International Technologies Corporation
TSX VENTURE : ITI

International Technologies Corporation

May 25, 2005 09:00 ET

ITC Reports First Quarter Results, Revenues Grow 4.5%

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - May 25, 2005) - (All amounts in Canadian dollars)

International Technologies Corporation ("ITC") (TSX VENTURE:ITI), announced today its unaudited financial results for its first quarter ending March 31, 2005. The complete financial results are posted on SEDAR at http://www.sedar.com.

Revenues were $4,621,350 for the three months ended March 31, 2005 compared to $4,422,638 for the corresponding quarter in 2004, an increase of 4.5%. The rise in revenues is attributable to escalating MP3 sales and the Company's recent entry into the United States market. EBITDA increased by 33% to $253,408 versus $191,352 for the same period a year earlier.

ITC had net income after taxes of $112,826 or $0.01 per share for the three months ended March 31, 2005, compared to $108,584, or $0.01 per share in the first quarter of 2004. The Company showed a gross margin for the quarter of $831,313 or 17.9% compared to $691,801 or 15.6% over the same period in 2004. The increase in gross margin is a result of ITC's higher margin product lines and enhanced efficiency in its operations. ITC's gross margin continues to outperform the industry average.

"We are in our seasonally slower portion of the year, however sales of our MP3 players and storage products continue to grow as reflected in our first quarter," noted Michael Uhm, ITC's President and CEO. He added, "We are in a new era of technology and ITC will continue giving consumers the most entertaining experience available while concentrating on pursuing growth opportunities in existing and new markets."

The Company maintains its competitive edge by introducing proprietary, next generation electronics that meet the voracious appetite for portable audio, storage, multimedia, flat screen monitors and plasma/LCD televisions. ITC remains committed to profitable growth and to its vision of becoming a leading electronics dealer in the global marketplace.

About ITC

International Technologies Corporation (www.itcco.com) is an importer and distributor of advanced electronics and computer products. The Company has a manufacturer-direct relationship that provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute product to the North American marketplace through its relationship with Hansol Korea. The Company also has agreements in place to deliver MPIO branded products exclusively to the Canadian market and to the United States on a non exclusive basis.

Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Factors that might cause a difference include, but are not limited to, market acceptance of principal products, the impact of competitive products and technologies, the possibility of products infringing patents and other intellectual property of fourth parties, and costs of product development. ITC will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by ITC.

Contact Information