CON-SPACE Communications Ltd.
TSX VENTURE : CCB

CON-SPACE Communications Ltd.

November 28, 2008 16:00 ET

CON-SPACE First Quarter Sales Up 25%

RICHMOND, BRITISH COLUMBIA--(Marketwire - Nov. 28, 2008) - CON-SPACE Communications Ltd. (TSX VENTURE:CCB), (http://www.con-space.com), announced today the final results for its first quarter for fiscal 2009 ended September 30, 2008. The corporate sales for the quarter ended at $2,340,845 up 24.9% over sales a year earlier of $1,873,471.

Cost of goods sold as a percent of sales increased 1.0% to 54.8% of sales during 2009 versus 53.8% in 2008. This resulted in a decrease in gross profit of 1.0% as a percent of sales to $1,059 K or 45.2% of sales for this year compared to $865 K or 46.2% for 2008.

Operating expenses excluding amortization, interest on long-term debt and foreign exchange losses decreased 10.1% year-over-year as a percent of sales. In actual dollars the decrease was $27 K bringing the total to $812 K over 2008's equivalent expenses of $839 K.

Earnings from operations, ie; before amortization and depreciation, interest on long-term debt, foreign exchange losses and taxes, for the period was $247 K this year compared to a profit of $26 K last year, an increase of $221 K. The net loss for the first quarter, after the inclusion of amortization, interest on long-term debt, foreign exchange losses and taxes was $334 K compared to a net loss of $390 K for the prior year.

Earnings per share resulted in a loss of $0.02 for the quarter while earnings per share for the same period in fiscal 2008 was a loss of $0.03.

"Clearly, we are facing challenging times at CON-SPACE, but a 25% increase in sales is encouraging and suggests that the actions taken over the past two quarters are beginning to have an impact on the Company", Cook said. "Looking ahead, the turmoil in the financial markets are certainly a concern, but with a clear focus on our traditional markets, where we are best known and have had the most success in the past, will be the most effective use of our resources to continue to drive sales. It is also worthy to note that the favourable currency movement over the course of the past few months is a welcome change", he concluded.

About CON-SPACE

CON-SPACE is recognized worldwide as the leading designer and manufacturer of specialized voice communication equipment used by Police, Fire, Rescue, Government Agencies, Militaries, Municipalities and general industry. CON-SPACE has distribution throughout North America, Great Britain, Australia, parts of Asia, South America, and Europe. CON-SPACE also supplies many other manufacturers with private labeled products.

This press release is available on CON-SPACE's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the CON-SPACE Investor Contact & Information Centre. Alternatively, investors are asked to e-mail all questions and correspondence to CCB@Agoracom.com.

Further information is available on the Company's website, www.con-space.com.

DISCLAIMER

This news release contains forward-looking statements which reflect management's current expectations regarding the Company's objectives, plans, goals, strategies, future growth, results of operations, performance and business prospects and opportunities. These forward-looking statements are not guarantees, but only predictions. Although the Company believes that these statements are based on information and assumptions which are current, reasonable and complete, these statements are necessarily subject to a number of factors that could cause actual results to vary significantly from current expectations. These factors and other risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, as identified in the Company's disclosure record on www.sedar.com. The forward-looking statements included in this news release are made only as of the date of this news release and the Company does not undertake to publicly update these forward-looking statements to reflect new information, future events or otherwise.

SEC Exemption #82-3378

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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