Pason Reports Third Quarter 2012 Results

CALGARY, Nov. 6, 2012 /CNW/ - Pason Systems Inc. (TSX: PSI) announced today 
its 2012 third quarter results. 
Performance Data 


                       Three Months Ended   Nine Months Ended September
                            September 30,                           30,
                    2012      2011 Change        2012      2011  Change

(CDN 000s,           ($)                   
except per
share data)                    ($)    (%)         ($)       ($)     (%)

Revenue           93,081    88,733      5     285,788   235,898      21

EBITDA ((1))      47,665    53,162   (10)     143,467   123,741      16

  As a % of                          (15)                           (4)
  revenue           51.2      59.9               50.2      52.5

  Per share -                        (10)                            16
  basic             0.58      0.65               1.75      1.51

  Per share -                        (10)                            16
  diluted           0.58      0.64               1.74      1.50

Funds flow                                 
from
operations (
(1))              40,831    41,270    (1)     122,670   103,269      19

  Per share -                          --                            19
  basic             0.50      0.50               1.50      1.26

  Per share -                          --                            19
  diluted           0.50      0.50               1.49      1.25

Earnings          19,342    28,547   (32)      57,287    54,521       5

  Per share -                        (31)                             4
  basic             0.24      0.35               0.70      0.67

  Per share -                        (34)                             5
  diluted           0.23      0.35               0.69      0.66

Capital           16,983                   
expenditures                19,997   (15)      56,178    56,431      --

Working          169,186                   
capital                    126,152     34     169,186   126,152      34

Total assets     480,637   435,783     10     480,637   435,783      10

Total                 --                   
long-term debt                  --     --          --        --      --

Shareholders'    402,551                   
equity                     357,964     12     402,551   357,964      12

Market         1,345,700                   
capitalization           1,090,921     23   1,345,700 1,090,921      23

Common shares                              
outstanding
(#)                                                                    

  Basic           81,985    81,900     --      81,948    81,836      --

  Diluted         82,757    82,325     --      82,500    82,487      --

Shares            82,005                   
outstanding
end of period
(#)                         81,901     --      82,005    81,901      --

(1)      EBITDA is defined as earnings before interest expense, income
         taxes, stock-based compensation, and depreciation and
         amortization expense.  2011 figures have been restated to
         exclude the add back of impairment losses in calculating
         EBITDA.
         Funds flow from operations is defined as earnings adjusted for
         depreciation and amortization expense, impairment losses,
         stock-based compensation expense, deferred income taxes and
         other non-cash items impacting operations as presented in the
         Condensed Consolidated Interim Statements of Cash Flows.
         These definitions are not recognized measures under
         International Financial Reporting Standards, and accordingly,
         may not be comparable to measures used by other companies.

President's Message

In both the United States and Canadian markets, drilling days and the active 
rig counts were lower in the third quarter of 2012 compared with the third 
quarter of the previous year, with the decline in Canadian activity 
significantly steeper than in the United States. International markets saw an 
activity increase.

Increased revenue in the International markets and a solid performance by our 
US business unit were largely offset by a revenue drop in Canada. Overall, 
revenue increased 5% in the third quarter of 2012 compared to the third 
quarter of 2011 and revenue was up 21% for the first nine months of the year. 
Revenue was up 15% in the third quarter compared to the second quarter driven 
primarily by the seasonality of Canadian drilling activity with the second 
quarter typically seeing the lowest activity levels.

As in the first and second quarters of this year, all product categories 
generated growth rates above drilling industry activity with the Software 
segment showing the highest year-over-year growth rates with 67%. The Software 
segment includes revenue generated through DataHub updates with LiveData 
(Enhanced Live Rig View), specialized software (e.g., the Directional System) 
and data delivery products (e.g., WITSML Service). 86% of US customers and 98% 
of Canadian customers using the Pason DataHub are currently subscribing to 
LiveData. This compares to 73% and 95%, respectively, for the previous year.

EBITDA dropped by 10% and funds flow from operations was down 1%. EBITDA, as a 
percentage of revenue, was 51% in the third quarter compared to 60% in the 
third quarter of the previous year, and 50% versus 53% for the first nine 
months of the year. Net earnings decreased to $19.3 million or $0.23 per share 
compared to $28.5 million or $0.35 per share in the third quarter of 2011. 
Third quarter net earnings, when compared to 2011 figures, were negatively 
impacted by a number of significant items:

A foreign exchange loss of $1.5 million compared to a foreign exchange gain of 
$6.3 million in the previous year quarter as the Canadian dollar strengthened 
against the US dollar

An increase in stock-based compensation increased by $5.1 million due to an 
increase in the Company's stock price

An increase in depreciation expense of $2.8 million due to the accelerated 
depreciation of the Company's TGAS and EDR systems

An impairment loss of $2.6 million on our US water treatment assets as we are 
shutting down operations of our fixed site water treatment plant in Colorado

On September 30, our cash position stood at $139.8 million and our working 
capital stood at $169.2 million. We are increasing our semi-annual dividend by 
9% to $0.24 per share.

United States

The US segment includes our US rental business, 3PS — our Austin-based 
equipment manufacturer — and Auxsol, the fixed-site water treatment plant in 
Colorado.

Drilling activity in the United States continued its slow downward trend. 
Industry days were down 3% in the third quarter 2012 compared to the third 
quarter of 2011, while revenue for our largest business unit was up 14% to 
$54.6 million. On average, 1,019 US land rigs were operating Pason equipment 
during the third quarter of 2012 compared to 1,070 in 2011.

Revenue growth above industry day growth was achieved with higher product 
penetration and a price increase at the beginning of 2012 resulting in a 15% 
increase of average daily revenue generated on each rig from US$480 in 2011 to 
US$554 in 2012. Software, Gas Analyzer, and Hazardous Gas Alarm System again 
achieved above-average revenue growth. Our US market share for the second 
quarter of 2012 was 55%, compared to 57% in the previous quarter and 57% in 
the previous year period.

Operating costs decreased 1% and depreciation and amortization increased by 
35%. Higher depreciation charges continue to be driven by the accelerated 
depreciation of our TGAS and EDR systems. As a result, our US business unit 
was able to generate an operating profit of $27.0 million in the third 
quarter, an increase of 21% over 2011. EBITDA, as a percentage of revenue of 
the business unit, was 65% in the third quarter of 2012 compared to 60% in 
2011.

Most analysts predict that oil and gas prices will remain subdued going into 
2013. The natural gas glut generated by unconventional plays will likely lead 
to a further reduction of gas rig counts and lower drilling activity in the 
United States, challenging our ability to significantly grow revenue in the 
short term.

Canada

Drilling activity in Canada was significantly lower in the third quarter of 
2012 than in the previous year with industry days down 26%. Our Canadian 
business unit was able to partially offset this significant reduction in 
activity levels through better pricing, new product adoption, and more 
products on each rig.

Revenue for the third quarter was down 14% to $29.0 million. On average, 299 
Canadian land rigs were operating Pason equipment compared to 423 the year 
before. Market share was 91% compared to 90% in the previous quarter and 96% 
the previous year.

Revenue growth above industry day growth was achieved with a price increase in 
October 2011 and better product penetration. The average daily revenue 
generated on each rig with a Pason product installed grew to $1,040 in the 
second quarter of 2012 from $853 in 2011. Electronic Drilling Recorder 
peripherals, especially Workstations and SideKicks recorded in this category, 
Software, and the Gas Analyzer, showed above average growth rates during the 
period.

Operating costs decreased by 17% and depreciation and amortization increased 
by 7%. As in the United States, higher depreciation charges continue to be 
driven by the accelerated depreciation of our TGAS and EDR systems. As a 
result, our Canadian business unit was able to generate an operating profit of 
$14.6 million for the quarter, compared to $18.2 million for the same period 
in 2011. EBITDA, as a percentage of revenue of the business unit, was 75% in 
2012 compared to 74% in 2011.

As drilling activity picks up going into the winter drilling season, we are 
working hard to increase our market share.

International

Our International business unit, which includes our businesses in Latin 
America, Australia, and Pason Offshore, had an excellent third quarter. 
Revenue increased 34% to $9.4 million. We realized gains in all major 
international markets with notable gains in Argentina, Brazil, Australia, and 
Mexico, as well as offshore rentals.

Operating costs were up 45% and depreciation and amortization were up 5%. As a 
result, the International business unit was able to generate an operating 
profit of $1.5 million, up 49% from the previous year. For the first nine 
months of the year, the operating profit was up 87% to $4.5 million.

Going forward, we expect the International business unit to continue to 
realize accelerated growth and improved profitability.

Outlook

We anticipate a further reduction in drilling industry activity in North 
America. However, certain regions are expected to grow. For example, the 
Permian and Bakken basins in the United States are expected to demonstrate 
growth and we believe that Pason is well positioned to capture these growth 
opportunities. We expect to be able to partially offset the overall reduction 
with modest improvements in revenue per EDR day. We also expect continued 
significant profitable growth from our International operations.

Our capital expenditure budget for the next 12 months is $82 million. $50 
million is directed towards equipment that can generate incremental revenue or 
save operating costs, $17 million for maintenance capital, and $15 million for 
capitalized R&D.

Our cash-generating capacity, cash position at $139.8 million, and working 
capital position at $169.2 million are strong enough to comfortably cover new 
business development, planned equipment upgrades, and the dividend. The Pason 
Board of Directors has made the decision to adopt a quarterly dividend policy 
starting in 2013.

As the industry leader in field services, with outstanding technical support, 
a competitive product suite, and a promising R&D project pipeline, Pason is 
well positioned to weather a period of lower North American drilling activity 
and to capitalize on growth opportunities in North America and internationally.

(signed) Marcel Kessler
President and Chief Executive Officer November 5, 2012

Management's Discussion and Analysis

The following discussion and analysis has been prepared by management as of 
November 5, 2012 and is a review of the financial condition and results of 
operations of Pason Systems Inc. (Pason or the Company) based on International 
Financial Reporting Standards (IFRS) and should be read in conjunction with 
the condensed consolidated interim financial statements and accompanying notes.

Certain information regarding the Company contained herein may constitute 
forward-looking statements under applicable securities laws. Such statements 
are subject to known or unknown risks and uncertainties that may cause actual 
results to differ materially from those anticipated or implied in the 
forward-looking statements.

All financial measures presented in this quarterly report are expressed in 
Canadian dollars unless otherwise indicated.

Overview of the 2012 Third Quarter
                                                                   
                   Three Months Ended   Nine Months Ended September
                        September 30,                           30,
                 2012    2011    2010      2012    2011        2010

(000s, except     ($)                  
per share
data)                     ($)     ($)       ($)     ($)         ($)

Revenue        93,081  88,733  68,653   285,788 235,898     176,068

EBITDA ((1))   47,665  53,162  34,606   143,467 123,741      81,508

  As a % of                      50.4                          46.3
  revenue        51.2    59.9              50.2    52.5

  Per share -                    0.42                          1.00
  basic          0.58    0.65              1.75    1.51

  Per share -                    0.42                          1.00
  diluted        0.58    0.64              1.74    1.50

Funds flow                             
from
operations(
(1))           40,831  41,270  26,856   122,670 103,269      66,074

  Per share -                    0.33                          0.81
  basic          0.50    0.50              1.50    1.26

  Per share -                    0.33                          0.81
  diluted        0.50    0.50              1.49    1.25

Earnings       19,342  28,547  11,902    57,287  54,521      25,949

  Per share -                    0.15                          0.32
  basic          0.24    0.35              0.70    0.67

  Per share -                    0.15                          0.32
  diluted        0.23    0.35              0.69    0.66

Total assets  480,637 435,783 371,566   480,637 435,783     371,566

Total              --                  
long-term
debt                       --      --        --      --          --

(1) EBITDA is defined as earnings before interest expense, income
    taxes, stock-based compensation, and depreciation and amortization
    expense.  Prior figures have been restated to exclude the add back
    of impairment losses in calculating EBITDA.
    Funds flow from operations is defined as earnings adjusted for
    depreciation and amortization expense, impairment losses,
    stock-based compensation expense, deferred income taxes and other
    non-cash items impacting operations as presented in the Condensed
    Consolidated Interim Statements of Cash Flows.
    These definitions are not recognized measures under International
    Financial Reporting Standards, and accordingly, may not be
    comparable to measures used by other companies.

Overall Performance
                   Three Months Ended   Nine Months Ended September
                        September 30,                           30,
                   2012   2011 Change      2012    2011      Change

(000s)              ($)    ($)    (%)       ($)     ($)         (%)

Revenue                                                            

  Electronic                           
  Drilling
  Recorder       36,852 35,438      4   112,716  94,856          19

  Pit Volume                           
  Totalizer      14,623 15,289    (4)    45,120  41,703           8

  Communications                       
  ((1))           7,357  8,324   (12)    23,406  21,696           8

  Software ((1))  6,271  3,763     67    18,728  10,136          85

  Automatic                            
  Driller         9,935 10,481    (5)    30,989  27,875          11

  Gas                                  
  Analyzer/Total
  Gas System      7,117  5,980     19    20,406  14,893          37

  Hazardous Gas                        
  Alarm System    1,781  1,301     37     5,413   3,768          44

  Mobilization    3,180  2,452     30     9,167   7,042          30

  Other           5,965  5,705      5    19,843  13,929          42

Total revenue    93,081 88,733      5   285,788 235,898          21

(1)2011 revenue associated with the Company's software applications 
has been reclassified from Communications to Software.
                                                  Canada
           Three Months Ended September   Nine Months Ended September
                                    30,                           30,
             2012   2011         Change     2012    2011       Change
                                    (%)                           (%)

EDR rental 27,600 38,900           (29)   87,500 100,400         (13)
days (#)

PVT rental 27,200 37,600           (28)   86,200  97,500         (12)
days (#)
                                              United States
             Three Months Ended September   Nine Months Ended September
                                      30,                           30,
               2012   2011         Change      2012    2011      Change
                                      (%)                           (%)

EDR rental   93,700 98,500            (5)   292,700 281,500           4
days (#)

PVT rental   66,800 68,300            (2)   205,700 194,100           6
days (#)

Electronic Drilling Recorder

The Pason Electronic Drilling Recorder (EDR) remains the Company's prime 
product. The EDR provides a complete system of drilling data acquisition, data 
networking, and drilling management tools and reports at both the wellsite and 
customer offices. The EDR is the base product from which all other wellsite 
instrumentation products are linked. By linking these products, a number of 
otherwise redundant elements such as data processing, display, storage, and 
networking are eliminated. This ensures greater reliability and a more robust 
system of instrumentation for the customer. The EDR generated a 4% increase in 
revenue for the third quarter of 2012 compared to the same period in 2011 and 
a 19% increase for the first nine months of 2012 versus the 2011 comparative. 
The increase in the third quarter is due to previous price increases and an 
increase in rig activity in the Company's International markets reduced by a 
decrease in rig activity in both the United States (US) and Canadian markets. 
The year to date increase is due in most part to an increase in US and 
International drilling activity and the aforementioned price increases offset 
by a reduction in Canadian rig count. The Company continues to realize 
increased demand by customers for EDR peripheral devices in all of its markets.

During the first nine months of 2012, the Pason EDR was installed on 94% of 
all active land rigs in Canada and 57% of the land rigs in the US.

Pit Volume Totalizer

The Pit Volume Totalizer (PVT) is Pason's proprietary solution for the 
detection and early warning of "kicks" that are caused by hydrocarbons 
entering the wellbore under high-pressure and expanding as they migrate to the 
surface. PVT revenue for both the quarter and year to date were impacted by an 
increase in product penetration in all of the Company's markets as well as 
changes to rig activity and price increases previously described above under 
EDR. During the first three quarters of 2012, the PVT was installed on 99% of 
rigs with a Pason EDR in Canada and 70% in the US, compared to 98% and 69%, 
respectively, in 2011.

Communications

Pason's communications rental revenue is derived from the Company's automatic 
aiming satellite system. This system provides high-speed wellsite 
communications for email and web application management tools. Pason displays 
all data in standard forms on its DataHub web application, although if 
customers require greater analysis or desire to have the information 
transferred to another supplier's database, data is available for export from 
the Pason DataHub using WITSML (a specification for transferring data amongst 
oilfield service companies, drilling contractors, and operators). The Company 
continues to complement its satellite equipment with High Speed Packet Access 
(HSPA), a high-speed wireless ground system that requires lower capital cost, 
less service, and lower cost per Internet kilobyte, benefiting company 
margins. In Canada, HSPA has been installed on all rigs, and the majority of 
the rigs running will benefit from the investment in HSPA given the growth in 
cellular coverage. In the US, field coverage tests for HSPA are continuing.

Software

DataHub is the Company's data management system that collects, stores, and 
displays drilling data, reports, and real-time information from drilling 
operations. DataHub provides access to data through a number of innovative 
applications or services including:
    --  Enhanced Live Rig View, which provides advanced data viewing,
        directional drilling, and 3D visualization of drilling data in
        real-time via a web browser.
    --  Mobile Viewer and Pason Mobile, which allows users to access
        their data on mobile devices including iPhone, iPad, and
        BlackBerry.
    --  WITSML, which provides seamless data sharing with third party
        applications enhancing the value of data hosted by Pason.
    --  Additional specialized software.

During the first nine months of 2012, 98% of the Company's Canadian customers 
were using all or a portion of the functionality of the DataHub and 86% of 
customers in the US, compared to 95% and 73%, respectively, in 2011. The 2012 
revenue generated from customers using the applications included with the 
DataHub rose 85% over the first nine months of 2011.

Gas Analyzer and Total Gas System

The Pason Gas Analyzer, which has replaced the Total Gas System (TGAS) in the 
Company's major markets, measures the total hydrocarbon gases (C1 through 
C4(1)) exiting the wellbore, and then calculates the lag time to show the 
formation depth where the gases were produced. The new Gas Analyzer increases 
the functionality that was found in the TGAS product to include the actual 
composition of the gas, much like a gas chromatograph, and further calculates 
geologic ratios from the gas composition to assist in indicating the type of 
gas, natural gas liquid, or oil in the formation. For the first nine months of 
2012, the Gas Analyzer generated $15.2 million of revenue compared to $5.2 
million for TGAS. The Company has completed this switch-out in both Canada and 
the US and is realizing increased product penetration for the Gas Analyzer as 
compared to TGAS in both markets. For the first nine months of 2012, both of 
these systems combined were installed on 51% of Canadian and 19% of US land 
rigs operating with a Pason EDR system. The combined market penetration of 
both products in Canada is an increase of approximately 9% over 2011 levels 
while the US has seen an increase of 2%.

Automatic Driller

Pason's Automatic Driller (AutoDriller) is used to maintain constant weight on 
the drill bit while a well is being drilled. During the first nine months of 
2012, Pason's AutoDriller was installed on 78% of Canadian and 50% of US land 
rigs operating with a Pason EDR system, compared to 78% and 46%, respectively, 
in 2011.

Hazardous Gas Alarm System

Pason's Hazardous Gas Alarm System (HGAS) monitors both lower explosive limit 
gases (LEL) and H(2)S where both readings and an alarm system are integrated 
with the EDR. The Hazardous Gas Alarm System was installed on 21% of Canadian 
rigs in the first nine months of 2012, up from 18% for the same period in 
2011, and 9% of US land rigs operating with a Pason EDR system, an increase 
from 6% in 2011.

Discussion of Operations

United States Operations
                   Three Months Ended   Nine Months Ended September
                        September 30,                           30,
                   2012   2011 Change      2012    2011      Change

(000s)              ($)    ($)    (%)       ($)     ($)         (%)

Revenue                                                            

  Electronic                           
  Drilling
  Recorder       22,800 21,655      5    70,440  60,355          17

  Pit Volume                           
  Totalizer       8,312  8,367    (1)    25,774  23,664           9

  Communications                       
  ((1))           3,402  3,703    (8)    10,883   9,775          11

  Software ((1))  4,309  2,010    114    12,666   5,495         131

  Automatic                            
  Driller         5,791  5,716      1    18,149  15,670          16

  Gas                                  
  Analyzer/Total
  Gas System      2,957  2,030     46     8,645   5,772          50

  Hazardous Gas                        
  Alarm System      810    398    104     2,369   1,055         125

  Mobilization    2,334  1,809     29     6,934   5,015          38

  Other           3,928  2,348     67    12,989   3,845         238

Total revenue    54,643 48,036     14   168,849 130,646          29

Operating costs  19,167 19,444    (1)    62,542  51,782          21

Depreciation and  8,469                  24,668
amortization             6,260     35            16,997          45

Segment          27,007                  81,639
operating profit        22,332     21            61,867          32

(1)2011 revenue associated with the Company's software applications 
has been reclassified from Communications to Software.

US segment revenue increased by 14% in the third quarter of 2012 over the 2011 
comparable period (13% increase when measured in US dollars). Included in the 
third quarter 2012 figures is $2.8 million (2011 - $1.4 million) of revenue 
generated from the sale of sensors and other products by 3PS, Inc., the 
US-based company acquired in 2011.

For the first nine months of 2012, US segment revenue increased by 29% (USD 
27%), which includes $9.3 million of sales by 3PS.

The number of US drilling days was down approximately 3% in the third quarter 
of 2012 versus the third quarter of 2011 due to a pull back of natural gas 
drilling that was not totally off-set by an increase in oil drilling. However, 
revenue from the rental of instrumentation equipment increased 12% (USD 10%) 
for the third quarter of 2012 from 2011 levels, which compared very favourably 
to the drop in activity. On a year to date basis rental instrumentation 
revenue increased 23% (USD 20%) over 2011 levels, compared to an increase in 
industry days of 7%.

Revenue was impacted by the following factors:
    --  More products on each rig; new product adoption; and better
        pricing. Revenue was increased by additional product
        penetration on each rig, primarily with gains in EDR peripheral
        devices, ADR rentals, customer acceptance of the Company's Live
        Rig View and rig data software, and increased adoption of the
        Gas Analyzer compared to the previous TGAS system. In addition,
        prices on specific products increased at the beginning of 2012.
        These factors combined resulted in an increase in revenue per
        EDR day in the third quarter of 2012 over 2011 levels of  $81
        (USD $74). On a year to date basis revenue per EDR day
        increased 19% or $85 (USD $74).
    --  A decrease in EDR rental days of 5% for the three months ended
        September 2012 over the same time period in 2011 and an
        increase of 4% on a year to date basis over 2011 levels.

The factors explained above resulted in the US segment being able to realize 
revenue per EDR day during the third quarter of 2012 of $551 (USD $554) 
compared to $470 (USD $480) during the same time period in 2011. For the first 
nine months of 2012 revenue per EDR day was $542 (USD $541) compared to $456 
(USD $467) in 2011.

Revenue per industry day for the third quarter of the year was $305 (USD $307) 
compared to $267 (USD $272) in 2011. Year to date figures were $306 (USD $306) 
compared to 2011 amounts of $264 (USD $270).

The majority of the increase in "Other" revenue relates to sales realized by 
3PS, Inc.

Segment profit, as a percentage of revenue, was 50% for the third quarter of 
2012 and 48% year to date, compared to 46% and 47% for the respective periods 
in 2011.

The US business unit was able to increase its operating margin year over year, 
even with a significant increase in depreciation and amortization costs, by 
leveraging its fixed cost structure while at the same time continuing to 
control variable costs and implementing changes to operations to adapt to 
changing market conditions. The 2012 segment profit percentage was impacted by 
the following factors:
    --  A decrease in field technician related costs in the third
        quarter of 2012 compared to 2011 of approximately $1.0 million
        as a result of a slowdown in industry drilling days. On a year
        to date basis these costs increased by $2.4 million due in most
        part to an increase in market activity over 2011.
    --  A continuous strengthening of its sales presence led to an
        increase in sales and marketing costs of $0.3 million for the
        third quarter of 2012 over 2011 amounts. For the first nine
        months these costs rose $1.3 million from 2011 levels.
    --  An increase in depreciation and amortization charges relating
        to the accelerated depreciation on the Company's TGAS and EDR
        systems. The TGAS system was replaced with the Gas Analyzer,
        while a portion of the Company's base EDR system will become
        obsolete as a result of the EDR evolution project. This
        contributed to an increase in depreciation costs over 2011
        levels of approximately $1.2 million for the third quarter and
        $5.3 million for the first nine months. This increase was
        partially off-set by a reduction in repair costs associated
        with the new Gas Analyzer as compared to the TGAS system.
    --  Year to date 2012 figures include a full nine months of the
        results of 3PS Inc., which generates a lower margin than the US
        rental business.

Canadian Operations
                   Three Months Ended   Nine Months Ended September
                        September 30,                           30,
                   2012   2011 Change     2012   2011        Change

(000s)              ($)    ($)    (%)      ($)    ($)           (%)

Revenue                                                            

  Electronic                           
  Drilling
  Recorder       10,247 11,403   (10)   31,362 27,666            13

  Pit Volume                           
  Totalizer       4,782  5,940   (19)   14,992 15,204           (1)

  Communications                       
  ((1))           3,836  4,544   (16)   12,099 11,643             4

  Software ((1))  1,839  1,675     10    5,724  4,418            30

  Automatic                            
  Driller         3,260  4,239   (23)   10,132 10,497           (3)

  Gas                                  
  Analyzer/Total
  Gas System      3,169  3,352    (5)    8,946  7,847            14

  Hazardous Gas                        
  Alarm System      545    706   (23)    1,834  1,921           (5)

  Mobilization      154    211   (27)      460    583          (21)

  Other           1,193  1,603   (26)    3,828  3,902           (2)

Total revenue    29,025 33,673   (14)   89,377 83,681             7

Operating costs   7,200  8,705   (17)   23,111 26,939          (14)

Depreciation and
amortization(
(2))              7,245  6,747      7   20,718 19,037             9

Segment          14,580                 45,548
operating profit        18,221   (20)          37,705            21


     2011 revenue associated with the Company's software
(1)      applications has been reclassified from Communications to 
     Software. 
     2011 impairment loss of $1.8 million relating to water assets
(2)      has been reclassified from depreciation and amortization to 
     Other Expenses and is not included in the Canadian business 


         unit's operating results.

Canadian segment revenue decreased 14% for the three months ended September 
2012 compared to the third quarter of 2011. This decrease is a result of a 26% 
decrease in the number of Canadian drilling industry days from 2011 levels. On 
a year to date basis, revenue increased 7% compared to a decline in the number 
of Canadian drilling days of 11%.

EDR rental days declined 29% in the third quarter of 2012 over the third 
quarter of 2011. On a year to date basis, EDR rental days declined by 
approximately 13% over 2011 levels.

The Canadian business unit was able to lessen the impact of the significant 
reduction in activity levels in Canada, due to the wet weather at the start of 
the third quarter and weakness in oil and natural gas prices, through new 
product adoption, more products on each rig and better pricing. The business 
unit increased pricing on most of its key products in the fourth quarter of 
2011 and this combined with increased market penetration of the Gas Analyzer, 
customer acceptance of the Company's Live Rig View and rig data software, and 
more products on each rig, primarily with gains in EDR peripheral devices, 
lessened the impact of the significant drop in the number of wells being 
drilled.

The factors above combined to result in:
    --  An increase in revenue per EDR day during the third quarter of
        2012 compared to 2011 of 22% ($187) to $1,040. For the first
        nine months of 2012, revenue per EDR day increased by $188 to
        $1,009.
    --  Third quarter revenue per industry day of $948 in 2012 compared
        to $815 in 2011. On a year to date basis, revenue per industry
        day increased 20% to $943.

The segment profit for the third quarter of 2012 of $14.6 million is a 
decrease of $3.6 million over the 2011 amount. Factors impacting the third 
quarter results include:
    --  The weak drilling activity in the WCSB, together with a slight
        decrease in the Company's market share, resulted in 11,300 less
        EDR days during the third quarter of 2012 compared to 2011,
        resulting in much lower revenue than originally anticipated.
    --  An increase in depreciation and amortization charges relating
        to the accelerated depreciation on the Company's TGAS and EDR
        systems.
    --  A decrease in most repair cost categories, including a
        significant reduction in costs associated with the new Gas
        Analyzer as compared to the TGAS system.

The segment profit, as a percent of revenue, was 51% for the first nine months 
of 2012, compared to 45% for the 2011 time period. Factors impacting the year 
to date results include:
    --  An increase in depreciation and amortization charges relating
        to the accelerated depreciation on the Company's TGAS and EDR
        systems of approximately $2.6 million.
    --  An increase in field costs of $2.0 million, which is mostly
        attributable to the expansion of the work force. This was
        deemed necessary given the shifting footprint of the WCSB,
        anticipation of additional product opportunities and an
        adjustment to the shift schedule.
    --  A decrease in repair costs of $2.2 million, mostly attributable
        to the roll out of the new Gas Analyzer, resulting in a drop in
        TGAS repairs, and a decline in costs due to lower drilling
        activity.
    --  In 2011, the Canadian business unit incurred $1.8 million in
        legal costs associated with the Automatic Driller lawsuit.
    --  $2.0 million of net expenses relating to the water treatment
        business were recorded in the first nine months of 2011. This
        business unit was disposed of in the third quarter of 2011.

International Operations
                    Three Months Ended   Nine Months Ended September
                         September 30,                           30,
                     2012  2011 Change     2012   2011        Change

(000s)                ($)   ($)    (%)      ($)    ($)           (%)

Revenue                                                             

  Electronic                            
  Drilling
  Recorder          3,805 2,380     60   10,914  6,835            60

  Pit Volume                            
  Totalizer         1,529   982     56    4,354  2,835            54

  Communications(                       
  (1))                119    77     55      424    278            53

  Software ((1))      123    78     58      338    223            52

  Automatic                             
  Driller             884   526     68    2,708  1,708            59

  Gas                                   
  Analyzer/Total
  Gas System          991   598     66    2,815  1,274           121

  Hazardous Gas                         
  Alarm System        426   197    116    1,210    792            53

  Mobilization        692   432     60    1,773  1,444            23

  Other               844 1,754   (52)    3,026  6,182          (51)

Total revenue       9,413 7,024     34   27,562 21,571            28

Operating costs     5,771 3,986     45   16,708 12,967            29

Depreciation and                          6,350
amortization        2,138 2,028      5           6,193             3

Segment operating                         4,504
profit              1,504 1,010     49           2,411            87

(1)2011 revenue associated with the Company's software applications 
has been reclassified from Communications to Software.

Revenue in International operations improved 34% in the third quarter of 2012 
from the same period in 2011. On a year to date basis, revenue has increased 
approximately $6.0 million or 28% over 2011 amounts. The Company realized 
gains in all of its major markets, with notable gains in both revenue and 
segment profit in Argentina, Brazil, Australia, and Mexico.

Operating profit increased by $0.5 million for the third quarter of 2012 and 
by $2.1 million on a year to date basis over 2011 results.

A number of factors influenced these results:
    --  Increased market share combined with price increases in
        Argentina contributed to significant gains in both revenue and
        operating profit. Year over year operating profit has increased
        $0.6 million.
    --  Triple-digit revenue growth in Brazil as a result of a doubling
        of the number of rigs deploying the Company's equipment,
        resulting in an increase in the year to date revenue of $2.2
        million and an increase in operating profit of $0.9 million
        over 2011 levels.
    --  An increase in drilling activity in both Mexico and Australia
        has led to these two segments realizing increases in operating
        profit from 2011 levels of $1.5 million and $1.7 million,
        respectively.
    --  The Company's International segment includes our Offshore
        business unit which generated a 210% increase in its rental
        revenue for the first nine months of 2012 over the same period
        in 2011. These gains are as a result of the deployment of Pason
        hardware onto offshore drilling rigs in the Gulf of Mexico and
        internationally.

Q3 2012 versus Q3 2011

The active rig count in both the US and Canadian markets declined from the 
third quarter of 2011, with Canadian drop in activity much more severe than 
the US decline. The International market saw an increase in drilling days. The 
strong US results, combined with increased revenue and profitability in the 
International markets were not sufficient enough to offset the drop in 
operating results in Canada. Revenue increased 5%, while EBITDA dropped by 10% 
and funds flow from operations was down 1%.

Net earnings decreased to $19.3 million or $0.23 per share compared to $28.5 
million or $0.35 per share in the third quarter of 2011. The third quarter 
consolidated results, when compared to 2011 figures, were impacted by the 
following significant items:
    --  A change in the amount of foreign exchange recorded of $7.8
        million in 2012 compared to 2011 amounts. The strengthening
        Canadian dollar against the US dollar resulted in a loss of
        $1.5 million in the third quarter of 2012. The equivalent
        amount in the third quarter of 2011 was a gain of $6.3 million.
        The majority of these amounts are unrealized and relate to the
        translation of certain inter-company balances into CDN dollars.
    --  Increase in depreciation expense of $2.8 million in 2012
        compared to 2011 amounts, attributable mostly to increased
        capital expenditures and the accelerated depreciation on the
        Company's TGAS and EDR systems.
    --  Increase in research and developments costs in the third
        quarter of 2012 of $1.0 million as the Company completes the
        hiring of additional staff to support the EDR evolution project
        and other product developments.
    --  Stock-based compensation increased by $5.1 million compared to
        the third quarter of 2011 due to an increase in the Company's
        stock price, which impacts the pricing under the Black-Scholes
        pricing model. The Company's stock price went up approximately
        10% during the third quarter of 2012 compared to a decline in
        the corresponding period in 2011.
    --  During the third quarter of 2012 the Company recorded a
        non-cash impairment loss of $2.6 million on its US water
        treatment asset. In the third quarter of 2011 a non-cash
        impairment loss of $1.8 million was recorded against the
        Canadian water treatment assets.

Q3 2012 versus Q2 2012

The Company's second quarter is usually its weakest due in most part to the 
seasonality of the Canadian industry. The Canadian business unit realized a 
profit of $14.6 million for the three months ended September, 2012 compared to 
a $1.1 million profit in the second quarter. The US business unit realized a 
slight increase in profit of $0.1 million over the second quarter of 2012 even 
though drilling activity declined.

The following items also impacted the comparison to the 2012 second quarter 
results:
    --  In the second quarter of 2012, the Company recorded an
        additional charge of $5.4 million relating to the US Automatic
        Driller lawsuit.
    --  During the third quarter of 2012, the Company recorded a
        non-cash impairment loss of $2.6 million on its US water
        treatment assets
    --  An increase in stock-based compensation expense of $1.2 million
        due to an increase in the Company's stock price during the
        third quarter of 2012.

Third Quarter Conference Call

Pason will be conducting a conference call for interested analysts, brokers, 
investors, and media representatives to review its third quarter results at 
9:00 a.m. (Calgary time) on Wednesday, November 7, 2012. The conference call 
dial-in number is 1-888-231-8191 or 1-647-427-7450. You can access the 
seven-day replay by dialing 1-855-859-2056 or 416-849-0833 (password 35767272).

Pason Systems Inc. is a leading provider of instrumentation systems to 
land-based and offshore drilling rigs worldwide. The company's rental 
solutions, which include data acquisition, wellsite reporting, remote 
communications, and web-based information management, maximize rig uptime, 
improve work efficiency, and minimize operating costs. Pason's common shares 
trade on the Toronto Stock Exchange under the symbol PSI.

Additional information, including the Company's Annual Report for the year 
ended December 31, 2011, is available on SEDAR at www.sedar.com or on the 
Company's website at www.pason.com.

Condensed Consolidated Interim Financial Statements

Condensed Consolidated Interim Balance Sheets
                                                                       

As at                             September 30, 2012   December 31,2011

(CDN 000s) (unaudited)                           ($)                ($)

Assets                                                                 

Current                                                                

  Cash and cash equivalents                  139,812            104,993

  Trade and other receivables                 92,980            102,321

  Prepaid expenses                             4,714              1,970

  Total current assets                       237,506            209,284

Non-current                                                            

  Property, plant and                        179,387            183,007
  equipment

  Intangible assets                           59,745             58,071

  Deferred tax assets                          3,999              5,539

  Total non-current assets                   243,131            246,617

Total assets                                 480,637            455,901

Liabilities and equity                                                 

Current                                                                

  Trade payables and accruals                 34,390             40,668

  Litigation provision                        19,315             14,543

  Income taxes payable                         4,825              5,318

  Stock-based compensation                     9,790              5,770
  liability

  Dividend payable                                --             16,380

  Total current liabilities                   68,320             82,679

Non-current                                                            

  Stock-based compensation                     6,047              1,030
  liability

  Deferred tax liabilities                     3,719              4,923

  Total non-current                            9,766              5,953
  liabilities

Equity                                                                 

  Share capital                               78,835             77,613

  Employee benefits reserve                   12,927             12,927

  Foreign currency                          (11,029)            (5,835)
  translation reserve

  Retained earnings                          321,818            282,564

  Total equity                               402,551            367,269

Total liabilities and equity                 480,637            455,901

Condensed Consolidated Interim Statements of Operations
                                                                      
                                Three Months Ended   Nine Months Ended
                                     September 30,       September 30,
                                  2012        2011      2012      2011

(CDN 000s, except per share                         
data) (unaudited)                  ($)         ($)       ($)       ($)

Revenue                                                               

  Equipment rentals and other   93,081      88,733   285,788   235,898

Operating expenses                                                    

  Rental services               27,466      26,622    86,886    76,512

  Local administration           4,672       5,513    15,475    15,176

  Depreciation and                          15,035              42,227
  amortization                  17,852                51,736
                                49,990      47,170   154,097   133,915
                                                                      

Operating profit                43,091      41,563   131,691   101,983

Other expenses                                                        

  Research and development       5,381       4,347    15,434    11,995

  Corporate services             3,435       3,286    11,397     9,159

  Stock-based compensation                 (1,347)               3,870
  (recovery)                     3,791                12,854

  Other expenses (income)        4,462     (4,197)    13,129     (685)
                                17,069       2,089    52,814    24,339
                                                                      

Income before income taxes      26,022      39,474    78,877    77,644

  Income taxes                   6,680      10,927    21,590    23,123

Net income                      19,342      28,547    57,287    54,521

Earnings per share                                                    

  Basic                           0.24        0.35      0.70      0.67

  Diluted                         0.23        0.35      0.69      0.66

Condensed Consolidated Interim Statements of Comprehensive Income
                             Three Months Ended   Nine  Months Ended
                                  September 30,        September 30,
                                2012       2011      2012       2011

(CDN 000s) (unaudited)           ($)        ($)       ($)        ($)

Net income                    19,342     28,547    57,287     54,521

Other comprehensive loss                                            

  Foreign currency           (9,986)      7,245   (5,194)      6,262
  translation adjustment

Total comprehensive income     9,356     35,792    52,093     60,783

Condensed Consolidated Interim Statements of Changes in Equity
                                                               
                                           Foreign             
                            Employee      Currency
                    Share   Benefits   Translation   Retained      Total
                  Capital    Reserve       Reserve   Earnings     Equity

(CDN 000s)                                                     
(unaudited)           ($)        ($)           ($)        ($)        ($)

Balance at                                                     
January 1, 2011    75,040     13,228       (6,048)    227,464    309,684

  Net Income           --         --            --     54,521     54,521

  Dividends            --         --            --   (14,741)   (14,741)

  Other                --         --         6,262         --      6,262
  comprehensive
  loss                                                         

  Exercise of       2,232         --            --         --      2,232
  stock options                                                

  Options             307      (307)            --         --         --
  exercised
  that were
  previously
  expensed                                                     

  Stock-based          --          6            --         --          6
  compensation                                                 

Balance at                                                     
September 30,
2011               77,579     12,927           214    267,244    357,964

  Net Income           --         --            --     31,702     31,702

  Dividends            --         --            --   (16,382)   (16,382)

  Other                --         --       (6,049)         --    (6,049)
  comprehensive
  loss                                                         

  Exercise of          33         --            --         --         33
  stock options                                                

  Options               1        (1)            --         --         --
  exercised
  that were
  previously
  expensed                                                     

  Stock-based          --          1            --         --          1
  compensation                                                 

Balance at                                                     
December
31,2011            77,613     12,927       (5,835)    282,564    367,269

  Net Income           --         --            --     57,287     57,287

  Dividends            --         --            --   (18,033)   (18,033)

  Other                --         --       (5,194)         --    (5,194)
  comprehensive
  loss                                                         

  Exercise of       1,222         --            --         --      1,222
  stock options                                                

Balance at                                                     
September 30,
2012               78,835     12,927      (11,029)    321,818    402,551

Condensed Consolidated Interim Statements of Cash Flows
                                           
                                 Three Months Ended   Nine Months Ended
                                      September 30,       September 30,
                                                       
                                     2012      2011       2012     2011

(CDN 000s) (unaudited)                ($)       ($)        ($)      ($)

Cash flows from operating                            
activities                                                             

  Net income                       19,342    28,547     57,287   54,521

Adjustment for non-cash items:                                         

  Depreciation and                           15,035              42,227
  amortization                     17,852               51,736

  Impairment loss                   2,636     1,800      2,636    1,800

  Stock-based compensation          1,451   (1,937)      6,826      936

  Deferred income taxes           (1,475)     3,840      2,204    7,989

  Unrealized foreign exchange               (6,015)             (4,204)
  loss (gain)                       1,025                1,981
                                   40,831    41,270    122,670  103,269

Movements in non-cash working                        
capital                                                                

  (Increase) decrease in trade             (20,351)            (13,520)
  and other receivables             (749)                8,985

  Increase in prepaid expenses    (1,883)   (1,834)    (2,847)  (2,927)

  Increase in income taxes                    5,241              10,371
  payable                           5,510               14,559

  (Decrease) increase in trade                5,324               5,665
  payables, accruals and
  provisions                        (351)                2,975

  Increase in stock-based                       564               2,792
  compensation liability            2,471                5,876

  Effects of exchange rate                       78                 878
  changes                           (977)              (1,030)
                                    4,021  (10,978)     28,518    3,259

Cash generated from operating                        
activities                         44,852    30,292    151,188  106,528

  Income tax paid                 (2,998)        --   (16,225) (16,650)

Net cash from operating                              
activities                         41,854    30,292    134,963   89,878

Cash flows used in financing                         
activities                                                             

  Proceeds from issuance of                      90               2,232
  common shares                       393                1,222

  Purchase of stock options       (3,151)     (185)    (5,240)  (3,266)

  Payment of dividends           (18,033)  (14,741)   (34,413) (28,631)

Net cash used in financing                           
activities                       (20,791)  (14,836)   (38,431) (29,665)

Cash flows used in investing                         
activities                                                             

  Additions to property, plant             (18,122)            (50,735)
  and equipment                  (14,500)             (48,467)

  Deferred development costs      (2,483)   (1,875)    (7,711)  (5,696)

  Acquisitions, net of cash                (23,569)            (23,569)
  acquired                             --                   --

  Additions to investments             --        --    (1,230)       --

  Changes in non-cash working                 (615)             (2,768)
  capital                           (470)              (2,611)

Net cash used in investing                           
activities                       (17,453)  (44,181)   (60,019) (82,768)

Effect of exchange rate on                           
cash and cash equivalents         (2,409)     3,684    (1,694)    2,047

Net increase (decrease) in                           
cash and cash equivalents           1,201  (25,041)     34,819 (20,508)

Cash and cash equivalents,                           
beginning of period               138,611   114,933    104,993  110,400

Cash and cash equivalents, end                       
of period                         139,812    89,892    139,812   89,892

The Company operates in three geographic segments: Canada, the United States, 
and Internationally (Latin America, Offshore, and the Eastern Hemisphere). The 
amounts related to each segment are as follows:
                                                                 

Three Months Ended     Canada   United States   International     Total
September 30, 2012
                          ($)             ($)             ($)       ($)

Revenue                29,025          54,643           9,413    93,081

Operating costs         7,200          19,167           5,771    32,138

Depreciation and        7,245           8,469           2,138    17,852
amortization

Segment operating      14,580          27,007           1,504    43,091
profit

Research and                                                      5,381
development

Corporate services                                                3,435

Stock-based                                                       3,791
compensation

Other expenses                                                    4,462

Income taxes                                                      6,680

Net income                                                       19,342

Capital                 7,148           6,770           3,065    16,983
expenditures

Goodwill                   --          18,206           2,600    20,806

Intangible assets      24,255          11,162           3,522    38,939

Segment assets        117,432         300,501          62,704   480,637

Segment liabilities    52,248          17,068           8,770    78,086
                                                                       
                                                                       

Three Months Ended                                                     
September 30, 2011
                                                                       

Revenue                33,673          48,036           7,024    88,733

Operating costs         8,705          19,444           3,986    32,135

Depreciation and        6,747           6,260           2,028    15,035
amortization

Segment operating      18,221          22,332           1,010    41,563
profit

Research and                                                      4,347
development

Corporate services                                                3,286

Stock-based                                                     (1,347)
compensation

Other income                                                    (4,197)

Income taxes                                                     10,927

Net income                                                       28,547

Capital                 9,018           8,103           2,876    19,997
expenditures

Goodwill                   --          19,232           2,600    21,832

Intangible assets      19,845          14,848           5,582    40,275

Segment assets        119,244         194,411          60,021   373,676

Segment liabilities    41,680          25,189          10,950    77,819
                                                                 

Nine Months Ended      Canada   United States   International     Total
September 30, 2012
                          ($)             ($)             ($)       ($)

Revenue                89,377         168,849          27,562   285,788

Operating costs        23,111          62,542          16,708   102,361

Depreciation and       20,718          24,668           6,350    51,736
amortization

Segment operating      45,548          81,639           4,504   131,691
profit

Research and                                                     15,434
development

Corporate services                                               11,397

Stock-based                                                      12,854
compensation

Other expenses                                                   13,129

Income taxes                                                     21,590

Net income                                                       57,287

Capital                20,275          30,681           5,222    56,178
expenditures

Goodwill                   --          18,206           2,600    20,806

Intangible assets      24,255          11,162           3,522    38,939

Segment assets        117,432         300,501          62,704   480,637

Segment liabilities    52,248          17,068           8,770    78,086
                                                                       
                                                                       

Nine Months Ended                                                      
September 30, 2011
                                                                       

Revenue                83,681         130,646          21,571   235,898

Operating costs        26,939          51,782          12,967    91,688

Depreciation and       19,037          16,997           6,193    42,227
amortization

Segment operating      37,705          61,867           2,411   101,983
profit

Research and                                                     11,995
development

Corporate services                                                9,159

Stock-based                                                       3,870
compensation

Other income                                                      (685)

Income taxes                                                     23,123

Net income                                                       54,521

Capital                19,218          27,995           9,218    56,431
expenditures

Goodwill                   --          19,232           2,600    21,832

Intangible assets      19,845          14,848           5,582    40,275

Segment assets        119,244         194,411          60,021   373,676

Segment liabilities    41,680          25,189          10,950    77,819

Pason Systems Inc.

Pason Systems Inc. is a leading provider of instrumentation systems to 
land-based and offshore drilling rigs worldwide. The company's rental 
solutions, which include data acquisition, wellsite reporting, remote 
communications, and web-based information management, maximize rig uptime, 
improve work efficiency, and minimize operating costs. Pason's common shares 
trade on the Toronto Stock Exchange under the symbol PSI.

Certain information regarding the Company contained herein may constitute 
forward-looking information under applicable securities law. The words 
"anticipate", "expect", "believe", "may", "should", "will", "estimate", 
"project", "outlook", "forecast" or other similar words are used to identify 
such forward-looking information and statements. Forward-looking statements 
in this document may include statements, express or implied regarding the 
anticipated business prospects and financial performance of Pason; 
expectations or projections about future strategies and goals for growth and 
expansion; expected and future cash flows and revenues; and expected impact of 
future commitments. These forward-looking statements are based upon various 
underlying factors and assumptions, including the state of the economy and the 
oil and gas exploration and production business, in particular; the Company's 
business prospects and opportunities; and estimates of the financial and 
operational performance of Pason.

Forward-looking information and statements are subject to known or unknown 
risks and uncertainties that may cause actual results to differ materially 
from those anticipated or implied in the forward-looking information and 
statements. Risk factors that could cause actual results or events to differ 
materially from current expectations include, among others, the ability of 
Pason to successfully implement its strategic initiatives and whether such 
strategic initiatives will yield the expected benefits, the operating 
performance of Pason's assets and businesses, the price of energy commodities, 
competitive factors in the energy industry, changes in laws and regulations 
affecting Pason's businesses, technological developments, and general economic 
conditions.

Readers are cautioned not to place undue reliance on forward-looking 
statements as there can be no assurance that the plans, intentions or 
expectations upon which they are placed will occur. Such forward looking 
statements, although considered reasonable by management as of the date 
hereof, may prove to be incorrect and actual results may differ materially 
from those anticipated. Forward-looking statements contained in this press 
release are expressly qualified by this cautionary statement.

Additional information on risks and uncertainties and other factors that could 
affect Pason's operations or financial results are included in Pason's reports 
on file with the Canadian securities regulatory authorities and may be 
accessed through the SEDAR website (www.sedar.com or through Pason's website 
www.pason.com). Furthermore, any forward looking statements contained in 
this news release are made as of the date of this news release, and Pason does 
not undertake any obligation to update publicly or to revise any of the 
included forward-looking statements, whether as a result of new information, 
future events or otherwise, except as expressly required by securities law.







about Pason Systems Inc., visit the company's website atwww.pason.com or 
contact:

Marcel Kessler President and CEO 403-301-3400 marcel.kessler@pason.com

David Elliott Chief Financial Officer 403-301-3441 david.elliott@pason.com

SOURCE: Pason Systems Inc.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/06/c5214.html

CO: Pason Systems Inc.
ST: Alberta
NI: OIL ERN 

-0- Nov/06/2012 05:27 GMT