Manaris Reports Q1 Results: Acquisitions Boost Revenue, Streamlining Efforts Continue.

MONTREAL -- Manaris Corporation (OTCBB:MANS)(FRANKFURT WKN:255471) - All amounts are expressed in US dollars unless otherwise indicated.

Manaris Corporation reported today that revenues for the quarter ended September 30, 2005 increased to $3,725,637 compared to $640,030 last year. The increase was primarily due to acquisition of CLI and Avensys in February 2005. Net losses for the quarter ended September 30, 2005 increased to $3,314,162 or $0.06 per basic and fully-diluted share compared to $681,520 or $0.02 per basic and fully diluted share for the same period last year.

The increase in net losses was largely due to debenture accretion expenses, amortization of deferred financing costs, amortization of intangible assets, professional fees, increased expenses of our wholly owned subsidiary CSA, and losses from our wholly owned subsidiary C-Chip (North America).Net cash used for our operations was $714,505 compared to $541,344 at September 30, 2004. Operations were mainly financed through the July Special Warrant Offer for a total net cash proceeds of $2,127,591, from a $408,373 loan and with respect to Avensys and CLI primarily from revenue from the sales of products and services. We used $404,712 for Bank credit line payment, $226,733 for principal payment of Senior Convertible Note Series A, $80,694 for related party payments and capital addition of $35,781.

CONTINUED GROWTH AND FOCUS

In announcing the results, John G. Fraser, President and Chief Executive Officer said, "As per our recent business update, we continue to see strong organic growth at both Avensys and CLI, and are optimistic that recent efforts at C-Chip will begin to show positive results in the coming quarters." Mr. Fraser continued: "We are also pleased by the support of investors that participated in the $4.67M February private placement and the $2.58M July Special Warrant Offering."

In September 2005, Stephane Solis resigned as President, CEO and director. He was replaced by John Fraser, a Director and Secretary of Manaris since January 2003. Also in September 2005, Manaris ceased operations of Canadian Security Agency Inc. (CSA) and sold its client list to Securite Kolossal Inc. This decision was made in light of the Company's commitment to streamline operations, to focus on its strong subsidiaries, and to set the stage for profitable growth in the future.

FISCAL 2006 PRIORITIES

The Company has several priorities for fiscal 2006 for both the holding company as well as its subsidiaries. These include reducing costs for Manaris where possible and further leveraging the success of both Avensys and CLI as well as realizing C-Chip Technologies (North America)'s potential. Overall, corporate objectives will be to focus our activities and to drive towards profitability and continued growth.

About Manaris Corporation

Through its wholly-owned subsidiaries, Manaris Corporation offers a comprehensive suite of enterprise risk management services and solutions. C-Chip Technologies (North America) specializes in the high-tech sector of the security industry, with technology that allows business users to efficiently access, control, manage and monitor remote assets at low costs. Avensys enables businesses and corporations to monitor different types of environments, including Air, Soil, Water as well as buildings and infrastructures. Chartrand Laframboise Investigation provides corporations and institutions with security services including corporate investigation, surveillance, electronic monitoring and protection of personnel and premises.

FORWARD-LOOKING-STATEMENT: Except for factual statements made herein, the information contained in this press release consists of forward-looking statements that involve risks uncertainties, including the effect of changing economic conditions, competition within the credit and security industry, customer acceptance of products and other risks and uncertainties. Such forward looking statements are not guarantees of performance, and Manaris Corporation results could differ materially from those contained in such statements. These forward-looking statements speak only as of the date of this release and Manaris Corporation undertakes no obligation to publicly update any forward-looking statements to reflect new information, events or circumstances after the date of this release.

Manaris Corporation (OTC Bulletin Board:MANS) (FRANKFURT:WKN:255471)