SOURCE: Elgrande International, Inc.

October 04, 2005 15:29 ET

Elgrande Reports Fiscal Year Results

VANCOUVER, BC -- (MARKET WIRE) -- October 4, 2005 -- Elgrande International, Inc. (OTC BB: EGDI) specializing in importing, marketing and distributing European-designed quality products, announces results for the fiscal year ending May 31, 2005.

For the year ended May 31, 2005, revenues were $1.04 million versus revenues of $1.08 million for the previous year. Gross profit was $370,445 compared to $367,397 for the prior year. The Comprehensive loss was $879,110 for the fiscal year or $0.05 per share loss compared to a Comprehensive loss of $1.2 million or $0.12 per share loss for the previous year.

Pending sales [orders booked but not yet shipped] at the close of the fiscal year were $207,000 compared to $127,000 for the previous year. The 63% increase in pending sales reflects increased customer activity and expanded range of product.

Mr. Michael Holloran, President and CEO, commented, "This year, while sales in December and January were slightly behind expectation, we exceeded forecast and set a record for new business at the spring trade shows and closed the year with our largest ever backlog of booked orders. Our expanded product range continues to be very well received by both the media and our customers.

"We have substantially improved our operations and over this past year realized a 26.5% reduction in overall operating expenses including a 30% reduction in selling expenses, a 46% reduction in administration expenses and a 60% reduction in travel and entertaining expenses. We are working smarter at home and are continuing to improve our gross margins at the manufacturing level to give us further leverage on our bottom line."

The Company's 2005 catalogue is available at the Company's wholesale division web site www.europeansourcesdirect.com. For additional information, please visit the corporate web site at www.elgrande.com. To receive e-mail alerts and other information please send your request to invest@elgrande.com or register online by going to www.elgrande.com and clicking the "Register for mail updates" icon located at the upper right corner of the home page.

About Elgrande International

Elgrande International (www.elgrande.com) specializes in sourcing, importing, marketing and distributing unique European-designed quality products in the medium to high-end tabletop market. Their products are exclusively produced for the North American home décor, giftware and artware sectors. The Company has a North American sales and distribution infrastructure that currently services approximately 650 customers with over 1,100 retail locations that include independent retailers and national key accounts. Management has structured a national network of 12 major giftware representatives with showrooms in the principal US markets, supported by 128 professional sales representatives. Elgrande was the winner of the 2003 CGTA "Best New Giftware" award (www.cgta.org).

Safe Harbor Provision

This press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include "we are... continuing to improve our gross margins at the manufacturing level" and are based on the Company's current expectations as to future events. However, the forward-looking events and circumstances discussed in this press release might not occur, and actual results could differ materially from those anticipated or implied in the forward-looking statements. Risk factors include, lack of inventory financing, foreign currency, availability of product and other risk factors as outlined in the Company's SEC filings.

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