May 31, 2006 18:25 ET

Option-NFA Inc. Reports First Quarter Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 31, 2006) - Option-NFA Inc. (TSX VENTURE:OPN) announces results for the period ending March 31, 2006.

The company's first quarter saw a considerable improvement in net earnings (loss) versus the first quarter of 2005. Total revenue increased and the ongoing program of keeping its expenses in line with revenues resulted in $40,692 in cost reductions and a $328,471 decrease in the net loss for the period.

Spring 2006 NFA sales have decreased from the levels achieved in Q1 2005 as demand for the spring product line from our retailers has continued to diminish.

Overall sales for the quarter were up 6% at $1,239,039 compared to $1,167,411 for Q1 2005. Aside from NFA Spring, the first quarter this year was dominated by Option Board sales to the Southern Hemisphere as well as delayed Option OEM sales from Q4 2005.

Gross margin on all sales has improved to 31% in Q1 2006 from 7% in Q1 2005. The improvement is due in some part to sales recognized in Q1 as opposed to Q4 in previous years.

Tighter expense controls reduced overhead by $40,692. Q1 expenses for 2006 represent 53% of sales which is down from Q1 2005 which was 60% of sales. All of the overhead items, with the exception of salaries, were improved from last year.

Earnings (Loss). Loss for the quarter, before interest, income taxes and amortization and depreciation (EBITDA), fell to $277,632 from $613,446 and the Net loss was $378,907 compared to $707,378 in Q1 2005.

Fully diluted loss per share was $0.03 in Q1 2006 and $0.06 in Q1 2005.

All figures are Canadian.

The information herein contained should be read in conjunction with the Consolidated Financial Statements and Management Discussion and Analysis for the period ended March 31, 2006, available at www.sedar.com.

About Option-NFA Inc.

Our mission is to continue to build on our reputation for producing the highest quality, best performing products available to the snowboarding consumer.

Option-NFA is a Vancouver based designer and manufacturer of hard goods and clothing for the boardsports markets. The Company has sales offices in Europe, Asia, Australia and North America and its products are endorsed by an elite team of high profile professional snowboarders from around the world. The Company went public in 1999 and trades on the TSX Venture Exchange (TSX-V) under the symbol OPN.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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