Mr. Dan Hilton reports

DATAWIND REPORTS YEAR-END RESULTS FOR FISCAL 2014 SHOWING NEARLY A TRIPLING OF REVENUE

DataWind Inc. has released the fiscal 2014 financial results of DataWind U.K. PLC, its predecessor and now its wholly owned subsidiary. These financial statements summarize the financial activity of DataWind U.K. for the year ended March 31, 2014. DataWind U.K. became a wholly owned subsidiary of DataWind on July 8, 2014, immediately prior to the closing of the initial public offering of DataWind in connection with a preinitial public offering reorganization. The company continues to show strong demand and revenue growth in India, its first target market.

Highlights:

• Revenue for the fiscal year ended March 31, 2014, was 14.0 million pounds, up 192 per cent from 4.8 million pounds in fiscal 2013 (15 months) and up 1,456 per cent from 900,000 pounds in fiscal 2011.
• Gross margin for the fiscal year ended March 31, 2014, was 1.49 million pounds, up 181 per cent from 530,000 pounds in fiscal 2013.
• Operating expenditures remained in line with expectations at 4.0 million pounds for the fiscal year ended March 31, 2014, compared with 4.4 million pounds in fiscal 2013.
• DataWind U.K.'s generally accepted accounting principles net loss from continuing operations for fiscal 2014 was 2.7 million pounds, or 0.02 pound per share, compared with GAAP net loss from continuing operations of 3.9 million pounds, or 0.03 pound per share in fiscal 2013.
• The company completed its IPO subsequent to year-end, resulting in gross proceeds of $30,001,000 placing the company and its subsidiaries in a strong working capital position.

"The Internet impacts nearly every aspect of modern society and serves as a powerful economic stimulator. Yet, only a small percentage of individuals in developing countries have Internet access. There are over four billion people without Internet access in the world. We've created a patented technology to bridge this digital divide," said DataWind co-chairman, Raja Singh Tuli.

"The strong growth in revenue over the last two years is a testament to demand for our products and solutions. Access to adequate working capital had previously limited our growth. With the recent financing and corporate reorganization, we now turn our attention to meeting the increasing demands for Internet access in the emerging markets," cited company chief executive officer, Suneet Tuli.

A copy of the financial statements is available on SEDAR and may also be obtained by contacting Dan Hilton, chief financial officer of DataWind.

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