SOURCE: JER Envirotech International Corp.

November 12, 2008 13:37 ET

JER Envirotech Announces Audited Annual Financial Results for Fiscal 2008

VANCOUVER, BC--(Marketwire - November 12, 2008) - JER Envirotech International Corp. (TSX-V: JER) (FRANKFURT: KFTB) is pleased to announce its audited annual financial results for the year ending August 31, 2008.

Financial highlights and milestones for fiscal 2008:

--  Record 2008 revenues of $2,605,220, representing a 194% increase over
    2007 revenues of $886,888;
--  Revenues for the fourth quarter ended August 31, 2008 reached
    $1,130,525, representing a 94% increase over the same quarter in fiscal
    2007 at $581,964. These revenues were also up 73% over Q3 2008 at $653,980;
--  Achieved positive gross margins of $93,801 during the fourth quarter
    of fiscal 2008 ended August 31, 2008;
--  Net loss for the year from continued operations were $7,334,481 as
    compared to a net loss of $4,966,123 from the prior year;
--  Signed a four-year master supply agreement with Guardian Building
    Products Distribution, Inc.;
--  Signed a four-year exclusive supply agreement with Sprig Toys, Inc., a
    socially responsible toy manufacturer based in Fort Collins, Colorado.  As
    part of the agreement, Sprig will be providing secondary branding on all of
    its products and packaging, identifying JER as the co-developer and
    supplier of the custom thermoplastic biocomposite marketed as
    Sprigwood™;
--  Signed a U.S. distribution partnership with Jamplast Inc., a leading
    North American plastic raw material distributor of biopolymers, engineering
    polymers and commodity-grade thermoplastics headquartered in Ellisville,
    Missouri;
--  Safeguard Products placed an initial commercial sheet order with JER.
    The sheeting will be used to manufacture Safeguard's proprietary "Cage Free
    Nests" for domestic and international customers;
--  Tulip Corporation concluded a six-month R&D program with JER and
    shifted to mainstream production using the Company's thermoplastic
    biocomposite compounds. Tulip is using JERtech® material to produce
    environmentally friendly interior and exterior moulding, trim and
    industrial extruded profiles;
--  Partnered with Promats Athletics, LLC, in introducing the first
    thermoplastic biocomposite sheeting product for Promats' EnviroZone™
    Product line of stadium wall safety padding;
--  Received its first compound order for export to Asia to G5
    International of Singapore to supply customers in Japan;
--  JERtech® thermoplastic biocomposite compounds launched as a new line
    of board game pieces by specialty game piece manufacturer Rolco Inc.;
--  Purchased the remaining 25% joint-venture stake in its Delta, BC based
    compounding facility, previously owned by PGCO Investments Ltd. to become
    100% beneficial owner of the two compound production lines;
--  Purchased the remaining 49% joint-venture stake in its Malaysian based
    sheet extrusion line, previously owned by Asia Pacific Microspheres Sdn.
    Bhd. ("APM"), to become 100% beneficial owner of the Malaysian sheet
    manufacturing plant.  In addition to the purchase of the APM equity
    interest, the company was able to negotiate a significant discount on the
    final settlement with the leasing Company that provided the original fixed
    line of credit facility amount of approximately $1,950,000, in
    consideration for one lump sum payment of $383,091;
--  Brokered and non-brokered financings were completed, raising a
    combined $4,359,050 (net of issuance costs) for general working capital.
    

Summary of Results

JER is pleased to report that the Company achieved record revenues of $2,605,220 during fiscal 2008 compared with $886,888 in fiscal 2007, representing an increase of 194%. The Company's sales performance was primarily a result of its growing customer base and strong market demand for its thermoplastic biocomposite pellets in the injection-molding and extrusion industries.

"Our focus on achieving triple digit revenue growth, year over year, continues despite an exceedingly challenging economic landscape. Management has taken extensive proactive measures to implement cost containment initiatives and process improvements to mitigate the current unsettled economic climate," states Edward Trueman, President and CEO. "We expect the reduced infrastructure costs to be realized in the first quarter of fiscal 2009. We will endeavour to improve our operational efficiency and aggressively execute on our sales plan. Our momentum continues to grow at an exponential rate, as indicated by our fourth quarter, which represented 43% of fiscal 2008 sales and surpassed all of fiscal 2007 sales by 27 percent."

A summary of JER's quarterly revenues for fiscal 2008 and fiscal 2007 are as follows:

To view the table associated with this press release, click on the link below or paste the link into your browser:

http://www.usetdas.com/maps/jer/jertables.pdf

Supplemental Information

For full financial statements as well as the Management Discussion & Analysis, visit: www.sedar.com

About JER Envirotech International Corporation

JER is a global manufacturer of thermoplastic biocomposite compounds and sheeting. The Company's patented technology utilizes waste or by-product materials, such as wood fibre or rice hulls, to produce environmentally friendly alternative products for applications in the construction, transport, automotive and toy industries. The Company currently has a range of biocomposite formulations which it developed in collaboration with the National Research Council - Industrial Materials Institute of Canada.

The Company is publicly-traded on the TSX Venture Exchange (TSX) under the symbol "JER" and on the Frankfurt Stock Exchange under the symbol "KFTB."

For more information, please visit www.jerenvirotech.com.

JER ENVIROTECH INTERNATIONAL CORPORATION

"Ji Yoon"

Mr. Ji Yoon
Chief Financial Officer
International: +1 (604) 940-9262
jyoon@jerenvirotech.com


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

(2008-11 #27)

Contact Information

  • Mr. Ji Yoon
    Chief Financial Officer
    International: +1 (604) 940-9262
    Email Contact