Press Release

Ottawa, Ontario - February 26, 2009 - Espial® Group Inc. ("Espial" or the "Company"), (TSX: ESP ), a leader in the delivery of TV software, today announced its fourth quarter and fiscal year financial results for the three and twelve month periods ended December 31, 2008.

2008 HIGHLIGHTS:

• Fourth quarter revenue of $3.3 million, an increase of 56% from last year
• Annual revenue of $10.1 million, an increase of 27% from last year
• Acquired Kasenna, Inc. a leading Video on Demand software company based in California
• Signed global software and distribution agreements with Motorola and a European based Network Equipment Vendor.
• Delivered Evo Server Release 3.1.0 with complete support for a reference ecosystem of set-top boxes, VOD servers and DRM technology.
• Appointed cable executive, Michael Lee, from Rogers Communications to the Espial board of directors

For the three-month period ended December 31, 2008, the Company reported revenues of $3.3 million compared to revenues of $2.1 million for the three months ended December 31, 2007. For the year ended December 31, 2008, the Company reported revenues of $10.1 million compared to revenues of $8.0 million for the year ended December 31, 2007.

Earnings before interest, foreign exchange, taxes, stock compensation, dividends on redeemable preferred shares, depreciation and amortization (EBITDA) for the fourth quarter of fiscal 2008 was a loss of $1.2 million compared to a loss of $2.2 million in the fourth quarter of fiscal 2007. Net loss for the quarter was $1.3 million or $0.09 per share, compared to a net loss of $2.0 million last year, or $0.22 per share. For the Year ended December 31, 2008, EBITDA was a loss of $5.2 million compared to an EBITDA loss of $7.1 million in 2007. Net loss for fiscal 2008 was $5.4 million compared to a net loss of $10.9 million in 2007.

"In 2008, we significantly broadened our customer base, distribution channels, product and patent portfolio with the addition of Kasenna", said Jaison Dolvane, President and CEO. "We are pleased with the integration of the two companies and have successfully realized anticipated cost and revenue synergies. The extended product portfolio allows us broader market reach into various market segments within the global digital and IP TV market. Today, Espial products service over 3 million IPTV subscribers worldwide and we expect to further extend this market leadership through 2009".

Q4 Financial Results

Fourth quarter revenues were $3,279,368 compared with revenues of $ 2,096,377 in the same period a year ago. Fourth quarter software license and royalty revenues were $2,377,114 compared to software license and royalty revenues of $1,245,474 in the fourth quarter of fiscal 2007. Professional services for the fourth quarters of 2008 and 2007 were $410,943 and $502,563 respectively. Maintenance and support revenues for the fourth quarter were $491,311 compared to $348,340 last year.

Gross margins for the fourth quarter of fiscal 2008 were 79% compared with 63% in the fourth quarter of fiscal 2007.

Operating expenses in the fourth quarter of fiscal 2008 were $4,160,399 compared to $3,583,511 in the fourth quarter of fiscal 2007.

Earnings before interest, foreign exchange, taxes, stock compensation, dividends on redeemable preferred shares, depreciation and amortization (EBITDA) for the fourth quarter of fiscal 2008 was a loss of $1,241,077 compared to a loss of $2,195,246 in fiscal 2007.

Net loss in the fourth quarter was $1,325,525 compared to a loss of $ 2,036,741 last year.

Fiscal 2008 Financial Results

Total revenues for the fiscal year ended December 31, 2008 were $10,110,605 compared with revenues of $7,968,275 in the same period a year ago. Software license and royalty revenues for the 2008 fiscal year were $5,832,967 compared to software license and royalty revenues of $4,746,974 in fiscal 2007. Professional services for the 2008 fiscal years of 2008 and 2007 were $2,623,004 and $ 1,592,392 respectively. Maintenance and support revenues for the fiscal year ended December 31, 2008 were $1,654,634 compared to $1,628,909 last year.

Gross margins for the 2008 fiscal year were 71% compared with 69% in fiscal 2007.

Operating expenses for the 2008 fiscal year were $13,226,774 compared to $17,121,889 in fiscal 2007.

Earnings before interest, foreign exchange, taxes, stock compensation, dividends on redeemable preferred shares, depreciation and amortization (EBITDA) for the fiscal year ended December 31, 2008 was a loss of $5,203,257 compared to a loss of $7,085,367 in fiscal 2007.

Net loss in the 2008 fiscal year was $5,368,853 compared to a loss of $10,848,435 in 2007.

Cash and cash equivalents at December 31, 2008 was $10,476,443.

The Company will be hosting a conference call to discuss the fourth quarter financial results on February 26, 2009 at 5:00 PM Eastern Standard Time (EST). T he phone number to join the results discussion is:

• Toll line - 416-644-3418
• Toll free line - 800-814-4890

The playback for the call will be available until March 26, 2009 at the following numbers and passcode:

• Toll line: 416-640-1917 - passcode: 21298958#
• Toll free line: 877-289-8525 - passcode: 21298958#

About Espial (www.espial.com)

Espial provides intelligent and open TV software to service providers in the cable, telecommunications and hospitality industries. It's middleware and video-on-demand solutions provide superior service delivery, advanced service innovation tools and the ability to serve a wide range of market segments - including over-the-top, IPTV, hybrid IP, multi-dwelling unit and enterprise. With over 2.5 million licenses of its patented software technology in use, Espial is a leading supplier of TV software. Espial is headquartered in Ottawa , Canada . For more information please visit the Espial website @ www.espial.com .

Forward Looking Statement

This press release contains information that is forward looking information with respect to Espial within the meaning of Section 138.4(9) of the Ontario Securities Act (forward looking statements) and other applicable securities laws. In some cases, forward-looking information can be identified by the use of terms such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue" or the negative of theses terms or other similar expressions concerning matters that are not historical facts. In particular, statements about the benefits and synergies of the Kasenna acquisition transaction, future opportunities for the company and products and any other statements regarding Espial's future expectations, beliefs, goals or prospects are or involve forward-looking information.

Forward-looking information is based on certain factors and assumptions. While the company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking information, by its nature necessarily involves risks and uncertainties , including Espial's ability to effectively integrate Kasenna operations and effectively develop its distribution channels, and generate increased demand for its products. Additional risks and uncertainties affecting Espial can be found in Espial's Annual Report for the fiscal year ended December 31, 2007 and in its most recent quarterly report filed on SEDAR at www.sedar.com . If any of these risks or uncertainties were to materialize, or if the factors and assumptions underlying the forward-looking information were to prove incorrect, actual results could vary materially from those that are expressed or implied by the forward-looking information contained herein. Espial assumes no obligation to update or revise any forward looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.