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Kelman Technologies Inc. (KTI:CA) News

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 August 19, 2009 - 6:31 PM EDT
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Kelman Announces Q2 and First Half 2009 Operating Results
Kelman Announces Q2 and First Half 2009 Operating Results
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                                            Three Months Ended
-------------------------------------------------------------------------
                                     June 30,      June 30,
                                        2009          2008        Change
-------------------------------------------------------------------------
Operating revenue               $  5,387,997  $  6,328,323  $   (940,326)
Operating expenses              $  6,607,568  $  6,094,221  $   (513,347)
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EBITDA(1)                       $ (1,219,571) $    234,102  $ (1,453,673)
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Net loss                        $ (2,608,456) $   (845,379) $ (1,763,077)
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Per share loss
  (basic and diluted)           $      (0.06) $      (0.02) $      (0.04)
-------------------------------------------------------------------------
-------------------------------------------------------------------------


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                                             Six Months Ended
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                                     June 30,      June 30,
                                        2009          2008        Change
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Operating revenue               $ 12,313,965  $ 12,918,279  $   (604,314)
Operating expenses              $ 13,721,244  $ 11,979,522  $ (1,741,722)
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EBITDA(1)                       $ (1,407,279) $    938,757  $ (2,346,036)
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Net loss                        $ (3,631,130) $   (878,121) $ (2,753,009)
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Per share loss
  (basic and diluted)           $      (0.09) $      (0.02) $      (0.07)
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CALGARY, Aug. 19 /CNW/ - Kelman Technologies Inc ("Kelman") (TSXV: KTI) today announced a loss of $2.6 million, $0.06 per share, for Q2 2009. For the first half of 2009 the loss was $3.6 million, $0.09 per share. Capital expenditures during the first half of 2009 were $345 thousand, down 77 percent compared to the first half of 2008. The Company ended the quarter with working capital of $6.3 million, an increase of 18 percent from the year ended December 31, 2008.

In commenting on the results Rene VandenBrand, President and CEO of Kelman said, "All of the markets that we serve in seismic data processing have been significantly impacted by the reduction in exploration activities. We are seeing the impact both in terms of a reduction in activity and a reduction in pricing. Combined, this is creating a financial challenge for Kelman. We are responding through a variety of cost cutting initiatives, layoffs, and reduced work weeks. However, Kelman cannot return to profitability in the seismic data processing business until activity levels significantly improve."

Kelman Technologies Inc. is a publicly traded Canadian company listed on the TSX Venture Exchange under the trading symbol "KTI". With offices in Calgary and Toronto, Canada, Denver, Houston, and Oklahoma City, United States, and Tripoli, Libya, Kelman services oil and gas exploration companies with a full suite of seismic processing and on-line data management and data archival services.

To the extent this press release includes forecasts or forward looking statements about future performance of the company such forecasts or statements are believed to be reasonable by the company but are based upon assumptions in respect of commodity pricing and oil and gas exploration activity. Although Kelman believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this press release are made as of the date hereof, and Kelman undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

Neither 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.



KELMAN TECHNOLOGIES INC.
Consolidated Balance Sheets
(Unaudited)

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                                                   June 30,  December 31,
                                                      2009          2008
-------------------------------------------------------------------------

Assets

Current assets:
  Cash                                        $  1,351,191  $  2,563,311
  Accounts receivable                            5,390,140     6,586,727
  Work in progress                               2,148,961     2,665,747
  Prepaid expenses and deposits                    557,998       525,844
  -----------------------------------------------------------------------
                                                 9,448,290    12,341,629

Property and equipment                           5,406,456     6,786,271

Other assets                                         2,847         5,694
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                                              $ 14,857,593  $ 19,133,594
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities:
  Demand loan                                 $    500,000  $          -
  Accounts payable and accrued liabilities       2,070,846     3,130,522
  Current portion of capital leases                253,442       263,609
  Preferred shares                                 339,347     3,622,520
  -----------------------------------------------------------------------
                                                 3,163,635     7,016,651

Long-term debt                                   5,362,171     1,863,311

Preferred shares                                         -       938,252

Shareholders' equity:
  Share capital                                 13,125,325    13,125,325
  Equity component of preferred shares              59,810       812,706
  Warrants                                         849,740       204,740
  Contributed surplus                            1,729,239       973,806
  Deficit                                       (9,432,327)   (5,801,197)
  -----------------------------------------------------------------------
                                                 6,331,787     9,315,380

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                                              $ 14,857,593  $ 19,133,594
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KELMAN TECHNOLOGIES INC.
Consolidated Statements of Operations, Comprehensive Loss and Deficit
(Unaudited)

-------------------------------------------------------------------------
                          Three Months Ended            Six Months Ended
                       June 30,      June 30,      June 30,      June 30,
                          2009          2008          2009          2008
-------------------------------------------------------------------------

Revenue           $  5,387,997  $  6,328,323  $ 12,313,965  $ 12,918,279

Expenses:
  Operating          6,607,568     6,094,221    13,721,244    11,979,522
  Depreciation and
   amortization        809,813       850,797     1,671,720     1,677,961
  Interest             309,363       169,681       520,501       295,322
  Interest income          (36)          (17)         (741)       (3,205)
  Foreign exchange
   loss (gain)         269,745        59,020        32,371      (153,200)
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                     7,996,453     7,173,702    15,945,095    13,796,400

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Net loss and
 comprehensive
 loss               (2,608,456)     (845,379)   (3,631,130)     (878,121)

Deficit, beginning
 of period        $ (6,823,871) $ (5,805,669) $ (5,801,197) $ (5,772,927)
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Deficit, end of
 period           $ (9,432,327) $ (6,651,048) $ (9,432,327) $ (6,651,048)
-------------------------------------------------------------------------
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Loss per share,
 basic and
 diluted          $      (0.06) $      (0.02) $      (0.09) $      (0.02)
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KELMAN TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(Unaudited)

-------------------------------------------------------------------------
                          Three Months Ended            Six Months Ended
                       June 30,      June 30,      June 30,      June 30,
                          2009          2008          2009          2008
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Cash provided by (used in):

Operations:
  Net loss from
   operations     $ (2,608,456) $   (845,379) $ (3,631,130) $   (878,121)
  Items not
   involving cash:
    Depreciation
     and
     amortization      809,813       850,797     1,671,720     1,677,961
    Accretion of
     preferred
     shares            162,473        44,355       210,734        54,590
    Loss on
     disposal of
     property and
     equipment          53,580             -        53,580             -
    Accretion of
     debenture          16,167             -        32,004             -
    Amortization
     of other
     assets              1,424         1,424         2,847         2,847
    Stock-based
     compensation
     expense             1,269        13,533         2,538        27,066
    Lease
     inducement
     benefit            (7,837)       (7,837)      (15,673)      (15,673)
    Foreign
     exchange
     loss (gain)       269,745        59,020        32,371      (153,200)
  -----------------------------------------------------------------------
                    (1,301,822)      115,913    (1,641,009)      715,470
  Change in
   non-cash working
   capital items
   related to
   operations          633,267     1,141,497       677,406       704,537
  -----------------------------------------------------------------------
                      (668,555)    1,257,410      (963,603)    1,420,007
Financing:
  Advances on
   long-term debt            -     1,850,000             -     1,850,000
  Increase
   (decrease) in
   demand loan         500,000      (487,500)      500,000      (487,500)
  Change in
   non-cash working
   capital items       162,250             -       291,498             -
  Repayment of
   capital leases      (65,248)      (60,361)     (129,238)     (119,558)
  Financing charges   (165,791)            -      (357,935)            -
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                       431,211     1,302,139       304,325     1,242,942
Investing:
  Expenditures on
   property and
   equipment           (78,675)     (527,619)     (345,485)   (1,533,260)
  Change in
   non-cash working
   capital items      (126,058)     (356,378)     (111,143)     (100,478)
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                      (204,733)     (883,997)     (456,628)   (1,633,738)
Foreign exchange
 gain (loss) on
 cash held in
 foreign currency     (160,748)       10,300       (96,214)       42,164
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(Decrease) increase
 in cash              (602,825)    1,685,852    (1,212,120)    1,071,375

Cash, beginning of
 period              1,954,016     1,048,475     2,563,311     1,662,952

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Cash, end of
 period           $  1,351,191  $  2,734,327  $  1,351,191  $  2,734,327
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Supplemental
 information:
  Interest paid   $    129,301  $    203,142  $    261,940  $    237,885
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Source: Canada Newswire (August 19, 2009 - 6:31 PM EDT)