Icefloe Technologies Inc.
TSX VENTURE : ICY

Icefloe Technologies Inc.

August 11, 2005 16:22 ET

icefloe Reports Record Results In Second Quarter

MISSISSAUGA, ONTARIO--(CCNMatthews - Aug. 11, 2005) -

Results of Operations- three months ending June 30, 2005

51% Increase in Total Sales

121% Increase in Gross Margin

42% Reduction in Net Loss

icefloe Technologies Inc. ("icefloe") (TSX VENTURE:ICY) today released its operating results for the three month period ending June 30, 2005 and the six month period ending June 30, 2005.

Total Second Quarter sales were $727,652, an increase of $246,438 or 51.2%, from the same period in 2004. Sales for the six month period ending June 30, 2005 were $1,114,132, an increase of $346,887 or 45.2% from the 6 month period ending June 30, 2004. Both second quarter and six month results are all-time highs for the company.

The increases were driven by sales of proprietary new icefloe products, particularly the Tower Booster, incorporated in the Molson Canadian Sub Zero Draft Tower, and the sale of icefloe In-Line Boosters into the UK market with icefloe's recent partnership agreement with Drinks Dispense Group (DDg). Proprietary icefloe product sales represented about 50% of company sales in the second quarter of 2005, compared with less than 15% in the same period last year.

icefloe's wholly-owned subsidiary, Draft Guys, whose primary business is sales, installation and service of on-premise draft beer systems for the hospitality industry, had a very strong second quarter 2005, with core installation and service revenue up 39%.

Overall gross margin was $224,643 (31% of sales) in the Second Quarter of 2005, an increase of $123,157 or 121% from the $101,486 (21% of sales) in the same period last year, reflecting the sales of the higher margin proprietary icefloe products. Year-to-date gross margin was 27% of sales, compared with 21% in 2004.

The Gross Margin increase, combined with lower total expenses, resulted in a Net Loss of ($548,603) in the Second Quarter of 2005, versus a Net Loss of ($938,199) in the same period last year, a reduction of 42%.

"We are encouraged by the early sales of both the Tower Booster and the UK In-Line Booster," said Wayne Newson, icefloe's President and CEO."Both of these initiatives were undertaken in late March, 2005, and we are very excited about the response in the marketplaces."

"In the Second Quarter we announced the successful prototype development for our potential retail unit, and completed focus group research to confirm the potential of this product," said Newson. "We hope to complete an in-market test of the consumer unit by the end of 2005, anticipating commercialization by mid 2006."

ABOUT ICEFLOE TECHNOLOGIES INC.

Founded in March 2001, icefloe (TSX Venture Exchange: ICY) is a Canadian-based company dedicated to the development and commercialization of its proprietary chilling technology which brings flash chilling capability in a portable form and enables the beverage industry to serve ice cold draft beer without excessive foam loss, anytime and anywhere. Since April 2001, icefloe has focused its efforts on securing patents for its platform technologies, while developing, field-testing, manufacturing and marketing commercial products using its unique technologies. Its wholly owned subsidiary, Draught
Guys Inc., provides installation, sales and service for both traditional draft systems and icefloe's proprietary products in the Ontario market.

icefloe commenced trading on Tier 2 of the TSX Venture Exchange on April 14, 2004 under the symbol "ICY".

For more information about icefloe, please visit the company website at www.icefloe.com.

Certain information included in this press release is forward-looking and may involve risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors that might cause a difference include, but are not limited to, competitive developments, risks associated with Icefloe's growth, the development of the beverage market, regulatory risks, intellectual property infringement and other factors. Unless otherwise required by applicable securities laws, Icefloe disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. More detailed information about potential factors that could affect icefloe's financial and business results is included in public documents icefloe files from time to time with Canadian securities regulatory authorities.

No Securities Commission or other regulatory authority having jurisdiction over Icefloe has approved or disapproved of the information contained herein.

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

Contact Information

  • icefloe Technologies Inc.
    Wayne Newson
    President and CEO
    (905) 712-7777
    (905) 712-2826 (FAX)
    wnewson@icefloe.com