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Stockgroup Reports 14th Consecutive Quarter of Revenue Growth

Stockgroup Information Systems Inc. (OTCBB: SWEB, TSX-V: SWB) today announced the financial results for its second quarter ended June 30, 2006. A conference call and webcast will be held today at 4:05 PM EST to discuss the results. All results are reported in US Dollars (US) under accounting principles generally accepted in the United States of America (US GAAP).

Stockgroup™ reported Q2 revenue of $1,780,650, a 20% increase in revenue over Q2 2005 – its 14th consecutive quarter of revenue growth. It posted a loss of $518,730, due primarily to continuing investment in product development, marketing and sales infrastructure.

Q206 Financial Highlights Compared to Q2F05:

- Increased revenue 20% to $1,780,650
- Advertising services revenue increased 26% to $952,854
- Ended the quarter with $2.2 million in cash
- Produced positive operating cash flow of $113,126

“In Q2, Stockgroup continued its focus on growing its sales and marketing infrastructure and building innovative products,” stated Marcus New, President and CEO of Stockgroup. “Although the Company reported a loss this quarter, cash flow from operations was positive and year-over-year revenue growth remains strong at 20%. This is an investment year for Stockgroup and we remain optimistic that our progress to date will position us for success in the future. We anticipate traction over the next two quarters on the investments we’re making in our product
development, marketing and sales strategies.”

The following is Mr. New’s report on Stockgroup’s progress towards its 2006 goals:
Growing Sales Infrastructure: New VP Sales To monetize the Company’s growth strategies, Stockgroup is bolstering its sales infrastructure. On June 1st, Stockgroup welcomed Michael Donnelly as the new VP Sales responsible for providing strategic direction for all sales and business development activities in licensing and advertising. Mr. Donnelly has over 15 years of experience in business and financial information publishing and electronic media. Mr. Donnelly has served as Executive VP of Licensing Sales for MarketWatch, Executive VP for Pinnacor, and VP, National Account Sales and Eastern Regional Sales Manager for Reuters. Pinnacor under Mr. Donnelly achieved over $34 million in annual revenues. In 2004, he played an integral role in the $103 million merger between Pinnacor and MarketWatch. In addition to senior level experience in our specific marketplace, Mr. Donnelly brings an established network of relationships in the financial services sector that will facilitate new opportunities for Stockgroup.