Mississauga, Ontario--(Newsfile Corp. - November 27, 2014) - Third Quarter Highlights:

• Total system sales ⁽¹⁾ in the PROSHRED^® system were $5.36 million USD in the third quarter of 2014, growing 24% over the comparative period in 2013.
• Scheduled (recurring) system sales for the third quarter reached a record of $2.57 million USD, growing 14% over the third quarter of 2013;
• Unscheduled system sales for the third quarter reached a record of $1.82 million USD, growing 37% over the third quarter in 2013 and;
• Recycling system sales for the third quarter were $959,000 USD, growing 31% over the third quarter of 2013.
• The PROSHRED^® system shred and recycled 8,000 tons of paper during the third quarter of 2014, an increase of 24% over the third quarter of 2013.
• Redishred's six directly operated corporate locations in Syracuse, Albany, Milwaukee, New York City, Charlotte and Miami produced $1.2 million CDN in revenues during the three months ended September 30, 2014, generating $527,000 CDN in earnings before interest, taxes, depreciation and amortization ("EBITDA"), an EBITDA increase of 46% versus Q3-2013.
• Redishred's same store corporate stores, Syracuse, Albany, Milwaukee, and New York City, grew sales by 10% quarter over quarter. During the nine months ended September 30, 2014, the same store corporate stores EBITDA increased by 32%.

Financial Highlights:

(1) The Miami operations are excluded in the three and nine months ended September 30, 2013 results, as the Miami business was jointly operated by Redishred and one of the Company's franchise locations. The Company commenced operations of the Miami location directly on January 1, 2014.

System Sales

Redishred's management team continued to focus its efforts through its franchisees and its corporate locations on (1) building recurring service revenues, (2) maximizing route density and logistical efficiencies and (3) implementing dedicated hard drive destruction trucks/equipment throughout the system. The strong system sales results are driven by Redishred's sales and marketing programs that are aimed at educating clients on the legislative requirements to destroy confidential information using a secure on-site solution. Additionally, an increasing number of clients are requiring their facilities to recycle all products, including office paper and, by using our service, clients are assured that documents are securely destroyed and the materials are recycled. Proshred also offers hard drive destruction services in almost all of its locations, and has been deploying high-speed on-site hard drive destruction trucks. Currently eight franchised locations have deployed high-speed on-site hard drive destruction trucks. These factors led to 22% growth in scheduled and unscheduled sales in the second quarter of 2014 over the same quarter in 2013.

Recycling system sales increased by 31% during the three months ended September 30, 2014 in comparison to the same period in 2013. During the three months ended September 30, 2014, the PROSHRED® system shred and recycled 8,000 tons of paper, which equates to 120,000 trees saved.

Corporate Operations

During the three and nine months ended September 30, 2014, Redishred directly operated six shredding locations in Syracuse, NY, Albany, NY, Milwaukee, WI, New York City, NY, Charlotte, NC and Miami, FL.

On July 31, 2013, the Company acquired the Charlotte franchise and on January 1, 2014 the Company began directly operating the Miami, FL location. During the three months ended September 30, 2014, the corporate location revenue grew by 33% over the same comparative prior year period. The Company also increased EBITDA by 46% over the three months ended September 30, 2013.

Same store corporate store results are indicators of performance of corporate stores that have been in the system for equivalent periods in 2014 and 2013. Same store corporate results include the operations of Syracuse, Albany, Milwaukee and New York City. During the three months ended September 30, 2014, the same store corporate location revenue grew by 10%.

All Corporate Locations Results:

Corporate Locations Trend:

Management's Comments on the Third Quarter of 2014

Jeffrey Hasham, the Company's CEO, had the following comments, "The third quarter continued the positive trends attained in the first two quarters of the year. Our system sales, in particular the service side, continued to grow over last year at close to 20% on a year to date basis. The growth can be attributed to continued investment in sales, marketing, human resources and trucks. This trend can be seen in our corporate locations, which continued to demonstrate solid sales and bottom line growth. It is our plan to continue to invest in activities and assets that will provide our clients with the best on-site destruction services. I would like to thank our franchisees, employees and vendor partners for their hard work and our shareholders for their continued support of our Company."

Community and Social Commitment

Our locations under the PROSHRED^® banner conducted 178 community shredding events in the first three quarters of 2014. These events provide an opportunity for our clients, clients' employees, local businesses and local residents to ensure their personal and confidential materials are securely destroyed. In addition to helping to reduce identity theft, several of these events allow for donations to various not-for-profit organizations. PROSHRED^® continues to be a proud supporter of the American Institute of Cancer Research and is planning future events to help with their important research.

PROSHRED^® is also proud that 100% of the shredded material is recycled, as our continued goal is to foster the use of fewer trees in the production of all paper products. Future community shredding event locations can be found at our website, www.proshred.com.

Financial Statements

Redishred's September 30, 2014 Financial Statements, Notes and Management's Discussion and Analysis will be available at www.sedar.com and www.redishred.com.

Services

Redishred Capital Corp. is the owner of the PROSHRED® trademarks and intellectual property in the United States. PROSHRED® shreds and recycles confidential documents and proprietary materials for thousands of customers in the United States in all industry sectors. PROSHRED® is a pioneer in the mobile document destruction and recycling industry and has the ISO 9001:2008 certification. It is PROSHRED®'s vision to be the ‘system of choice' and provide shredding and recycling services on a global basis. Redishred Capital Corp. grants PROSHRED® franchise businesses in the United States and by way of license arrangement in the Middle East. Redishred Capital Corp. also operates five corporate shredding businesses directly. The Company's plan is to grow its business by way of both franchising and the acquisition and operation of document destruction businesses that generate stable and recurring cash flow through a scheduled client base, continuous paper recycling and concurrent unscheduled shredding service.

FOR FURTHER INFORMATION PLEASE CONTACT:

Redishred Capital Corp. (TSXV: KUT)
Jeffrey Hasham, MBA, CPA, CA
Chief Executive Officer
Jeffrey.hasham@redishred.com
www.redishred.com
Phone: (416) 849-3469 Fax: (905) 812-9448

or,

Redishred Capital Corp. (TSXV: KUT)
Kasia Pawluk, CPA, CA
Chief Financial Officer
kasia.pawluk@redishred.com
www.redishred.com
Phone: (416) 204-0076 Fax: (905) 812-9448

Note: Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains forward looking statements that reflect the current expectations of management of Redishred and Redishred's future results, performance, achievements, prospects and opportunities. Wherever possible, words such as "may", "will", "estimate", "believe", "expect", "intend" and similar expressions have been used to identify these forward looking statements. These statements reflect current beliefs and are based on information currently available to management of Redishred. Forward looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2013 management discussion and analysis under "Risk Factors", could cause actual results, performance, achievements, prospects or opportunities to differ materially from the results discussed or implied in the forward looking statements. These factors should be considered carefully and a reader should not place undue reliance on the forward looking statements. There can be no assurance that the expectations of management of Redishred will prove to be correct. Readers are cautioned that such forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from these statements. Redishred can give no assurance that actual results will be consistent with these forward-looking statements.

Source: RediShred Capital Corp.