Conporec Inc.

Conporec Inc.

May 25, 2007 08:00 ET

Following extraordinary revenues resulting from a major financial restructuring - Conporec announces net earnings of $5.9 million the first quarter of its current fiscal year

SOREL-TRACY, QC, May 25 - Conporec Inc. ("Conporec," or the
"Company") (TSX VENTURE:CNP) today issued its financial results for the first quarter of its
current fiscal year ending March 31, 2007. Following a major financial
restructuring completed last March, the Company announces net earnings of
$5.91 million, or $0.06 per share for the first quarter, compared to a net
loss of $1.28 million for the same quarter in 2006. This income is mainly the
result of extraordinary revenues following a debt and debentures write-off
that allowed the Company to present a solid current balance sheet, i.e., term
debts of only $563 000 relative to shareholder equity of $16.72 million.
Conporec has eliminated an overall debt of $12.90 million last March for a
compensation of $5.83 million, with $3.75 million in cash and $2.08 million in
Company common shares at a unit price of $0.25, thereby generating an
extraordinary gain of $6.92 million.

During the first quarter, Conporec posted revenues of $1.80 million
compared with $2.08 million for the first quarter of 2006. The direct
operating costs reached $1.39 million compared to $2.04 million the year
before, a reduction of $649 000 attributable to the temporary suspension of
the Tournan-en-Brie Facility project (Paris, Fr). In the first quarter of
2007, Conporec registered a loss before taxes, interest, and amortization of
$654 000, an improvement of $235 000 over the loss for the first quarter in
the 2006 fiscal year which was $889 000. This progression of 26% is the result
of technical and operational improvements introduced at the Company's
Sorel-Tracy plant and the effectiveness of the cost controls put in place.

The Company's unaudited balance sheet on March 31, 2007, shows assets
made up of $5.01 million in cash, $3.55 million in accounts receivable, as
well as $11.62 million in capital assets. In return, $4.43 million are listed
in accounts payable, $563 000 in term debt and debentures, and $16.72 million
in shareholder equity.

During this first quarter, Conporec has also continued to work and invest
in demonstrating the efficiency of its plants and technologies. Furthermore,
the new Delaware County Facilty (New York), now fully operational, is
generating more and more interest, as demonstrated by the large number of
potential clients that have been visiting the Facility to witness its
performance. Conporec also announced during this quarter the selection of one
of its technologies by the Régie intermunicipale de Nicolet-Yamaska-Bécancour
for a minimum of five years, representing cumulative direct revenues of
$6 million for the Company. With its projects in Tournan-en-Brie (France)
where work should resume during the next quarter, and the Mindarie Regional
Council Facility (Australia) where financing should be concluded during the
second quarter of 2007, as well as other projects in which Conporec has been
pre-qualified, the company has significantly increased its backlog over the
past months.

"The exceptional first quarter result is a consequence of the work
carried out by our team and its partners over the past year. With an
increasingly strong backlog, technologies that are more and more in demand in
the marketplace, and its solid balance sheet, Conporec is optimistic for the
coming months, and would expect a strong potential to create value for
shareholder wealth creation," explained Mr. Jean Beaudoin, chairman and chief
executive officer 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.