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Stockgroup Achieves Record High Quarterly Revenue

Reporting 13th Consecutive Quarter of Revenue Growth

Stockgroup Information Systems Inc. (OTCBB: SWEB, TSX-V: SWB) announced today the financial results for its record high quarter ended March 31st. A conference call and webcast will be held today at 4:05 PM EST to discuss the results.

Stockgroup™ reported Q1 revenue of US$1,804,438, a 24% increase in revenue over Q1 2005 and its 13th consecutive quarter of revenue growth. It posted a loss of US$114,937, primarily due to investment in product development, the expensing of stock options, and an increase in cost for market data feeds.

Q1 Financial Highlights (all USD) Compared to Q1F05:

- Increased revenue 24% to $1,804,438
- Cash flow from operations positive at $108,507
- Financial Software and Content Division revenue increased by 41%

Marcus New, President and Chief Executive Officer, stated, “The year started strongly for Stockgroup with another record quarter, our 13th quarter of revenue growth. In addition, we made good progress towards our 2006 goals. We focused on building the StockHouse® brand in North America and developing products to generate revenue through StockHouse and as a licensed product for financial institutions.” Mr. New continued, “At Stockgroup, we have a unique ability to leverage the synergy that exists between our expertise on collaboration and social networks gained from StockHouse and our expertise on portfolio management and analytics tools for financial institutions. The popularity of social networks is phenomenal, and StockHouse is an established leader in bringing social networks to the investment community. We are capitalizing on this opportunity to introduce
products that will enable advisors at financial institutions to communicate and interact with their clients in a way that was not previously possible. Stockgroup continues to lead the financial media and investment community on how people will manage their investments into the future.”

Progress Towards 2006 Goals

The following highlights Q1 progress towards the 2006 Goals outlined in the Company’s March 20, 2006 press release:

1. Focus on building the StockHouse brand in its existing community of users and extending this brand throughout North America to capture a larger segment of the online advertising market.
- Initiated a trade marketing campaign for Q2 to raise awareness of the StockHouse media property on trade
advertising websites.
- Launched a custom content and special report sponsorship program for advertisers on StockHouse.

2. Take Stockgroup’s core strengths in collaboration technologies, portfolio management tools and analytics, and the enablement of social networks to the professional portfolio solutions market, where Stockgroup can participate in a $2.06 billion market opportunity.

- Launched the full commercial version of the new web browser-based portfolio management application with streaming real-time market data, branded StockStream™. StockStream is a pivotal product for Stockgroup because of its unique combination of advanced portfolio management and analytics, collaboration and social networking features. StockStream is the only portfolio management application that gives retail investors access to breaking news, research, established social networks, blogs and real-time market data. For financial institutions, namely brokerages, StockStream is a collaborative portfolio management product that will strengthen the advisor-client relationship by providing the advisor with advanced tracking and reporting, a view of the client’s complete asset mix – including assets held at other institutions, and enhanced communication capabilities.

3. Reinvest profits into product development and marketing to increase Stockgroup’s position in its selected North American markets. This includes expanding the community aspect of StockHouse and integrating collaboration technologies into the Company’s portfolio management and desktop applications to enhance Stockgroup’s leadership position in the North American media and software markets.

- Actively promoted StockStream to the StockHouse online member community.
- Developed an online ad campaign for StockStream on websites such as Sympatico/MSN, Yahoo!Finance, and to launch in Q2.
- Introduced new lower and highly competitive pricing structure for StockStream, positioning the product as having more features and better value, resulting in a significant increase in retail subscriptions and interest from financial institutions.
- Launched a StockStream email and telemarketing campaign to Canadian financial institutions. A U.S. version of the campaign will be launched in Q2.

High Growth Business Executive Joins as Chief Financial Officer In Q1, Stockgroup continued to build its management team with the successful addition of Ms. Susan Lovell as Chief Financial Officer. Ms. Lovell brings senior management experience in finance, accounting, financial planning, and analysis with highly successful high-tech companies. Formerly with, Crystal Decisions which was acquired by Business Objects in 2003, Ms. Lovell contributed to 15 successive quarters of revenue growth and a 60 point increase in operating margins. Crystal Decisions had revenues over US$300 million prior to being acquired. Her experience complements the management team’s experience in highgrowth companies.