NUVO Reports Third Quarter Results

NUVO Network Management Inc., (TSX VENTURE: NVO), a leading software and managed services provider of solutions that MAXimize IT® availability and performance, today announced results from operations for its third quarter ended June 30, 2007.

Highlights

- Gross margins improved to 42% from 39% last year

- Total revenues were $4.1 million compared to $4.2 million last year

- Earnings before interest and other expense, taxes, depreciation and amortization (EBITDA) was $522,461 compared to $514,324 last year

- Net income was $52,520 compared to net income of $119,630 last year

- Seventh consecutive quarter of positive EBITDA

- Signed $5.4 million of new contracts and renewals

"At our AGM this year we outlined our strategy to focus on selling the software we developed and use to manage our managed services customers as a stand alone-hosted software solution," said Phil Weaver, NUVO's President and CEO. "We are pleased with the progress we have made to date and the traction and early acceptance in the market that MAXadvantage is gaining."

"MAXadvantage is an integrated suite of tools for monitoring, managing, reporting and analyzing an organizations network and systems," added Mr. Weaver. "During the quarter we expanded our marketing and sales programs for MAXadvantage and have received a lot of positive feedback and interest from our customers and potential customers. We believe the combination of a suite of tools that allows a customer the option to manage and maximize performance of their IT investments internally or outsource the management to us, sets Nuvo apart from other software only or managed services only providers."

"During the quarter the Canadian dollar relative to the US dollar strengthened from an average of $1.17 in the second quarter of this year to an average of $1.10," said Carl Smith, NUVO's Chief Financial Officer. "Sequentially, this had a negative impact on revenue of $160,000 and a positive impact on costs of $50,000. It also resulted in realized and unrealized foreign exchange losses of $78,000. Despite the total negative impact sequentially of $188,000, we maintained profitable operations and have now recorded six consecutive quarters of net income."

Q3 Financial Results

Third quarter revenues were $4,063,821 compared with revenues of $4,219,511 in the same period a year ago. Third quarter IT infrastructure management revenues were $3,580,658 compared to IT infrastructure management revenues of $3,548,790 in the third quarter of fiscal 2006. Maintenance, support and equipment revenues for the third quarter were $483,163 compared to $670,721 last year. Total revenue for the nine months ended June 30, 2007 and 2006 were $12,520,086 and $12,231,843, respectively.

Gross margins for the third quarter of fiscal 2007 were 42% compared with 39% in the third quarter of fiscal 2006. For the nine months ended June 30, 2007 and 2006, gross margins were 42% and 38% respectively.

Earnings before interest and other expense (foreign exchange), taxes, depreciation, and amortization (EBITDA) for the third quarter of fiscal 2007 was $522,461 compared to EBITDA of $514,324 in the same period a year ago. EBITDA for the nine months ended June 30, 2007 was $1,523,823 compared to EBITDA of $1,241,719 for the nine months ended June 30, 2006.

Net income in the third quarter was $52,520 compared to net income of $119,630 in the third quarter of fiscal 2006. Net income for the nine months ended June 30, 2007 was $284,937 compared to net loss of $89,793 for the nine months ended June 30, 2006.

About NUVO

NUVO provides remote management and protection of IT infrastructures for businesses worldwide to maximize the availability of their computing infrastructure. NUVO enables our customers to excel by delivering fully integrated, proactive management software, services and business data. This provides the critical information needed for effective analysis and decision-making to maximize performance and control costs. NUVO achieves this through certified experts, best-of-class technology, deep integration, highly automated processes, and best practices in a 24x7, resilient infrastructure. www.nuvo.com .

Forward Looking Statements

Certain statements included in this press release are forward-looking and are subject to certain risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that may cause results or events to differ from current expectations include, but are not limited to, those set out on NUVO's website ( www.nuvo.com ) in the Investor Relations section.