Artaflex Reports Third Quarter Results

TORONTO, ONTARIO--(Marketwire - June 29, 2012) - Artaflex Inc. (TSX VENTURE:ATF) ("Artaflex"), a specialist at delivering integrated product solutions and support to the global technology and electronics industry, today reports unaudited third quarter financial results for the three-month and nine-month periods ended April 30, 2012.

Artaflex reports in U.S. dollars and all numbers below are expressed in thousands of U.S. dollars, except per share and gross margin percentages.

Q3 2012 Financial Highlights:

• Sales increased by $588 or 9.0% over the third quarter of 2011 to $7,087,
• Gross margin decreased to 9.8% compared to 29.4% (Artaflex stand-alone) for the same quarterly period last year,
• Net loss and comprehensive loss for period of $1,071 compared to net income of $744 for the same quarterly period last year,
• Loss of $0.08 per share compared to income of $0.06 per share for the same quarterly period last year,
• Cash provided by operating activities of $432 during the quarter compared to cash used by operating activities of $478 for the same quarterly period last year.

Paul Walker, President and CEO of Artaflex, commented, "This past quarter, and the next couple of quarters should be considered as transition periods while we absorb the rationalization and restructuring costs associated with our recent merger. All that being said, our sales pipeline is strong and continues to grow as potential customers see the benefits of our multi-site operations here in Canada especially in the area of full systems integration and test."

Q3-2012 - Financial Summary

Selected comparative financial information for the three-month and nine-month periods ended April 30, 2012 and 2011 is shown below. (All numbers below expressed in thousands of U.S. dollars, except per share information and gross margin percentages):

Income Statement	3-Month Period April 30, 2012	3-Month Period April 30, 2011	9-Month Period April 30, 2012	9-Month Period April 30, 2011
Sales	$7,087	$6,499	$14,250	$14,952
Gross Profit	698	1,913	2,458	4,114
Gross Profit %	9.8%	29.4%	17.2%	27.5%
Net Income (loss)	(1,071)	744	(1,419)	1,278
EBITDA2	(689)	1,575	(856)	2,918
Basic & diluted income (loss) per share	($0.08)	$0.06	($0.11)	$0.11
Weighted average number of common shares outstanding	13,762	12,000	12,581	12,000

EBITDA¹ reconciliations to IFRS Net Income/(Loss) for the three-month and nine-month periods ended April 30, 2012 and 2011 are shown below. (All numbers below expressed in thousands of U.S. dollars):

	3-Month Period April 30, 2012	3-Month Period April 30, 2011	9-Month Period April 30, 2012	9-Month Period April 30, 2011
Net income (loss) per IFRS	($1,071)	$744	($1,419)	$1,278
Add (deduct):
Finance costs	163	64	333	278
Foreign exchange loss (gain)	46	405	(96)	637
Income tax expense (recovery)	(56)	245	(103)	444
Depreciation and amortization	229	105	429	281
EBITDA1	($689)	$1,575	($856)	$2,918

¹EBITDA means earnings before interest, taxes, depreciation and amortization.

²EBITDA is not a recognized measure under IFRS. However, management believes that EBITDA as herein defined is a useful supplemental measure to net income (loss), as it provides investors with an indication of cash earnings prior to debt service, capital expenditures, income taxes and other non-cash items. Readers should be cautioned, however, that EBITDA should not be construed as an alternative to net income (loss) determined in accordance with IFRS as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Company's method of calculating EBITDA may differ from the methods by which other companies calculate EBITDA and, accordingly, the EBITDA used herein may not be comparable to measures used by other companies.

Resignation of Director

Peter Tolnai has resigned from the board of directors of Artaflex. Artaflex wishes to express its sincere appreciation to Mr. Tolnai for his service to Artaflex during his tenure as a director. Artaflex does not expect to immediately fill the vacancy left by Mr. Tolnai. As such, the board of directors of Artaflex will consist of four members until the vacancy is filled, being Paul Walker, Phil Woodard, Shmulik Vlodinger and Paul Langston.

About Artaflex:

Artaflex is a specialist at delivering integrated product solutions and support to the global technology and electronics industry. As a leading global provider of complete Electronics Manufacturing Services (EMS), Artaflex offers world class manufacturing facilities and global partners throughout Canada, the United States, Israel and China, allowing Adeptron to provide its customers the flexibility and scalability to competitively achieve total solutions to their present and future electronics outsourcing needs. Visit Artaflex at www.artaflex.com.

THIS NEWS RELEASE MAY CONTAIN FORWARD-LOOKING STATEMENTS AND INFORMATION RELATING TO SUCH MATTERS AS EXPECTED FINANCIAL PERFORMANCE, BUSINESS PROSPECTS, TECHNOLOGICAL DEVELOPMENTS, DEVELOPMENT ACTIVITIES AND LIKE MATTERS. THESE STATEMENTS INVOLVE RISK AND UNCERTAINTIES, INCLUDING BUT NOT LIMITED TO RISK FACTORS DESCRIBED IN DOCUMENTS FILED WITH REGULATORY AUTHORITIES. ACTUAL RESULTS COULD DIFFER MATERIALLY FROM THOSE PROJECTED AS A RESULT OF THESE RISKS AND SHOULD NOT BE RELIED UPON AS A PREDICTION OF FUTURE EVENTS. THE CORPORATION UNDERTAKES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING STATEMENTS TO REFLECT EVENTS OR CIRCUMSTANCES AFTER THE DATE ON WHICH SUCH STATEMENT IS MADE, OR TO REFLECT THE OCCURRENCE OF UNANTICIPATED EVENTS.