Icefloe Technologies Inc.
TSX VENTURE : ICY

Icefloe Technologies Inc.

May 25, 2006 16:05 ET

Icefloe Technologies Inc. Announces 1st Quarter 2006 Operating Results

MISSISSAUGA, ONTARIO--(CCNMatthews - May 25, 2006) -

Improved Gross Margins by 25%

icefloe Technologies Inc. ("icefloe") (TSX VENTURE:ICY) today released its operating statements for the 3-month period ending March 31, 2006.

- First Quarter Sales were $337,644, a decrease of $48,886 or 13% from the same period in 2005.

- Gross Margin in the First Quarter was $92,263 or 27.3% of sales, an improvement of $18,823 or 25% from a Gross Margin of $74,040 or 19.2% for the same period in 2005.

- First Quarter Net Loss was $557,444, an improvement of $13,253 or 2% for the comparable period in 2005.

"During the First Quarter we focused a significant amount of time, resources and energy on setting up a major initiative (a supply and service contract announced on February 23, 2006) to ensure the rollout would be on time and successful," said Wayne Newson, icefloe's President and CEO. "As a result our First Quarter sales were negatively impacted. This initiative, which has now commenced rollout, is expected to deliver an estimated $2.5 million in incremental revenue to icefloe in the balance of 2006."

Also during the first quarter, icefloe successfully closed two brokered private placements of 10% senior secured convertible debentures for total gross proceeds of $2.1 million.

"The outlook for the remainder of 2006 is for sales and margins to grow as we continue to build momentum with our proprietary flash chilling and heat exchange technologies," added Mr. Newson.

ABOUT ICEFLOE TECHNOLOGIES INC.

Founded in March 2001, icefloe 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
    or
    icefloe Technologies Inc.
    David Elliott
    Executive Vice President and CFO
    (905) 712-7777
    (905) 712-2826 (FAX)
    delliott@icefloe.com