Crossfield Capital Corp.
TSX VENTURE : CFX

Crossfield Capital Corp.

July 28, 2005 16:54 ET

Crossfield Capital Corp.: Releases March 31, 2005 Annual Results

TORONTO, ONTARIO--(CCNMatthews - July 28, 2005) - Crossfield Capital Corp. ("Crossfield" or the "Corporation") (TSX VENTURE:CXF)announced today the release of its audited consolidated financial results for the fifteen months ended March 31, 2005.

HIGHLIGHTS:

- Increased revenues of $15.5 million compared to $1.7 million in 2003 representing a broadened and expanding customer base.

- Gross margin of $4.8 million, or 31% of revenues compared to ($0.1) million or (5%) of revenues in 2003 representing the fact that overheads are being properly absorbed by sales revenues.

- EBITDA, adjusted for stock based compensation, increased to $1.8 million or 12% of revenues compared to ($0.3) million or (18%) of revenues in 2003.

- Net income from continuing operations increased to $1.0 million or 6% of revenues compared to ($1.4) million or (82%) of revenues in 2003.

- Net loss of $0.6 million, compared to $1.0 million in 2003.

- Net assets increased to $20.3 million, compared to $5.4 million in 2003.

- The completion of the go-public and financing transaction resulted in net cash increasing by $2.3 million to $1.7 million, compared to bank indebtedness of $0.6 million in 2003.

Bill Iannaci, Crossfield's Chief Executive Officer commented: "The past fifteen months have seen the Corporation take many steps towards the completion of the building of a solid foundation for the future - both from a financial and operational perspective. The completion of our financing and go-public transaction has provided us with the financial resources to achieve our business objectives. The strengthening of our balance sheet, coupled with continued improvements in operating results are a direct result of the hard and dedicated work of our team of experienced and motivated employees. One of our short-term priorities is to obtain the quality certifications necessary to obtain a broader base of business. We look forward to many highlights in the coming year."

Joseph Mimran, Crossfield's Chairman commented: "We are very happy to report the increased profits from continuing operations and increased momentum with our customer base. The Royal Laser and WAM names are known in the markets we service for quality and value-added service to our customers. We are gratified with the performance and activity within each of our businesses and we are well positioned and poised to exploit future opportunities."

As previously announced, the Corporation has changed its name to Royal Laser Corp., which change will be submitted to the shareholders at the next annual meeting on September 12, 2005.

The complete reports of the Corporation's audited financial statements and related notes for the fifteen months ended March 31, 2005, and December 31, 2003, together with Management's Discussion and Analysis of financial conditions have been filed on SEDAR and are available at www.sedar.com

The Corporation, through its wholly owned operating subsidiaries Royal Laser Mfg Inc. and WAM Industries Ltd., manufactures custom wood and metal products and targets the multi-billion dollar high-end retail in-store development industry as well as the OEM industrial products and construction industries, in Canada, the United States and increasingly, overseas. Royal Laser and WAM employ state-of-the-art industrial technology to fabricate custom and standardized wood and metal products, including robotic wood finishing lines and advanced laser-based computer-integrated manufacturing systems. In addition to contract manufacturing services, Royal Laser and WAM provide value-added engineering and design services.

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to the Corporation. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include risks and factors as are detailed from time to time in the Corporation's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained herein are expressed qualified by this cautionary statement.

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

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