ComWest Enterprise Corp.

July 28, 2011 15:50 ET

ComWest Releases Q2 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 28, 2011) - Douglas F. Good, President and CEO of ComWest Enterprise Corp. (TSX VENTURE:CWP)(TSX VENTURE:CWP.A), released the company's second quarter 2011 financial statements today. ComWest recognized revenues of $7,501,270 for the three month period ended May 31, 2011 ("Q2"), bringing total revenues for the first half of Fiscal 2011 to $14,379,996. Cash flow from operations for the six month period ended May 31, 2011 was $2,394,297, comprised of $1,284,182 for Q2 and $1,110,115 reported in Q1. Net income for Q2 was $481,907, bringing the total for the six month period ending May 31, 2011 to $765,770.

As of May 31, 2011 the Company had an adjusted working capital of $9,229,599, compared to $9,106,518 as of February 28, 2011 (November 30, 2010: $8,956,882), based on including only the scheduled principal term loan payments and an accrual for the estimated additional annual payments equal to 50% of surplus cash, as defined in the company's term loan facility.

On March 15 2011 and June 15, 2011 the Company paid eligible cash dividends of $0.02 per share to shareholders of record on March 1, 2011 and June 8, 2011, respectfully. These dividends were the first quarterly dividends reflecting a new dividend policy whereby the Board expects to declare a quarterly dividend of $0.02 per share on an ongoing basis, subject to available cash resources, terms of credit facilities and regulatory requirements.

The financial statements for the three and six month period ended May 31, 2011 and related MD&A are available for view on SEDAR at


Douglas F. Good, President

Forward Looking Statements

This news release contains forward-looking statements regarding the future success of the business of the Company that is subject to risk and uncertainties. Examples of such forward-looking statements including, but are not limited to, statements concerning the Corporation's acquisition of an operating business and the Corporation's intention to pay dividends. These forward-looking statements involve known and unknown risk and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to dependence on key personnel, competition, risks related to newly acquired businesses, uncertainty and dilution of additional financing and ability to service debt, as well as the risk factors described in the Corporation's Management Discussion and Analysis filed on SEDAR at, and the risks to be described in any Management Information Circular and/or Filing Statement to be prepared in connection with the transaction. The forward-looking statements contained herein are made as of the date of this Circular and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect any change in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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