International Technologies Corporation

International Technologies Corporation

May 29, 2006 09:00 ET

ITC Reports First Quarter Results, Revenues Grow 30%, Company Signs Griffin International to Enhance Consumer Brands

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - May 29, 2006) - International Technologies Corporation ("ITC") (TSX VENTURE:ITI) announced today its unaudited financial results for its first quarter ending March 31, 2006.

Revenues were $6,464,990 for the three months ended March 31, 2006 compared to $4,621,350 for the corresponding quarter in 2005, an increase of 30%. The growth in revenues is due to rising demand for digital audio and display products. EBITDA for the first quarter ended March 31, 2006 increased by 32% to $335,498 or $0.02 per share compared to $253,408 or $0.02 per share for the same period in 2005.

ITC had net income after taxes of $114,982 or $0.01 per share for the three months ended March 31, 2006, compared to $112,826, or $0.01 per share in the first quarter of 2005. Gross profit was $1,257,048 or 19.4% for the 2006 quarter compared to $831,313 or 17.9% for the period ended March 31, 2005, an increase in gross margin percentage of 1.5%. The rise in gross margin is a result of ITC's higher margin product lines and enhanced efficiency in its operations. ITC's gross margin consistently outperforms the industry average.

"Sales and gross margin are advancing as reflected this quarter although we have not yet experienced the full financial benefits from our new United States, Mexican, South American and Australian distribution networks anticipated in the second half of this year. As well, we will be ramping up our commercial LCD security monitor business which carries impressive margins," noted Michael Uhm, ITC's President and CEO. "We are in our seasonally slower period however will continue to look at growth opportunities and stay on course with profitable expansion while increasing our global network."

The Company also announces a marketing agreement with Griffin International Companies, a marketing and brand management firm specializing in sales of consumer products. Griffin International has designed and built brands including nextplay, Audiophase, Digital Labs, and Psyclone, which cumulatively appear in more than 5,000 storefronts including Best Buy, Target, and Circuit City, resulting in more than $1 billion in product sales.

"We are extremely pleased to have professionals like Griffin representing us, not only in the selling of our products but the brand development side as well," said Billy Tsang, Vice President of Hansol Technologies, ITC's United States operations. "Our alignment with Griffin will enhance all aspects of our business in North and South America."

ITC remains committed to profitable growth and to its vision of becoming a leading electronics supplier in the global marketplace.

The complete financial results are posted on SEDAR at

About ITC

International Technologies Corporation ( is a global supplier of innovative digital audio, multi-media, home entertainment, flat screen monitors/televisions and other advanced electronics products to the consumer and commercial market place. ITC also creates private label and OEM brands for its retail partners. The Company's ability to deliver manufacturer-direct product provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central, South American, Mexican and Australian markets through its relationship with Digitalway Korea and has exclusivity on all Hansol Korea LCD monitors sold to the North American market.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. ITC will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by ITC. (This release is not a solicitation to United States residents to purchase securities in the Company).

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

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