VANCOUVER, BC -- (MARKET WIRE) -- August 25, 2005 -- Serebra Learning Corporation (TSX-V: SBR), one of Canada's leading providers of e-learning solutions, today reported financial results, as well as an update on operations, for the fiscal 2006 first quarter, which ended June 30, 2005.
--  Direct cost of revenue of $326,355 compared to $408,337 a year ago.
compared to $233,651 for the same period last year.
The operating results in the first quarter were a setback to the recent financial progress the company demonstrated in the previous two sequential profitable quarters. The decline in revenue in the first quarter was the result of unexpected delays in closing a number of substantial new EasyLearning orders from the Middle East, North Africa and Central Africa.
"The first quarter was a strategic turning point for our business. With the EasyLearning order delays, we have further reduced our cost structure and refocused the company on building additional marketing channels in previously untapped regions of the world where we believe there is significant growth opportunity," said Ted Moorhouse, President and Chief Executive Officer. "During the quarter, we achieved business development milestones associated with EasyLearning with our new alliance with Virginia Tech and with our exploration of EasyLearning opportunities in China. We expect these initiatives to provide the foundation for our planned return to profitability."
Serebra Learning Corporation (TSX-V: SBR) designs and delivers e-learning solutions for corporations, including the Fortune 1000, universities and schools, government organizations and individuals. Backed by a library of over 3,500 courses and a global network of partners, Serebra's powerful Learning Management System, Serebra Cortex, hosts and manages Information Technology, Desktop Skills and Professional Development titles. Serebra is uniquely positioned to provide a broad range of on-line learning solutions to individuals who wish to advance their personal and professional development. For more information on Serebra, visit www.serebra.com or call 800 567.7766.