[Marinir] {Disarmed} Digital Shelf Space (TSX-V: DSS) Significantly Increases Revenues in Q3

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http://www.digitalshelfspace.com 

DIGITAL SHELF SPACE SIGNIFICANTLY INCREASES REVENUES IN Q3 

Digital Shelf Space Corp. (TSX-V: DSS 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=DSS&region=C&lookup=symbol&snapshot=default 

OTCQX: DTSRF 

http://www.stockwatch.com/Quote/Detail.aspx?action=go&symbol=DTSRF&region=U&lookup=symbol&snapshot=default 

) announces unaudited financial results for the nine months ended 
September 30, 2011. 

Highlights 

Steady revenue growth during the nine months ending September 30, 2011 
results in total revenues to date in excess of $1.8 million dollars. 

Revenues for the third quarter ending September 30, 2011 were $669,533, 
a 15% increase over the previous quarter and a 19% increase over the 
first quarter of 2011. 

The growth this quarter is very encouraging in what is traditionally the 
slowest season for fitness products of this nature. 

Retail expansion in Canada and the US continued this quarter with a 
number of large retailers being added, including but not limited to, 
Canadian Tire, Zellers, National Sports, Sport Chek, Sports Experts, 
Academy Sports and Outdoors, and The Sports Authority. 

Revenue 

The total revenue for the nine months of $1,813,611 (October 31, 2010 - 
$6,557) continued to be driven primarily by the Company's new product 
GSP RUSHFIT, an 8-week home-based DVD workout program starring Mixed 
Martial Arts ("MMA") welterweight world champion Georges St-Pierre. In 
addition to the product sales directly through the GSP RUSHFIT website ( 
www.gsprushfit.com 

http://www.gsprushfit.com 

), wholesale revenues grew by 26% this quarter alone, when compared to 
total wholesale revenues for the previous six months, through the 
Company's partnership with Northern Response (International) Ltd. 
("Northern"). Distribution was increased to include but not limited to 
Zellers, Sport Chek, National Sports, Sports Experts and Canadian Tire 
in Canada and in the US, The Sports Authority - the largest retailer in 
the American sporting goods channel - as well as Academy Sports and 
Outdoors. Plans for international expansion continue to move forward and 
the Company anticipates new markets to be opened up starting next 
quarter. 

Mr. Jeffrey Sharpe, CEO and President of DSS stated, "We are very 
pleased with the financial results for our third quarter and for the 9 
month period ending September 30, 2011. For us to increase our revenue 
in the third quarter by 15% over the second quarter and 19% over the 
first quarter is a very positive sign that GSP RUSHFIT is gaining 
significant traction in the retail market place. Typically revenues for 
health and fitness products experience seasonal trends with the first 
quarter of the calendar year most often generating the largest 
proportion of annual sales. Retail sell through of GSP RUSHFIT has 
happened very quickly and is now for sale in over 4000 stores across 
Canada, as well as is for sale in the US with strategic sporting goods 
retailers. We look forward to expanding our distribution channels 
internationally and extending our marketing and advertising reach 
throughout the balance of 2011." GSP RUSHFIT was launched on December 
10, 2010 and has quickly established itself as a premium brand in the 
lucrative home fitness market. 

Expenses 

During the nine month period ending September 30, 2011, operating 
expenses increased to $2,259,902 (October 31, 2010 - $1,029,161). 
Contributing factors to this increase of $1,230,711 were those directly 
related to the increased revenue generated in this quarter by the sales 
of the GSP RUSHFIT program and expenses of $415,284 related to the 
publicly traded status of the Company for which there were no 
comparative expenses in 2010. 

Net Loss 

Although expenses more than doubled on a period to period comparison, 
the loss for the nine months ended September 30, 2011 was $416,025, a 
decrease of $606,612 from the net loss of $1,022,637 for nine months 
ended October 31, 2010. The loss of $70,441 this quarter is a decrease 
of $159,587, down from a loss in the second quarter of $230,028. 

Selected Financial Highlights 

Selected Period Information 

Nine months 

ended 

Sept 30, 2011 

(Unaudited) Nine months 

ended 

Oct 31, 2010 

(Unaudited) 

Net loss $ (416,025) $ (1,022,637) 

Weighted average number 

of shares outstanding 46,539,863 18,946,694 

Net loss 

per share (1) $ (0.009) $ (0.054) 

Total assets $ 2,212,567 $ 727,534 

Total 

liabilities $ 252,129 $ 1,667,638 

Shareholders 

equity $ 1,960,438 $ (940,104) 

(1) Basic and fully diluted net loss per share are the same 

About Digital Shelf Space Corp. 

Digital Shelf Space is an independent producer of home entertainment 
content and online delivery technology provider to digital retailers, 
content owners and aggregators. Digital Shelf Space's proprietary 
technology platform has been custom built to deliver home entertainment 
content directly to consumers. The platform blends e-commerce 
functionality and paid DVD, digital download and streaming video 
delivery. For more information please visit www.digitalshelfspace.com 
and to view our project with Georges St-Pierre, please visit 
www.gsprushfit.com. 

ON BEHALF OF THE BOARD 

"Jeffrey Sharpe" 

President & CEO 

FOR FURTHER INFORMATION PLEASE CONTACT: 

Digital Shelf Space Corp. 

Jeff Sharpe 

President & CEO 

Tel: 604.736-7977 ext.111 

Fax: 604.736-7944 

E-mail: jeff at digitalshelfspace.com 

Website: www.digitalshelfspace.com 

http://www.digitalshelfspace.com 

Forward Looking Statements 

This news release contains "forward-looking information" within the 
meaning of the Canadian securities laws. Forward-looking information is 
generally identifiable by use of the words "believes," "may," "plans," 
"will," "anticipates," "intends," "budgets", "could", "estimates", 
"expects", "forecasts", "projects" and similar expressions, and the 
negative of such expressions. Forward-looking information in this news 
release include statements about expected revenue as a result of the 
addition of new outlets, the Company entering into additional markets, 
the expansion of existing advertising strategies and the implementation 
of new marketing methods; the expansion of the GSP RUSHFIT brand and 
distribution channels; the impact and profitability of digital delivery 
of the Company's products; increased seasonal sales during the fourth 
quarter; penetration of new markets, both domestic and international, as 
well as expanded advertising strategies and new marketing methods 
(including television and internet); the development and sale of 
complementary GSP RISHFIT product lines; the launch of a new 
fitness-based DVD series or product line starring a celebrity or 
athlete; the Company's strategy, future operations, prospects and plans 
of management; the Company's expectations with respect to existing and 
future agreements with third parties; estimates of the length of time 
the Company's business will be funded by anticipated financial 
resources; the scope of distribution of GSP RUSHFIT, plans for 
international expansion in the next quarter and the quantum of growth of 
Canadian sales as a result of the Northern Response partnership, and 
anticipated results and benefits of consumer use of celebrity fitness 
products. 

In connection with the forward-looking information contained in this 
news release, the Company has made numerous assumptions, regarding, 
among other things, the timing and quantum of revenue generated through 
sales of the Company's products; revenues will continue at current 
levels and increase; sales will increase during seasonal periods in the 
fourth quarter; the sufficiency of budgeted expenditures in carrying out 
planned activities; the Company's ability to protect its intellectual 
property rights and not to infringe on the intellectual property rights 
of others; the availability and cost of labour and services; expected 
growth of sales as a result of the Northern Response Partnership and 
consumer demand ;and expected results from the use of celebrity fitness 
products. While the Company considers these assumptions to be 
reasonable, these assumptions are inherently subject to significant 
uncertainties and contingencies. 

Additionally, there are known and unknown risk factors which could cause 
the Company's actual results, performance or achievements to be 
materially different from any future results, performance or 
achievements expressed or implied by the forward-looking information 
contained herein. Known risk factors include, among others: the Company 
may not be able to sustain or increase revenues achieved during the 
current reporting period; the Company's products may not achieve the 
brand recognition and increased distribution as currently anticipated; 
the digital delivery of the Company's products may not produce 
additional revenue in the anticipated amounts, or at all; the Company 
may never expand its distribution channels domestically or 
internationally; anticipated international expansion may not occur in 
the next quarter; the Company may not adopt successful advertising 
strategies or marketing methods; the Company may not develop or sell 
complementary GSP RUSHFIT product lines and/or may not achieve sales of 
such products to existing customers in the quantum anticipated, or at 
all; the Company may not be able to launch a new fitness-based DVD 
series or product line starring a celebrity or athlete; there may be no 
increased sales during seasonal periods in the fourth quarter; the 
substantial investment of capital required to produce and market video 
and entertainment productions, the need to obtain additional financing 
and uncertainty as to the availability and terms of future financing, 
unpredictability of the commercial success of our programming, 
difficulties in integrating technological changes and other trends 
affecting the entertainment industry, significant competition in the 
global economic market, the possibility the rate of growth of the market 
for fitness media will slow, reliance on the health and marketability of 
celebrity fitness talent in productions owned by the Company, the 
possibility of competition from other ecommerce and online marketing 
vendors, the continued strong growth in adoption of digital media, the 
possibility of new fitness titles from traditional large studios that 
target the male demographic, large media production companies may move 
ecommerce operations in-house rather than outsourcing, reliance on 
production studios continuing to outsource ecommerce operations, 
reliance on a number of key employees, limited operating history, the 
possibility of claims against the intellectual property rights of the 
Company, the possibility of infringements upon the intellectual property 
rights of the Company; the Company may not have sufficiently budgeted 
for expenditures necessary to carry out planned activities; future 
operating results are uncertain and likely to fluctuate; the Company may 
not have the ability to raise additional financing required to carry out 
its business objectives on commercially acceptable terms, or at all; and 
volatility of the market price of the Company's shares. 

A more complete discussion of the risks and uncertainties facing the 
Company is disclosed in the Company's Filing Statement dated November 
16, 2010 and continuous disclosure filings with Canadian securities 
regulatory authorities at www.sedar.com. All forward-looking information 
herein is qualified in its entirety by this cautionary statement, and 
the Company disclaims any obligation to revise or update any such 
forward-looking information or to publicly announce the result of any 
revisions to any of the forward-looking information contained herein to 
reflect future results, events or developments, except as required by 
law. 

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