HALIFAX, NOVA SCOTIA--(Marketwire - Aug. 29, 2012) - Atlantis Systems Corp. (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its unaudited financial and operating results for the second quarter ended June 30, 2012. Full results are available on www.sedar.com.

The financial statements have not been reviewed by an auditor. The unaudited condensed interim financial statements of Atlantis Systems Corp. have been prepared by and are the responsibility of management acting on behalf of Atlantis Systems Corp. The Company's independent auditors, Deloitte & Touche LLP have not performed a review of these condensed interim consolidated financial statements in accordance with standards established by the Canadian Institute of Chartered Accountants for a review of condensed consolidated interim financial statements by an entity's auditor.

About Atlantis Systems Corp.

Atlantis Systems (NEX:AIQ.H) uses its core capabilities in simulation-aided design and engineering and e-learning, combined with various technology tools, to help customers in military and commercial markets to ensure the feasibility, capability, and effective utilization of their complex assets. In more than 30 years of operation, Atlantis has developed a solid reputation for its creative workforce and innovative solutions in supporting global OEM customers and defence organizations. To learn more, please visit the Company's web site at www.atlantissc.com.

Forward-Looking Statements

This news release may contain forward-looking statements. Reference should be made to "Forward-looking Statements" at the end of this news release. All amounts are stated in Canadian dollars except where otherwise noted.

Atlantis assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or for any other reason. Additional information regarding risks and uncertainties that could affect Atlantis' business is contained in the Business Risk Factors section of Atlantis's Annual MD&A available on SEDAR at www.sedar.com.

Approved on behalf of the Board of Directors:

David Williams, Director

Ken Howard, Director

ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Operations
and Comprehensive Income (Loss)
For the three and six months ended June 30, 2012 and 2011
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
			For the three months						For the six months
			ended June 30						ended June 30
			2012			2011			2012			2011
Revenue			$	3,287		$	4,014		$	6,301		$	8,735
Cost of revenue				1,926			2,826			3,806			6,321
Gross margin				1,361			1,188			2,495			2,414
Other income (Note 15)				478			743			598			743
Expenses
	General and administrative			1,017			1,020			2,026			1,694
	Selling and marketing			101			213			212			367
	Restructuring costs			26			-			51			55
				1,144			1,233			2,289			2,116
Operating income				695			698			804			1,041
	Depreciation and amortization			39			63			79			104
	Finance costs (Note 5)			401			436			777			743
	Accretion expense			18			-			35			-
	Foreign currency loss (gain)			263			(26	)		85			(221	)
	Write down of investments			-			6			-			6
	(Gain) loss on disposal of capital assets			(7	)		-			(7	)		6
Net and comprehensive (loss) income			$	(19	)	$	219		$	(165	)	$	403
Loss (earnings) per share (Note 10)
		Basic	$	(0.002	)	$	0.02		$	(0.02	)	$	0.04
		Diluted	$	(0.002	)	$	0.02		$	(0.02	)	$	0.04
Weighted average number of shares:
		Basic		10,233,683			10,233,683			10,233,683			10,233,683
		Diluted		10,233,683			10,258,683			10,233,683			10,258,683
The accompanying notes are an integral part of these consolidated financial statements.

ATLANTIS SYSTEMS CORP. Condensed Consolidated Interim Statements of Financial Position As at June 30, 2012 and December 31, 2011
(Expressed in thousands of Canadian dollars)
(Unaudited)
			June 30				December 31
			2012				2011
ASSETS
Current assets
	Cash and cash equivalents		$	598			$	1,610
	Note receivable (Note 7)			-				100
	Trade and other receivables (Note 6)			2,064				2,624
	Unbilled revenue			1,172				2,736
	Inventory			12				-
	Prepaid expenses			99				299
				3,945				7,369
Long-term unbilled revenue				1,668				-
Capital assets, net (Note 8)				442				521
Long-term prepaid expenses				1				1
Other long-term assets				65				67
				2,176				589
			$	6,121			$	7,958
LIABILITIES
Current liabilities
	Accounts payable and accrued liabilities		$	1,066			$	2,396
	Deferred revenue			533				1,420
				1,599				3,816
Term note (Note 9)				6,655				6,648
Convertible note (Note 9)				6,452				5,897
Derivative liability (Note 9)				564				554
				13,671				13,099
				15,270				16,915
SHAREHOLDERS' DEFICIENCY
	Share capital and warrants (Note 10)			92,810				92,837
	Share-based payments reserve			9,338				9,338
	Deficit			(111,297	)			(111,132	)
				(9,149	)			(8,957	)
			$	6,121			$	7,958
Going concern (Note 1); Commitments (Note 12)
The accompanying notes are an integral part of these consolidated financial statements.

ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Changes in Shareholders' Deficiency
For the six months ended June 30, 2012 and 2011
(Expressed in thousands of Canadian dollars, except number of shares)
(Unaudited)
	Number of shares	Common stock		Warrants			Share- based payments reserve		Accumulated deficit			Total shareholders' deficiency
Balance, January 1, 2011	10,233,683	$	92,810	$	27		$	9,338	$	(108,467	)	$	(6,292	)
Comprehensive income	-		-		-			-		403			403
Balance, June 30, 2011	10,233,683		92,810		27			9,338		(108,064	)		(5,889	)
Comprehensive loss	-		-		-			-		(3,068	)		(3,068	)
Warrants exercised	-		-		-			-		-			-
Granted - term debt conversion	-		-		-			-		-			-
Share-based payments reserve	-		-		-			-		-			-
Balance, December 31, 2011	10,233,683		92,810		27			9,338		(111,132	)	$	(8,957	)
Comprehensive loss	-		-		-			-		(165	)		(165	)
Warrants expired	-		-		(27	)		-		-			(27	)
Balance, June 30, 2012	10,233,683	$	92,810	$	-		$	9,338	$	(111,297	)	$	(9,149	)
The accompanying notes are an integral part of these consolidated financial statements.

ATLANTIS SYSTEMS CORP.
Condensed Consolidated Interim Statements of Cash Flows
For the six months ended June 30, 2012 and 2011
(Expressed in thousands of Canadian dollars)
(Unaudited)
			For the six months
			ended June 30
			2012				2011
Cash flows provided by (used in):
Operating activities:
Net (loss) income			$	(165	)		$	403
Items not affecting cash:
	Depreciation and amortization			79				104
	(Gain) loss on disposal of capital assets			-				6
	Write down of investments			-				6
	Foreign currency loss (gain)			33				(221	)
	Finance costs			777				743
	Accretion on term debt			35				-
	Expiration of warrants			(27	)			-
Long-term unbilled receivables				(1,668	)			-
Long-term prepaid expense				-				2
Other long-term assets				2				6
Net change in non-cash working capital (Note 13)				195				(3,541	)
Interest paid				(273	)			(935	)
Net cash (used) in operating activities				(1,012	)			(3,427	)
Investing activities:
Investment in capital assets				-				(77	)
Net cash (used) in investing activities				-				(77	)
Financing activities:
Bridge loan proceeds, net				-				(996	)
Operating line proceeds				-				3,776
Net cash provided by financing activities				-				2,780
Net (decrease) increase in cash and cash equivalents				(1,012	)			(724	)
Cash and cash equivalents, beginning of period				1,610				1,110
Cash and cash equivalents, end of period			$	598			$	386
The accompanying notes are an integral part of these consolidated financial statements.