Conporec Inc.

Conporec Inc.

December 01, 2005 10:00 ET

Despite extraordinary events in the third quarter - Conporec Inc. announces increased revenue for the first three quarters of 2005

SOREL-TRACY, Dec. 1 - Jean Beaudoin, president and CEO of
Conporec Inc. (TSX VENTURE:CNP), announced today a significant revenue increase for the company
in the first three quarters of 2005. Revenue rose to $6.89 million, up 29%
from $5.33 million for the same period in 2004. This increase was due mainly
to two contracts, construction of a plant in the Paris suburb of Tournan en
Brie and source-separated organics treatment for the City of Toronto. Despite
this strong revenue performance, the company recorded a loss of $1.97 million
($0.05 per diluted share) for this period, including $1.56 million in the
third quarter because of two extraordinary events that disrupted operations.

On the one hand, although the Tournan en Brie contract help to produce
higher revenues for the first two quarters, it did not advance at the pace
planned initially for the third one. Delays caused by french administrative
regulations in the third quarter postponed certain work on site and help up a
corresponding $2.6 million billing. Moreover, due to reconstruction of the
maturation building following an uninsurable disaster last fall, the Sorel-
Tracy plant had to slow down production, leading to an $518,000 impact on
third-quarter results and a $1,028,000 impact on results for the first three

"Despite revenue growth resulting from its development potential,
Conporec experienced hard times during the quarter because of various events,"
Mr. Beaudoin stated. "However, accelerated capital spending of $2 million at
our Sorel-Tracy industrial complex now puts us in a very strong position to
speed up our treatment capacity and make up for the accumulated delay,
particularly regarding the Toronto contract."

The Sorel-Tracy plant has returned to full production capacity and also
benefits from new equipment that will enable it to achieve a gradual increase
in the quantity of source-separated organics from Toronto that it treats. At
the Tournan en Brie site, a normal work pace will resume in the coming months.
This contract has a $7.1-million income balance for Conporec. In the third
quarter, the Conporec team worked on the development of projects with a total
worth of more than $375 million.

To sum up, the following table presents unaudited results for the three-
month and nine-month periods.

Three months Nine months
ending Sept. 30 ending Sept. 30
2005 2004 2005 2004
Revenue $ 1,741,446 $ 1,880,163 $ 6,892,318 $ 5,325,777

Net loss $(1,564,328) $ (97,988) $(1,970,860) $ (761,831)

Net loss per share
(diluted) $ (0.05) $ (0.03)

About Conporec

Conporec Inc. treats and reclaims municipal solid waste through a unique
and patented technology. This technology can reduce landfilling by 75%,
reclaim up to 100% of organic content and contribute to reducing greenhouse
gas emissions. The company has been operating a plant in Sorel-Tracy for over
12 years and recently inaugurated its second plant (New York State, US). A
third plant is currently under construction in France (suburban Paris) and
Conporec is pursuing several other projects around the world. This socially
responsible organisation is listed on the TSX Venture Exchange (Ticker: CNP).

Contact Information

  • Jean Beaudoin, President and CEO,
    (450) 449-9949; Source: Conporec Inc.,