EGN Engineering.Com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE: EGN), developer of the ENGINEERING.com online resource for engineers today announced its unaudited financial results for the second quarter ended June 30, 2011.

Beginning with the first quarter of 2011, Engineering.com reported its financial results in accordance with International Financial Reporting Standards (IFRS), as required for public companies in Canada. Previously, the Company reported its financial results under Canadian Generally Accepted Accounting Standards (GAAP). Financial results for the corresponding period in 2010 have been restated to reflect the adoption of IFRS.

ENGINEERING.com revenue was $370,682 for the three month ended June 30, 2011, compared to revenue of $412,667 for the second quarter in 2010. The net loss for the three months ended June 30, 2011, totaled ($75,459) and ($0.00) per Common Share compared with a net loss of ($111,939) and ($0.00) for the same period a year ago. The decrease in revenue is the result of decreasing software sales.

Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($67,213) or ($0.00) per Common Share for the second quarter of 2011 compared with an operating loss of ($58,402) or ($0.00) per Common Share for the three month period ended June 30, 2010. The operating expenses in the latest period were $275,400, down from $285,875 in the second quarter a year earlier.

"Traffic to our primary web site more than doubled in the year to date as compared to the first six months of 2010," said John Hayes, President of ENGINEERING.com. "In addition, advertisers are discovering that our new sponsored video series like the Product Design Show and Some Assembly Required represent a powerful way for them to connect with engineers."

As at June 30, 2011, the Company had a cash balance of $30,635 compared to a cash balance of $78,244 as at December 31, 2010. This cash balance is relatively small when compared to the Company's ongoing obligations and in light of continued operating losses. On August 4, 2011 the Company announced a private placement of up to 7,000,000 Common Shares at a subscription price of $0.05 per share for gross proceeds of up to $350,000. The proceeds from this private placement will be used for general working capital purposes. This pending transaction is subject to regulatory approval. Readers are referred to page 9 of the Company's 2010 Annual Management Discussion & Analysis under the heading, "Present Status and Risk Factors" as filed on April 28, 2011.

About ENGINEERING.com Incorporated

ENGINEERING.com Incorporated (TSX VENTURE: EGN) is the developer-owner of the www.ENGINEERING.com Web site and business. ENGINEERING.com offers marketing and lead generation services to manufacturers, design consultants and engineering academia around the world. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.

EBITDA

EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock-based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under IFRS principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with IFRS principles) as a measure of liquidity.

Forward Looking Statements

This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.

The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.

Condensed Interim Statements of Financial Position
(In Canadian dollars, Unaudited)

                                                     June 30,  December 31,
                                                         2011          2010
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                                                            $             $
ASSETS
CURRENT ASSETS
  Cash                                                 30,635        78,244
  Accounts receivable                                 312,601       316,302
  Prepaid expenses and deposits                        20,889        13,895
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TOTAL CURRENT ASSETS                                  364,125       408,441

PROPERTY AND EQUIPMENT                                 15,391        20,727
INTANGIBLE ASSETS                                     320,368       316,063
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  TOTAL ASSETS                                        699,884       745,231
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
  Accounts payable and accrued liabilities            525,529       489,015
  Deferred revenue                                    115,759        65,640
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  TOTAL LIABILITIES                                   641,288       554,655

SHAREHOLDERS' EQUITY
  Share capital                                    15,113,752    15,113,752
  Contributed surplus                                 483,846       472,843
  Deficit                                         (15,539,002)  (15,396,019)
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TOTAL SHAREHOLDERS' EQUITY                             58,596       190,576
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY            699,884       745,231
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Condensed Interim Statements of Loss and Comprehensive Loss
(In Canadian dollars, Unaudited)

                                         Three months      Six month months
                                       ended June 30,        ended June 30,
                                      2011       2010       2011       2010
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                                         $          $          $          $
                                              (Note 6)              (Note 6)
REVENUE (Note 5)                   370,682    412,667    726,241    730,438
COST OF SALES                      162,495    185,194    320,790    295,559
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GROSS PROFIT                       208,187    227,473    405,415    434,879
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OPERATING EXPENSES
  Salaries and benefits            138,085    145,179    276,983    279,197
  Marketing expenses                21,489     28,702     44,171     48,499
  Development costs                 49,946     56,154     97,126    106,237
  General and administrative        65,880     55,840    112,782    124,066
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                                   275,400    285,875    531,062    557,999
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LOSS BEFORE UNDERNOTED ITEMS:      (67,213)   (58,402)  (125,611)  (123,120)
  Stock based compensation          (5,201)    (5,411)   (11,003)   (12,025)
  Amortization expense              (3,045)   (48,126)    (6,369)   (97,699)
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NET LOSS                           (75,459)  (111,939)  (142,983)  (232,845)
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Loss per share
  Basic                               0.00       0.00       0.00      (0.01)
  Diluted                             0.00       0.00       0.00      (0.01)
Weighted average number of Common Shares
(basic and diluted)             36,870,623 36,870,623 36,870,623 36,870,623
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Condensed Statements of Changes in Shareholder's Equity
(In Canadian dollars, Unaudited)

Six months ended June 30, 2011:

                             #          $           $
                     Number of      Share Contributed           $         $
                 Common Shares    Capital     Surplus     Deficit     Total
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At December 31,
 2010               38,870,623 15,113,752     472,843 (15,396,019)  190,576
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Net Loss for the
 period                     --         --          --    (142,983) (142,983)
Stock based
 compensation               --         --      11,003           -    11,003
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At June 30, 2011    38,870,623 15,113,752     483,846 (15,539,002)   58,596
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Six months ended June 30, 2010:

At January 1, 2010  38,870,623 15,113,752     445,548 (15,468,881)   90,419
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Net Loss for the
 period                     --         --          --    (232,845) (232,845)
Stock based
 compensation               --         --      12,025           -    12,025
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At June 30, 2010    38,870,623 15,113,752     457,575 (15,701,726)  130,399
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Condensed Interim Statements of Cash Flows
(In Canadian dollars, Unaudited)

                                           Three months          Six months
                                         ended June 30,      ended June 30,
                                         2011      2010      2011      2010
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                                            $         $         $         $
OPERATING ACTIVITIES
 Net loss                             (75,459) (111,939) (142,983) (232,845)

 Add items not affecting cash:
  Stock based compensation              5,201     5,411    11,003    12,025
  Amortization                          3,045    48,126     6,369    97,699
 Changes in operating assets and
  liabilities other than cash         (40,093)  122,906    83,340   243,980
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CASH FLOWS FROM OPERATING ACTIVITIES (107,306)   64,504   (42,271)  120,860
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FINANCING ACTIVITIES
 Promissory notes                          --   (12,004)       --   (20,968)
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CASH FLOWS FROM FINANCING ACTIVITIES       --   (12,004)       --   (20,968)
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INVESTING ACTIVITIES
 Additions to property and equipment     (487)     (333)   (1,033)   (5,822)
 Additions to intangible assets        (1,284)   (2,743)   (4,305)   (2,743)
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CASH FLOWS FROM INVESTING ACTIVITIES   (1,771)   (3,076)   (5,338)   (8,565)
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INCREASE IN CASH                     (109,077)   49,424   (47,609)   91,327
CASH, beginning of period             139,712   148,021    78,244   106,118
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CASH, end of period                    30,635   197,445    30,635   197,445
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The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contacts: ENGINEERING.com, Inc. John Hayes, President & CFO 905-273-9991, ext. 3280 Toll Free: 1-877-997-9917 905-273-6691 (FAX) jhayes@engineering.com www.engineering.com