SEB Smart Employee Benefits Inc

Smart Employee Benefits Inc. ("SEB" or "Company") (TSX VENTURE:SEB) today
reported its financial results for the quarter ending February 28, 2014.


SEB Overview

SEB is a technology company with two divisions, the Benefits Division and the
Technology Division, providing business processes software, solutions and
services to corporate and government clients with specialty practices focused on
managing group benefit solutions and health claims processing environments. The
core expertise of the SEB Group of Companies is managing and reporting on Big
Data, including transaction processing in complex global Supply Chain
environments. This expertise is uniquely adaptable to the "Benefits" and
"Health-Care" industries.


SEB's Benefits Practice is focused on two primary target markets in Canada -
employee group health benefits which exceed $37.0 billion annually and
government funded health benefits (federal and provincial) which are in excess
of $25.0 billion. SEB's technology platform is easily adaptable to managing the
end-to-end business processes in both environments. Of the $60.0 plus billion
market in Canada, the employee group benefit portion has grown over 80% in the
past decade.


SEB's business growth strategy for developing the benefits business has the
following components:




--  Maintaining the leading technology platform for managing group benefit
    solutions and health claims processing environments. This includes
    developing unique benefit solutions made possible by the technology
    platform. 
    
--  Acquiring and making investments in existing benefit administration
    businesses and technology companies serving the corporate and government
    markets with the objective of expanding SEB's health benefit footprint
    across Canada. 
    
--  Transitioning to the SEB technology environment the benefits-processing
    (administration, claims-adjudication and reporting) currently outsourced
    by the acquired businesses to third parties. 
    
--  Creating new unique benefits solutions made possible by the SEB
    technology platform. 



The progress SEB has made in 2011 through fiscal 2013 has positioned the company
in 2014 to achieve strong growth and sustainable profitability.


SEB's Technology Platform Provides Competitive Advantage in Benefits Management

SEB has spent over $6 million since 2011 automating the administration, payment
processing/billing and reporting modules of its platform and integrating these
modules into an already proven leading edge adjudication platform. 


SEB's technology platform manages the total business processing services for
group benefit solutions and health claims processing on one fully-integrated
technology environment. The SEB technology platform is open architecture, rules
based and modular, and allows clients to utilize either a fully integrated
solution or modules. SEB's real time "rules-based adjudication" environment is
very unique, and when combined with the fully-integrated Administration, Payment
Processing, Billing and Reporting modules, will provide very sophisticated and
highly competitive solutions to the marketplace, both in Canada and globally.
SEB can administer, adjudicate and report for all benefit types in one fully
integrated environment. Rules creation is an administrative, not a programming
exercise. Highly customized and flexible processing solutions can be created
easily and cost effectively. Reporting is the most detailed in the industry with
self-serve functionality including real time access to standard reports and data
mining capabilities for customized reports. The largest current implementation
of the SEB Adjudication Environment is Oman Insurance in Dubai.


The health benefits division of SEB operates as a Third Party Administrator
("TPA") and technology provider supporting unique benefit solutions. The
immediate opportunity for SEB is to increase the capture and retention of
revenue by providing fully integrated services and solutions, currently being
outsourced by most TPAs and Insurers to third parties.


SEB's Growth Strategy based on acquisitions and organic initiatives

Through acquisitions, SEB is acquiring the client relationships and vendor
status to support a complementary organic growth model with both employers and
government business opportunities. On the employee group benefit side,
acquisitions and investments target TPAs, as well as broker and consultant
organizations that provide solutions and services to employers. The objective is
to secure the client relationships and transition many of the front and
back-office business processes to the SEB technology environment over time; in
effect, capturing revenue that was previously being outsourced. On the
government side, SEB is targeting technology companies (primarily IT) that have
established vendor relationships, security clearances and project references
that are required to bid on government outsourcing contracts.


The growth plan for 2014 is acquisition-based, complemented by organic growth
initiatives, with the objective of reaching consolidated profitability within
the fiscal year 2014 and establishing a solid base of business and clients from
which to launch stronger organic growth initiatives. From the beginning of
Fiscal 2013 until now, SEB has closed 5 acquisitions and has announced a sixth
that is expected to give the company a solid base of sustainable profitable
revenue in excess of $25 million and established offices in Toronto, Ottawa,
North Bay, UAE and India. Historically, the consolidated annual revenues for
these six acquisitions exceed $25 million. These transactions bring a solid
profitable base of business and clients, both corporate and government.


SEB developments during the quarter ending February 28, 2014



--  December 2, 2013 SEB closed the acquisition of a 50% interest in the
    Inforica Group of Companies through its wholly owned subsidiary, Logitek
    Technology Ltd. 
    
--  February 12, 2014 SEB closed a $2,000,000 convertible note offering. 



SEB developments subsequent to February 28, 2014



--  March 14, 2013 SEB closed the acquisition of Adeeva Nutritionals Canada
    Inc. and the Wellness assets and business of Dr. James Meschino Health
    and Wellness. 
    
--  March 18, 2014, SEB's wholly-owned subsidiary, Somos Consulting Group
    Ltd., closed the acquisition of Antian Professional Services Inc. 



Financial Results for the quarter ended February 28, 2014

For the quarter ending February 28, 2014, SEB recorded a loss of $1,092,950
which included non-cash costs of $312,743, made up of accretion of interest of
$90,431 related to SEB's Convertible Financings, amortization of $197,084 and
depreciation of $25,228. The loss before interest, non-cash items and the
minority interest in the earnings of Inforica was $644,573.


Revenue for the quarter was $4,257,290 compared to $343,141 in the comparable
period ending February 28, 2013. The increase in revenue was due to the
inclusion of the all the revenues of Logitek Technology Ltd. (compared to one
month in the comparable quarter), and all of the revenues of Somos Consulting
Group Ltd. and the Inforica group. The Compensation portion of Cost of revenues
primarily reflects the cost of contractors of Logitek, SOMOS and Inforica placed
with clients during the period subsequent to acquisition, and not present in the
previous comparable quarter, resulting in the large increase. Of the other
operations costs, the largest was salaries and other compensation costs of
$844,577 (a portion of which was related to software development and
maintenance); the next was professional fees of $175,595, of which $49,226 was
related to the one-time costs of closing of the Inforica acquisition as well as
some audit and valuation costs.


The major sources of cash during the quarter were proceeds (net of closing
costs) from the convertible financing of $1,751,809 and $254,800 from the
exercise of warrants.


The unaudited condensed interim consolidated financial statements and related
MD&A for the period ended February 28, 2014, can be found on SEDAR at
www.sedar.com under the profile of Smart Employee Benefits.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Smart Employee Benefits Inc.
John McKimm
President/Chief Executive Officer
(416) 460-2817
john.mckimm@seb-inc.com


Smart Employee Benefits Inc.
Shelly Frank
Vice-President, Marketing
(888) 939-8885 x 358
shelly.frank@seb-inc.com


First Canadian Capital Corp.
Dan Boase
416-742-5600 or 1-866-580-8891
dboase@firstcanadiancapital.com


First Canadian Capital Corp.
Eric Balog
416-742-5600 or 1-866-580-8891
ebalog@firstcanadiancapital.com

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