Ergoresearch Ltd

Ergoresearch Ltd

October 26, 2009 14:22 ET

Ergoresearch Ltd Reports Record Sales and Earnings for Fiscal 2009-Sales Up 122% to $5 318 000 and Net Earnings of $770 650

MONTREAL, QUEBEC--(Marketwire - Oct. 26, 2009) -

- Revenues for the period increased by 122% to $5 308 708, compared to $2 393 350 in 2008.

- Net income before NON-CASH items related to stock-based compensations also increased by 122% to $938 510 this year, compared to $423 247 for the same period last year.

- Net income significantly increased to $770 650 compared to $423 247 for the same period last year.

- Operating activities (before the net change in non-cash working capital items) increased by 99.3% to $815 386, compared to $409 111 for the same period last year.

All amounts in Canadian dollars unless otherwise stated.

Ergoresearch ltd ("Ergoresearch" or the "Company") (TSX VENTURE:ERG) announced today its results for the fourth quarter and the 2009 fiscal year ended June 30, 2009. During the year, Ergoresearch recorded unprecedented sales and a strong growth in net earnings and cash generated from operating activities.

During the fiscal year ended June 30, 2009, the Company's sales reached $5 308 708, representing a 122% increase compared to the 2008 fiscal year end results then at $2 393 350. For a fourth consecutive year, the Company recorded another profitable year. Net income before NON-CASH items related to stock-based compensations reached $938 510, a significant increase from $423 247 for the same period last year. The expenses related to stock-based compensation reached $167 860 in 2009 resulting in a net income after these expenses of $770 650 (0,013 per share) for the 2009 fiscal year, significantly better than the net profit of $423 247 recorded in fiscal 2008.

Before the net change in non-cash working capital items, operating activities generated $815 386 for the 2009 fiscal year compared to a $409 111 generated for the same period last year.

"We are satisfied with the financial results of fiscal 2009 given the challenging economic times prevailing during most of the year. This year was significant in the Company's history as it very successfully integrated its most recent acquisition while reaping the benefits of a strong internal growth in its other divisions. Fiscal year 2009 will also mark history as the Company recorded yet another increase of its net earnings, the fourth in a row, not to mention generating positive cash flow from its operating activities and a strong growth in its sales. The management team also acquired precious human resources that will inevitably add value in the coming years.

Such noteworthy improvements stand witness to the hard work of our employees, management team and Directors. All have rallied around a common strategy and provided their best efforts to allow the Company to reach summiting performances." stated Sylvain Boucher, President and CEO of Ergoresearch Ltd.

Forward-looking statements

Certain statements in this Press Release contain forward-looking statements and information that may entail certain risks related to uncertainties. Such statements are based on management's expectations and no assurance can be given that potential future results or circumstances described in the forward looking statements will be achieved or will occur. Such risks factors include, but are not limited to, those related to the Company's ability to finance its activities, competition, fluctuations in operating results, the impact of general economics, industry and market conditions, the ability to recruit and retain qualified employees, fluctuations in cash flow, expectations regarding market demand for particular products and the dependence on new product development.

The reader should not give great importance to forward-looking statements as (i) the results may differ from conclusions, predictions or projections contained in such forward-looking statements; and (ii) certain important factors or hypothesis taken into account in reaching conclusions or the preparation of a projection or prediction may prove to be incorrect in fact.

Management disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

Ergoresearch Ltd ( through its subsidiaries ( ) and ( ) is a leading general and foot orthotics manufacturer as well as being on the leading edge of durable medical equipment development in the orthopaedic industry. The Company pursues its goal to become an international leader in technologies and solutions aimed at improving health and well-being.

The TSX Venture exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

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