Icefloe Technologies Inc.
TSX VENTURE : ICY

Icefloe Technologies Inc.

August 24, 2006 16:15 ET

icefloe Technologies Inc. Announces Record 2nd Quarter Results

Sales of $963,058 up 32% vs. Last Year Gross Margin up 12% vs. Last Year

MISSISSAUGA, ONTARIO--(CCNMatthews - Aug. 24, 2006) - icefloe Technologies Inc. ("icefloe") (TSX VENTURE:ICY) today released its operating statements for the three-month and six-month periods ending June 30, 2006.

- Second Quarter Sales were $963,058, an increase of $235,406 or 32.4% from the same period in 2005.

- Six Month Sales were $1,300,702, an increase of $186,520 or 16.7% from the same period in 2005.

- Gross Margin in the Second Quarter was $251,270 or 26.1% of sales, an increase of $26,627 or 11.9% from the same period in 2005

- Six Month Gross Margin is $343,533 or 26.4% of sales, an increase of $44,850 or 15.0% from the same period in 2005

- Second Quarter Net Loss was $398,158, an improvement of $150,445 or 27.4% from the same period in 2005

- Six Month Net Loss was $955,602, an improvement of $163,698 or 14.6% from the same period in 2005

"The Second Quarter results reflect strong growth in proprietary icefloe product sales, which was partially reduced by a significant decrease in sales at our wholly owned installation subsidiary, Draft Guys," said Wayne Newson, icefloe's President and CEO. "Sales of icefloe's proprietary products were up 126.5% in the second quarter, and are up 83.5% for the six month period. This increase was driven by sales resulting from a supply and services agreement with Molson Coors Canada and sales to the United Kingdom through our UK based sales and marketing partner, Drinks Dispense Group (DDg)."

"Draft guys revenue was down 44% in the second quarter and is down 38% for the six month period, which reflects an industry-wide decline in the number of new installations for major breweries and one-time sales of Branded Beer Towers in 2005," Newson continued.

"We anticipate continued growth in sales and margins for the second half of 2006, fuelled mainly by icefloe products," 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