CORRECTING and REPLACING Bitzio Reports Third Quarter 2012 Results

SAN FRANCISCO, CALIFORNIA, Nov 19 (MARKET WIRE) --
This document corrects and replaces the press release that was issued on
November 14, 2012 at 4:05 p.m. Eastern time. Bitzio's auditors identified
a technical accounting correction in the application of the complex
accounting rules for the company's convertible debenture issued in the
third quarter of 2012. Therefore, the accounting change decreased the
company's total liabilities by $125,000, increased stockholders' equity
by $375,000 and increased non-cash interest expense by $250,000 in Q3
2012. The company apologizes for any inconvenience.

The corrected release reads:

Bitzio, Inc. (OTCQB:BTZO), a leading mobile media and app company,
reported results for the third quarter ended September 30, 2012.

Q3 2012 Operational Highlights

-- Partnered with ROAR, a leading talent management company, to develop
mobile apps for the world's most popular entertainment properties and
talent, including actors, celebrities, musicians and athletes.
-- Secured a licensing partnership with The NFL Players, a subsidiary of
the National Football League Players Association (NFLPA), to jointly
develop and market a football trivia app for the more than 180 million
fans of the NFL.
-- Bitzio's in-house software and animation studio advanced the development
of "Pigskins Football Player Trivia Game," the first app to be produced
from the new NFL Players partnership. The highly engaging app features
the NFL's Top 50 players, along with in-app purchase options and social
media features that enhance and expand game-play. The app is now set for
release in December 2012, downloadable for free from Apple's App Store
and the Android Marketplace.
-- Strengthened the executive management team with the addition of Peter
Henricsson as the company's new president and CEO. Prior to Bitzio,
Henricsson was the founder, chairman and CEO of CellPoint, a European
leader in location-based technologies for mobile operators. Under
Henricsson's leadership, CellPoint listed on the NASDAQ Stock Market and
achieved a market cap of $1 billion.
-- Completed $598,000 convertible note financing to support the company's
growth initiatives. An entity controlled by Henricsson contributed
$300,000 to the raise.
-- Divested the company's non-core Info-Products division, including the
app developer training series, and thereby eliminating $667,000 in
liabilities. The divestiture has allowed Bitzio to focus on developing
and monetizing mobile apps for the sports and entertainment marketplace.

Management Commentary

"During the third quarter of 2012, we greatly improved our operational
platform and set course on our new business model designed to tap the
tremendous opportunities for mobile apps in the sports and entertainment
markets," said Peter Henricsson, president and CEO of Bitzio. "In fact,
we achieved several milestones in the quarter, including divesting
non-core assets, strengthening our balance sheet and executive team, and
forming major strategic partnerships.

"Our new license agreement with The NFL Players demonstrated our ability
to secure the media rights of large, existing fan bases, as well as
establish a co-marketing and revenue-sharing partnership that requires no
up-front fees. We have been working closely with The NFL Players to
develop the first app, which is now set to launch next month. Given their
marketing support, we are confident the trivia app will be well received
and widely downloaded by the millions of NFL fans across the country.

"Our partnership with The NFL Players also serves an ideal showcase of
Bitzio's capabilities, and represents a springboard toward greater
opportunities across a number of verticals, including other sports
communities, entertainment properties and major consumer brands. We are
now well positioned to capitalize on the tremendous opportunities in
delivering apps to the fan-based communities of some of world's largest
sports clubs and entertainment brands. We plan to leverage our deep
industry relationships and marketing partnerships to secure new licensing
agreements during the coming months, and roll out a number of new and
highly-engaging mobile apps."

Q3 2012 Financial Summary

During the third quarter, Bitzio divested non-core assets and operations
to focus on developing and monetizing fan-based apps in the sports and
entertainment markets. The company generated nominal revenues from it
legacy software and mobile applications in the third quarter, totaling
$154,000 compared to marginal revenues in the same year-ago quarter.

Operating expenses in the third quarter of 2012 were $1.4 million, a
significant improvement from $8.1 million in the same year-ago quarter.
The year-over-year improvement was primarily due to a significant
decrease in stock-based compensation, as well as a $2.3 million goodwill
impairment charge recognized in Q3 2011.

Net loss from continuing operations in the third quarter of 2012 totaled
$1.4 million or $(0.02) per share, as compared to a net loss of $8.1
million or $(0.22) per share in the same year-ago quarter.

Q3 2012 net loss included $1.9 million in non-cash items, comprised of
$61,000 of amortization and depreciation, $558,000 related to losses on
assets, $185,000 of derivative liability gain, $308,000 of amortization
of debt discounts and $1.1 million of stock-based compensation. This
compares to $2,000 of non-cash items in Q3 2011, which were comprised of
$300 of amortization and depreciation and $1,500 of stock-based
compensation.

Excluding these non-cash items, net loss before discontinued operations
in Q3 2012 was $102,000 compared to $257,000 in the same year-ago period.

About Bitzio, Inc.

Founded in 2011, Bitzio is a leading mobile media and app development
company focused on connecting fans of large entertainment and sports
properties with the players, celebrities and teams they love. Powering
these apps is the Bitzio Engine, which captures valuable user data and
drives increased user monetization. What makes Bitzio really different is
its approach to capturing users. Most app companies build first and hope
the audience will come. Bitzio licenses media rights of sports and
entertainment properties with millions of existing fans. Bitzio uses
these rights to create mobile apps and web experiences for these existing
fan bases. For more information, visit www.bitzio.com. To learn more
about Bitzio, connect on Twitter (www.twitter.com/bitzio) and Facebook
(www.facebook.com/bitzioinc).

Forward-Looking Statements

This news release contains forward-looking statements within the meaning
of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian
securities laws, including statements relating to expectations the 2012
fiscal year; The terms and phrases "goal," "commitment," "guidance,"
"expects," "would," "will," "continuing," "drive," "believes,"
"indicate," "look forward," "grow," "outlook," "forecasts," and similar
terms and phrases are intended to identify these forward-looking
statements.

Forward-looking statements are based on estimates and assumptions made by
Bitzio in light of its experience and its perception of historical
trends, current conditions and expected future developments, as well as
other factors that Bitzio believes are appropriate in the circumstances,
including but not limited to general economic conditions, Bitzio's
expectations regarding its business, strategy and prospects, and Bitzio's
confidence in the cash flow generation of its business. Many factors
could cause Bitzio's actual results, performance or achievements to
differ materially from those expressed or implied by the forward-looking
statements, including, without limitation: risks related to competition;
Bitzio's reliance on key personnel; Bitzio's ability to maintain and
enhance its brand; and difficulties in forecasting Bitzio's financial
results, particularly over longer periods given the rapid technological
changes, competition and short product life cycles that characterize the
mobile application industry. These risk factors and others relating to
Bitzio that may cause actual results to differ are set forth Bitzio's
periodic filings with the U.S. Securities and Exchange Commission (copies
of which filings may be obtained at www.sedar.com or www.sec.gov). These
factors should be considered carefully, and readers should not place
undue reliance on Bitzio's forward-looking statements. Bitzio has no
intention and undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.

BITZIO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, December 31,
2012 2011
-------------- -------------
(Unaudited)
ASSETS

CURRENT ASSETS
Cash $ 199,759 $ 181,725
Accounts receivable, net 138,397 92,232
Prepaid expenses and other current assets 138,677 337,508
Due from related parties - 228,980
Prepaid acquisition costs - 713,150
-------------- -------------

Total current assets 476,833 1,553,595
-------------- -------------

OTHER ASSETS
Property and equipment, net 63,693 -
Intangible assets, net 614,050 582,424
Goodwill 774,047 627,134
-------------- -------------

Total other assets 1,451,790 1,209,558
-------------- -------------

TOTAL ASSETS $ 1,928,623 $ 2,763,153
-------------- -------------
-------------- -------------

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable and accrued expenses $ 432,953 $ 253,976
Deferred revenue - 77,433
Notes payable, related parties 351,870 426,870
Convertible notes, net of discount 157,125 70,745
Derivative liability 277,460 -
-------------- -------------

TOTAL CURRENT LIABILITIES 1,219,408 829,024
-------------- -------------

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value;
25,000,000 shares authorized; 5,343,120
and -0- shares issued and outstanding,
respectively 5,343 -
Common stock, $0.001 par value; 250,000,000
shares authorized; 66,538,869 and
50,018,625 shares issued and outstanding,
respectively 66,539 50,019
Stock subscriptions payable - 186,000
Additional paid-in capital 19,521,586 11,800,050
Accumulated other comprehensive income (1,998) -
Accumulated deficit (18,882,255) (10,101,940)
-------------- -------------

Total stockholders' equity 709,215 1,934,129
-------------- -------------

TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 1,928,623 $ 2,763,153
-------------- -------------
-------------- -------------

BITZIO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

For the Three Months For the Nine Months
Ended Ended
September 30, September 30,
------------------------ ------------------------
2012 2011 2012 2011
----------- ----------- ----------- -----------

REVENUES $ 154,384 $ 3,104 $ 519,591 $ 3,104

OPERATING EXPENSES

Professional fees 1,296,105 43,294 3,329,505 62,422
Executive compensation - 1,141,576 127,500 1,141,576
General and
administrative 120,593 4,568,268 418,151 4,591,474
Impairment of goodwill - 2,350,800 3,981,508 2,350,800
----------- ----------- ----------- -----------
Total Operating
Expenses 1,416,698 8,103,938 7,856,664 8,146,272
----------- ----------- ----------- -----------

LOSS FROM OPERATIONS (1,262,314) (8,100,834) (7,337,073) (8,143,168)
----------- ----------- ----------- -----------

OTHER EXPENSES
Finance costs and
amortization (320,983) (500) (478,837) (746)
Gain on derivative
liability 185,118 - 185,118 -
----------- ----------- ----------- -----------

Total Other Expenses (135,865) (500) (293,719) (746)
----------- ----------- ----------- -----------

LOSS BEFORE INCOME TAXES (1,398,179) (8,101,334) (7,630,792) (8,143,914)
PROVISION FOR INCOME
TAXES - - - -
----------- ----------- ----------- -----------

NET LOSS FROM CONTINUING
OPERATIONS $(1,398,179) $(8,101,334) $(7,630,792) $(8,143,914)

Loss from discontinued
operations (150,681) - (591,236) -
Loss on disposal of
subsidiary (558,287) - (558,287) -

Loss from Discontinued
Operations, net of
income taxes (708,968) - (1,149,523) -

NET LOSS $(2,107,147) $(8,101,334) $(8,780,315) $(8,143,914)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

BASIC AND DILUTED LOSS
PER SHARE FROM
CONTINUING OPERATIONS $ (0.02) $ (0.22) $ (0.13) $ (0.24)
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

BASIC AND DILUTED LOSS
PER SHARE FROM
DISCONTINUED OPERATIONS $ (0.01) $ - $ (0.02) $ -
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

BASIC AND DILUTED
WEIGHTED AVERAGE NUMBER
OF SHARES OUTSTANDING 62,441,151 37,557,473 57,152,841 34,566,071
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------

Contacts:
Investor Relations:
Liolios Group, Inc.
Matt Glover or Michael Koehler
(949) 574-3860
BTZO@liolios.com

Media Relations:
Innova Communications
Amy Chilla
(949) 573-7830
achilla@teaminnova.com

Copyright 2012, Market Wire, All rights reserved.

-0-