Accugraph announces first quarter profit; All amounts are in US dollars.

EL PASO, Texas--(BUSINESS WIRE)--April 23, 1997--Accugraph Corp. (NASDAQ:ACCUF)(TSE:ACU.A), a supplier of operational support system software and services for the telecommunications industry, Wednesday announced net income of $250,000, or 1 cent per share, on revenue of $4.27 million for its first quarter ended March 31, 1997.

This compares to a loss of $3.41 million, or a loss of 17 cents per share, on revenue of $2.45 million for the first quarter of 1996.

"We're continuing to make progress, and our performance this quarter increases our confidence that we have a sustainable business plan and focus," said Accugraph Chairman and Chief Executive Officer Paul Damp. "We are especially pleased with the swift assimilation and positive impact of Objectel.

"That acquisition has brought an impressive amount of strength to our organization, and it is contributing significantly to our growing services business."

Objectel Software Inc., acquired by Accugraph during the quarter, is a Toronto-based systems integration and software development consulting group specializing in services to telecommunications service providers. With the addition of Objectel, Accugraph's first quarter services revenue totaled $1.32 million, up 13 percent over the year-ago quarter.

In addition, Damp said the company's cash position improved during the quarter, increasing to $1.41 million from $960,000 in the previous quarter. He said the company was continuing its efforts to control expenses while working aggressively to develop new business and increase satisfaction levels among current customers.

"Our revenue reflects a good mix of repeat and new business, and we're seeing increased interest internationally in countries where considerable investments are being made in telecommunications infrastructure," Damp said. "I am particularly pleased with the amount of repeat business which is a good indicator of continuing customer satisfaction."

Accugraph develops, markets and supports software and services solutions that enable telecommunications providers to effectively document and manage physical assets throughout their enterprises. The company's headquarters are in El Paso, and its registered office is in Toronto. Its stock is traded on NASDAQ National Market (ACCUF) and on the Toronto Stock Exchange (ACU.A). -0-

                            ACCUGRAPH CORP.
                      CONSOLIDATED BALANCE SHEETS

(U.S. $ in 000's)

                                          March 31,      Dec. 31,
                                            1997           1996
ASSETS                                   (unaudited)
Current assets:
  Cash and cash equivalents                $1,410          $960
  Accounts receivable (net of allowance
   of $834 and $760, respectively)          4,664         3,576
  Prepaid expenses and other                  353           603
   Total current assets                     6,427         5,139

Property and equipment, net                 2,310         2,467
Goodwill and other intangibles, net         2,107         1,286
Other investments                             316           318
   Total assets                           $11,160        $9,210

LIABILITIES
Current liabilities:
  Current portion of long-term debt           $78           $88
  Accounts payable, trade                     756           482
  Loan payable                                200            --
  Accrued liabilities and other             1,648         2,053
  Deferred revenue                          1,425           603
   Total current liabilities                4,107         3,226

Long-term debt                                147           157
Other long-term liability                     167           167
   Total liabilities                        4,421         3,550

SHAREHOLDERS' EQUITY
Share Capital:
   Class A shares, no par value             7,511         6,682
Retained deficit                             (772)       (1,022)
                                          -------       -------
                                            6,739         5,660

Total liabilities and shareholders'
 equity                                   $11,160        $9,210

Class A shares, issued and outstanding
 (000's)                                   22,453        19,891


                            ACCUGRAPH CORP.
                CONSOLIDATED STATEMENTS OF OPERATIONS
                             (Unaudited)

(U.S. $ in 000's, except per share amounts)
                                                 Three months ended
                                                       March 31,
                                                   1997         1996

Operating Revenues
Sales of computer software                       $1,907         $277
Customer support and training                     1,006          977
Customer services                                 1,321        1,169
Sales of third-party product                         44           26
 Total revenue                                    4,278        2,449

Cost of computer software sold                       --            5
Cost of providing support and training               23           67
Cost of providing customer services                  82          237
Cost of third-party product sold                     21          (44)
 Total cost of revenue                              126          265

 Gross profit                                     4,152        2,184

Operating expenses:
 Selling, general, and administrative             3,315        4,787
 Research and development                           587          839
 Interest expense                                     3           15
 Investment income, net                             (14)         (43)
Total operating expenses                          3,891        5,598

 Net income (loss) before income taxes              261       (3,414)
 Provision for income taxes                          11           --
 Net income (loss)                                 $250      $(3,414)

Earnings (loss) per Class A share -- basic        $0.01       $(0.17)

Weighted average Class A shares outstanding
 -- basic (000's)                                21,006       19,873

CONTACT: Accugraph Corp., El Paso

Gary Shroyer, 915/581-1171