SOURCE: Ikona Gear International

January 17, 2008 07:00 ET

Ikona Reports Record First Quarter Financial Results

First Quarter Revenue Increases Over 500 Percent

COQUITLAM, BC--(Marketwire - January 17, 2008) - Ikona Gear International, Inc. (OTCBB: IKGI), a provider of compact, lightweight, gearing systems solutions, reported record revenue for its first fiscal quarter ended November 30, 2007.

For the quarter, the company reported revenues of $703,060, an increase of over 500 percent for the comparable period one year ago. The net loss was $704,127, or a net loss per share of two cents, compared to a net loss of three cents for the comparable quarter last year. The basic and diluted weighted average shares outstanding for the quarter were 33,364,110, compared to 27,690,061 for the same period a year ago.

"During the quarter, we continued to invest in our business, while working closely with our partners and distributors to further develop and commercialize our products," said Laith Nosh, Ikona's president and chief executive officer. "Our recent orders and our relationships within targeted industries, particularly the oil and gas machinery industry, reinforce our products' commercial viability. We expect our revenues for our second quarter, ending February 29, to produce revenues doubling those reported for the second quarter of fiscal 2007, as we continue to bring leading-edge technology to market."

Current Highlights:

--  The company shipped its first 1000 HP drawworks to a U.S. customer in
    November.
--  The company is on schedule to ship one drawworks each month to fulfill
    a $1.7 million order.
--  The company delivered a 1100 HDC hydraulic power take-off (PTO)
    product to Cummins API S.A. in January.
    

Ikona is targeting aggressive growth for the remainder of fiscal 2008 and is ramping up activities throughout its facility to support the expected growth. Ikona's Form 10-Q/SB, which has been filed with the SEC, can be located on the company's website at www.ikona.ca.

About Ikona Gear International, Inc.

Ikona Gear is a knowledge-based company focused on the design and manufacture of innovative and patented solutions for gearing and power transmission applications, a $100 billion market. The Ikona gear system has features that we believe are better, stronger, more precise and generally superior to standard gearing systems. The Company's unique, patented technology is ideally suited for deep ratio, weight and size constrained applications where often it is the only superior solution. The Ikona gear technology is the only technology that enables internal gear-sets with only one tooth difference, resulting in a much higher meshing of gears, and significantly higher gear ratios -- very important factors, especially in plastic gearing solutions. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2." For more information on Ikona, please visit www.ikona.ca/.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

Contact Information

  • CONTACTS:

    Media and Investor Relations Contact
    Marty Tullio
    McCloud Communications, LLC
    949.553.9748
    Email Contact

    Company Contact
    Scott Rose
    Ikona Gear International
    604.523.5507
    Email Contact