 2008, the Company attained a positive EBITDA (earnings before interest, taxes, depreciation and amortization, and further adjusted for equity payments and goodwill impairment charges, which are non-cash expenses).

During the first half of 2008, we rationalized numerous redundancies in three subsidiary companies to increase efficiencies, particularly in sales, operations, and technology development.  First-half results also reflect costs associated with initiating a multi-year, multi-million dollar geospatial imaging project to map parts of the nation's major urban areas including critical infrastructure.  Revenues and EBITDA for July suggest that the results of these numerous first-half activities are starting to bear fruit,  the efficiencies being sought are being captured, and XeDAR is striving for an EBITDA-positive second-half of 2008.

We believe that the disclosure of EBITDA is important, because it more closely indicates the state of our cash flows than the net profit or loss, which is impacted by significant amortization expenses that are associated with acquired intangible assets.