Diversaflow Corporation Ltd.

Diversaflow Corporation Ltd.

March 04, 2005 12:40 ET

Diversaflow Reports Profits for the Period Ended December 31, 2004


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DIVERSAFLOW CORPORATION LTD.

TSX VENTURE SYMBOL: DVF

MARCH 4, 2005 - 12:40 ET

Diversaflow Reports Profits for the Period Ended
December 31, 2004

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 4, 2005) - Diversaflow
Corporation Ltd. (the "Company") (TSX VENTURE:DVF) is pleased to
announce the release of its unaudited consolidated financial statements
for the quarterly period ended December 31, 2004. The consolidated
financial statements of the Company can be accessed at www.SEDAR.com.

The Company's unaudited consolidated financial statements confirm sales
revenues of $1,590,481 for the 3 month period ending December 31, 2004
as compared to $1,300,345 for the 3 month period ending December 31,
2003, an overall increase of 22%.

Gross profit for the period ending December 31, 2004 was $482,631
compared to gross profit for the period ending December 31, 2003 of
$301,365 or an increase of 60% in gross profits. Net profits for the
period ending December 31, 2004 were $3,471 compared to a net loss for
the period ending December 31, 2003 of ($197,830). This occurred as a
result of the cumulative effect of improved operating efficiencies and
more aggressive marketing policies which were offset by fluctuations in
international currency exchange rates.

In December 2003 the Company expanded its facilities and now operates
out of a 33,000 sq. ft. leased facility in Langley, British Columbia.
Within the existing facilities, the Company has built and equipped a
metal shop that fabricates metal components for use by the Company,
which were previously being purchased from third party suppliers. The
facility upgrade and the addition of the metal fabrication area are an
integral part of the Company's aggressive growth plans moving forward.
The Company's primary geographical market segments are North America,
followed by Europe, Middle East, Asia and Central/South America. The
Company's subsidiary, IPC, is already selling into these regions, while
OPC is just beginning a major marketing campaign into these areas.
Recently inroads into two new major markets have been secured through
the sale projects which will be located in India and in Scandinavia.

There is now a demand for newer designs that combine creativity,
physical challenge and safety. Management expects this trend to create
an opportunity for OPC, particularly in the retrofit business where
obsolete and unsafe playground structures will be replaced in
schoolyards and public parks.

The results of the consolidated financial statements discussed above
reflect the 3 month period ended December 31, 2004, compared to the 3
month period ended December 31, 2003. The fiscal year end for
Diversaflow is September 30; the most recent annual statements can be
accessed at www.SEDAR.com.

Readers should also note that prior to completing the Qualifying
Transaction, the Company did not have any ongoing business operations.
Furthermore, OPC had nominal operations during the same period.
Therefore, the results of the consolidated financial statements
essentially reflect the operations of IPC, the primary operating
subsidiary of the company.

ON BEHALF OF THE BOARD OF DIRECTORS

Scott Forbes, President and Director

FORWARD LOOKING STATEMENTS: This news release contains certain
forward-looking statements. All statements, other than statements of
historical fact, included herein, including without limitation
statements regarding the Company's business, results or future plans,
are forward looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove
to be accurate and actual results and future events could differ
materially from those anticipated in such statements. Important factors
that could cause actual results to differ materially from the Company's
expectations are disclosed elsewhere in documents that are available to
the public.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Diversaflow Corporation Ltd.
    David Romano
    (604) 882-1188
    (604) 882-1977 (FAX)
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.