Media Releases

Victoria, British Columbia – June 16, 2006 – ACD Systems International Inc. (TSX: ASA), makers of ACDSee™ photo management software and Canvas™ technical illustration software, today reported its fiscal 2006 results. The financial figures in this release are reported in Canadian dollars in accordance with Canadian generally accepted accounting principles.

Summary of Financial Results
(millions of Canadian dollars except per share data)

"ACD has continued the business model transition initiated a year ago and expects to begin to see the positive effect starting next year", says Doug Vandekerkhove, chairman, chief executive officer and president of ACD Systems. "Investment in the two initiatives of the new business model combined with faster than expected decline in sales of ACDSee due to increased competition from the marketplace has resulted in a loss for the year of $9.6 million. This loss includes $5.5 million in write downs of soft assets. The poor financial results for this year clearly indicate the need to move more quickly in transitioning our core business to the new model."

Q4 FY2006 Accomplishments

• ACD launched the latest version of its flagship product, ACDSee Pro in January 2006.

Financial Highlights

Sales for the quarter ended March 31, 2006 were $4.7 million, a 10% decrease over the prior year quarter ended March 31, 2005. Fiscal 2006 sales were $18.2 million, a 24% decrease over the prior fiscal year.

Digital imaging software sales for the fourth quarter ended March 31, 2006 decreased from $4.2 million to $3.8 million while fiscal year to date sales decreased $5.6 million to $13.7 million for the current fiscal year. This decrease in fourth quarter and year over year revenues was due to a continuing decline in ESD, OEM and Distributor sales. ESD sales were diminished primarily because domain blocks were placed on ACDSeeTM 8 post-launch email communications to customers as a result of integrity issues identified within the Company’s customer email lists. A substantial portion of these domain blocks have been subsequently lifted as a result of cleaning up the integrity issues and adopting new industry best practices in managing these customer lists going forward. OEM sales declined due to the restructuring of a significant OEM contract and Distributor sales declined due to a five month delay in the release of ACDSeeTM 7 in Japanese compared to the prior year. These lower current quarter revenues occurred despite the launch of the new ACDSee Pro product in early January 2006. The Company’s digital imaging software segment derives the majority of its revenues in US dollars and Euros. Both the US dollar and Euro weakened overall throughout the year resulting in an approximate decrease in sales of $1.5 million compared to the prior year. The weakening Euro, offset by increases in the US dollar during the current fourth quarter resulted in a decline of approximately $0.5 million compared to the prior year fourth quarter. Excluding foreign currency fluctuations, digital imaging software sales increased by 26% year over year.

Technical illustration software sales decreased in the fourth quarter ended March 31, 2006 to $1.0 million from $1.4 million in the prior year fourth quarter. Fiscal year to date sales decreased by 2% from $4.6 million to $4.5 million for the year ended March 31, 2006. The Company’s US subsidiary typically launches new versions of its flagship product, Canvas, on a two-year cycle. The latest version of the product, Canvas X, was launched in mid March 2005. Because the product was launched late in fiscal 2005 there was no significant increase in sales seen in the fourth quarter of the prior year. The 2006 fiscal year revenues generated from Canvas X in its first year of a two year cycle are approximately 25% lower than normally expected. The Company derives the majority of its technical illustration software revenue in US dollars. The weakening US dollar resulted in a $0.4 million reduction in revenue year over year. However, as the US dollar strengthened during the fourth quarter, this resulted in a $0.1 million increase in revenues compared to the fourth quarter in the prior year.

Operating expenses, excluding amortization and foreign currency gains and losses decreased by $1.1 million from $5.6 million for the quarter ended March 31, 2005 to $4.5 million for the same quarter in the current year. Year over year, these same net operating expenses decreased by $0.4 million from $19.3 million for fiscal 2005 to $18.9 million in fiscal 2006. The decrease in expenses for the current fiscal year was primarily due to lower wages expenses related to the technical illustration segment offset by increased expenditures for subcontractors and advertising in the digital imaging segment.

In the fourth quarter of 2006, the Company completed its annual goodwill impairment test. The technical illustration reporting unit has continued to suffer from poor market conditions throughout 2006. As a result, the Company concluded that the fair value of goodwill for the technical illustration segment was nil and recorded an impairment loss of $3.6 million. The Company also conducted an impairment test of the value of intangible assets on its balance sheet at March 31, 2006 and determined that there was no impairment in the value of these assets at year end.

Net loss for the three months ended March 31, 2006 was $5.6 million compared to a net loss of $1.0 million for the three months ended March 31, 2005. Net loss for the year ended March 31, 2006 was $9.6 million compared to a net loss of $0.2 million in fiscal 2005.

Total assets decreased by $13.1 million to $24.9 million at March 31, 2006 from $38.0 million at March 31, 2005. This decrease is due to a decline in cash and cash equivalents of $6.4 million, the recognition of a goodwill impairment loss of $3.6 million, and a $1.9 million increase in the valuation allowances applied against future income tax assets. Accordingly, working capital at March 31, 2006 decreased by $6.6 million over March 31, 2005 due to the decrease in cash balances as well as a decrease in the current portion of future income tax assets.

ACD Systems will conduct a teleconference on June 19, 2006 at 10:30 a.m. Eastern Standard Time. To participate in the conference call, please use the phone numbers listed below.

Members of the news media, investors and the general public are invited to access a live broadcast of the conference call via the Investor Relations page of the ACD Systems Web site at: http://www.acdcorporate.com/english/Investors/financial.htm

The event will be archived and available for replay through 6/20/2007.

Further details with respect to ACD Systems’ year-end results, including the complete financial statements, will be available for download at http://www.sedar.com/.

CERTAIN STATEMENTS CONTAINED IN THIS PRESS RELEASE INCLUDING WORDS SUCH AS “LOOKS FORWARD”, “ANTICIPATE”, “COULD”, “SHOULD”, “EXPECT”, BELIEVE”, “WILL” AND SIMILAR EXPRESSIONS AND STATEMENTS RELATING TO MATTERS THAT ARE NOT HISTORICAL FACTS ARE FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS AND UNCERTAINTIES WHICH MAY CAUSE THE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS.