To achieve the designation Softchoice was required to complete more than 80 certifications and demonstrate advanced skills and knowledge in the design and delivery of IBM solutions. Key technologies include Information Management, DB2, Lotus, Tivoli, WebSphere, Rational and the ValueNet solutions of Optim, Cognos and InfoSphere. As a Premier IBM partner, Softchoice provides critical resources to ensure organizations make educated purchasing decisions while benefitting from faster deployments and reduced implementation risk. This includes access to software licensing specialists as well as senior Enterprise Architects and Professional Services personnel who provide counsel and logistical support with respect to selecting, integrating and deploying mid-market and enterprise-class IBM technologies.

"IBM's Business Partner Value Program is aimed at ensuring customers receive the highest quality of service and support," added Toby Banks, Director of IBM Solutions for Softchoice. "It's ultimately about reducing risk, costs and delivering peace of mind. Softchoice is uniquely positioned to do all of these things on behalf of customers across North America."

About Softchoice

As one of North America's leading providers of technology solutions and services, Softchoice helps businesses and organizations of all sizes to select, acquire and manage their software and hardware technology resources. Softchoice offers a full range of capabilities, including face-to-face consultations and IT asset management services designed to help customers save time, money and risk in IT procurement. Softchoice currently has 883 employees operating from more than 40 branch offices located in major cities across the U.S. and Canada.

Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

SOURCE: Softchoice Corporation

Media Contact: Softchoice
Eric Gardiner
Manager of Communications
416.588.9002 Ext. 2358
eric.gardiner@softchoice.com
www.softchoice.com

To achieve the designation Softchoice was required to complete more than 80 certifications and demonstrate advanced skills and knowledge in the design and delivery of IBM solutions. Key technologies include Information Management, DB2, Lotus, Tivoli, WebSphere, Rational and the ValueNet solutions of Optim, Cognos and InfoSphere. As a Premier IBM partner, Softchoice provides critical resources to ensure organizations make educated purchasing decisions while benefitting from faster deployments and reduced implementation risk. This includes access to software licensing specialists as well as senior Enterprise Architects and Professional Services personnel who provide counsel and logistical support with respect to selecting, integrating and deploying mid-market and enterprise-class IBM technologies.

"IBM's Business Partner Value Program is aimed at ensuring customers receive the highest quality of service and support," added Toby Banks, Director of IBM Solutions for Softchoice. "It's ultimately about reducing risk, costs and delivering peace of mind. Softchoice is uniquely positioned to do all of these things on behalf of customers across North America."

About Softchoice

As one of North America's leading providers of technology solutions and services, Softchoice helps businesses and organizations of all sizes to select, acquire and manage their software and hardware technology resources. Softchoice offers a full range of capabilities, including face-to-face consultations and IT asset management services designed to help customers save time, money and risk in IT procurement. Softchoice currently has 883 employees operating from more than 40 branch offices located in major cities across the U.S. and Canada.

Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Contacts:
Media Contact: Softchoice
Eric Gardiner
Manager of Communications
416.588.9002 Ext. 2358
eric.gardiner@softchoice.com
www.softchoice.com

SOURCE: Softchoice Corporation

mailto:eric.gardiner@softchoice.com
http://www.softchoice.com

Expected next investor conference call information:
Conference Call Date: 11/10/2009
Conference Call Time (ET): 5:00 PM
Conference Call URL: http://events.snwebcastcenter.com/softchoice/20091110/

Softchoice reported revenues of US$218.7 million during the third quarter of 2009, representing a decline of 21 percent compared to the same period last year. Eliminating the foreign exchange impact, revenues declined by 19 percent compared to the same period last year, while gross profit declined by 12 percent. Management believes that the declines in the Company's revenue and gross profit resulting from the economic downturn began to stabilize in the third quarter. The actions taken last fall to resize the Company's cost base and the subsequent investment of cash to retire debt have served to position Softchoice for an expected recovery in the North American information technology industry.

"Despite very difficult industry dynamics we have increased operating earnings by 96 percent on a year over year basis and our early and aggressive cost-actions have paid dividends in productivity and bottom line results," said David MacDonald, President and CEO of Softchoice. "Moreover, we have retained our strong branch network and sales force and are well positioned to capitalize on future growth opportunities."

On a year-over-year basis, Softchoice's balance sheet has continued to strengthen. The Company has used proceeds from its strong cash flows to reduce its outstanding debt from $105.4 million at the beginning of the first quarter of the prior year to $14.5 at the end of the third quarter of the current year.

"The speed and durability of the economic recovery remains uncertain; however, buoyed by major product releases, including Microsoft Windows 7 and Cisco's Unified Computing System, we share the views of analysts like Gartner that the technology sector will lead other industries out of the recession," added Mr. MacDonald. "As a result, we've been very careful in adjusting our cost base to ensure that Softchoice does not sacrifice our ability to work with customers face to face in more than 40 local markets. This means that as IT spending regains strength in the U.S., we will be well positioned in the early stages to create additional leverage for our bottom line."

Third-Quarter Highlights

- On October 29, Softchoice received top honors for Green IT Solution of the Year and Best Channel Marketing Initiative at the 2009 Computer Dealer News Channel Elite Awards.

- During the quarter, Softchoice successfully secured Cisco's Advanced Data Center Networking Infrastructure Specialization in Canada, allowing the Company to meet a wide range of customer needs around the design and implementation of high-performance data center solutions.

- Softchoice was named to the 2008 Channel Reseller News Fast Growth 100 list, the definitive listing of North America's fastest-growing IT solutions and services providers.

- At the end of the quarter, Softchoice released a new IT assessment specifically designed to help organizations plan for the deployment of the new Windows 7 operating system from Microsoft.

Third-Quarter Earnings Call Details

Softchoice Corporation will be hosting its 2009 third-quarter earnings call on Tuesday, November 10, at 5:00 p.m. Eastern Time.

The call will be hosted by David MacDonald, Softchoice's President and CEO, and Chief Financial Officer David Long. The conference call will begin with a brief presentation followed by a question-and-answer session.

Participant Information

Local Toronto Access: (416) 981-9000

Toll-free: (800) 745-9830

Conference Reference ID: 21441054

Webcast URL:

http://events.snwebcastcenter.com/softchoice/20091110/

To ensure participation, please dial in at least 10 minutes prior to the start of the conference at 5:00 p.m. Eastern Time.

For those unable to attend the call, a link will be made available on the Softchoice website to an archived Web and audio version on November 11, 2009.

About Softchoice

As one of North America's leading providers of technology solutions and services, Softchoice helps businesses and organizations of all sizes to select, acquire and manage their software and hardware technology resources. Softchoice offers a full range of capabilities, including face-to-face consultations and IT asset management services designed to help customers save time, money and risk in IT procurement. Softchoice currently has 883 employees operating from more than 40 branch offices located in major cities across the U.S. and Canada.

Softchoice stock is listed on the Toronto Stock Exchange (TSX) under the trading symbol "SO." The common shares of Softchoice are not registered under the U.S. Securities Act of 1933 and are not publicly traded in the United States.

Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties. These forward-looking statements relate to expectations, intentions and plans contained in this press release that are not historical fact. When used in this press release, the words "anticipate," "expect," "will" and similar expressions generally identify forward-looking statements. These statements reflect our current expectations and are subject to a number of risks and uncertainties including, but not limited to, change in technology and general market conditions, many of which are set out or incorporated by reference in the Company's latest Annual Information Form. Due to the many risks and uncertainties, Softchoice cannot assure that the forward-looking statements contained in this press release will be realized.

                              Softchoice Corporation
                      Interim Consolidated Balance Sheets
                         (in thousands of U.S. dollars)
                                                September 30,   December 31,
                                                        2009           2008
                                                  (unaudited)
ASSETS
Current assets
 Cash                                           $     11,625    $    14,098
Accounts receivable,
  net of allowance for doubtful
  accounts of $3,477
  (December 31, 2008 - $2,759)                       150,908        241,581
 Inventory                                             2,674          1,722
 Prepaid expenses and other assets                     2,139          8,056
 Future income taxes                                   2,029          2,095
 Income taxes recoverable                                  -            254
                                             -------------------------------
                                                     169,375        267,806
Property and equipment (note 2)                        6,825          7,252
Goodwill (note 3)                                     10,917         10,172
Intangible assets (notes 2 and 3)                     46,381         49,923
Long-term accounts receivable                            181            830
Deferred costs                                         1,396          2,377
Future income taxes                                   17,159         17,401
                                             -------------------------------
                                                $    252,234   $    355,761
                                             -------------------------------
                                             -------------------------------
LIABILITIES
Current liabilities
 Bank indebtedness (note 4)                     $      2,694   $     40,376
 Accounts payable and accrued liabilities            155,945        227,884
 Current portion of deferred revenue                   3,827          5,033
 Income taxes payable                                  2,930              -
                                             -------------------------------
                                                     165,396        273,293
                                             -------------------------------
Long-term liabilities
 Deferred lease inducements                              508            483
 Deferred revenue                                        181            830
 Long-term debt (note 4)                              11,761         13,717
                                             -------------------------------
                                                      12,450         15,030
                                             -------------------------------
Total liabilities                                    177,846        288,323
                                             -------------------------------
                                             -------------------------------
Shareholders' equity
 Capital stock (note 5)                                9,827          9,827
 Contributed surplus (note 6)                            996          2,495
 Retained earnings                                    57,165         42,000 Accumulated other comprehensive income(i)             6,400         13,116
                                             -------------------------------
                                                      63,565         55,116
                                             -------------------------------
Total shareholders' equity                            74,388         67,438
                                             -------------------------------
                                                $    252,234   $    355,761
                                             -------------------------------
                                             -------------------------------
Contingencies (note 7)
See accompanying notes to interim consolidated financial statements.
(i) Accumulated other comprehensive income is comprises of foreign currency
    translation adjustments.
                            Softchoice Corporation
        Interim Consolidated Statements of Earnings and Retained Earnings
              (in thousands of U.S. dollars except per share information)
                                  (Unaudited)
             3 month period  3 month period  9 month period  9 month period
                      ended           ended           ended           ended
               September 30,   September 30,   September 30,   September 30,
                       2009            2008            2009            2008
Revenue
 Software       $   119,455     $   139,085    $    425,247    $    484,048
 Hardware            93,431         128,137         260,191         381,511
 Agency fees          5,842           9,134          30,921          43,747
              --------------------------------------------------------------
                    218,728         276,356         716,359         909,306
              --------------------------------------------------------------
Cost of sales       187,915         240,892         613,580         781,133
              --------------------------------------------------------------
Gross profit         30,813          35,464         102,779         128,173
              --------------------------------------------------------------
Expenses
 Salaries and
  benefits           19,229          22,520          56,905          73,119
 Selling,
  general
  and administrative  6,716           9,183          23,105          28,255
 Amortization of
  property and
  equipment             762             720           2,185           2,013
 Amortization
  of intangible
  assets
  (note 3)            1,973           1,955           5,930           5,881
              --------------------------------------------------------------
                     28,680          34,378          88,125         109,268
              --------------------------------------------------------------
Operating
 income               2,133           1,086          14,654          18,905
Foreign currency
 exchange (gain)
 loss                (6,230)          1,108         (10,778)          1,270
Interest expense      1,490           1,703           4,644           5,035
Other                    15             495            (493)            (13)
              --------------------------------------------------------------
Earnings (loss)
 before income
 taxes                6,858          (2,220)         21,281          12,613
              --------------------------------------------------------------
Provision for
 (recovery of)
 income taxes
 Current              2,019            (884)          5,672           4,591
 Future                 (73)            329             444             559
              --------------------------------------------------------------
                      1,946            (555)          6,116           5,150
              --------------------------------------------------------------
Net earnings
 (loss) for
 the period           4,912          (1,665)         15,165           7,463
Retained
 earnings
 - Beginning
    of period        52,253          67,208          42,000          61,587
Dividends
 (note 8)                 -          (1,692)              -          (5,199)
              --------------------------------------------------------------
Retained
 earnings
 - End of
    period     $     57,165    $     63,851    $     57,165    $     63,851
              --------------------------------------------------------------
              --------------------------------------------------------------
Net earnings
 (loss) per
 common share
 (note 9)
 Basic         $       0.28    $      (0.09)   $       0.87    $       0.43
 Diluted       $       0.28    $      (0.09)   $       0.87    $       0.43
Basic weighted
 average number
 of common shares
 outstanding     17,496,807      17,527,465      17,496,807      17,463,868
Diluted weighted
 average number
 of common shares
 outstanding     17,553,515      17,596,235      17,512,165      17,546,990
See accompanying notes to interim consolidated financial statements.
                      Softchoice Corporation
           Interim Consolidated Statements of Cash Flows
                (in thousands of U.S. dollars)
                           (Unaudited)
             3 month period  3 month period  9 month period  9 month period
                      ended           ended           ended           ended
               September 30,   September 30,   September 30,   September 30,
                       2009            2008            2009            2008
Cash provided
 by (used in)
Operating activities
Net earnings
 (loss) for the
 period        $      4,912    $     (1,665)   $     15,165    $      7,463
Items not affecting
 cash
 Amortization of
  property and
  equipment             762             720           2,185           2,013
 Stock-based
  (recovery)
  compensation
  (note 6)              54               54          (1,499)          1,100
 Future income
  taxes                (73)             329             444             559
 Amortization of
  intangible assets
  (note 3)           1,973            1,955           5,930           5,881
 Unrealized foreign
  currency (gain)
  loss              (5,240)            (381)         (7,761)            286
 (Gain) loss on
  disposal of
  property and
  equipment              -                -              (2)              5
              --------------------------------------------------------------
                     2,388            1,012          14,462          17,307
Net change in
 non-cash
 working capital
 items relating
 to operations
 (note 13)              22           31,653          27,347           3,665
              --------------------------------------------------------------
                     2,410           32,665          41,809          20,972
              --------------------------------------------------------------
Financing
 activities
 Repayment of
  bank
  indebtedness
  due to
  refinancing
  (note 4)          (5,516)               -         (40,317)              -
 Increase in
  bank
  indebtedness
  due to
  refinancing
  (note 4)               -                -           1,627               -
 Repayment of
  long-term debt
  due to
  refinancing
  (note 4)          (2,455)               -         (13,688)              -
 Increase in
  long-term debt
  due to
  refinancing
  (note 4)               -                -           9,368               -
 (Decrease)
  increase in
  bank
  indebtedness           -          (33,891)              -          26,107
 Increase
  (decrease) in
  long-term debt         -              779               -          (2,120)
 Payment of cash
  dividend               -           (1,692)              -          (5,199)
 Proceeds from
  issuance of
  common shares
  (note 5)               -                2               -             565
              --------------------------------------------------------------
                    (7,971)         (34,802)        (43,010)         19,353
              --------------------------------------------------------------
Investing
 activities
 Purchase of
  property and
  equipment           (254)          (1,753)         (1,128)         (3,575)
 Purchase of
  intangible
  assets              (558)            (366)           (932)           (965)
 Proceeds on
  disposal of
  property and
  equipment             32               51              61              46
 Acquisition,
  net of cash
  acquired               -            1,145               -         (39,254)
              --------------------------------------------------------------
                      (780)            (923)         (1,999)        (43,748)
              --------------------------------------------------------------
Effect of
 exchange
 rate changes
 on cash               687              (35)            727            (170)
              --------------------------------------------------------------
Decrease in
 cash during
 the period         (5,654)          (3,095)         (2,473)         (3,593)
Cash
 - Beginning
    of period       17,279           10,565          14,098          11,063
              --------------------------------------------------------------
Cash
  - End
     of period   $  11,625     $      7,470    $     11,625    $      7,470
              --------------------------------------------------------------
              --------------------------------------------------------------
Interest paid    $   1,029      $       703    $      3,001    $      3,063
Income taxes
 paid         $         (6)     $       358    $      2,525    $      4,256
                       Softchoice Corporation
        Interim Consolidated Statements of Comprehensive Income and
                 Accumulated Other Comprehensive Income
                     (in thousands of U.S. dollars)
                            (Unaudited)
             3 month period  3 month period  9 month period  9 month period                      ended           ended           ended           ended
               September 30,   September 30,   September 30,   September 30,
                       2009            2008            2009            2008
              --------------------------------------------------------------
Comprehensive
 Income
Net earnings
 (loss) for
 the period     $      4,912    $    (1,665)   $     15,165    $      7,463
Foreign
 currency
 translation
 adjustment           (3,921)         2,299          (6,716)          3,362
              --------------------------------------------------------------
Comprehensive
 income          $       991    $       634    $      8,449    $     10,825
              --------------------------------------------------------------
              --------------------------------------------------------------
Accumulated
 other
 comprehensive
 income
Balance
 - Beginning
    of period                                   $    13,116    $      2,550
Foreign currency
 translation
 adjustment                                          (6,716)          3,362
                                               -----------------------------
Balance
 - End of period                               $      6,400    $      5,912
                                               -----------------------------
                                               -----------------------------

Contacts:
Media Contact:
Softchoice Corporation
Manager of Communications
416.588.9002 Ext. 2358
eric.gardiner@softchoice.com

SOURCE: Softchoice Corporation

mailto:eric.gardiner@softchoice.com