1230 Crestlawn Drive Mississauga, Ontario L4W 1A6, CANADA Tel: 905-624-3144 Fax: 905-629-3299 ARMADA REPORTS Q- 2 RESULTS Mississauga, Ontario – January 28, 2004 – Armada Data Corporation “Armada” (TSX-Venture Exchange: ARD 11,141,233 shares outstanding) is pleased to provide the following financial highlights from the second quarter ended November 30, 2003 FINANCIAL HIGHLIGHTS 2003/2004 2002/2003 % Change Q2 Revenue $294,662 $211,209 40% Q2 Expenses-Before Amortization $297,800 $214,989 39% EBITDA ($3,138) ($3,780) 17% Amortization $15,786 $16,253 3% Net Profit/(Loss) after Amortization ($18,924) ($20,033) -6% Earnings per share NIL NIL NIL Outstanding Common Shares 11,061,233 11,061,233 NIL Management is pleased to report that although revenue from our retail services were slightly lower, the increased revenue from our Insurance services more than made up for the shortfall. Total revenue rose during the quarter to $294,662 from $211,209 last year, an increase of 40%. Operationally a negative EBITDA of $3,138 was recorded compared to a negative EBITDA of $3,780 in the second quarter of 2003, an improvement of 17%. Amortization expense of $15,786 resulted in a net loss of $18,924 for the quarter, compared to a net loss after amortization of $20,033 in the second quarter ending 2003, an improvement of 6%. The total expenses for the company during the quarter were higher than normal due the annual one-time costs with the printing and distribution costs, legal fees, accounting fees and exchange fees associated with the Annual General Meeting. Personnel costs also increased disproportionately due to the costs associated with the addition of two additional staff members. Increasing the production capacity was necessary to handle the much busier winter season for our Insurance services division. Based on a quarter-end cash position of $118,712, no debt and positive cash flow going forward, management feels that they are in a good position to meet all current and foreseeable financial obligations. Retail Services Revenues generated by the four retail pricing and information services; Car Cost Canada.com, Free Invoice Prices.com, Car Invoice Prices.ca and The Car Magazine.com, were slightly lower due to a recent new car sales slowdown throughout the industry. The final development of two new member buying services; “Rapid-Response” and “Take-It-Or-Leave-It” is now complete and member response has been excellent. An initial pilot program with Toronto-area dealerships is now complete with excellent results. As we roll out the programs throughout the country over the next few months, both member and dealer revenues are expected to grow quite favourably. Results of these initiatives should demonstrate significant revenue growth for our retail vehicle pricing and information services divisions in both the third and fourth quarter results. Canada's premier source for automotive pricing data. 1230 Crestlawn Drive Mississauga, Ontario L4W 1A6, CANADA Tel: 905-624-3144 Fax: 905-629-3299 Insurance Services Revenue from the Insurance Services Division, 43r, continues to grow and its impact is contributing handsomely to the financial performance of the Company as had been expected. On December 18, 2003 the company successfully completed a critical new more comprehensive Service Agreement with ING Insurance, Canada’s largest private insurance company. Mr. Don Lough, President, Property and Casualty Insurance for ING Canada said, “During the first full year of using 43r’s service, our company experienced over 50% higher savings than we had projected. To suggest that we are satisfied with the services offered by 43r would be a gross understatement.” Seasonal and General Market Impact on Revenue at 43r As would be expected, the winter months are typically the months where insurance companies experience the highest number of total-loss claims. We look forward to a significant rise in revenue during the next two quarters as a direct result of both a stronger seasonal period on the horizon as well the continued implementation of our services as standard practice within the Canadian Automotive Insurance industry. As for competition; history has demonstrated that due to the confidentiality of much of the data, the barrier of entry into these businesses remains very high. Currently, to the best of Management’s knowledge, there is no other company offering both the range of products and services and the ability to deliver these products and services online. Outlook Armada Management for fiscal year 2003-2004 continues to look to: 1. Aggressively grow the 43r Insurance Services business via the implementation of the services throughout Canada’s major Insurance companies. 2. Increase revenues from the four retail pricing and information services; Car Cost Canada.com, Free Invoice Prices.com, Car Invoice Prices.ca and The Car Magazine.com through continued innovative improvements, effective marketing campaigns and expansion of strategic partnership agreements. 3. Achieve and sustain profitability with sequential earnings growth for the year ahead. 4. Achieve more cost efficiencies in all of the operations. In addition to reaffirming the previous guidance of revenue growth, Management also maintains its commitment to deliver bottom line profits for the balance of the fiscal year ahead. It is expected that Management can meet these objectives regardless of economic conditions. Although a robust economy can lead to a greater number of cars sold and thus a potentially larger market opportunity for all of Armada’s divisions, a down economy can have an equally positive impact as both individuals and Insurance Companies become more cost conscious. Canada's premier source for automotive pricing data. 1230 Crestlawn Drive Mississauga, Ontario L4W 1A6, CANADA Tel: 905-624-3144 Fax: 905-629-3299 About Armada Data Corporation Armada Data Corporation is a web enabled Automotive Information Services Company delivering accurate, real-time data to institutional clientele and individual retail customers on a fee for service basis. Armada creates, own and operates a host of income producing automotive web sites in both the B2B and B2C verticals. Through its B2B (Business to Business) web site, www.43r.ca, Armada exclusively serves the Automotive Insurance Industry. By providing valuable and confidential automobile industry information to the Insurer, 43r.ca dramatically lowers settlements on automobile total-loss claims with 43r/Waiver of depreciation endorsements. Potential savings to the Industry, based on industry estimates of 50,000 annual claims and our proven record of savings of over $1,000 per claim, the Insurance industry could save in excess of $50 million annually. 43r.ca charges the Insurance Company a flat fee of $200.00 per claim. It should be noted that there is no net cost to the Insurance Company only a savings. Through its three B2C (Business to Consumer) web sites at www.carcostcanada.com, www.carinvoiceprices.ca and www.freeinvoiceprices.com, Armada offers comprehensive up to date new car buyer information, including confidential dealer invoice cost prices, to aid the consumer in making informed choices by providing accurate and timely confidential automobile industry information. The Car Magazine, www.thecarmagazine.com is an all-Canadian on-line automotive magazine available in both French and English, featuring the latest news, reviews and road-tests. Visitors are also able to custom build virtually any car or truck from 2001 to 2004 and compare specifications, prices and features side by side, in an impartial environment. It allows visitors to access a vast amount of information, eliminating the need to visit alternative sites. This release contains certain forward-looking statements that reflect the current views and our expectations of the Company with respect to its performance, business and future events. Such statements are subject to a number of risks, uncertainties and assumptions. Actual results and events may vary significantly. The TSX- Venture Exchange has not reviewed and does not accept responsibility of the adequacy or accuracy of this release. For further information please contact: Management Armada Data Corporation Mr. Paul Timoteo, President & CFO Tel: (800) 805-2270 ext#224 firstname.lastname@example.org Investor relations IR Unlimited Inc. Suite # 201 – 7 St. Paul St. W. Kamloops, BC, V2C-1E9 Tel: 1-888-374-0733 Fax: 250-374-6166 email@example.com Canada's premier source for automotive pricing data.