Press Release

Creative Vistas Inc. Reports Record Third-Quarter Revenues of $9 million, EBITDA of $1 Million, Year to-date Revenues of $22.7 Million

Company Sees Strong Sequential Sales Growth, 9-Cent Year-over-Year Swing in EPS

WHITBY, Ontario--(BUSINESS WIRE)--Creative Vistas, Inc., (OTCBB:CVAS - News), a leading provider of advanced security and surveillance products as well as broadband-related services, today reported financial results for the third quarter ended September 30, 2006. Highlights of the report include:

• Revenues increase 27% on sequential basis to more than $9 million.
• Operating income and EBITDA rises to $1.0 Million
• Basic EPS rises to $0.07, up from year-earlier loss of ($0.02).

Revenues for the third quarter of 2006 totaled $9.12 million, up 388% from $1.87 million in the third quarter of 2005. The year-over-year increase was due to sales added by the acquisition of Creative Vistas' broadband services unit, Cancable Inc., in January 2006. On a sequential basis revenues were 27% above the $7.16 million reported for the second quarter ended June 30, 2006.

Net income for the third quarter ended September 30, 2006 was $2.22 million, or $0.01 per fully diluted share, compared to a net loss of ($661,685), or ($0.02) per fully diluted share, in the third quarter of 2005.

For the nine months ended September 30, 2006, revenues totaled $22.73 million, up 225% from $7.00 million in the first nine months of 2005. As with third quarter results, the increase in revenue was due to increased sales from the acquisition of Cancable. Net loss for the first nine months of 2006 totaled ($4.38 million), or ($0.14) per fully diluted share, compared to net income of $554,756, or $0.02 per fully diluted share, in the same period a year earlier.

Revenues for both the third quarter and first nine months of 2006 exceeded earlier guidance of $8.5 million and $22 million, respectively, as announced on October 26, 2006.

Net income and EPS in the third quarter and first nine months reflected the impact of volatile non-operating factors, particularly the revaluation of liabilities from derivative instruments tied to the current stock price. Derivative liabilities rise and fall with the price of Creative Vistas' common shares.

EBITDA Reaches $1 Million Milestone

EBITDA in the third quarter of 2006 -- equal in this quarter to earnings before taxes, interest, depreciation and amortization (EBITDA) -- was $1.16 million, up from a negative EBITDA of ($288,103) in the third quarter of 2005. On a sequential basis, EBITDA was up 58.4% from $734,281 in the second quarter ended June 30, 2006. For the first nine months of 2006, operating income was $1.38 million and EBITDA was $2.18 million, compared to an operating loss of ($1.06 million) and negative EBITDA of ($1.02 million) in the first nine months of 2005.

CEO Notes New Orders, Pricing Power

Sayan Navaratnam, Chairman and CEO of Creative Vistas, said, "Our third quarter results are notable both for strong profit performance, at the net and operating levels, and for robust sequential growth in all three of the company's divisions. In the video surveillance systems area, our AC Technical Systems unit saw growth of 7% from the prior quarter. Cancable sales increased 33%, and sales at Iview DVSI, our technology division which sells video surveillance technology, rose 454% (to $101,327) and is starting to make a significant contribution in strategic customer wins. Our results have been helped by new orders, which are continuing in the fourth quarter, and by pricing power. At AC Technical, for instance, we have increased our service rates by 20%, in line with the competition."

On the balance sheet, Creative Vistas reported cash and cash equivalents of $2.82 million on September 30, 2006. Current assets of $9.66 million while current liabilities stood at $8.20 million. Additional liabilities totaled $18.96 million, including $15.11 million in term notes.

Since the end of the third quarter, Creative Vistas has announced $1.8 million in new orders for security and surveillance projects at its AC Technical division. Clients include government ministries, health care, property management and retail businesses.

If you would like to be added to Creative Vistas' investor email lists or have additional questions, please contact Haris Tajyar with Investor Relations International at htajyar@irintl.com.

About Creative Vistas

Creative Vistas, Inc., is a leading provider of security-related technologies and systems. It also provisions the deployment of broadband services. Operating through its wholly-owned subsidiaries AC Technical Systems Ltd. and Iview Digital Video Solutions Inc., it offers proprietary and non-proprietary technologies to the integrated electronic security and surveillance market. Its systems are used by numerous high-profile clients including government, school boards, retail outlets, banks and hospitals. Through its subsidiary Cancable Inc., the Company provisions the deployment and servicing of broadband technologies to the commercial and residential market. Creative Vistas is based in Ontario, Canada.

Forward-Looking Statements: Statements about the Company's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Securities Litigation Reform Act of 1995. The Company's actual results could differ materially from expected results for reasons described from time to time in the Company's public filings. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events.

Source: Creative Vistas Inc.