Priva Inc.
TSX VENTURE : PIV

Priva Inc.

May 30, 2006 15:42 ET

Priva Records Strongest Quarter Sales Results Showing a 65% Increase in Sales

MONTREAL, QUEBEC--(CCNMatthews - May 30, 2006) - Mr. David Horowitz, President and CEO of Priva Inc. (TSX VENTURE:PIV) is pleased to announce the Corporation's year end results for the period ending December 31st. Selected financial information as follows:



Period Ending March 31 2006 2005

Total Revenue $3,748,427 $2,267,818
Net Income (Loss) Before Taxes ($93,426) 149,014

Long Term Debt $0.00 $1,100,000
Shares Outstanding Basic 17,542,858 13,542,858
Income Taxes $23,551 $49,327
Net Income (Loss) Per Share
Basis -Diluted ($0.003) $0.043
Net Income (Loss) After Taxes (45,190) $99,687


The Company achieved a 65% increase in sales during the first quarter of 2006 compared to the first quarter of 2005. "The strong growth in sales is a result of the newly acquired customer base", says David Horowitz, President and CEO of Priva Inc.

Sales revenue totaled $3.7 million in the first quarter, up from $2.2 million in the first quarter a year earlier, The growth of sales comes primarily from the approximately $1.4 million generated by Priva (USA), a wholly owned subsidiary. While we substantially increased our sales volume, we are continuing to improve our operations as we integrate the new product line associated with the recently acquired customers, and at the same time invested in the setup of the new warehouse in upstate NY. In the first quarter of 2006, the costs associated with the setup of the warehouse and legal fees amounted to approximately $80,000, which have been expensed. This has contributed to the loss in earnings of $45,190 for the Company in the first Quarter of 2006, which otherwise would have been profitable.

"We made the largest asset purchase of customers and inventory in the Company's history, and while the integration of the new business has been taking longer than expected, the fundamentals are there to bring about the synergies and economies of scale associated with acquisition of over 400 new customers, which have historically generated in excess of $5 million of annualized sales revenues", explains David Horowitz.

The Corporation is in the process of SEDAR filing its quartely financial statements for the period ended March 31, 2005. Priva's complete year end financial statements and other important information concerning the financials is obtainable on the SEDAR website.

Montreal based Priva Inc. is a leading manufacturer, distributor and marketer of an assortment of absorbent, waterproof textile products sold to retailers in Canada, the US, the UK, Australia and New Zealand, with export sales representing just about 70% of sales. Priva's products for adults are sold under the Priva and Americare™ labels; children's products are marketed under the "Snoozy™" and "Tidy Turtle™" brand names and Priva's anti-allergen products are sold under the Quorum™ and Zip & Block™ labels.

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

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