Intermap Reports Progress and Strong Revenue Growth in Q1

News Releases

14 May, 2007

NEXTMap Britain licensed to Microsoft for Virtual Earth

Monday, May 14, 2007

CALGARYAlberta: Intermap Technologies Corporation (the “Company”) (TSX: IMP.TO, AIM: IMAP.L), today reported financial results for the first quarter ended March 31, 2007. A conference call will be held today at 11:00 am EDT to discuss the results. 

Financial Review
All amounts in this news release are in U.S. dollars unless otherwise noted.

For the first quarter, Intermap reported an increase in total revenue to $6.2 million, as compared to total revenue of $2.1 million for the same period in 2006. The increase was the result of revenue recognized on a number of contract services projects. The contract services revenue component of total revenue in the first quarter increased to $5.2 million, compared to $1.0 million for the first quarter of 2006, reflecting an increase in fee-for-service work in Asia.

The Multi-Client Data License revenue component of total revenue for the quarter was constant year-over-year at $1.1 million.  Approximately 76% of the MCDL revenue was associated with the Company's NEXTMap USA program, primarily in the areas of California, Texas and Arizona. 

Cost of services expense for the first quarter ended March 31, 2007 increased to $1.3 million, compared to $0.8 million for the same period in 2006, reflecting an increase in the costs associated with increased contract services work and preparation costs associated with future mapping activities 

Sales, general and administrative expenses for the first quarter were $5.3 million, compared to $3.3 million for the same period in 2006. The increase was related to the overall expansion of the Company's sales, marketing and business development to support its NEXTMap USA and NEXTMap Europe programs.

Amortization expense of the multi-client data library in the first quarter increased to $0.9 million, from $0.6 million for the same period in 2006, as a result of the increase in amortization on the NEXTMap USA dataset. Amortization of the NEXTMap USA dataset totaled $3.1 million for the twelve month period ended December 31, 2006. When factoring out the significant depreciation and amortization incurred during the period, the Company reported negative EBITDA of $1.3 million for the first quarter of 2007.

For the first quarter of 2007, Intermap reported a net loss of $2.8 million, or ($0.08) per share, compared to a net loss of $2.7 million, or ($0.08) per share for the same period in 2006. 
Cash and cash equivalents at March 31, 2007 were $39.7 million, as compared with $48.2 million at December 31, 2006. The Company's working capital was $44.0 million, compared with $51.0 million at December 31, 2006.

“During the first quarter we collected an additional 456,000 square kilometers of data for our NEXTMap USA project, bringing the total collected to date to 2.5 million square kilometers,” stated Brian Bullock, president and CEO of Intermap. “We also increased our processing resources for the enormous amount of NEXTMap data being collected. In addition, during the first quarter we announced a record number of new contract services awards amounting to approximately $11.0 million. One of our aircraft data collection systems was utilized for contract services work during Q1 and will again in Q2, providing additional cash flow as the projects are completed. This assists in funding our NEXTMap initiatives. The other three aircraft will collect a record amount of NEXTMap data in 2007.”

MultiMedia Computer s.r.o. Acquisition
On March 1, 2007, Intermap acquired the shares and ongoing operations of MultiMedia Computer s.r.o. (MMC).  The acquisition enables Intermap to enhance its product offerings from strictly data sales to solution-based sales for specific markets.

“The acquisition of MMC allows us to deliver complete geospatial solutions to our customers and partners within a variety of diverse markets. For example, MMC's technological expertise will help propel Intermap into not only the flood insurance market, but also into the emerging recreational PND and advanced driver assistance systems arenas.  Additionally, MMC will support our continued efforts to bundle progressive solutions for existing enterprise and government markets,” commented Mr. Bullock.

Web-based 3D Visualization
The enormous growth of Web-based mapping applications is driving an increasing demand for higher quality data that can both improve the user experience and enable new higher value applications. Ultimately, the quality of the data is what will separate providers in this space.

In February 2007, Intermap announced an agreement to provide Microsoft Corp. with its NEXTMap Britain digital elevation data for use within Microsoft's Virtual Earth platform. The agreement enables Microsoft to create and deliver a Live Search Maps product powered by the most current and accurate digital terrain model of Great Britain.

NEXTMap Europe Progress
In 2006, Intermap announced its intention to accelerate its NEXTMap Europe project with the collection of the entire dataset expected to be completed by the end of 2007. Driven by demand within the European automotive, government, and insurance sectors, the final processing and editing of the project is expected to be complete and available for sale shortly thereafter in 2008. 

NEXTMap Europe calls for the mapping of 17 European countries, including Austria, Belgium, Czech Republic, Denmark, England, France, Germany, Irish Republic, Italy, Luxembourg, Netherlands, Northern Ireland, Portugal, Spain and Switzerland. England, Scotland, and Wales have already been completed and the data collection of Germany was completed in 2006. Priority of data collection in Europe will be given to areas with the strongest customer demands. Once completed, these datasets will be the most accurate 3D digital maps of Europe in existence.

During 2006, approximately 487,000 square kilometers of data was collected in Europe including all of Germany which is the fourth country mapped in its entirety under the Company's NEXTMap Europe program. NEXTMap Germany will be available for licensing in 2007. “As individual countries are completed during 2007 in Europe, we expect additional revenue opportunities will develop that will increase the overall financial performance of the Company,” stated Mr. Bullock. The Company processed 138,000 square kilometers of NEXTMap Europe data in the first quarter. No additional data was collected in Europe during the first quarter of 2007. 

NEXTMap USA Progress
Intermap continues to progress on its largest project, NEXTMap USA. The project includes terrain elevation and imagery data accurate to one-meter or better, covering nearly eight million square kilometers of the United States.

Since the inception of the project, approximately 2.5 million square kilometers of data has been collected. The Company expects to have the collection portion of the NEXTMap USA project completed by the end of 2008. The net book value of the NEXTMap USA data as of March 31, 2007 was $30.8 million. 

“We are continuing the ramp-up of our NEXTMap USA project with full capacity expected to be in place during the second quarter,” said Mr. Bullock. “We expect to complete the collection of the project by the end of 2008 with 100% of the fully processed and edited data completed and ready for sale during 2009. As part of this ramp-up, an additional Learjet aircraft was purchased during 2006 and a second King Air aircraft was leased. Both are now at work on NEXTMap USA.”

Currently, Intermap has data available off-the-shelf for 512 counties in the U.S. The Company expects a continued increase in license revenues in 2007 as marketing activities generate interest from new NEXTMap USA customers. Through March 31, 2007, total cumulative license revenue for NEXTMap USA data was approximately $8.2 million.

Detailed financial results for the quarter and management's discussion and analysis can be found on SEDAR, at

Conference Call Details 
A slide presentation accompanies Intermap's conference call on May 14 at 11:00 a.m. ET (9:00 a.m. MT,4:00 p.m. GMT). Please download the presentation “IMP_Q1_Quarterly_Call_May_07” to your computer in advance of the call from (copy and paste the file into your browser).

Username: Client 18
Password:  qreports1 (Password is case sensitive)

For security reasons this FTP site will be active until May 31, 2007.

To participate in the call, please dial 416-644-3417 or 1-800-732-9303 approximately 10 minutes prior to the conference call. A recording of the conference call will be available through May 21, 2006. Please dial 416-640-1917 or 1-877-289-8525 and provide the password 21232148# to listen to the rebroadcast. An audio webcast of the teleconference will also be available on Intermap's website.

About Intermap Technologies
Intermap enables customers to facilitate better decision-making and create applications for numerous commercial, governmental, military, and consumer products through the purchase of high quality and affordable 3D geometric datasets. The Company is proactively remapping entire countries and building unprecedented national databases, called NEXTMap, consisting of highly accurate digital geometric maps that include elevation data. 

Demand for NEXTMap data is growing as new commercial applications are emerging, including geographical information systems (GIS), engineering planning, transportation, automotive, navigation, flood, irrigation, environmental management and planning, telecommunications/wireless network planning, aviation, simulation, and 3D visualization. Internet applications include virtual tours, topographic maps and computer games. Datasets are also used to add interactive intelligence to airborne and satellite imagery. 

Headquartered in Denver, Colorado, Intermap employs more than 450 people worldwide, with additional offices in Calgary, Detroit, Jakarta, London, Munich, Ottawa, and Prague. For more information,

® NEXTMap is a registered trademark of Intermap Technologies Corporation

For more information, please contact: 
Intermap Technologies
Richard Mohr, Senior Vice President & Chief Financial Officer 
(303) 708-0955

Canada — Financial 
Corbet Pala, Investor Relations 
E-vestor Communications Inc. 
(416) 657-2400 

United States — Financial 
Budd Zuckerman, Investor Relations
Genesis Select Corporation
(303) 415-0200

United Kingdom — AIM, Nominated Advisor 
Canaccord Adams Limited
Neil Johnson
Clayton Bush
+(44) (0) 20 7518 2777

The above disclosure contains certain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond Intermap's control, including: the impact of general economic conditions, industry conditions, increased competition, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to the announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Intermap's actual results, performance or achievement could differ materially from those expressed in, or implied by these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds that Intermap will derive therefrom.