International Technologies Corporation

International Technologies Corporation

August 21, 2006 09:00 ET

ITC Reports Second Quarter Results

Revenues Increase 21%, Net Earning Up 236%

RICHMOND, BRITISH COLUMBIA--(CCNMatthews - Aug. 21, 2006) - International Technologies Corporation ("ITC" or "the Company") (TSX VENTURE:ITI) is pleased to announced unaudited financial results for its second quarter ending June 30, 2006.

Revenues were up 21% to $6,299,170 for the three months ended June 30, 2006, compared to $5,172,818 for the corresponding quarter in 2005. Sales growth has resulted from escalating demand for ITC's MPIO brand in the digital audio/video category and expansion of its distribution network in the United States, Mexico, South America and Australia.

ITC had net income before taxes of $126,769 for the three months ended June 30, 2006, compared to $34,280 in the second quarter of 2005. Net income after tax increased by 236% to $81,769 or $0.01 per share compared to $24,280 or $0.00 per share for the same period in 2005.

Gross profit grew by 66% to $1,125,722 or a margin of 18% for the three months ended June 30, 2006 compared to $678,277 and 13% for the same quarter in 2005. The Company continues to diversify its digital products and is focused on driving sales of high margin items such as MP3 players and security monitors.

ITC has managed a smooth integration of the three businesses it acquired in 2005 which included distribution networks in the United States, Latin America and Australia, enhancing relationships with acquired customers, reducing operating expenses, increasing sales and initiating new business opportunities.

"ITC has come a long way since inception in 2000 where we began as a small distribution company selling monitors within Canada," stated Michael Uhm, the Company's CEO. "Our digital audio and video products and specialty displays are now known world wide."

He continued, "The first half of the year traditionally accounts for 35-40% of our business. We anticipate digital audio sales in the second half of 2006 to be significantly higher than average for our busy Back to School and Christmas seasons."

In addition to ITC's original distribution model, the Company has branched out and added Original Equipment Manufacturer (OEM) to its portfolio of services. The Company is now providing retail chains such as Future Shop/Best Buy and The Source by Circuit City with their own private label brands, customized to specification.

ITC had combined revenues in excess of $27 million for fiscal 2005 and sales have risen by 30% for the first six months of 2006.

ITC remains committed to profitable growth and maximizing value for its reseller customers by supplying exciting digital products and the highest level of customer care.

Complete financial results are posted on SEDAR at

About ITC

International Technologies Corporation ( is a global supplier of innovative digital audio, multi-media, home entertainment, flat screen monitors/televisions and other advanced electronics products to the consumer and commercial market place. ITC also creates private label and OEM brands for its retail partners. The Company's ability to deliver manufacturer-direct product provides savings and other significant advantages to its customers.

ITC holds the exclusive rights to distribute MPIO products to the North, Central, South American, Mexican and Australian markets through its relationship with Digitalway Korea and has exclusivity on all Hansol Korea LCD monitors sold to the North American market.

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. (This release is not a solicitation to United States residents to purchase securities in the Company.)

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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