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Helios and Matheson Expects to Report $101,000 Net Income for Q1 2013

Helios and Matheson Expects to Report $101,000 Net Income for Q1 2013

Net Revenue Increases by 20% in First Quarter of 2013 as Compared to 2012

NEW YORK, April 25, 2013 (GLOBE NEWSWIRE) -- Helios and Matheson Information
Technology Inc (the "Company") (Nasdaq:HMNY), a 30 year old IT services
organization focused on the banking, financial services, insurance and
healthcare sectors, is providing the following preliminary (unaudited)
information regarding the results of its operations for the first quarter of
the year ended March 31, 2013:

For Q1 2013, the Company expects to report net income of $101,000 or $0.04 per
diluted share (EPS) for the first quarter of 2013 compared to net income of
$14,000 or $0.01 per diluted share for the first quarter of 2012. Income from
operations remains stable at approximately $103,000 for Q1 2013 and Q1 2012.
Q1 2012 net income had non recurring expenses of about $84,000.

The Company continues to be debt free. The Company expects to close the first
quarter of 2013 with total assets of $5.3 million and total liabilities of
$1.1 million.


                                  Three Months Ended
(In 000s except per share amounts) 03/31/13    03/31/12
                                  (Unaudited) (Unaudited)
Revenue                            $3,203    $2,679
Gross Profit                       $674      $640
Income from operations             $103      $102
Net Income                         $101      $14
EPS per basic share                $0.04     $0.01
Dividend Per share                 $0.09     $ 0.00
Cash and Cash Equivalent           $2.04     $1.95

The Company expects that gross margin will be at 21% for the first quarter of
2013 as compared to 24% in the first quarter of 2012 due to a change in
revenue mix with increase in revenue. Selling, general and administrative
costs are expected to be $571,000 in the first quarter of 2013, which would be
an increase of 6% from the first quarter in 2012 due to an investment in
additional personnel to strengthen the team.

About Helios and Matheson Information Technology Inc

Helios and Matheson Information Technology Inc is a 30 year old IT services
organization focused on the banking, financial services, insurance and
healthcare sectors. Its common stock is traded on the Nasdaq Global Market
under the ticker symbol "HMNY".

Forward Looking Statements

This release includes forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements regarding our
expected future financial position, results of operations, cash flows,
financing plans, business strategy, products and services, competitive
positions, growth opportunities, plans and objectives of management for future
operations, as well as statements that include words such as "anticipate,"
"if," "believe," "plan," "estimate," "expect," "intend," "may," "could,"
"should," and other similar expressions are forward-looking statements. All
forward-looking statements involve risks, uncertainties and contingencies,
many of which are beyond our control, which may cause actual results,
performance, or achievements to differ materially from anticipated results,
performance, or achievements. Factors that may cause actual results to differ
materially from those in the forward-looking statements include those set
forth in the Helios and Matheson Information Technology Inc. Annual Report on
Form 10-K for the year ended December 31, 2012 and more recent reports filed
with the SEC. Helios and Matheson Information Technology Inc. is under no
obligation (and expressly disclaims any such obligation) to update or alter
such forward-looking statements, whether as a result of new information,
future events or otherwise.

                                                                
HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                                                                
                                                    Three Months Ended
                                                    March 31,
                                                    2013         2012
                                                    (unaudited)  (unaudited)
                                                                
Revenues                                             $3,202,831 $2,679,131
Cost of revenues                                     2,528,410   2,038,635
Gross profit                                         674,421     640,496
Operating expenses:                                              
Selling, general & administrative                   568,838     533,910
Depreciation & amortization                          2,472       5,018
                                                    571,310     538,928
Income from operations                               103,111     101,568
Other income(expense):                                           
Early lease termination fee                          --          (82,548)
Interest income-net                                  730         923
                                                    730         (81,625)
Income before income taxes                           103,841     19,943
Provision for income taxes                           3,000       6,000
Net Income                                           100,841     13,943
Other comprehensive Income - foreign currency        31          1,735
adjustment
Comprehensive Income                                 $100,872   $15,678
                                                                
Net income per share                                             
Basic & Diluted                                      $0.04      $0.01
Dividend Per share                                   $0.09      $--


HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED BALANCE SHEETS
                                                               
                                                               
                                                  March 31,     December 31,
                                                  2013          2012
ASSETS                                             (unaudited)   
Current Assets:                                                 
Cash and cash equivalents                          $2,044,386  $2,861,733
Accounts receivable- less allowance for doubtful
accounts of $38,420 at March 31, 2013, and $32,421 1,850,605    1,257,488
at December 31, 2012
Unbilled receivables                               62,086       21,490
Prepaid expenses and other current assets          144,602      130,571
Total current assets                               4,101,679    4,271,282
Property and equipment, net                        52,699       52,717
Security Deposit                                   1,000,000    1,000,000
Deposits and other assets                          100,032      100,032
Total assets                                       $5,254,410  $5,424,031
                                                               
LIABILITIES AND SHAREHOLDERS' EQUITY                            
Current Liabilities:                                            
Accounts payable and accrued expenses              $1,110,496  $1,171,249
                                                               
Total current liabilities                          1,110,496    1,171,249
Shareholders' equity:                                           
Preferred stock, $.01 par value; 2,000,000 shares
authorized; no shares issued and outstanding as of --          --
March 31, 2013, and December 31, 2012
Common stock, $.01 par value; 30,000,000 shares
authorized; 2,330,438 issued and outstanding as of 23,304       23,304
March 31, 2013 and December 31, 2012
Paid-in capital                                    37,855,740   37,855,740
Accumulated other comprehensive income (Loss) -    (46,879)     (46,910)
foreign currency translation
Accumulated deficit                                (33,688,251) (33,579,352)
Total shareholders' equity                         4,143,914    4,252,782
Total liabilities and shareholders' equity         $5,254,410  $5,424,031

                                                               
HELIOS AND MATHESON INFORMATION TECHNOLOGY INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                               
                                                               
                                                 Three Months Ended March 31,
                                                 2013           2012
                                                 (unaudited)    (unaudited)
Cash flows from operating activities:                           
Net income                                        $100,841     $13,943
Adjustments to reconcile net income to net cash
provided/(used) in operating activities, net of                 
acquired assets:
Depreciation and amortization                     2,472         5,018
Provision for doubtful accounts                   5,999         905
Changes in operating assets and liabilities:                    
Accounts receivable                               (599,118)     246,551
Unbilled receivables                              (40,596)      (70,483)
Prepaid expenses and other assets                 (14,031)      29,458
Accounts payable and accrued expenses             (60,753)      (201,321)
Net cash (used in)/provided by operating          (605,186)     24,071
activities
Cash flows from investing activities:                           
Purchase of Property and Equipment                (2,453)       (924)
Deposits                                          --           (75,550)
Net cash used in investing activities             (2,453)       (76,474)
Cash flows from financing activities:                           
Dividend Paid                                     (209,739)     --
Net cash used in financing activities             (209,739)     --
Effect of foreign currency exchange rate changes  31            1,735
on cash and cash equivalents
Net decrease in cash and cash equivalents         (817,347)     (50,668)
Cash and cash equivalents at beginning of period  2,861,733     1,998,158
Cash and cash equivalents at end of period        $2,044,386   $1,947,490
                                                               
Supplemental disclosure of cash flow information:               
Cash paid during the period for interest         $--         $--
                                                               
Cash paid during the period for income taxes -    $1,381       $2,572
net of refunds

CONTACT: Umesh Ahuja
         703 691 0400 Ext 1046
         uahuja@hmny.com
 
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