HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 29, 2012) -

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 Systems Corp. (NEX:AIQ.H), a globally recognized training integrator in the military and commercial aviation markets, today announced its unaudited interim financial and operating results for the third quarter ended September 30, 2012. Full results are available on www.sedar.com.

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

Atlantis assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or 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.

Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Operations and Comprehensive Income (Loss)
For the three and nine months ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars except per share amounts)
(Unaudited)
					For the three months							For the nine months
					ended September 30							ended September 30
					2012			2011				2012			2011
Revenue				$	2,470		$	2,843			$	8,771		$	11,578
Cost of revenue					1,660			2,159				5,466			8,480
Gross margin					810			684				3,305			3,098
Other income (Note 15)					479			128				1,077			871
Expenses
	General and administrative				942			1,000				2,968			2,749
	Selling and marketing				73			110				284			477
	Restructuring costs				19			-				70			-
					1,034			1,110				3,322			3,226
Operating income (loss)					255			(298	)			1,060			743
Depreciation and amortization					40			47				127			151
Interest and financing costs, Net (Note 5)					418			620				1,195			1,363
Accretion expense					18			-				53			-
Expiration of warrants					(27	)		-				(27	)		-
Foreign currency (gain) loss					(403	)		894				(327	)		673
Write down of investments					-			-				-			6
(Gain) loss on disposal of capital assets					-			-				(7	)		6
Net and comprehensive (loss) income				$	209		$	(1,859	)		$	46		$	(1,456	)
Earnings (loss) per share (Note 10)
			Basic	$	0.02		$	(0.18	)		$	0.004		$	(0.14	)
			Diluted	$	0.02		$	(0.18	)		$	0.004		$	(0.14	)
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 September 30, 2012 and December 31, 2011
(Expressed in thousands of Canadian dollars)
(Unaudited)
		September 30				December 31
			2012			2011
ASSETS
Current Assets
	Cash and cash equivalents	$	169		$	1,610
	Note receivable (Note 7)		-			100
	Trade and other receivables (Note 6)		2,417			2,624
	Unbilled revenue		2,812			2,736
	Prepaid expenses		88			299
			5,486			7,369
Capital assets, net (Note 8)			406			521
Long-term prepaid expenses			1			1
Other long term assets			65			67
			472			589
		$	5,958		$	7,958
LIABILITIES
Current Liabilities
	Accounts payable and accrued liabilities	$	1,233		$	2,396
	Deferred revenue		245			1,420
			1,478			3,816
Term note (Note 9)			6,427			6,648
Convertible note (Note 9)			6,446			5,897
Derivative liability (Note 9)			545			554
			13,418			13,099
			14,896			16,915
SHAREHOLDERS' DEFICIENCY
	Share capital and warrants (Note 10)		92,810			92,837
	Share-based payments reserve		9,338			9,338
	Deficit		(111,086	)		(111,132	)
			(8,938	)		(8,957	)
		$	5,958		$	7,958
Going concern (Note 1); Commitments (Note 12)
The accompanying notes are an integral part of the consolidated financial statements
Approved on behalf of the Board of Directors:
signed David Williams, Director		signed Ken Howard, Director

Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Changes in Shareholder's Deficiency For the nine months ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars except number of shares)
(Unaudited)
	Number							Share-based				Total
	of	Common						Payments	Accumulated			Shareholders'
	Shares	Stock		Warrants				Reserve	deficit			deficiency
Balance January 1, 2011	10,233,683	$	92,810	$	27		$	9,338	$	(108,467	)	$	(6,292	)
Comprehensive loss	-		-		-			-		(1,456	)		(1,456	)
Balance September 30, 2011	10,233,683	$	92,810	$	27		$	9,338	$	(109,923	)	$	(7,748	)
Comprehensive loss	-		-		-			-		(1,209	)		(1,209	)
Balance December 31, 2011	10,233,683	$	92,810	$	27		$	9,338	$	(111,132	)	$	(8,957	)
Comprehensive gain	-		-		-			-		46			46
Warrants expired	-		-		(27	)		-		-			(27	)
Balance September 30, 2012	10,233,683	$	92,810	$	-		$	9,338	$	(111,086	)	$	(8,938	)

Atlantis Systems Corp.
Condensed Consolidated Interim Statements of Cash Flows
For the nine months ended September 30, 2012 and 2011
(Expressed in thousands of Canadian dollars)
(Unaudited)
		For the nine months
		ended September 30
		2012				2011
Cash flows provided by (used in):
Operating activities:
Net (Loss) income		$	46		$	(1,456	)
Items not affecting cash:
	Depreciation and amortization		127			151
	(Gain) loss on disposal of capital assets		(7	)		6
	Write down of investments		-			6
	Foreign currency loss (gain)		(327	)		-
	Finance costs		1,195			1,363
	Accretion on term debt		53			-
	Expiration of warrants		(27	)		-
Long-term prepaid expense			-			(150	)
Other long-term assets			2			6
			1,062			(74	)
Net change in non-cash working capital (Note 13)			(1,896	)		(3,032	)
Net cash used in operations			(834	)		(3,106	)
	Interest paid		(595	)		(1,642	)
Net cash used in operating activities			(1,429	)		(4,748	)
Investing activities:
Investment in capital assets			(12	)		(83	)
Net cash used in investing activities			(12	)		(83	)
Financing activities:
Term debt proceeds/(repayment) net			-			(996	)
Net change to operating line of credit			-			6,186
Net cash provided by financing activities			-			5,190
Net cash provided by foreign exchange gain (loss) on term debt			-			4
Net Increase (decrease) in cash			(1,441	)		363
Cash beginning of period			1,610			1,110
Cash, end of period		$	169		$	1,473