RAYMOR INDUSTRIES INC.
TSX VENTURE : RAR

RAYMOR INDUSTRIES INC.

June 01, 2006 08:39 ET

CORRECTION FROM SOURCE: Raymor Announces First Quarter 2006 Results

MONTREAL, QUEBEC--(CCNMatthews - June 1, 2006) - Raymor Industries Inc. (TSX VENTURE:RAR)

In the news release sent out earlier today by CCNMatthews for Raymor Industries Inc. an error has occured. In the fourth paragraph it should read: "...an increase of 61%. The cost of...". A complete and corrected version follows:

Raymor Industries Inc., a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advanced materials, yesterday released its financial statements, along the company's Management Discussion and Analysis (MD&A) for the first quarter of 2006. Raymor, listed as a top 100 NANOTECH public company, posted revenues of $401,288, as compared to revenues of $250,000 over the same period in 2005. This revenue is based solely on sales from metallic powders and thermal spray coating operations. For specifically these two divisions, with the completion of many qualifications by the end of June 2006, powder and coating sales should increase over the following 12 months. Coupled with single-walled carbon nanotubes (C-SWNT) supply contracts, to be signed shortly with major aerospace, defense and high tech companies, Raymor is poised to capture considerable revenue in 2006.

Highlights from the 1st Quarter 2006 financial statements and MD&A include the following:



- The Company first quarter performance shows an increase in sales,
as well as an increase in its client base in both the thermal spray
coatings and metallic powders divisions following orders received
from Canada's Department of National Defence, Pratt & Whitney
Rocketdyne and Valvtechnologies. The Company is presently in the
final phase of receiving new accreditations with new clients for
its coating services.

- The Canadian patent for the Company's single-walled carbon
nanotubes (C-SWNT) production process was received during this
quarter. The Company completed the installation of its high
capacity C-SWNT production unit, and began the optimization process
to reach the targeted capacity of 10,000 grams per day per unit by
the end of June 2006. Following this, the Company will be in a
position to conclude long-term agreements for the sale of C-SWNT
with previously targeted clients. Also, the Company foresees
installing additional C-SWNT production units to meet market
demands that it has identified.

- For the first quarter of 2006, the Company booked revenues of
$401,288, as compared to $250,000 for the same quarterly period in
2005, an increase of 61%. The cost of sale was $246,374 for this
quarter of 2006, as compared to $0 for the same period in 2005. It
is important to note that in 2005, the Company did capitalize all
its expenses related to accreditation and development of both
powders and coatings divisions, where the production costs were
presented at $0. Given that the Company is now in commercial and
production phases, these types of expenses are no longer
capitalized, thus the Company is presenting its financial
statements as per standards complying with other stock markets
where the Company foresees an eventual listing.

- Expenses increased from $179,647 in 2005 to $478,402 in 2006. This
difference is mainly due to an increase in personnel, costs
associated with conferences where the Company participated as a
speaker, as well compensatory expenses related to the stock option
plan, which was $82,217, as compared to $0 during the same period
in 2005. The Company closed this three-month period which ended on
March 31, 2006 with a loss of ($323,488), as compared to a profit
of $70,353 over the same period in 2005. The 2006 results
represent a loss per share of ($0.004), as compared to a profit of
$0.002 per share in 2005. It must be highlighted that the
difference between the losses accounted for in 2006 versus the
profit from the same period in 2005 is due to the fact that the
Company no longer capitalizes its expenses related to its powders
and coatings divisions.

- With respect to the balance sheet, as of March 31, 2006, the
Company had a cash position of $1,755,322, as compared to
$1,174,076 on March 31, 2005, and $863,026 on December 31, 2005.
Short-term assets as of March 31, 2006 increased to $3,550,661, as
compared to $1,718,452 as of March 31, 2005, and $2,575,279 as of
December 31, 2005.

- During this quarter, the Company invested the amount of $825,000 in
its nanotechnology division to complete the fabrication and
installation of its high capacity (10,000 grams per day per unit)
single-walled carbon nanotubes (C-SWNT) production unit.

- The Company had short-term liabilities of $550,749 on March 31,
2006, as compared to $683,669 on December 31, 2005 and $347,727 on
March 31, 2005. The Company finds itself with a solid and improving
financial position; given that its short-term liabilities at the
end of the first quarter of 2006 were $550,749 and the short-term
assets were $3,550,661. As compared to the same period in 2005,
short term liabilities were $347,727, with short-term assets of
$1,718,452.

- We would like to highlight that our participation at conferences as
speakers and/or exhibitors has allowed us to meet and begin
discussions with leaders in the targeted aeronautical, aerospace,
and defence sectors, as well as to get the Company better known in
the US markets. We will also present our products and services at
other high calibre conferences and trade shows throughout the year.

- The exercising of warrants from the March 2005 private placement
brought into the company coffers an amount of $2,144,070, and the
exercising of options from the Company's stock option plan brought
an additional $8,966, for an overall total of $2,153,036.

- In April 2006, the Company concluded a private placement of
8,333,333 units, for a total of $10,000,000. Each issued unit
provides the right to a one-half warrant at the price of $1.75
each, exercisable over a maximum period of 12 months. These issued
units under this private placement are subjected to a four month
hold period, which expires on August 26, 2006.


Commenting on the results, Stephane Robert, President and CEO of Raymor Industries had the following to say:

"With respect to the revenues derived from our powders and coatings, division, we are satisfied with the overall results. However, the major milestone reached during this quarter was the installation of our first high capacity single-walled carbon nanotubes production unit. With this industrial production capacity, ramping up to 10,000 grams/day by the end of June 2006, Raymor will be in a position to conclude long-term agreements with previously targeted clients for aerospace applications. The need for our product is very large, and after this first unit, we will install additional units to meet the market demands we have identified."

The complete financial statements and MD&A for the first quarter of 2006 are available at www.sedar.com and will be available shortly at www.raymor.com.

About Raymor Industries

RAYMOR INDUSTRIES INC. (TSX-V:RAR) has as its mission to become a leading developer of high technology for the production of single-walled carbon nanotubes, nanomaterials and other advanced materials for high value-added applications. In November 2004, Raymor Industries created a wholly-owned, industrial subsidiary, AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four operational divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.

ON BEHALF OF THE BOARD OF DIRECTORS

Stephane Robert, President.

FOR MORE INFORMATION ON RAYMOR INDUSTRIES, A NANOTECH 100 COMPANY, PLEASE VISIT:

http://www.raymor.com

FOR MORE INFORMATION ON THE LIST OF NANOTECH 100 COMPILED BY IANANO, PLEASE VISIT:

http://www.raymor.com/en/inthenews.htm

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