Third Quarter Results Keep OMT Inc. On Track For Record Year

WINNIPEG, MANITOBA--

YTD Sales of $4.3 million establishes new record

YTD EBITDA of $236,000 well ahead of last year

YTD Gross profit margin remains over 40%

OMT Inc. (TSX Venture: OMT), an innovative leader in providing broadcast technology and media solutions throughout North America, today reported financial results for its third quarter and nine-months ended September 30, 2002.

"Sales of $1.3 million for the three-month period have allowed us to maintain our record-setting pace for the year," said Scott Farr, OMT President and Chief Executive Officer. "With sales of more than $4.3 million for the first nine months of 2002, we are well ahead of last year's pace, when we recorded sales of $3.1 million for the eight months ended September 30, 2001, and we most assuredly will set a new record this year.

"Our gross profit margin to date remains solid at 41.6%, a strong improvement over the 35.7% recorded during the first eight months of last year," Mr. Farr added. "In addition, our EBITDA for the first nine months of this year (earnings before interest, income taxes, depreciation and amortization) of $236,000 is substantially improved over last year."

The Company had working capital of $395,000, a current ratio of 1.5:1, a cash position of $22,000 and borrowings of $195,000 on its operating credit of $700,000 at September 30, 2002. Deferred revenue of $191,000 was virtually unchanged from year-end. In addition, the long term portion of the Company's term debt has been reduced to $198,000 from $376,000 as at December 31, 2001.

------------------------------------------------------------------------
                            FINANCIAL SNAPSHOT
                         3 months     3 months     9 months     8 months
                            ended        ended        ended        ended
                         09/30/02     09/30/01     09/30/02     09/30/01
------------------------------------------------------------------------
Sales                $  1,328,245    1,270,504    4,327,546    3,165,124
Gross Profit Margin  
(% of sales)        %        39.1         35.8         41.6         35.7
EBITDA               $      9,149       30,034      236,174       75,499
Net (Loss)           $  (262,069)    (112,238)    (327,525)    (280,556)
(Loss) per share     $      (.02)        (.01)        (.03)        (.04)
------------------------------------------------------------------------

Analysis of Nine-Months Results

On a year-to-date basis, most key financial indices remain positive. Sales in excess of $4.3 million for the first nine months of 2002 have positioned the Company for a record-setting year. Gross profit margin is up nearly six percentage points versus the eight-month reporting period in 2001. This is due largely to the Company's continuing focus on the sale of software products, which have higher profit margins.

Indicative of the sizeable increase in revenue, EBITDA of $236, 000 for the nine months of 2002 is up substantially over the $75,000 recorded during the eight-month reporting period in 2001.

The net loss for the first nine months of 2002 was $328,000 versus $281,000 recorded during the first eight months of 2001, while the basic and diluted loss per share improved to 3 cents from 4 cents. Included in the loss for the nine months ended September 30, 2002 is $193,000 in non-cash interest expense and dividends on the Preferred shares that are recorded on the Balance Sheet as an increase in Preferred shares.

Analysis of Third Quarter Results

Sales for the quarter of $1.3 million were up 4.5% over those recorded during the same period in 2001. Gross profit margin continued to track higher than last year at 39.1% of sales for the quarter, as compared to 35.8% of sales during the third quarter of last year.

EBITDA of $9,000 was down from the $30,000 recorded during the third quarter of 2001 This was due largely to a rise in selling and administrative costs and the increased level of research and development undertaken by the Company. Current year expenses reflect the Company's increased investment in human resources to support growth plans.

The net loss for the quarter of $262,000 was higher than the net loss of $112,000 recorded for the same period last year, primarily because of a one-time loss of $109,000 on a Note receivable asset, non-cash interest expense and accrued dividends on the Preferred shares. The non-cash interest expense and the dividends are higher due to the fact that the convertible Preferred shares were outstanding for a full quarter in 2002, versus one and a half months in 2001.

Outlook

The Company worked diligently during the third quarter on finalizing a significant transaction that will further enhance its market position. An agreement was signed with Music Choice, the largest digital audio service in the United States, on November 27, 2002 for OMT to supply and install a new multi-channel digital audio broadcast system. The system features OMT's iMediaTouch leading edge broadcast automation software and uses the latest Dolby AC/3 audio technology. The agreement is valued at more than CDN $1 million, and will be implemented over the next several months. The majority of the revenue is expected to be recognized in the first half of 2003.

Looking ahead to 2003, Mr. Farr noted that the Company will be implementing improved business systems and customer relationship (CRM) systems early in the New Year. "These enhanced systems will provide capacity for continued sales improvement, while reducing our direct costs."

OMT Inc., a Winnipeg-based company which trades on the TSX Venture Exchange (TSXV: OMT), is an innovative leader in providing technology and solutions to the media and broadcast industries. OMT's broadcasting and multimedia technology is heard by millions of people worldwide every day through television, radio, satellite, cable and Internet broadcasts.

FOR FURTHER INFORMATION PLEASE CONTACT:
Scott Farr
Tel: 204.795.0790
Email: sfarr@omt.net

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