Conporec Inc.
TSX VENTURE : CNP
TSX CROISSANCE : CNP

Conporec Inc.

May 11, 2007 20:26 ET

Financial reorganisation and year end results

SOREL-TRACY, QC, May 11 - Conporec Inc. ("Conporec" or the
"Company") (TSX VENTURE:CNP) published today its financial results for the year ending
December 31, 2006. In brief, the Company presents:



- a reduction of its revenues that reached $8.0 million compared to
$10.2 million for the previous exercise, mainly due to the delays
encountered in the Tournan-en-Brie site (suburb of Paris, France);
- a loss of $4.5 million which is explained by :
- non-recurring costs related to the elimination of the debt which
will generate an extraordinary profit in the next quarter;
- non-recurring fees related to the analysis of the acquisition
opportunity of a European company;
- and lastly, by great marketing efforts related to the business
plan.

The financial restructuring already announced and completed in March 2007
generated an entire new balance sheet for the Company, that is:

- elimination of the long term debt of $12 million;
- working capital of $6.2 million with $7.3 million in cash;
- shareholder's equity of $17.5 million.

The elimination of this long-term debt generates an extraordinary profit
of $6.9 million which will be reflected in the first quarter of 2007. The
table on the following page presents the balance sheet as of December 31, 2006
before this restructuring, and the pro forma balance sheet after the
operation.


CONPOREC INC.
PRO FORMA BALANCE SHEET
as per December 31, 2006
(in thousand of
Canadian dollars)
December 31,
2006 Pro forma
(Audited) Subsequent Balance sheet
$ events 2006
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ASSETS

Currents assets
Cash 306 7,000 a 7,306
Short term deposit 3,951 (3,750) b 201
Accounts receivable 3,498 3,498
Work in progress 320 320
Prepaid expenses 377 377
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Total currents assets 8,452 3,250 11,702
Property, plant and equipment 10,860 10,860
Goodwill 777 777
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20,089 3,250 23,339
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LIABILITIES AND SHAREHOLDER'S EQUITY

Current liabilities
Accounts payable and
accrued liabilities 5,026 300 b 5,326
Future income tax liabilities 50 50
Current portion of
long term debt 5,884 (5,786) b 98
Current portion of
long term debentures 7,081 (7,048) bc 33
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Total current liabilities 18,041 (12,534) 5,507
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Long term debts 161 161
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Long term debentures 131 131
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Shareholder's equity

Share capital 17,986 6,005 abc 23,991
Contributed surplus 390 390
Subscription right 3,200 3,575 a 6,775
Deficit (19,815) 6,204 abc (13,611)
Currency adjustment (5) (5)
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1,756 15,784 17,541
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20,089 3,250 23,340
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(a) 35,714,286 shares issued to AEK for $7,500K ($7,000K net). Value
attributed to warrants, $3,575K.

(b) $12,489K elimination of debts and debentures for $3,750K cash and the
issuance of 7,519,631 common shares at a price of $0.25 each (value
of $1,880K). Profit on write-off of $6,859 before fees associated to
the settlement estimated at $300K.

(c) $345K elimination of debentures by issuing 800,000 common shares at a
price of $0.25 each (value of $200K), for a profit on write-off
of $145K.


"The work performed by our team and partners over the past year has made
it possible for Conporec to be a more active participant in discussing
projects and investments with its customers, especially given Quebec's rapidly
approaching 2008 deadline to achieve 60% of waste reclamation. Conporec has an
optimistic view of the months to come and foresees good potential to create
value for its shareholders", stated Jean Beaudoin, President and CEO of the
Company.

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. Conporec has
successfully operated a plant in Sorel-Tracy, Quebec 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 and a fourth one near Perth,
Australia. Through Biomax Inc., Conporec has also delivered thirty different
composting facilities that have the capacity to produce more than 300,000 tons
of compost annually. Conporec is a socially responsible organization listed on
the TSX Venture Exchange.

Forward-looking statements contained in this press release involve known
and unknown risks, uncertainties or other factors that may cause actual
results, performance or achievements of the company to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements.

Contact Information

  • Jean Beaudoin, President and CEO, Conporec
    Inc., (450) 746-9996, (418) 527-9996; Frédéric Bérard, HKDP, Communications
    and Public Affairs, (514) 395-0375, ext. 230; Source: Conporec Inc.,
    www.conporec.com