Diversinet Reports Second Quarter 2007 Financial Results

Diversinet Reports Second Quarter 2007 Financial Results

Intersections Wallet/Vault License Agreement Contributes to Q2 Revenue Growth

Diversinet Corp. , a leading provider of wireless data application and security infrastructure products and services, today announced financial results for the second quarter of 2007. During the quarter Diversinet’s revenues increased and cash used in operations was reduced over the same quarter last year.

Revenues for the second quarter were $1,017,000, up 113 percent compared to $477,000 for the second quarter of 2006 and up 11 percent compared to $905,000 in Q1 2007. Revenues for the six months ended June 30, 2007 were $1,923,000, up 102 percent from $950,000 in the same period in 2006. In May 2007 Diversinet entered into a three year license and value added reseller (VAR) agreement to provide its MobiSecure Wallet and Vault mobile secure access solution to Intersections Inc. , a leading provider of identity theft protection and credit management solutions for consumers. Revenues generated from this agreement contributed significantly to second quarter results. Cash used in operations for the quarter was $653,000 compared to $726,000 used in Q2 2006 and $920,000 used in Q1 2007. All dollar amounts are in U.S. dollars.

The net loss for the second quarter of 2007 was $1,045,000, or $0.03 per share, compared to a net loss of $747,000 or $0.03 per share in the second quarter of 2006. The net loss for the six months ended June 30, 2007 was $1,376,000, or $0.04 per share, compared to a net loss of $1,469,000 or $0.06 per share in the similar six months of 2006. Included in the second quarter net loss are non-cash stock-based compensation, depreciation and amortization of $218,000 ($285,000 in Q2 2006) and one time severance costs of $512,000 relating to the departure of the prior CEO, Nagy Moustafa. Cash and cash equivalents at June 30, 2007 were $3,962,000 and $5,146,000 at December 31, 2006.

Company, customer, and product solution highlights include:

– In May 2007 Diversinet entered into a three year license and VAR
agreement to provide its MobiSecure Wallet and Vault mobile secure
access solution to Intersections, a leading provider of identity
theft protection and credit management solutions for consumers. With
over 5 million customers, this relationship will allow Intersections
to offer users secure and immediate access to a host of personal,
financial, and insurance identity information, as well as other
critical, privileged data. Diversinet’s MobiSecure Wallet and Vault
will provide Intersections with a mobile and desktop security
platform it can use to extend its core offering to broad user base.

– In April 2007 Chairman Albert Wahbe was named the new CEO of
Diversinet. Mr. Wahbe brings seasoned leadership to Diversinet after
a distinguished career as a senior executive at both Scotiabank and
IBM. His primary objective is to turn the company from a product
development organization into a sales and marketing driven company.
Additionally, the Board appointed Greg Milavsky, a seasoned
investment banker and private equity executive, to the board
completing a full makeover of the board that began when Mr. Wahbe
became Chairman and Diversinet’s largest shareholder approximately a
year ago.

– Diversinet introduced its Provisioning Server for RSA SecurID(R), a
fast, easy and secure way for enterprises to deploy cost-effective
RSA SecurID software authenticators. RSA, the Security Division of
EMC, is teaming with Diversinet to deliver the provisioning server to
its enterprise customers worldwide, expanding the strategic
partnership between the two companies.

CEO and Chairman of Diversinet Albert Wahbe stated “We are pleased with the progress we are making in our ongoing transition from a product development company to a sales and marketing enterprise. My first priority was to build a dynamic global sales organization to showcase the technology leadership we have developed in the wireless application/security space. I believe with the hiring of an additional eight experienced sales professionals, a new partnership with IBM and existing relationships with vertical players like SanDisk, RSA and Blue Cross of Northeastern Pennsylvania, we now have the team in place to aggressively showcase our products in the marketplace. We continue to build out our product offering and distribution network to deliver valuable customer applications in the marketplace.”

About Diversinet

Diversinet Corp. is a leading provider of wireless authentication and access solutions that secure the personal identity, transactions and data of consumers over almost any mobile phone or handheld device. Diversinet’s reliable, end-to-end OTP (one-time password) solutions enable cost-effective strong authentication and instant and secure access to critical personal records, helping businesses reduce identity theft, expand customer offerings, increase revenues and comply with regulations. Connect with Diversinet Corp. at www.diversinet.com.

Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future revenues of the company and success of current product offerings. Such forward-looking information is made pursuant to the “safe harbor” provisions of the US Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation and are subject to important risks, uncertainties and assumptions that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company’s filings (including its annual report and financial statements) with the Securities and Exchange Commission and SEDAR.