VRX Reports Fourth Quarter 2004 Results (Unaudited)

•  Record Annual Licensing Revenues
•  Profit of $153,087 recorded for the year
•  Cash and Short-term Deposits unchanged vs 2003

Vancouver, B.C. (April 7, 2005) - - VRX Worldwide Inc . (TSX.V: VRW) today reported its unaudited financial results for the fourth quarter ending December 31, 2004. Licensing revenue achieved record annual levels in 2004 while service fee revenue declined roughly 15% over 2003.

As of December 31, 2004, cash and short-term deposits amount to $1,631,461, or $0.05 per share.

Consolidated Balance Sheets (unaudited)

		December 31, 2004		December 31, 2003
Assets
Cash, cash equivalents and short-term deposits	$	1,631,461	$	1,575,915
Accounts receivable		625,144		610,891
Work in progress		23,443		46,178
Prepaid expenses and refundable deposits		11,058		11,431
		2,291,106		2,244,415
Property, plant and equipment		376,682		212,657
	$	2,667,788	$	2,457,072
Liabilities
Accounts payable and accrued liabilities	$	181,520	$	168,467
Income taxes payable		46,841		58,000
Deferred revenue		147,238		212,939
		375,599		439,406
Shareholders' Equity
Share Capital		6,279,145		6,226,055
Contributed Surplus		172,042		21,300
Deficit		(4,158,998)		(4,229,689)
		2,292,189		2,017,666
	$	2,667,788	$	2,457,072

During the fourth quarter, limited hotel based service work was completed for the Company's major services client beyond processing previously captured content. Further to this, as noted in a prior press release, the former hotel based services agreement between the Company and its major services client was not renewed in January 2005. As a result, a limited amount of service work has been contracted in the first quarter and the Company has focused 100% of its resources on launching its new Hotel Program. The build-out of VRX's new Hotel Archive will be its core focus for the foreseeable future. Notwithstanding this, VRX continues to receive and entertain proposals for the provision of custom service work. Provided such proposals warrant the Company's attention, VRX may provide custom services to a few select customers while concurrently building out its Hotel Program.

Based on the current demand for online travel services, the demand for VRX destination and hotel content is expected to increase significantly throughout 2005 and beyond. It should be noted that VRX's new Hotel Program affords the Company the opportunity to capture licensing and content management fees from both hotels and travel intermediaries.

Consolidated Statement of Earnings (unaudited)

		Year Ended				Three Months Ended
		December 31				December 31
		2004		2003		2004		2003
Licensing and Sponsorship Fees	$	863,012	$	643,293	$	195,478	$	216,357
Service Fees		2,978,221		3,509,042		953,678		945,675
Interest income net of transaction fees		25,607		5,692		8,926		7,951
Total Revenue		3,866,840		4,158,027		1,158,082		1,169,983
Operating Expenses		3,376,723		2,268,078		1,184,916		795,587
Earnings before taxes & amortization		490,117		1,889,949		(26,834)		374,396
Provision for Income Taxes (Recovery)		110,400		58,000		(56,436)		58,000
Operating Income before Amortization		379,717		1,831,949		29,602		316,396
Non Cash charges		226,630		151,987		72,790		37,815
Net Income (loss)	$	153,087	$	1,679,962	$	(43,188)	$	278,591
Earnings per Share	$	0.00	$	0.06	$	0.00	$	0.01

Operating expenses increased year over year for several reasons. In addition to acquiring and delivering content to Expedia for approximately the same number of hotels in 2004 as in 2003, the Company also acquired content for its own initiatives. These initiatives included the commencement of production for VRX's Hotel Program during the fourth quarter; the re-editing and image upgrade of its destination archive during the first quarter; and the acquisition of content for its Great Cities of Europe campaign throughout the year. In addition, as advised at the beginning of the year, the Company realized increased salaries expenses and research and development expenses as part of a conscience effort by management to position the Company for future growth. Selected accounts that recorded increased balances when compared with 2003 include photographer and production fees ($1,220,695 vs. $909,774); marketing and product promotion ($247,149 vs. $36,255) and general and administrative fees associated with related support functions ($783,019 vs. $533,580). Primarily due to the development of the Xplore Travel Group, research and development expenses also increased ($230,127 vs. $52,449).

“The fourth quarter was a transition period for the Company as we captured the residual revenue associated with historic service contracts while at the same time embarking on our Hotel Program,” commented Robert McMorran, CFO of VRX. “Moving forward into 2005, we look forward to a diversified recurring revenue stream albeit at levels below those recently accomplished. As we move deeper into 2005 we expect to see record levels of licensing fees as the Hotel Program gains revenue traction. Concurrently, as opportunities present themselves, we expect to selectively complete service based work, although it is unlikely that such revenue stream would return to recent recorded levels.”

With regard to the Company's Hotel Program, VRX has accomplished its stated initial objective of signing 350 hotel partners, the vast majority of which are located in leading destinations such as Hawaii, San Francisco, Orlando and select Caribbean locations. Having accomplished its first significant supply side milestone, the Company is directing an increasing portion of its sales and marketing efforts to licensing this content to leading travel intermediaries. The Company expects to start a content testing program with two of the top ten North American travel intermediaries in April. Successful content testing with these companies is expected to lead to more definitive agreements.

With the Hotel Program still early in the development cycle and the Company's marketing efforts only recently having been expanded to include travel intermediaries in addition to hotels, management believes there are too many undetermined variables for the Company to offer accurate revenue guidance for fiscal 2005. The Company is currently in a transition phase from a largely service based revenue stream to a diversified recurring revenue stream and management expects that revenues for the first two quarters of 2005 will be significantly less than comparable quarters in 2004 or 2003. As the Hotel Program content becomes more widely available, the Company is looking for improved revenue in the second half of the year.

“The response to our Hotel Program is exceeding our very aggressive ambitions,” stated David MacLaren President and CEO of VRX. “Our focussed approach is paying handsome dividends as we have signed hundreds of hotels representing over 25% of the four and five star properties in key markets such as Hawaii, San Francisco, Orlando and elsewhere. Our discussions with leading travel intermediaries are very encouraging and endorse our expectations about the demand for high quality online accommodation content. The growth opportunities are exceptional and we believe our Hotel Program is the long-term future of VRX. All of us at VRX look forward into transforming an exceptional opportunity into a long term, robust, recurring revenue stream.”

Earnings Conference Call

VRX will be hosting a conference call at 1:30 p.m. Pacific Time (4:30 p.m. Eastern) April 7, 2005 to discuss its fourth quarter 2004 financial results and corporate developments. Investors can participate by dialing 1-416-405-9328 or 1-800-387-6216 or visit http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=1068760 for the webcast.
A replay will be available through May 7, 2005 at 1-800-408-3053 or 416-695-5800; Pass code 3149253#.