SOURCE: New Century Companies, Inc.

August 30, 2006 08:30 ET

New Century Cos. Reports More Than $2 Million in New Orders

Machine Tool Firm's 2006 Sales Now Match Those for All of 2005; Positive Cash Flow Seen Continuing

LOS ANGELES, CA -- (MARKET WIRE) -- August 30, 2006 -- New Century Companies, Inc. (OTCBB: NCNC), a leading manufacturer and re-manufacturer of machine tools, today reported that it received orders in June and July for five vertical turning centers (VTCs) totaling $2.023 million. It expects to book most of the revenue from the orders during the third quarter ending September 30, 2006.

Two of the VTCs are being sold for $720,000 to a Midwest-based manufacturer of metal components for aerospace and industrial applications. Other VTCs are being bought by a pipe manufacturer for $545,000, a machining firm for $413,000 and a maker of aircraft-engine components for $345,000.

Revenue from these orders, added to the $4 million in sales for the first half of 2006, will put New Century's total revenue for 2006 at just over $6 million. This matches the company's total sales for all of 2005. The orders also keep New Century on track toward its target of $10 million in sales for all of 2006.

"The latest orders continue a pattern of strong sales that we have seen all year," said New Century CEO David Duquette. "The same factors that produced a 51% year-over-year sales gain in the first half of 2006 and a profitable second quarter continue to work in New Century's favor. The capital-goods sector of the economy remains quite strong, and we see no weakening going forward in the areas where New Century specializes, such as aerospace, transportation and energy. Having passed the milestone of positive shareholder equity in the second quarter, we now expect positive cash flows and growth in equity to continue in coming quarters."

To be added to New Century's investor e-mail lists, please contact Haris Tajyar at htajyar@irintl.com.

About New Century Cos.

New Century Companies, Inc. (OTCBB: NCNC) is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers. It also assembles sound-wall modules made from Quilite®, a lightweight, graffiti-resistant alternative to concrete. In its machine-tool business, the Company specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Gardner Denver. New Century machines are used to manufacture jet-engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. Quilite is used not only in freeway noise walls but in other sound-absorbing structures, including barriers at sports stadiums and electric transformers. New Century manufactures its machine tools and Quilite modules in Santa Fe Springs, Calif.

Visit New Century's Web site at http://www.newcenturyinc.com.

Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

Contact Information

  • Contact:
    David Duquette
    CEO
    New Century Companies, Inc.
    562-906-8455

    Haris Tajyar
    Investor Relations International
    818-382-9700