International Technologies Corporation

International Technologies Corporation

August 15, 2005 06:00 ET

ITC Reports Second Quarter Results

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2005) - International Technologies Corporation ("ITC" or "the Company") (TSX VENTURE:ITI), announced today its unaudited financial results for its second quarter ending June 30, 2005.

Revenues were $5,172,818 for the three months ended June 30, 2005 compared to $5,984,982 for the corresponding quarter in 2004. ITC had net income before taxes of $34,280 for the three months ended June 30, 2005, compared to $41,748 in the second quarter of 2004. Net income after tax was $24,280 or $0.00 per share compared to $26,680 or $0.00 per share for the same period in 2004. Gross margin for the second quarter 2005 was $678,277 or 13.1%, compared to $609,976 or 10.2% in 2004.

At June 30 2005, ITC has increased its gross margin by $68,301 over the same period in 2004 although revenues were down by $812,164. In June 2004, after the Company acquired the United States distribution of specialty monitors from Hansol Korea, ITC agreed to purchase their old inventory as a measure of goodwill. The inventory was sold in June 2004 for $1,510,398 at margins of 6.4%. As result of these one-time sales transactions, June 2004 had higher overall revenues than June 2005 however the Company's gross margin for the second quarter 2005 was significantly higher than in the previous year. Adjusting for this unusual situation resulted in actual growth in sales of $698,234 or 13.5%.

ITC has effectively managed a smooth integration of its United States business enhancing relationships with acquired customers, reducing operating expenses, increasing sales of higher margin products and initiating new business opportunities. Market expansion strategies have commenced where the Company plans to extend its geographical footprint and position itself further as a global supplier of leading edge consumer electronics.

"We are now a stronger company with significantly larger market share across North America and are especially pleased with the growth experienced in the digital audio and flat panel segment of our business," stated Michael Uhm, President and CEO of ITC. He continued, "We expect digital audio sales to at least double going into our busy Back to School and Christmas season."

According to the Consumer Electronics Association (CEA), the industry's growth is expected to continue rising as the world evolves deeper into the digital age. The Association predicts that the average American household will spend more than $1,200 on electronic gadgets this year.

The Company's complete financial statements are posted on SEDAR at

About ITC

International Technologies Corporation ( is a leading 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.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents herein.

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