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SEB Closes Inforica Investment

TORONTO, ONTARIO -- (Marketwired) -- 12/02/13 -- Smart Employee Benefits Inc. ("SEB") (TSX VENTURE: SEB), is pleased to announce it has acquired 50% of Inforica Inc. through a share subscription made by SEB's wholly owned subsidiary, Logitek Technology Ltd.

Stated John McKimm, CEO of SEB, "We are pleased to close the Inforica transaction. We have worked closely with Inforica since originally announcing the transaction in March, 2013. We made our original investment in the form of a working capital loan shortly after the March, 2013 announcement. Closing this investment is simply converting a portion of the loan to equity in return for a 50% equity stake in the business. Since making our announcement in March, 2013, Inforica has added over $2.5 million of new annuity business and created a backlog of over $4.0 million, deliverable over the next 12 months. SEB's intention is to acquire the remaining 50% equity interest within the next 36 months. Our relationship with Inforica has already increased the opportunities available to Logitek Technology Ltd. and to the Somos Group, and other SEB companies focused on providing services to both corporate and government clients. The synergies provided by the joining together of these organizations are significant in developing new business opportunities and helping SEB be a stronger technology player in the health care industry."

About Inforica: Inforica Inc. is a Mississauga, Ontario based company that has been in operation for over a decade. Sales have historically fluctuated between $2.5 million and $5.0 million annually. The key features of Inforica which have value for SEB are as follows:


1.  Client Relationships: strong client relationships with Tier 1 businesses
    which provide significant opportunities for other business initiatives.
2.  Software Vendor Partnerships that include valuable reseller, ISV,
    Systems Integrator partnerships that have been put in place and
    developed for the past decade which can be leveraged by SEB Group
    companies. Key partnerships include:
    --  Microsoft: Inforica has a strong partnership with Microsoft that has
        grown over the past few years and covers the following Microsoft
        Gold & Silver Competencies - Business Intelligence, Customer
        Relationship Management, Application Development, Office 365 and
        Data Platform. Inforica also has an ISV Royalty agreement in place
        with Microsoft.
    --  Interactive Intelligence: a Global provider of contact center
        automation, unified communications, and business process automation
        software and services for mid-size to large organizations.
    --  TimeXtender: a Global provider of metadata driven and agile Data
        Warehousing and ETL software dedicated to the Microsoft SQL
        platform.
    --  PNMSoft: provides Business Process Management Software solutions to
        businesses and organizations worldwide.
3.  PeopleSoft Expertise: PeopleSoft is one of the Human Resource ERP
    solutions most used by large companies, particularly in the Hospital
    sector. This expertise is a significant competitive advantage for SEB's
    health care practice, particularly in managing the transition of HR data
    from PeopleSoft to SEB's health benefits processing technology
    environment. Typically, HR data migration costs can be a deterrent for
    large companies and organizations when they are making decisions with
    respect to moving their employee benefit environments. The Inforica
    expertise has allowed SEB the ability to create the interface with
    PeopleSoft and manage it seamlessly in a very cost effective and timely
    fashion without cost to the client.
4.  Energy Management Software and Business Process Solutions that help
    companies measure, analyze, manage and save on their energy consumption
    and costs. This comes with key client relationships, and is a strong
    strategic fit with Logitek Technology Ltd.'s supply chain platform.
5.  India development office (approximately 45 employees) with significant
    ability to scale and provide various services including software
    development and support, business process outsourcing, call center &
    telemarketing services. This office is a significant asset in helping
    manage SEB's initiatives in the UAE.
6.  UAE (United Arab Emirates) Presence: Inforica has two offices in the
    Middle East, one in Dubai and the other in Ras Al Khaimah. Additionally,
    Inforica management have extensive business relationships in this
    region. There are many opportunities for implementing the SEB health
    benefits technology environment in the UAE. Employee Health Benefits is
    a mandatory pre requisite for all employees in the region. The largest
    implementation of the SEB adjudication technology is Oman Insurance in
    Dubai. Currently, SEB opportunities in the UAE include hospital
    applications both for their employees and for managing the relationships
    with insurers, a large travel insurance administration and claims
    processing opportunity, and a project to create a TPA environment with
    the SEB technology platform as the backbone for managing health
    insurance programs for students in various UAE countries who study
    abroad in Canada and the US. Discussions have been initiated on all
    fronts. SEB's experience in the area, in conjunction with the Inforica
    experience and relationships, positions SEB well to develop a material
    presence in this region.
7.  References for RFP submissions: Inforica has many key references which
    allows other SEB companies to qualify for more bidding categories with
    corporate, federal and provincial government opportunities. Inforica has
    more than a decade of delivering successful projects which are excellent
    references in responding to RFP business opportunities.

About SEB: SEB is a technology company providing software, solutions and services specializing in managing group benefit solutions and healthcare claims processing environments for corporate and government clients, both in Canada and internationally. Health Claims Processing in Canada alone is a $56.0 billion industry, of which over $33.0 billion is employee group benefit plans and over $23.0 billion of other healthcare benefit claims (e. g. workers' compensation claims, travel benefits, various federal and provincial government programs, dental associations, drug associations, etc.). In the employee group benefits industry, SEB provides Third Party Administrator ("TPA") services and Insurance Brokerage services utilizing its software platform to provide "totally hosted PCI compliant supply chain solutions" for managing the complete group benefits business processes between insurers, clients, brokers, consultants, technology service providers and healthcare service providers. In healthcare claims processing, SEB also operates as a systems integrator utilizing its technology platform together with other technologies to provide customized, fully integrated solutions for specialized environments (e.g. travel claims, student benefits, hospitals, unique government applications, etc.). The technology and expertise deployed in this area also allows SEB to provide other related supply chain, systems integration and human resource solutions and services to the same clients.

For further information about SEB, please visit www.seb-inc.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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