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Ottawa, Ontario – February 4, 2015: Calian Technologies Ltd. (TSX.CTY) today released unaudited results for the first quarter ended December 31, 2014.

The Company reported revenues for the quarter of $56.0 million, an 8% increase from the $51.8 million reported in the same quarter of the previous year.

EBITDA(1) for the first quarter was $4.4 million, compared to $4.1 in the same quarter of the previous year.

Net profit for the first quarter was $2.5 million or $0.34 per share basic and diluted, compared to $2.8 million or $0.38 per share basic and diluted in the same quarter of the previous year. Adjusted Net Profit(1) for the first quarter was $2.7 million or $0.37 per share basic and diluted, compared to $2.8 million or $0.38 per share basic and diluted in the same quarter of the previous year.

(1)See caution regarding non-GAAP measures at the end of this press release

“Today we reported consolidated quarterly revenues of $56 million representing an 8% increase over revenues recorded in the first quarter of last year. We are very pleased with these revenue levels for two reasons. Firstly, revenues from our traditional business were relatively consistent with the same quarter last year. Despite continued constraints in federal government spending, this marks the first time in a number of quarters where we did not encounter a substantial drop in year over year revenues. This is as an indication that our efforts to bolster our non-government service offerings is starting to pay off. Secondly, revenues generated from acquisitions made during the last fiscal year were in line with overall expectations and now represent a substantial component of our consolidated revenue base” stated Ray Basler, President and CEO.

“Overall consolidated gross margin percentages were just slightly lower than the prior year with SED showing a slight improvement and BTS experiencing a decline. SED first quarter margins were higher due to strong staff utilization and the recovery of investment tax credits related to activities in a prior year. BTS margins continue to be suppressed and revenues from recent acquisitions tend to have lower overall margins thereby having somewhat of a dilutive effect. For at least the near term, we expect that margins on new work will continue to be under pressure in both divisions" continued Basler.

“Our Consolidated EBITDA showed an improvement of $300k to $4.4 million representing an increase of 7%, commensurate with the increased level of revenues. This level of operational earnings provides strong cash flows from which to fund future growth, capital expenditures and dividends to shareholders. Only when considering the non-cash effects of amortization of intangibles and deemed compensation on acquisitions, does the level of profitability fall below that of the prior year” stated Basler.

“During the quarter we signed contracts with significant value and proposal activity remains robust. With a strong backlog of work and solid balance sheet, we are well equipped to grow revenues in future quarters” stated Kevin Ford, who will be assuming CEO responsibility effective April 1, 2015. “We did experience a sizable reduction in our cash balance during the quarter, which was related to the working capital required to fund projects as well as the traditional payment of certain accrued liabilities at the end of the calendar year; all part of the normal ebbs and flows of our business.”

After many quarters of declining revenues in our traditional markets, we have experienced a stabilization of these revenues during the last quarter. In addition, our recent acquisitions have performed to expectations and have incrementally contributed to revenues. Management expects this trend to continue, providing revenue growth over the prior year. However, we must caution that revenues realized are ultimately dependent on the extent and timing of future contract awards as well as customer utilization of existing contracting vehicles. In addition, the requirement to categorize certain acquisition payments as compensation expense will negatively impact fiscal 2015 earnings by approximately $0.15 per share. Based on currently available information and our assessment of the marketplace, we expect revenues for fiscal 2015 to be in the range of $235 million to $ 265 million, net profit per share in the range of $1.35 to $1.65 per share and adjusted net profit(1) in the range of $1.50 to $1.80 per share.

Caution regarding non-GAAP measures:

This press release is based on reported earnings in accordance with IFRS. Reference to generally accepted accounting principles (GAAP) means IFRS, unless indicated otherwise. This press release is also based on non-GAAP financial measures including EBITDA, adjusted net profit and adjusted net profit per share. These non-GAAP measures are mainly derived from the interim consolidated financial statements, but do not have a standardized meaning prescribed by IFRS; therefore, others using these terms may calculate them differently. Management believes that providing certain non-GAAP performance measures, in addition to IFRS measures, provides users of our financial reports with enhanced understanding of our results and related trends and increases transparency and clarity into the core results of our business. Refer to the MD&A for definitions of these metrics and reconciliations to the most comparable IFRS measures.

About Calian

Calian employs over 2,300 people with offices and projects that span Canada, U.S. and international markets. The company's capabilities include the provision of business and technology services to industry and government in the health, training, engineering, IT services and operations and maintenance domains as well as the design, manufacturing and maintenance of complex systems to the communications and defence sectors. Our goal is to be the best company to work for, buy from and invest in. The Business and Technology Services (BTS) Division is headquartered in Ottawa. This division delivers outsourcing services for a variety of technical and professional functions and provides health services to numerous domestic customers. Our strength lies in understanding clients’ needs, recruiting highly qualified personnel who understand and meet those needs, and then effectively managing those personnel within our customers’ framework. Calian’s Systems Engineering Division (SED) plans, designs and implements complex communication systems for many of the world’s space agencies and leading satellite manufacturers and operators. SED also provides contract manufacturing services for both private sector and military customers in North America.

For further information, please visit our website at www.calian.com, or contact us at [email protected] Ray Basler President and Chief Executive Officer 306-931-3425 Jacqueline Gauthier Chief Financial Officer 613-599-8600

Disclaimer

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Such statements are generally accompanied by words such as “intend”, “anticipate”, “believe”, “estimate”, “expect” or similar statements. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price competition; scarce number of qualified professionals; the impact of rapid technological and market change; loss of business or credit risk with major customers; technical risks on fixed price projects; general industry and market conditions and growth rates; international growth and global economic conditions, and including currency exchange rate fluctuations; and the impact of consolidations in the business services industry. For additional information with respect to certain of these and other factors, please see the Company’s most recent annual report and other reports filed by Calian with the Ontario Securities Commission. Calian disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. No assurance can be given that actual results, performance or achievement expressed in, or implied by, forward-looking statements within this disclosure will occur, or if they do, that any benefits may be derived from them.

Calian Q1 2015 Results

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