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LEVIS, QUEBEC -- (Marketwired) -- 07/17/13 -- DEQ Systems Corp. (TSX VENTURE: DEQ) ("DEQ" or the "Company") announces the filing of its second quarter financial results for the period ended May 31, 2013. The Consolidated Financial Statements are available on SEDAR (www.sedar.com) and DEQ's website. A conference call will be held on Thursday, July 18, 2013 at 11am EST to present and discuss these results. Those interested in participating in the call should dial toll free 1 (800) 768-3232 or +1 (416) 981-9000. A presentation will be available on DEQ's website in the Investors/Financial Reports/Presentation section to support the call content.

2013 2Q and Six-Month Results:

Financial Metrics

  -- Revenue

       Second Quarter:
       -- 31% increase in product rental revenue from $1,024,000 in Q2-2012
       to $1,341,000 in Q2-2013.
       -- 25% increase in total recurring revenue from $1,306,000 in Q2-2012
       to $1,635,000 in Q2-2013.
       -- 28% increase in total revenue from $1,334,000 in Q2-2012 to
       $1,714,000 in Q2-2013.


       Six-Month Period:
       -- 31% increase in product rental revenue from $1,938,000 in 2012 to
       $2,536,000 in 2013.
       -- 23% increase in total recurring revenue from $2,533,000 in 2012 to
       $3,108,000 in 2013.
       -- 29% increase in total revenue from $2,576,000 in 2012 to
       $3,313,000 in 2013.

  -- Operating Expenses before non-cash items
       -- 2% increase in operating expenses from $1,342,000 in Q2-2012 to
       $1,364,000 in Q2-2013
       -- 6% increase in operating expenses for the six-month period from
       $2,601,000 in 2012 to $2,747,000 in 2013.
       -- Operating costs to continue to remain relatively stable in the
       coming quarters of 2013

  -- EBITDA
       -- EBITDA of $78,000 in Q2-2013 compared to a loss of $(178,000) in
       Q2-2012.
       -- EBITDA of $122,000 for the six-month period in 2013 compared to a
       loss of $(376,000) for the same period in 2012. This is an
       improvement of $498,000 for the six-month period.

  -- Cash Flow
       -- Positive cash flow from operating activities before working
       capital items of $75,000 in Q2-2013 compared to a negative cash flow
       of $(53,000) in Q2-2012.

Second Quarter Highlights and Subsequent Events

--  As of May 31, 2013, DEQ had 1,933 units worldwide compared to 1,530
    units as of May 31, 2012.

--  During the second quarter of 2013, a total of 133 net units were
    installed compared to net installations of 114 units in the second
    quarter of 2012. The Company is currently generating average recurring
    net revenue of $3,425 per unit per year on its worldwide install base of
    1,933 units for total annual recurring revenue of approximately
    $6,620,000.

--  On June 28, the Company announced that it had completed a non-brokered
    private placement of $1,000,000 with the Caisse de depot et placement du
    Quebec through the issuance 2,500,000 shares at $0.40 per share.

"The second quarter results reinforce the trends that we started to see in the first quarter of 2013," said Earle G. Hall, President and Chief Executive Officer of DEQ. "DEQ's growing recurring revenue base is now fuelling positive cash flow and creating a solid foothold for the growth and expansion of the Company. In addition, the recent private placement will give the Company the flexibility to take advantage of additional opportunities as they arise."

Statement of Earnings
(unaudited)                        Second Quarter          Six-Month Period
                             May 31,      May 31,      May 31,      May 31,
                                2012         2013         2012         2013
                         (unaudited)  (unaudited)  (unaudited)  (unaudited)
                        ----------------------------------------------------
                        ----------------------------------------------------

Product rental             1,024,000    1,341,000    1,938,000    2,536,000
Royalties                    282,000      294,000      595,000      572,000
                        ----------------------------------------------------
Total recurring revenue    1,306,000    1,635,000    2,533,000    3,108,000
Non recurring revenue         28,000       79,000       43,000      205,000
                        ----------------------------------------------------
Total Revenue              1,334,000    1,714,000    2,576,000    3,313,000

Gross Profit (1)           1,164,000    1,442,000    2,225,000    2,869,000
% Gross margin                    87%          84%          86%          87%

Operating expenses (1)     1,342,000    1,364,000    2,601,000    2,747,000
                        ----------------------------------------------------

EBITDA (2)                  (178,000)      78,000     (376,000)     122,000

Stock based compensation      22,000      136,000       46,000      147,000
Amortization expenses        702,000      694,000    1,391,000    1,380,000
Interest expenses              3,000        4,000        5,000        8,000
Foreign exchange (gain)
 loss                        (39,000)      26,000      (12,000)     (14,000)
                        ----------------------------------------------------
Net Income (Loss)           (866,000)    (782,000)  (1,806,000)  (1,399,000)
                        ----------------------------------------------------
                        ----------------------------------------------------
Net Income (Loss ) per
 share                       $(0.013)     $(0.011)     $(0.026)     $(0.020)


Note 1: Gross profit and operating expenses excluded non-cash items such as
depreciation, amortization and stock based compensation.

Note 2: We use EBITDA (Earnings before Stock option based compensation,
Interest, Taxes, Depreciation, Amortization and Foreign exchange) as
performance measurements in our financial disclosure. This measure is not
recognized under IFRS. The reconciliations above demonstrate how we
calculate such measurements from our financial statements.


Financial Position
                                    November 30,  February 28,       May 31,
                                            2012          2013          2013
                                       (audited)   (unaudited)   (unaudited)
                                  ------------------------------------------
                                  ------------------------------------------

Cash and cash equivalents                750,000       899,000       703,000
Current assets (other than cash)       1,884,000     1,861,000     1,795,000
Long-term assets                       8,884,000     8,326,000     7,721,000
                                  ------------------------------------------
Total Assets                          11,518,000    11,086,000    10,219,000
                                  ------------------------------------------
                                  ------------------------------------------

Current liabilities                    1,278,000     1,467,000     1,217,000
Shareholders' equity                  10,240,000     9,619,000     9,002,000
                                  ------------------------------------------
Total Liabilities and Equity          11,518,000    11,086,000    10,219,000
                                  ------------------------------------------
                                  ------------------------------------------

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

ABOUT DEQ

DEQ Systems Corp. (TSX VENTURE: DEQ) is a customer-centric company that delivers to the global gaming industry best-of-breed table-game technology-related products that add value and increase client revenue. DEQ provides table-game-bonusing technology, table games, baccarat 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.