Ameriplas Holdings Ltd.

Ameriplas Holdings Ltd.

October 31, 2006 09:00 ET

Ameriplas Earns $0.03 Per Share to August 31, 2006

ST-JEAN-SUR-LE-RICHELIEU, QUEBEC--(CCNMatthews - Oct. 31, 2006) - Ameriplas Holdings Ltd. (TSX VENTURE:AHL) is pleased to announce its results for the third quarter ended August 31, 2006. Earlier in the year the Company implemented a cash management plan to pay down supplier and bank debts, and to improve profitability. The Company has been able to continue to make all payments under this plan from current cash flows to August 31, 2006 and expects to be able to continue to make all such payments.

For the nine months ended August 31, 2006, revenue was $1,904,951 compared to $1,339,336 in the same period for 2005, and net income was $739,142, or earnings of $0.03 per share, compared to a net loss of $313,758, or a loss of $0.02 per share, in the same period in 2005. Net income included a one time future income tax benefit recorded in the third quarter of $248,610. Income before taxes increased by $804,290 from $490,532 for the nine months, compared to a loss of $313,758 in 2005.

For the third quarter ended August 31, 2006, revenue was $787,531 compared to $573,202 in the third quarter of 2005. Income before taxes was $139,465, or $0.02 per share, compared to $43,219, or $0.00 per share, in the third quarter of 2005. The third quarter, which is during summer, is typically the best quarter of the year for the Company's production of performs for water bottles, while the fourth quarter, which is leading up to winter, is typically the Company's slowest quarter of the year.

Ameriplas' gross margin was 46.5% for the nine-months ended August 31, 2006 compared to 8.7% gross margin during the same period in 2005. Ameriplas has also reduced total liabilities from $2.4 million at November 30, 2005, to $1.9 million at August 31, 2006, a reduction of approximately $500,000 or 21%.

Ameriplas plans to continue to produce high quality preforms, to tightly manage its cash flow for debt reduction, and to expand its operations through new customers. Ameriplas may look for acquisition opportunities in 2007 that would create additional profits within a relatively short time period.

The Company's financial statements for the nine months ended August 31, 2006 can be found at


Ameriplas has been in the business of manufacturing plastic preforms for the Canadian and U.S. water and soft drinks bottling industry since December 1999. Preforms are sold to beverage companies that heat and blow them into the form of bottles used for their beverages. PET preforms are used industry wide in the production of plastic beverage containers to avoid the costs and difficulties of shipping bulky plastic bottles. A primary use of these bottles is for bottled water, wich is the fastest growing segment of the beverage industry. Other uses include soft drinks, sports drinks and beer.

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