Nurun Inc. (TSX: NUR), a subsidiary of Quebecor Media Inc., today reported its financial results for the financial year and fourth quarter ended December 31, 2006. Unless otherwise indicated, all amounts are in Canadian dollars.

KEY 2006 FINANCIAL RESULTS

- Revenues up $8.8 million or 13.5% from 2005 to $73.9 million.

- Operating income nearly doubles to $7.5 million, an increase of $3.7 million or 94.6%.

- Net earnings of $6.2 million, or $0.19 per share, compared with $3.7 million, or $0.11 per share, in 2005.

"Nurun continued growing its revenues in 2006 with a 13.5% increase, while operating income nearly doubled and net earnings jumped 70% to $6.2 million, or $0.19 per share," said Jacques-Herve Roubert, President and Chief Executive Officer of Nurun. "These results reflect our progress in all the regions in which we operate - North America, Canada, Europe and China - and in some vertical markets such as e-government and tourism."

FINANCIAL RESULTS

Continuing its steady growth of the past three years, Nurun recorded revenues of $73.9 million in 2006, an increase of $8.8 million or 13.5% from $65.1 million in 2005. Organic growth accounted for 10.8% of the revenue increase and acquisitions for 5.7% while foreign currency fluctuations against the Canadian dollar had a negative impact of 3.0%.

Quarterly revenues increased by $3.8 million or 23.1% from $16.2 million in the fourth quarter of 2005 to $20.0 million in the fourth quarter of 2006. The revenue growth was 8.0% organic, driven by the favourable impact of new clients such as France 24, W.L. Gore, Gaz de France, Loews Hotels, NADAguides, Clarins, Pirelli, Yves Rocher and Tourisme Quebec, and by strengthened relationships with existing clients. Acquisitions accounted for 13.6% of quarterly revenue growth, while foreign currency fluctuations against the Canadian dollar had a positive impact of 1.5%.

Nurun's operating income totalled $7.5 million in 2006, compared with $3.8 million in 2005, an increase of $3.7 million or 94.6%. As a percentage of revenues, operating income was 10.1% in 2006, compared with 5.9% in 2005. In the fourth quarter of 2006, Nurun generated operating income of $3.3 million, compared with $1.0 million in the same period of 2005, an increase of $2.3 million or 244%. As a percentage of revenues, Nurun's operating income was 16.5% in the fourth quarter of 2006, compared with 5.9% in the same period of 2005.

The increase in operating income for the three-month and twelve-month periods ended December 31, 2006 was primarily due to productivity improvements that were reflected in lower labour costs, as expressed as a percentage of revenues, as well as the recording of $1.5 million in federal investment tax credits accumulated since 1999.

Net earnings were $6.2 million or $0.19 per share in 2006, compared with $3.7 million or $0.11 per share in 2005, an increase of $2.5 million, or $0.08 per share. As a percentage of revenues, net earnings were 8.4% in 2006, compared with 5.6% in 2005. The net earnings improvement for 2006 was due primarily to higher operating income.

In the fourth quarter of 2006, Nurun's net earnings totalled $2.5 million, or $0.08 per share, compared with $2.3 million, or $0.07 per share, in the same quarter of 2005. The quarterly increase in net earnings was mainly due to the $2.3 million improvement in operating income and the $0.6 million net earnings from discontinued operations, which were reduced by a $2.2 million increase in income tax.

DEFINITION OF OPERATING INCOME

The Company defines operating income as earnings before interest, depreciation and amortization, income taxes and net loss from discontinued operations.

As defined above, operating income does not measure results in accordance with generally accepted accounting principles. It is not intended to replace other financial operating performance measures or the statement of cash flows as a measure of liquidity. Operating income is used by the Company because management believes it is a meaningful measure of performance. Operating income is commonly used by the investment community to analyze and compare corporate performance. It also facilitates year-over-year comparison of results since it excludes, unusual items that are not readily comparable from year to year, among other things. The Company's definition of operating income may not be identical to similarly titled measures reported by other companies.

FORWARD-LOOKING STATEMENTS

The statements in this press release that are not historical facts constitute forward-looking statements and are subject to known and unknown material risks, uncertainties and assumptions that could cause Nurun's actual results for future periods to differ materially from those set forth in the forward-looking statements. Certain factors that may cause actual results to differ from current expectations include competition, dependence on major clients, pricing, general changes in the economic environment, international expansion, key staff recruitment, further acquisitions and foreign exchange exposure. Investors and others are cautioned that the foregoing list of factors is not exhaustive and that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that could cause Nurun's actual results to differ from current expectations, please refer to Nurun's public filings available at www.sedar.com and www.nurun.com including, in particular, the "Risks and Uncertainties" section of Nurun's Management Discussion and Analysis for the year ended December 31, 2005 and updated information in Nurun's quarterly Management Discussion and Analysis reports.

The forward-looking statements in this press release reflect Nurun's expectations at February 12, 2007 and are subject to change after this date. Nurun expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.

ABOUT NURUN INC.

Nurun Inc. (TSX: NUR), a subsidiary of Quebecor Media Inc., is a global company which strategizes, executes and measures interactive programs that use new technologies. From building awareness to acquiring and retaining clients, our solutions provide exceptional user experiences that enable e-commerce / transactions while leveraging the lifetime value of client relationships.

Since it was founded in 1985, Nurun has worked with a wide variety of companies and organizations, including Groupe DANONE, Cingular Wireless, Louis Vuitton, Thales, Club Med, Pfizer, SkyTeam, Home Depot, Pleasant Holidays, L'Oreal, Renault, Microsoft (MSN), Europcar, Autotrader.com, Equifax, Telecom Italia and the Government of Quebec. Nurun's centres of expertise employ more than 680 professionals in Canada, the U.S., Europe and China. For more information, please visit www.nurun.com.

NURUN INC.

Consolidated Balance Sheets December 31, 2006 and 2005 (in thousands of dollars) (audited)

--------------------------------------------------------------------- --------------------------------------------------------------------- 2006 2005 ---------------------------------------------------------------------

Assets

Current assets: Cash and cash equivalents $26,857 $31,834 Temporary investment 976 120 Accounts receivable 22,609 16,914 Work in process 8,716 7,417 Income taxes and tax credits receivable 3,707 2,755 Prepaid expenses 1,248 1,165 Future tax assets 1,241 1,039 Subordinated loan to an affiliated company and interests receivable 170,045 - --------------------------------------------------------------------- 235,399 61,244

Investment tax credits 1,525 - Capital assets 3,655 2,918 Intangible assets 3,009 357 Future tax assets 3,835 3,248 Goodwill 14,502 7,343 --------------------------------------------------------------------- $261,925 $75,110 --------------------------------------------------------------------- ---------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities: Accounts payable and accrued liabilities $17,346 $14,644 Income taxes payable 20 467 Deferred revenues 4,030 2,420 Preferred shares and dividends payable 170,049 - Future tax liabilities 302 - --------------------------------------------------------------------- 191,747 17,531

Future tax liabilities 592 - Shareholders' equity: Share capital 302,827 305,079 Contributed surplus 11,056 4,978 Deficit (241,736) (247,963) Cumulative translation adjustment (2,561) (4,515) ---------------------------------------------------------------------

69,586 57,579 --------------------------------------------------------------------- $261,925 $75,110 --------------------------------------------------------------------- ---------------------------------------------------------------------

NURUN INC.

Consolidated Statements of Earnings and Deficit Three-month periods ended December 31, 2006 and 2005 (in thousands of dollars, except amounts per share) (unaudited)

Revenues $19,964 $16,220

Expenses: Cost of services and selling and administrative expenses (net of tax credits of $2,025 ($320 in 2005)) 16,833 15,413 Gain on foreign exchange (167) (153) --------------------------------------------------------------------- 16,666 15,260

--------------------------------------------------------------------- Operating income 3,298 960 Interest income, net (226) (187) Depreciation and amortization 1,029 422 --------------------------------------------------------------------- Earnings before income taxes 2,495 725 Income taxes (recovery) 609 (1,598) --------------------------------------------------------------------- Net earnings from continuing operations 1,866 2,323 Net earnings from discontinued operations (638) - --------------------------------------------------------------------- Net earnings 2,524 2,323 Deficit, beginning of period (244,260) (250,286) --------------------------------------------------------------------- Deficit, end of period $(241,736) $(247,963) --------------------------------------------------------------------- --------------------------------------------------------------------- Net earnings per share - basic and diluted - continuing operations $0.06 $0.07 Net earnings per share - basic and diluted - discontinued operations 0.02 - --------------------------------------------------------------------- Net earnings per share - basic and diluted $0.08 $0.07 --------------------------------------------------------------------- --------------------------------------------------------------------- Basic weighted average number of shares outstanding (in thousands) 33,135 32,943 --------------------------------------------------------------------- Diluted weighted average number of shares outstanding (in thousands) 33,644 33,541 --------------------------------------------------------------------- ---------------------------------------------------------------------

NURUN INC.

Consolidated Statements of Earnings and Deficit Twelve-month periods ended December 31, 2006 and 2005 (in thousands of dollars, except amounts per share) (unaudited)

Revenues $73,871 $65,102

Expenses: Cost of services and selling and administrative expenses (net of tax credits of $3,016 ($1,465 in 2005)) 66,339 61,220 Loss on foreign exchange 77 52 --------------------------------------------------------------------- 66,416 61,272

--------------------------------------------------------------------- Operating income 7,455 3,830 Interest income, net (924) (847) Depreciation and amortization 2,264 1,721 --------------------------------------------------------------------- Earnings before income taxes 6,115 2,956 Income taxes (recovery) (349) (71) --------------------------------------------------------------------- Net earnings from continuing operations 6,464 3,667 Net loss from discontinued operations 237 - --------------------------------------------------------------------- Net earnings 6,227 3,667 Deficit, beginning of period (247,963) (251,630) --------------------------------------------------------------------- Deficit, end of period $(241,736) $(247,963) --------------------------------------------------------------------- --------------------------------------------------------------------- Net earnings per share - basic and diluted - continuing operations $0.20 $0.11 Net loss per share - basic and diluted - discontinued operations 0.01 - --------------------------------------------------------------------- Net earnings per share - basic and diluted $0.19 $0.11 --------------------------------------------------------------------- --------------------------------------------------------------------- Basic weighted average number of shares outstanding (in thousands) 33,132 33,072 --------------------------------------------------------------------- Diluted weighted average number of shares outstanding (in thousands) 33,695 33,386 --------------------------------------------------------------------- ---------------------------------------------------------------------

NURUN INC.

Consolidated Statements of Cash Flows Three-month periods ended December 31, 2006 and 2005 (in thousands of dollars, except amounts per share) (unaudited)

Cash flows related to operating activities: Net earnings $2,524 $2,323 Adjustments for: Depreciation and amortization 1,029 422 Future income taxes 603 (1,572) Investment tax credits (1,525) - Stock-based compensation and other 288 1,076 Net earnings from discontinued operations (638) - --------------------------------------------------------------------- 2,281 2,249 Net change in non-cash operating working capital items Accounts receivable (5,424) (4,663) Work in process 223 3,927 Income taxes and tax credits receivable (1,249) (29) Accounts payable and accrued liabilities (313) 2,289 Deferred revenues 991 601 Other 54 (588) --------------------------------------------------------------------- (3,437) 3,786

Cash flows related to financing activities: Issuance of common shares 13 8 Redemption of common shares (327) - --------------------------------------------------------------------- (314) 8

Cash flow related to investing activities: Net proceeds from disposal of a subsidiary (847) - Business acquisitions, net of acquired cash and cash equivalents (1,102) - Additions to capital assets (932) (320) Acquisition of temporary investment (224) - --------------------------------------------------------------------- (3,105) (320)

Effect of exchange rate changes on cash and cash equivalents 479 (22) --------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (6,377) 3,452 Cash and cash equivalents, beginning of period 33,234 28,382 --------------------------------------------------------------------- Cash and cash equivalents, end of period $26,857 $31,834 --------------------------------------------------------------------- ---------------------------------------------------------------------

NURUN INC.

Consolidated Statements of Cash Flows Twelve-month periods ended December 31, 2006 and 2005 (in thousands of dollars) (audited)

Cash flows related to operating activities: Net earnings $6,227 $3,667 Adjustments for:

Depreciation and amortization 2,264 1,721 Future income taxes (748) (1,294) Investment tax credits (1,525) - Stock-based compensation and other 1,142 1,652 Net loss from discontinued operations 237 - --------------------------------------------------------------------- 7,597 5,746 Tax consolidation 2,700 - --------------------------------------------------------------------- 10,297 5,746 Net change in non-cash operating working capital items Accounts receivable (3,965) (4,342) Work in process (765) (1,811) Income taxes and tax credits receivable (1,460) 34 Accounts payable and accrued liabilities 587 3,900 Deferred revenues 1,462 624 Other 1 (574) --------------------------------------------------------------------- 6,157 3,577

Cash flows related to financing activities: Issuance of common shares 144 8 Redemption of common shares (1,575) (764) Issuance of preferred shares 165,000 - Subordinated loan to an affiliated company (165,000) - --------------------------------------------------------------------- (1,431) (756)

Cash flow related to investing activities: Net proceeds from disposal of a subsidiary (847) 3,839 Business acquisitions, net of acquired cash and cash equivalents (7,167) (1,257) Additions to capital assets (1,832) (1,409) Acquisition of temporary investment (224) - --------------------------------------------------------------------- (10,070) 1,173

Effect of exchange rate changes on cash and cash equivalents 367 (472) --------------------------------------------------------------------- Net increase (decrease) in cash and cash equivalents (4,977) 3,522 Cash and cash equivalents, beginning of period 31,834 28,312 --------------------------------------------------------------------- Cash and cash equivalents, end of period $26,857 $31,834 --------------------------------------------------------------------- ---------------------------------------------------------------------

Contacts: Nurun Inc. Guy Lemieux Vice President, Finance 514-392-4300 guy.lemieux@nurun.com www.nurun.com

SOURCE: Nurun inc.

Source: marketwire