Versatile Systems Inc. (TSX VENTURE:VV), announces its results for the third
quarter of the 2013 fiscal year.


Revenue for the three months ended March 31, 2013 was $10,222,371, generating a
gross profit of $1,697,798 or 16.6% of sales compared to $12,482,474, generating
a gross profit of $2,335,833 or 18.7% of sales for the same quarter last year.
The Net Loss for the quarter amounted to $780,888 ($0.00 per share) compared to
Net Earnings of $35,603 ($0.00 per share) for the same period last year.


The Company has incurred significant losses, the continuation of which is
unacceptable. The Company is currently exploring all strategic alternatives to
deal with the losses.


Highlights for the quarter included:



--  Revenue for the three months ended March 31, 2013 was $10,222,371
    compared to $9,550,579 for the previous quarter and $12,482,474 for the
    same quarter last year;
      
--  The gross profit for the three months ended March 31 2013 was $1,697,798
    or 16.6% of sales compared to $2,335,833 or 18.7% of sales for the same
    quarter last year;
      
--  The research and development expense for the quarter amounted to
    $366,890 compared to $199,568 for the same quarter last year. The
    Company incurred $133,814 for research and development activities
    related to Mobiquity Route(TM) and other mobile software products and
    $215,597 for research and development activities primarily related to
    Smart Sign (TM); and
      
--  Deferred revenue at March 31, 2013 was $5,834,685 (of which $4,793,039
    is expected to be recognized in the next four quarters) compared to
    $6,712,216 at June 30, 2012, a decrease of $877,531. 



Revenue for the nine months ended March 31, 2013 was $27,688,798 generating a
gross profit of $5,373,205 or 19.4% of sales compared to $30,669,238 generating
a gross profit of $6,078,044 or 19.8% of sales for the same period last year.
The Net Loss for the period amounted to $1,679,571 ($0.01 per share) compared to
$641,919 ($0.00 per share) for the same period last year.


About Versatile

Versatile provides business solutions that enable companies to improve sales,
marketing and distribution of their products. Versatile also provides
information technology services for the implementation, maintenance and security
of mission-critical computer environments. Versatile has the ability to
architect solutions involving both proprietary and third party components. For
more information go to www.versatile.com.


Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's
operations or to the environment in which it operates, which are based on
Versatile's operations, estimates, forecasts and projections. These statements
are not guarantees of future performance and involve risks and uncertainties
that are difficult to predict or are beyond Versatile's control. A number of
important factors including those set forth in other public filings could cause
actual outcomes and results to differ materially from those expressed in these
forward-looking statements. Consequently, readers should not place any undue
reliance on such forward-looking statements. In addition, these forward-looking
statements relate to the date on which they are made. Versatile disclaims any
intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise.


All amounts are expressed in U.S. dollars unless otherwise stated. (C) 2013
Versatile Systems Inc.  All rights reserved.




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Versatile Systems Inc.                                                      
Condensed Consolidated Statements of Financial Position                     
(Unaudited - Prepared by Management)                                        
----------------------------------------------------------------------------
                                                                            
Expressed in U.S. dollars                   March 31, 2013    June 30, 2012 
                                          ----------------------------------
                                               (unaudited)                  
ASSETS                                                                      
Current Assets                                                              
  Cash and cash equivalents                $        41,645  $       434,725 
  Accounts receivable                            5,479,586        5,994,377 
  Prepaid expenses                               4,087,680        4,152,994 
  Inventory                                      2,349,292        2,347,110 
                                          ----------------------------------
                                                11,958,203       12,929,206 
                                                                            
Long-term accounts receivable                       45,715          181,366 
Long-term prepaid expenses                         940,596        1,278,432 
Investment in Equus                              2,002,693        2,105,473 
Capital Assets                                     193,553          251,591 
Intangible assets                                  153,506          167,206 
Deferred income tax assets                         880,407          880,407 
Goodwill                                         2,718,970        2,718,970 
                                          ----------------------------------
                                           $    18,893,643  $    20,512,651 
                                          ----------------------------------
                                          ----------------------------------
LIABILITIES                                                                 
Current Liabilities                                                         
  Line of credit                           $     3,003,291  $     1,988,675 
  Accounts payable and accrued liabilities       5,455,827        5,544,888 
  Current portion of deferred revenue            4,793,039        5,292,359 
                                          ----------------------------------
                                                13,252,157       12,825,922 
                                                                            
Deferred Revenue                                 1,041,646        1,419,857 
                                          ----------------------------------
                                                14,293,803       14,245,779 
                                          ----------------------------------
SHAREHOLDERS' EQUITY                                                        
  Share Capital                                 54,433,709       54,433,709 
  Equity Reserve                                 4,635,780        4,629,219 
  Deficit                                      (54,138,005)     (52,458,434)
  Accumulated other comprehensive loss            (331,644)        (337,622)
                                          ----------------------------------
                                                 4,599,840        6,266,872 
                                          ----------------------------------
                                                                            
                                           $    18,893,643  $    20,512,651 
                                          ----------------------------------
                                          ----------------------------------
                                                                            
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Versatile Systems Inc.                                                      
Condensed Consolidated Statements of Operations and Comprehensive Income    
 (Loss)                                                                     
(Unaudited - Prepared by Management)                                        
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Expressed in U.S.           Three months ended         Nine months ended    
 dollars                         March 31                   March 31        
                                2013         2012         2013         2012 
                        ----------------------------------------------------
                                       (Restated)                (Restated) 
                                                                            
SALES                    $10,222,371  $12,482,474  $27,688,798  $30,669,238 
COST OF SALES              8,524,573   10,146,641   22,315,593   24,591,194 
                        ----------------------------------------------------
                           1,697,798    2,335,833    5,373,205    6,078,044 
                        ----------------------------------------------------
EXPENSES                                                                    
  Selling and marketing    1,183,700    1,183,949    3,332,192    3,302,067 
  General and                                                               
   administrative            859,206      812,153    2,513,936    2,601,131 
  Research and                                                              
   development               366,890      199,568      925,985      719,525 
  Amortization of                                                           
   capital assets             24,408       38,713      101,409      125,224 
  Share-based                                                               
   compensation                2,188            -        6,561        8,749 
  Foreign exchange loss                                                     
   (gain)                     (7,348)       1,303        2,198       23,414 
                        ----------------------------------------------------
                           2,429,044    2,235,686    6,882,281    6,780,110 
                        ----------------------------------------------------
EARNINGS (LOSS) FROM                                                        
 OPERATIONS                 (731,246)     100,147   (1,509,076)    (702,066)
  Interest expense           (24,766)      (7,262)     (63,580)     (20,079)
  Equity loss from                                                          
   Investment in Equus       (23,881)     (35,087)    (102,780)    (114,537)
  Loss on sale of                                                           
   capital assets and                                                       
   investments                     -            -            -       (1,534)
                        ----------------------------------------------------
EARNINGS (LOSS) BEFORE                                                      
 INCOME TAXES               (779,893)      57,798   (1,675,436)    (838,216)
Current income tax                                                          
 expense                        (995)        (995)      (4,135)      (3,335)
Deferred income taxes              -      (21,200)           -      199,632 
                        ----------------------------------------------------
NET EARNINGS (LOSS)      $  (780,888) $    35,603  $(1,679,571) $  (641,919)
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
Other comprehensive                                                         
 income (loss)                                                              
  Foreign exchange                                                          
   translation                 6,075       (7,008)       5,978      (13,678)
                        ----------------------------------------------------
Total comprehensive                                                         
 income (loss)           $  (774,813) $    28,595  $(1,673,593) $  (655,597)
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                            
EARNINGS (LOSS) PER                                                         
 SHARE (basic and                                                           
 diluted)                     ($0.00)       $0.00       ($0.01)      ($0.00)
                        ----------------------------------------------------
                        ----------------------------------------------------
                                                                           
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Versatile Systems Inc.                                                     
Condensed Consolidated Statements of Changes in Shareholders' Equity       
(Unaudited - Prepared by Management)                                       
---------------------------------------------------------------------------
                                                                           
Expressed in U.S. dollars                                                  
                                                                           
                                                                           
                                      Share         Warrant          Equity
                                    Capital         Reserve         Reserve
                            -----------------------------------------------
                                                                           
                                                                           
Balance, June 30, 2011       $   54,433,709  $       42,000  $    4,578,470
Net loss                                  -               -               -
Foreign exchange on the                                                    
 translation of VMS-UK                    -               -               -
Expiration of warrants                    -         (42,000)         42,000
Share-based compensation                                                   
 expense                                  -               -           8,749
                            -----------------------------------------------
Balance, March 31, 2012          54,433,709               -       4,629,219
                            -----------------------------------------------
                            -----------------------------------------------
                                                                           
                                                                           
Balance, June 30, 2012           54,433,709               -       4,629,219
Net loss                                  -               -               -
Foreign exchange on the                                                    
 translation of VMS-UK                    -               -               -
Share-based compensation                                                   
 expense                                  -               -           6,561
                            -----------------------------------------------
Balance, March 31, 2013      $   54,433,709  $            -  $    4,635,780
                            -----------------------------------------------
                            -----------------------------------------------

                                                                            
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Versatile Systems Inc.                                                      
Condensed Consolidated Statements of Changes in Shareholders' Equity        
(Unaudited - Prepared by Management)                                        
--------------------------------------------------------------------------- 
                                                                            
Expressed in U.S. dollars                                                   
                                                Accumulated                 
                                                      other                 
                                              comprehensive                 
                                    Deficit            loss           Total 
                            ------------------------------------------------
                                 (Restated)      (Restated)      (Restated) 
                                                                            
Balance, June 30, 2011       $  (37,741,276) $     (326,261) $   20,986,642 
Net loss                           (641,919)              -        (641,919)
Foreign exchange on the                                                     
 translation of VMS-UK                    -         (13,678)        (13,678)
Expiration of warrants                    -               -               - 
Share-based compensation                                                    
 expense                                  -               -           8,749 
                            ------------------------------------------------
Balance, March 31, 2012         (38,383,195)       (339,939)     20,339,794 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
                                                                            
Balance, June 30, 2012          (52,458,434)       (337,622)      6,266,872 
Net loss                         (1,679,571)              -      (1,679,571)
Foreign exchange on the                                                     
 translation of VMS-UK                    -           5,978           5,978 
Share-based compensation                                                    
 expense                                  -               -           6,561 
                            ------------------------------------------------
Balance, March 31, 2013      $  (54,138,005) $     (331,644) $    4,599,840 
                            ------------------------------------------------
                            ------------------------------------------------
                                                                            
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Versatile Systems Inc.                                                      
Condensed Consolidated Statements of Cash Flows                             
(Unaudited - Prepared by Management)                                        
----------------------------------------------------------------------------
                                                                            
                              Three months ended       Nine months ended    
Expressed in U.S. dollars          March 31                 March 31        
                                2013         2012         2013         2012 
                          --------------------------------------------------
                                       (Restated)                (Restated) 
                                                                            
OPERATING ACTIVITIES                                                        
  Net earnings (loss)      $(780,888) $    35,603  $(1,679,571) $  (641,919)
  Items not involving cash                                                  
    Amortization of                                                         
     capital assets           24,408       52,725      101,409      147,725 
    Share-based                                                             
     compensation              2,188            -        6,561        8,749 
    Loss on sale of                                                         
     capital assets and                                                     
     investments                   -            -            -        1,534 
    Equity loss from                                                        
     Investment in Equus      23,881       35,087      102,780      114,537 
    Unrealized foreign                                                      
     exchange loss (gain)       (409)     (28,587)         683      (45,299)
    Deferred income taxes          -       21,200            -     (199,632)
                          --------------------------------------------------
Cash flow generated from                                                    
 (used in) operations                                                       
 before other items         (730,820)     116,028   (1,468,138)    (614,305)
    Net change in non-cash                                                  
     working capital         675,027     (811,631)      90,061     (672,193)
                          --------------------------------------------------
                             (55,793)    (695,603)  (1,378,077)  (1,286,498)
INVESTING ACTIVITIES                                                        
  Short term investments           -            -            -      (14,776)
  Proceeds from                                                             
   disposition of capital                                                   
   assets                          -       14,597            -       35,027 
  Intangible assets -                                                       
   contract cost additions   (52,185)    (101,501)    (190,164)    (274,287)
  Amortization of                                                           
   Intangible assets          58,491      110,892      203,864      254,337 
  Purchase of capital                                                       
   assets                    (15,815)     (53,856)     (43,319)    (163,160)
                          --------------------------------------------------
                              (9,509)     (29,868)     (29,619)    (162,859)
                          --------------------------------------------------
FINANCING ACTIVITIES                                                        
  Proceeds from line of                                                     
   credit                     36,167      882,647    1,014,616      760,005 
                          --------------------------------------------------
                              36,167      882,647    1,014,616      760,005 
                          --------------------------------------------------
                                                                            
Increase (Decrease) in                                                      
 cash and cash equivalents   (29,135)     157,176     (393,080)    (689,352)
                                                                            
Cash and cash equivalents,                                                  
 beginning of period          70,780      132,128      434,725      978,656 
                          --------------------------------------------------
                                                                            
Cash and cash equivalents,                                                  
 end of period             $  41,645  $   289,304  $    41,645  $   289,304 
                          --------------------------------------------------
                          --------------------------------------------------



FOR FURTHER INFORMATION PLEASE CONTACT: 
Versatile Systems Inc.
John Hardy
CEO
1-800-262-1633 or International: 001-206-979-6760


Versatile Systems Inc.
Fraser Atkinson
CFO
1-800-262-1633
www.versatile.com