Scala Announces Record Sales for Third Quarter 2007

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Scala, Inc., the world's leading provider of end-to-end digital signage software, today announced record sales for its third quarter, continuing the strong growth it reported in 2006 and first half of 2007.

Over the past 20 years we have assembled an unbeatable global team of both employees and partners that are the most experienced and passionate in our industry - all sharply focused on the needs and satisfaction of our customers.

Scala, Inc. (http://www.scala.com), the world's leading provider of end-to-end digital signage software, today announced record sales for its third quarter, continuing the strong growth it reported in 2006 and first half of 2007.

Scala CEO, Gerard Bucas, stated, "Sales in Q3 2007 were the highest in our 20 year history and came in at 64% ahead of the same quarter last year. With consistent positive cash flow from operations and five consecutive years of profitability under our belt, Scala today has no debt and the strongest balance sheet in the industry. Our strong performance in 2007 follows a sales growth of 59% in 2006 (vs. 2005) coupled with an even stronger growth in EBITDA (profitability). With shipments in both 2006 and 2007 to customers in more than 60 countries and the successful launch of our new InfoChannel 5 product line in 2006, Scala continues to solidify its position as the global leader in the digital signage industry. Our four wholly-owned foreign subsidiaries maintained their strong performance; each setting new sales records and together generating around 50% of sales in both 2006 and 2007 year to date."

Scala remains focused on providing end-to-end software solutions for centrally controlled digital signage networks used in a variety of both customer and employee facing applications deployed in retail, banking, quick service restaurants, gas stations, public spaces (airports, shopping malls, etc), community access channels (Cable TV), hospitality and entertainment venues (theaters, amusement parks, casinos, etc), convention centers, etc. Supporting both interactive (e.g.: kiosk, touch screens, etc) and passive playback of content which can be delivered across satellite or terrestrial (wired or wireless) broadband communication networks, Scala InfoChannel platform is truly in a league of its own driving more displays around the world than all competitors combined.

With the strongest reseller partner network in the industry it is not surprising that in their most recent Digital Signage market study, leading research firm Frost & Sullivan stated, "Scala has built a commanding lead in an industry that is seeping with as many companies entering the market as there are heading for the exit. Frost & Sullivan believes Scala's understanding of the market, experience in deploying large-scale networks and a well oiled global distribution structure will secure Scala's dominant position in the market."

"I am very pleased with the Company's strong financial performance over the past five years and particularly over the past seven quarters - especially when competitors are still struggling to survive and reach profitability," commented Gerard Bucas, CEO of Scala, Inc. "Over the past 20 years we have assembled an unbeatable global team of both employees and partners that are the most experienced and passionate in our industry - all sharply focused on the needs and satisfaction of our customers."    

About Scala, Inc.
Scala, Inc. (http://www.scala.com), the world's largest provider of software for digital signage used in retail, education, entertainment, government and other industries, is celebrating its 20th anniversary in 2007. Over the years, Scala has evolved to become the global leader in digital signage software. The Company's cutting-edge multimedia software platform powers thousands of digital signs around the world including the digital signage networks of Rabobank, IKEA, Bloomberg, Burger King, T-Mobile, Virgin MegaStore, EuroDisney, Kiwi, McDonalds, Warner Brothers, Shell, Santiago Airport, Ericsson, The Life Channel and many more. Since Scala InfoChannel has field proven scalability, and is easy to manage, it is the platform of choice for many digital display networks ranging in size from one screen to thousands of screens with uses including advertising displays, touch screens, retail TV, LED billboards, lobby signage, digital menu boards, interactive kiosks, and more. Scala, Inc. pioneered the industry of digital signage in 1987, and is today headquartered near Philadelphia, PA with offices in California, the UK, France, Norway, The Netherlands, China and Japan. More information is available at http://www.scala.com.

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