Conporec Inc.

Conporec Inc.

May 04, 2006 12:16 ET

After a year highlighting significant achievements - Conporec Inc. announces its 2005 year end results

SOREL-TRACY, May 2 - Conporec Inc. (TSX VENTURE:CNP) announced today its
financial results for 2005. Conporec posted a significant revenue increase,
reaching $10.264M, up from $7.971M in 2004. This 29% growth in revenues is
mainly attributed to two contracts, a plant constructed in Tournan-en-Brie
(suburb of Paris, France) and the processing of organic residuals for the City
of Toronto. Despite this significant increase in revenues, the company posted
a loss of $2.827M (0.06 $ per diluted share) for the year. This loss is
attributed to three specific events.

First, although the Tournan-en-Brie contract helped increase Conporec's
revenues in the year, the project could not be carried out according to what
was initially planned. The delay in the project has the effect of postponing
revenues that were budgeted in 2005 to subsequent quarters in 2006. Secondly,
the Sorel-Tracy plant operations underwent a slowdown, temporarily increasing
its production costs due to disruptions brought on by the rebuilding of the
maturation building and other investments. Finally, the listing of the company
on the stock exchange brought on extra expenditures.

"Conporec has been quite busy in fiscal 2005. With its new listing on the
stock exchange, its acquisition of Biomax, the commissioning of a new plant in
New York State, the major investments made in its Sorel-Tracy plant, the
adoption of a new business plan and the strengthening of its management team,
Conporec is proud of it's progress and achievements in 2005", stated Mr. Jean
Beaudoin, Conporec's President and CEO. "Although our financial results were
not as expected due to events discussed, we strongly believe in the future of
Conporec now that these critical steps are behind us", he added.

The Sorel-Tracy plant may now operate at full capacity (35,000 tonnes).
The normal work rate at the Tournan-en-Brie project will resume within the
next few months. It should be noted that the balance of the revenue on the
Tournan-en-Brie project contract is approximately $7.1M. From a development
point of view, the team is currently working on several projects in Quebec,
Ontario, and abroad. With the completion of these recent projects, Conporec
has demonstrated its ability to implement its proprietary composting

The following table summarizes the financial statements for 2005.

12-month period ending
December 31
2005 2004
Revenue $10,263,733 $7,971,905
Net loss ($2,827,225) ($913,677)
Net loss per share (diluted) ($0.06) ($0.03)

About Conporec

Conporec Inc. treats and recycles municipal solid waste through a
patented composting and sorting technology. This process reduces the need for
landfill disposal by treating 100% of the organic content contained in solid
waste, thus reusing and recycling up to 75% of the original waste mass. In
addition, the technology helps to reduce greenhouse gases that are typically
released through the decomposition of garbage in landfills. The company has
successfully operated a plant in Sorel-Tracy, Quebec for 13 years and recently
began start up of a second facility in New York State (United States). A third
facility is currently under construction in France near Paris. Through Biomax
Inc., a Conporec subsidiary, the company has also delivered thirty different
composting facilities that have the capacity to produce more than 300 000 tons
of compost annually. Conporec Inc. is a socially responsible organization
listed on the TSX Venture Exchange.

The statements in this release and oral statements made by
representatives of Conporec inc. relating to matters that are not historical
facts (including, without limitation, those regarding the timing or outcome of
any financing undertaken by Conporec) are forward-looking statements that
involve certain risks, uncertainties and hypotheses, including, but not
limited to, general business and economic conditions, the condition of the
financial markets, the ability of Conporec to obtain financing on favourable
terms and other risks and uncertainties.

Contact Information

  • Jean Beaudoin, President and CEO, (450)
    746-9996; Source: Conporec Inc.,