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GuestLogix provides update on fiscal 2008 and Q1 fiscal 2009

January 21, 2009 — TORONTO, ONT — GuestLogix Inc. (TSX-V: GXI), the leading provider of onboard retail systems to the passenger travel industry, today provided an update on its financial and operational results for the three- and 12-month periods ended November 30, 2008, and on its first quarter fiscal 2009 operational results to date.

GuestLogix’ objective is to achieve market leadership while growing profitably. To achieve this objective, GuestLogix is executing a strategy based on two principal tactics. The first is to aggressively grow its customer footprint, as measured by annualized passenger trips, with airline and railway customers, anchored on contracted minimum recurring revenue levels with each customer. The second is to leverage this leading customer footprint by adding incremental onboard services and collaborating with airline and railway customers to drive growth of onboard transaction values and volumes, and associated incremental revenues to GuestLogix.

Fiscal 2008 unaudited financial and operational highlights (in $ CDN)
Year-end revenue is expected to increase 56 per cent over fiscal 2007 revenue. Fourth quarter fiscal 2008 revenue is expected to increase 75 per cent over the comparable quarter in fiscal 2007.

As at November 30, 2008, GuestLogix had cash and cash equivalents, including restricted cash, of $5,599,337. The unaudited financial information is based upon management’s reasonable estimates and judgement. Audited results may vary materially. The Company expects to report its audited fiscal 2008 results in March, with an investor conference call to follow.

At the end of fiscal 2008 GuestLogix had signed cumulative customer agreements representing 703 million annualized passenger trips and deployed more than half of this amount.

“During fiscal 2008, we realized strong global adoption of our technology, as airlines began moving to an à la carte pricing model to strengthen their bottom lines in the face of rapidly escalating fuel prices,” said Tom Douramakos, President and CEO, GuestLogix. “We made significant progress toward our goal of achieving one billion annualized passenger trips under customer agreement. As a result of our direct sales efforts and contributions from our key channel partners we achieved a monthly revenue run rate of $1.2 million at fiscal year end.”

Mr. Douramakos continued:

“Due to 2008 airline industry restructuring and volatile operating costs, most of the North American industry, our largest market, has taken steps to accelerate ancillary revenue growth. As a result, IATA forecasts this to be the only profitable geography in the airline industry in 2009. While European low cost carriers have led the industry with à la carte sales, legacy operators in Europe and in Asia Pacific have yet to make the move to onboard retail initiatives beyond duty-free and related merchandising sales. IATA predicts these markets will continue to suffer losses which suggest that these carriers will need to follow their North American counterparts.

GuestLogix’ continued positive traction with current customers and prospects suggests that airlines will continue to accelerate their adoption of pay-per-use ancillary revenue models to counter the challenging global economic environment. As the leading provider of onboard retailing systems to the airline sector, we are firmly positioned as an immediate and long-term beneficiary of this industry-wide shift.

In fiscal 2009 to date, our growth momentum has continued. So far this fiscal year we have added four new customers and are now poised to pass 800 million annualized passenger trips under customer agreement by end of Q1, providing stable recurring revenue based on minimum monthly payments into 2011, assuming all contracts are executed in a timely manner.”

First quarter fiscal 2009 and first half operational highlights
GuestLogix expects to achieve a monthly revenue run rate of approximately $1.5 million at the end of Q1 fiscal 2009, based on deployed agreements and contractual minima. The Company anticipates an additional $500,000 in monthly revenue run rate from currently signed agreements to be deployed following Q1, assuming all customer agreements are deployed on time and financing is available in a timely manner.

GuestLogix has continued to expand its market footprint and customer deployments in the quarter:

• Signed agreements with three major US-based airlines, increasing the Company’s North American market share to more than 90 per cent
  
• Signed a major European carrier, expanding the Company’s European market share to 30 per cent, compared to eight per cent a year ago
  
• Signed first railway customer in North America, signaling the Company’s entry into the lucrative global rail sector
  
• Completed deployment with the fifth largest U.S. airline, US Airways, which has implemented new onboard sales initiatives
  
• Commenced deployment onboard one of Europe’s largest airlines, which will use the GuestLogix Mobile Virtual Store™ platform to transact duty-free and other merchandising sales

GuestLogix has also positioned to increase deployed revenue per passenger trip:

• Launched Airline Solutions Group, enhancing service to airline customers to further assist their onboard retail initiatives and drive excess recurring revenues for the Company
  
• Launched In-Flight Box Office™ marketing, with a new Web site
  (www.in-flightboxoffice.com), to promote onboard ticket initiatives with airlines and ticket partners and secure new network distribution revenue for the Company
  
• Revenue generated via GuestLogix’ Airline Solutions Group and In-Flight Box Office™ initiatives would be incremental to the Company’s minimum monthly revenue run rate during fiscal 2009

About GuestLogix
GuestLogix is the leading provider of onboard retail technology and solutions to the passenger travel industry. Through its de facto standard Mobile Virtual Store™ platform, the Company provides operators the tools and products to become successful onboard retailers, enhance service and drive ancillary revenue growth. With a customer base comprised of seven of the top 10 global airlines, the Company maintains agreements to serve nearly 30 per cent of the global airline passenger traffic through its technology platform. Additional information on the Company can be found at www.guestlogix.com.

Forward-Looking Statements
This news release includes certain forward-looking statements that are based upon current expectations, which involve risks and uncertainties associated with GuestLogix’ business and the environment in which the business operates. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking, including those identified by the expressions "anticipate", "believe", "plan", "estimate", "expect", "intend", and similar expressions to the extent they relate to the Company or its management. The forward-looking statements are not historical facts, but reflect GuestLogix' current expectations regarding future results or events. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations, including the matters discussed under "Risks and Uncertainties" in the Filing Statement filed on October 30, 2008 with the regulatory authorities. GuestLogix assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements.

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