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LEVIS, QUEBEC -- (Marketwired) -- 02/27/14 -- DEQ Systems Corp. (TSX VENTURE: DEQ) ("DEQ" or the "Company") announced today the filing of its annual financial results for the fiscal year ended November 30, 2013. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website. A conference call will be held on Friday, February 28, 2014 at 11am EST to present and discuss these results. Those interested in participating should dial toll free 1 (877) 223-4471 or (647) 788-4922. A PowerPoint presentation will be available on DEQ's website in the Investors/Financial Reports/Presentation section to support the call content.

2013 ANNUAL RESULTS AND FOURTH QUARTER HIGHLIGHTS:

Financial Metrics

--  Revenue
    --  25% increase in total revenue to $7,004,000 in 2013 as compared to
        $5,605,000 in 2012.
    --  32% increase in product rental revenue to $5,481,000 in 2013 from
        $4,149,000 in 2012.
    --  56% compound annual growth rate of product rental revenue over the
        last three years.
    --  For the fourth quarter 2013, DEQ recorded total revenue of
        $1,927,000, a 19% increase compared to $1,617,000 in the fourth
        quarter 2012.

--  Operating Expenses
    --  Operating expenses before non-cash items were stable, increasing 2%,
        to $5,375,000 from $5,290,000 in 2012. DEQ expects its operating
        costs to remain relatively stable for 2014 due to economies of scale
        and efficiency gains.
    --  For the fourth quarter 2013, DEQ recorded operating expenses of
        $1,320,000, a 12% decrease compared to $1,495,000 in fourth quarter
        2012, as a result of cost containment initiatives.

--  EBITDA
    --  DEQ recorded positive EBITDA of $605,000 in 2013 compared to
        $(496,000) in 2012.
    --  For the fourth quarter 2013, DEQ recorded EBITDA of $328,000
        compared to $(205,000) in the fourth quarter 2012.

--  Liquidity and Cash Flow
    --  During fiscal year 2013, DEQ's cash position increased by $815,000
        due to positive cash flow from operating activities of $266,000 and
        share issuance of $1,000,000, partially offset by investment
        activities in leased equipment and intangible assets of $483,000
        which funded DEQ's continued growth.
    --  DEQ had a cash position of $1,565,000 as of November 30, 2013.

Operational Highlights

--  Product Installations
    --  In 2013 DEQ increased its net installation base by 332 units (67
        units during the fourth quarter 2013) at an average lease price of
        $3,500 per annum, representing an increase of approximately
        $1,162,000 of new recurring revenue per year.
    --  As of November 30, 2013, DEQ had 1,677 directly installed products
        worldwide and 380 products installed through distributors worldwide
        for a total installed base of 2,057 products worldwide.

"DEQ delivered excellent financial results in 2013 with a 25% increase in revenue and a 32% increase in product rental revenue," stated Francois Proulx, Interim Chief Executive Officer and Chief Financial Officer of DEQ. "The Company also reached a turning point by achieving positive EBITDA resulting from management's diligent efforts to control spending and create profitable growth. We will pursue the same goal in 2014 and focus on operational efficiencies while continuing to grow our installed base. With more than 2,050 units currently in operation worldwide, generating an estimated $7 million in annual recurring revenue, we are very encouraged with the pace of our enhanced roll-out strategy. We continue to target robust market opportunities and we are very confident in the potential growth of all of our product lines in 2014."

Statement of Earnings
                                 Fourth Quarter         Twelve-Month Period
                     November 30,  November 30,  November 30,  November 30,
                             2012          2013          2012          2013
                      (unaudited)   (unaudited)     (audited)     (audited)
                    --------------------------------------------------------
                    --------------------------------------------------------

Product rental          1,095,000     1,500,000     4,150,000     5,481,000
Royalties (1)             283,000       302,000     1,157,000     1,170,000
                    --------------------------------------------------------
Total recurring
 revenue                1,378,000     1,802,000     5,307,000     6,651,000
Non recurring
 revenue                  239,000       125,000       298,000       353,000
                    --------------------------------------------------------
Total Revenue           1,617,000     1,927,000     5,605,000     7,004,000

Gross Profit (2)        1,290,000     1,648,000     4,794,000     5,980,000
% Gross margin                 80%           86%           86%           85%

Operating expenses
 (2)                    1,495,000     1,320,000     5,290,000     5,375,000
                    --------------------------------------------------------

EBITDA (3)               (205,000)      328,000      (496,000)      605,000

Stock based
 compensation             (16,000)        7,000        50,000       160,000
Amortization
 expenses                 624,000       708,000     2,727,000     2,791,000
Interest expenses           4,000         3,000        13,000        15,000
Foreign exchange
 (gain) loss               23,000         7,000        50,000         7,000
                    --------------------------------------------------------
Net Income (Loss)        (840,000)     (397,000)   (3,336,000)   (2,368,000)
                    --------------------------------------------------------
                    --------------------------------------------------------
Net Income (Loss )
 per share            $    (0.012)  $    (0.006)  $    (0.048)  $    (0.034)

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Note 1:             DEK International - Distributor located in Panama that
                    covers mostly South America territories.

Note 2:             Gross profit and operating expenses excluded non-cash
                    items such as depreciation, amortization and stock-based
                    compensation.

Note 3:             DEQ uses EBITDA (Earnings before stock based
                    compensation, Interest, Taxes, Depreciation and
                    Amortization and foreign exchange impact), a non-IFRS
                    measure, to evaluate the Company's operating
                    performance. Securities regulators require that issuers
                    caution readers that measures adjusted to a basis other
                    than IFRS do not have standardized meaning under IFRS
                    and are unlikely to be comparable to similar measures
                    used by other companies.


Financial Position
                                            Nov. 30, 2012      Nov. 30, 2013
                                                (Audited)          (Audited)
                                        ------------------------------------
                                        ------------------------------------

Cash and cash equivalents                         751,000          1,565,000
Current assets (other than cash)                1,883,000          2,175,000
Long-term assets                                8,884,000          6,576,000
                                        ------------------------------------
Total Assets                              $    11,518,000    $    10,316,000
                                        ------------------------------------
                                        ------------------------------------

Current liabilities                             1,278,000          1,244,000
Shareholders' equity                           10,240,000          9,072,000
                                        ------------------------------------
Total Liabilities and Equity              $    11,518,000    $    10,316,000
                                        ------------------------------------
                                        ------------------------------------

Number of shares outstanding                   69,182,000         71,682,000
                                        ------------------------------------
                                        ------------------------------------

ABOUT DEQ

DEQ Systems Corp. (TSX VENTURE: DEQ) is a customer-centric company that delivers best of breed table game technology related products to the global gaming industry that adds value and increases client revenue. DEQ provides table game bonusing technology, table games, table game results tracking and jackpot connectivity solutions to more than 275 casinos in 30 countries. DEQ is an intellectual property focused company that has an extensive patent portfolio of more than 20 patents recognized in 50 countries. For further information, please visit www.deq.com.

TSX Venture does not accept any responsibility regarding the accuracy of the information contained in this press release.

Forward-looking statements contained in this Press Release involve known and unknown risks, uncertainties and other factors that may cause actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the said forward-looking statements.