DEQ announces its financial results for the third quarter

Third quarter highlights include the strategic alliance with Shuffle Master, G3 System approval in Macao, installation of our Baccarat tracking system at Barona Casino in California as well as a cash inflows of more than us$ 6 million from operations and warrants exercised during the quarter.

“The third quarter marks the start of a new chapter in the history of DEQ”, stated Earle G. Hall, President & CEO of DEQ. “Our business model is based on providing tailored solutions to the four table game segments (specialty poker, blackjack, Baccarat and poker rooms). During the third quarter, we have completed the initial phase of our business plan, that of converting competitors to partners and clients to create solid distribution channels. We are now very fortunate and proud to have such partners as Shuffle Master and clients as Harrah's, Station Casinos and Barona. We have migrated our business model from a manufacturing sales company to an intellectual property recurring revenue company”.

“In 2007, we have put in place our revenue growth model with a stabilized cost base. During the third quarter, DEQ has started integrate its first product line for specialty poker in the United States through its partners which is significant step for the Company. Our focus is now on segment tailored solutions for specialty poker, blackjack and Baccarat in specific target markets such as the USA and Macau with our partners. As well, it is important to note that we are quite proud to have been recognized amongst the Top 10 Technology listed companies on the TSX Venture Exchange.”

“DEQ's financial strength has improved dramatically over the last couple months with the cash inflow of more than 6 million dollars with the exercising of warrants as well as the growth in our operating cash flows. Also, in the last quarter, we have implemented a cross currency interest rate swap that will stabilise a portion of our foreign exchange loss (gain) in our results due to material variation of the exchange rate with the US dollar,” stated François Proulx, CFO of DEQ. “Our business plan is focusing on revenue growth with stabilized costs which we have achieved in the last nine months and we keep our focus on recurring revenue growth.”

Earle G. Hall, President and CEO and Francois Proulx, CFO of DEQ, hosted a conference call last Friday, to present the company's 2007 Third Quarter Results.

Third Quarter Highlights include: Shuffle Master became the provider of the G3 system for its suite of more than 4500 table game and electronic game products. This system was approved in Macau by Gaming Laboratories International

Besides, TSX Venture 50 recognized DEQ as one of the 10 Best Venture Companies in the Technology Sector in 2007 and finally, since May 31, 2007, a total of 10,318,000 warrants have been exercised at us$ 0.60 for a gross proceeds of us$ 6,190,800.