CIBT Reports Financial Results for Second Quarter Ending February 29th, 2016

April 15th, 2016, Vancouver, BC – CIBT Education Group Inc. (“CIBT” or the “Company”) (TSX: MBA, OTCQX International: MBAIF) is pleased to report that it has filed on SEDAR its consolidated financial statements and related Management’s Discussion Analysis for its second quarter ending February 29th, 2016. To review the filing, please visit www.sedar.com.

“CIBT has experienced two high performance quarters in the first half of fiscal 2016 with the addition of 3 new student housing projects, valued at nearly $90 million, in conjunction with equity investment partners,” said Toby Chu, President and CEO, Vice Chairman of CIBT. “At the start of F2016, we added one hotel property located in downtown Vancouver to our student housing portfolio followed by a brand new condominium property to be fitted as serviced apartments in Burnaby Heights while expanding our previously acquired $20.5 million project to a $31 million project during the second quarter of the year.”

“We have already begun to see the benefits and success of our new strategy with substantial increases in property value across the GEC branded portfolio in just one year,” continued Toby Chu. “While we expect that our shareholders will continue to see further valuation gains from these properties, it is part of our strategy to continue to solidify our education assets, monetize on some of our real estate assets and provide additional returns to our shareholders. We will continue to add properties to our student housing portfolio while seeking school acquisition opportunities as part of our business objective. Our strategy will continue to focus on international students enrolled in our schools and our partner schools which act as a pipeline feeding our student housing properties.”

”As real estate values in Metro Vancouver continue to climb, the inventory of student housing held with our equity investment partners is in an enviable position. We will be able to take advantage of the increasing demand for Vancouver real estate and the limited supply of housing solutions for students living in the Greater Vancouver area while enjoying the increases in valuation. Our plan is to take our existing students as well as the increased number of international students entering Canada every year and provide them with clean, safe and convenient housing solutions while generating value for our shareholders in the form of gains on real estate ownership, ongoing rental revenue, and additional fees for identifying undervalued properties.”

Summary highlights of CIBT’s Q2 2016 financial report are as follows:

 
Total income for Q2 2016 increased to $19.14 million from $15.43 compared to same period last year.

The Company generated revenue of approximately $3.62 million from student housing development fees, and $0.66 million of rental income from these properties. Rental income was generated by GEC Viva Tower while the building was undergoing renovation to accommodate additional beds.

Earnings per share attributable to CIBT shareholders is $0.02 per share as compared to $0.00 per share for the same period in F2015. Please note that in Q2 of F2016, the Company did not record any Gain on Fair Value Changes as compared to Q2 of F2015 in which there was a Gain on Fair Value Changes in Property of $3.29 million which reflected the increased property value of GEC Viva Suites.

Fair values of properties acquired since August 31st 2015 were not included in this quarterly report and will be included in future reports as the Company takes possession of those properties over time. Due to the rising property values across the entire portfolio, it is currently anticipated that Gain on Fair Value changes for up to three properties will be added to our future reports in coming months.

Compared to the same period last fiscal year, net Income attributable to CIBT shareholders increased from $0.32 million to $1.37 million, an increase of 328%.

Total assets increased to $93.03 million from $75.09 million, an increase of $17.94 million (+24%). Corresponding Long Term Liabilities increased to $25.47 million from $23.79 million, an increase of $1.68 million (+7%).

EBITDA (Earnings Before Interest Tax Depreciation Amortization) was $1.57 million, decreased from $3.42 million from previous year due to Gain on Fair Value Changes recorded in Q2 F2015 as compared to nil for Q2 F2016.

Normalized EBITDA net of Non-recurring Expenses was $1.97 million, decreased from $3.42 million due to Gain on Fair Value Changes recorded in Q2 F2015 as compared to nil for Q2 F2016.

Subsequent to Q2 ending February 29th 2016, two limited partnerships organized by the Company received additional investment capital of $5.49 million.

“Since the launching of our student housing initiative, the Company has successfully negotiated five student housing properties with co-investors at each project level,” commented Mr. Chu. “Such arrangement allows CIBT to expand rapidly without diluting its share structure. As a result of our investment structure, we own a carrying equity interest in all of the properties we manage.”

Firstly, CIBT benefits from development fees for seeking and identifying the suitable project. Secondly, CIBT also receives a management fee, which is based on the gross rental income of each property and recorded as part of the housing rental income. Thirdly, CIBT also has the right, through its equity ownership, to share the annual net profit generated from each property. Lastly and most importantly, CIBT will participate in any future gain from the sale of the property. Given the rising property prices in Vancouver and ongoing shortage of rental housing in Vancouver (less than 0.5% vacancy rate in some areas of downtown Vancouver according to CMHC), management believes the valuation gain from these properties will generate far more value and substantial returns to shareholders upon exit.

“The Company is currently working on several other projects including the Education Super Center, Education Mega Center, and other prospective student housing properties throughout Metro Vancouver with anticipated purchase prices ranging from $20 million to $200 million each.”

About CIBT Education Group:

CIBT Education Group Inc. is an education management company focused on the global education market since 1994. Listed in Canada on the Toronto Stock Exchange and in the U.S. on the OTCQX International, CIBT owns and operates a network of business, technical and language colleges in North America and Asia. CIBT offers cooperative joint programs in 12 countries with campuses, recruitment offices and training centers enrolling over 7,000 students annually. Its education business is operated through Sprott Shaw College (established in 1903), Acsenda School of Management, CIBT School of Business China, and Global Education Alliance Recruitment Centers in China and other overseas countries. Through these subsidiaries, CIBT offers recognized and approved business and management degrees, programs in college preparation, healthcare, hotel management and tourism, English language training, English Teacher Certifications, junior and high school preparation programs for overseas study, and other career/vocational training. CIBT also owns Irix Design Group, a leading design and advertising company based in Vancouver, Canada, Global Education Alliance (“GEA”) and Global Education City Holdings Inc. (“GEC”). GEA recruits international students for many elite kindergarten, primary, secondary schools and universities in North America. GEC is an investment holding and management company with a special focus on education related real estate projects in Canada. Visit us online at http://www.cibt.net and watch our corporate video at http://cibt.net/about/.

For more information contact:

Toby Chu

Vice-Chairman, President & CEO

CIBT Education Group Inc.

Investor Relations Contact:1-604-871-9909 extension 318 | Email: info@cibt.net

FORWARD LOOKING STATEMENTS:

Some statements in this news release contain forward-looking information (the “forward-looking statements”) about CIBT Education Group Inc. and its future plans. Forward-looking statements are statements that are not historical facts. The forwardlooking statements in this news release include, without limitation, that CIBT plans to continue to expand its student housing portfolio, that there will be valuation gain from these properties and that CIBT will continue to fill the pipeline of students feeding our student housing properties by seeking school acquisition opportunities. The forward-looking statements are subject to various risks, uncertainties and other factors that could cause CIBT’s actual results or achievements to differ materially from those expressed in or implied by forward-looking statements. Forward-looking statements are based on the beliefs, opinions and expectations of CIBT’s management at the time they are made, and CIBT does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change, except as may be required by law.