VIP International Corporation: HARS Reports Continued Growth In Revenue and Operating Results for 2001 Fiscal Year

    CALGARY, Alberta--Feb. 15, 2002--VIP International Corporation, through its parent company HARS Systems, Inc. (CDNX:HSS), reported revenues for the fiscal year ended 2001, of $14,629,288, a 17 per cent increase over 2000 year end revenues. EBITDA for the year increased by 29 per cent to $925,524 as compared to $717,657 and income before tax decreased by nine per cent to $263,365.
    The Company completed a number of one time write downs and expense recognitions including the write down of $234,302 in software under development related to the purchase of the Intermezzo central reservation system in 1999 and the expense recognition of $165,000 in management contract fees in fiscal year 2001, that will be paid in fiscal year 2002. In total the Company chose to write off $399,302 in nonrecurring non-cash charges for fiscal year 2001.
    There were 22,179,126 fully diluted shares issued and outstanding as of September 30, 2001. Earnings per share for fiscal year 2001 was $0.01.
    "The Company has performed very well given the September 11th crisis and downturn in the economy. The terrorist attacks had a significant short-term impact on revenue, but 2002 has rebounded. Income before the nonrecurring non-cash charges was up substantially over last year, which is positive given the difficult operating environment," stated Kelly Blake, president of VIP International.
    In spite of the positive performance through and following the September 11th crisis, approximately $350,000 in revenue was lost in fiscal year 2001, due to the terrorist attacks of September 11th, which equates to approximately $175,000 in lost gross operating profit. The first quarter of fiscal year 2002, ending December 31, 2001, has rebounded with revenue equalling pre September 11th forecasts.
    VIP added 305 new hotel properties and car rental locations during fiscal year 2001. The additions included, thirteen ClubHouse Inns and Suites in the United States, nine Bradford Homesuites in the United States, The New Frontier Hotel & Casino, The Riviera Hotel & Casino, and the Sahara Hotel & Casino in Las Vegas, Nevada; and nine Regal Hotels in the Asia Pacific region and Canada.
    Certain statements contained in this press release are forward-looking statements. While these statements reflect HARS Systems, Inc.'s (the Corporation) current beliefs, they are subject to uncertainties and risks that could cause actual results to differ materially. These factors include, but are not limited to, the demand for the Corporation's products and services, economic and competitive conditions. The Canadian Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.