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Matrikon, Inc. News

Matrikon™ Delivers Record Revenue and Strong Earnings in the Third Quarter of 2005

Edmonton, AB –July 6, 2005 —Matrikon Inc. (TSX: MTK), a leading provider of solutions for industrial intelligence, today reported financial results for the third quarter of fiscal year 2005, which ended May 31, 2005.

Third quarter revenue grew 28% to a record $17.14 million from $13.37 million in the comparable period of fiscal 2004. Year-to-date revenue grew 29% to $48.82 million compared to $37.83 million in the first nine months of 2004. Net income for the third quarter was $1.56 million (or $0.05 per share) compared to net income of $0.17 million (or $0.01 per share) in the comparable period of fiscal year 2004. Year-to-date income was $4.11 million compared to $0.68 million in the first nine months of last year.

Matrikon’s president and chief executive officer, Nizar J. Somji comments on the quarter: “We continued to execute on our strategy in the third quarter and are excited about the momentum we have built over the past nine months and the future prospects for our solutions. Our second users conference in May was larger and more focused than the previous one and has resulted in new opportunities and closer relationships with our existing clients.

“While we have made tremendous progress in many areas, there is always room for improvement. We remain committed to continuing to improve efficiency, increase revenue and profit and transition to a more solutions-focused company.”

Outlook
Based on nine month results, the recovery of the US dollar relative to the Canadian dollar, and the increased customer demand for Matrikon’s total solutions, management has narrowed estimates for revenue to $65 to $67 million (previously $62 to $67 million) and increased net income estimates to $5 to $6 million (previously $4 to $5 million). Any significant change in the US dollar relative to the Canadian dollar could impair Matrikon’s ability to achieve the revised net income estimate.

Quarter Highlights:

On April 26, 2005, Matrikon completed the acquisition of Resolution Integration Solutions, Inc. (RIS). This technology acquisition complements Matrikon’s strategic direction and provides an industrial intelligence infrastructure to deliver a single version of plant data. The technology meets the needs of customers for more accurate enterprise information by aggregating data from disparate sources, extracting information and data from standalone applications and providing consistent, comprehensive and auditable information across the industrial enterprise.

Matrikon hosted its second annual users group event at the beginning of May. Client attendance at MVP 2005 increased by 40% over 2004 and was successful at introducing attendees to Matrikon’s vision for the recently acquired Resolution technology and enhancing client understanding of Matrikon’s technology and industry solutions.

Matrikon released ProcessMORe™ v5 featuring improved performance and user control. ProcessMORe is a solution for reducing operating and maintenance costs and increasing equipment effectiveness. ProcessMORe captures and analyzes downtime events to identify problematic equipment, measure maintenance performance and associate material variables with downtime events.

Matrikon announced that it had signed an alliance program agreement with MRO Software, Inc. (Nasdaq:MROI), the leading provider of strategic asset and service management solutions. Under the agreement, Matrikon and MRO Software will jointly offer asset management capabilities and solutions to all industries, including the mining, oil and gas and utilities sectors.

Matrikon announced that a large Canadian heavy oil producer is rolling out its well optimization solution to all wells following the successful pilot of the technology at 100 wells over the past year. Matrikon’s well optimization solution has proven production gains of 4-7% for onshore wells and has also proven successful in increasing production and reducing costs in the land based operation of offshore platform recovery facilities.

MD&A and Financial Statements
The complete Management’s Discussion and Analysis and Financial Statements can be found on Matrikon’s website at www.matrikon.com/investors or by contacting Nicole Sayler at 1-877-628-7456 extension 4010.

Conference Call Wednesday, July 6 at 8:30 am Eastern
Matrikon President and CEO Nizar J. Somji and CFO Nimal Rodrigo will hold a conference call to discuss third quarter results on Wednesday, July 6 at 8:30 am Eastern time (6:30 am Mountain time). To participate live, call 416-640-4127 in the Toronto area and 1-800-814-4857 for all other areas.

A replay will be available until midnight on Wednesday, July 13, 2005. To access the playback service, please dial 416-640-1917 in Toronto or 1-877-289-8525 elsewhere, reservation number 21128718#.

The conference call will also be web cast at www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1162700

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