Liquidation World Inc.
TSX : LQW

Liquidation World Inc.

July 13, 2007 08:00 ET

Liquidation World Announces Q3 Revenue

CALGARY, ALBERTA--(Marketwire - July 13, 2007) - Liquidation World Inc. (TSX:LQW) today announces that revenue for the thirteen-week quarter ended July 1, 2007 was $46.5 million, down 5.6% from a Q3 record $49.2 million during the quarter ended July 2, 2006. Same store sales for the quarter decreased 13.5% from the prior year.

In the first three quarters of fiscal 2007 revenue totaled $158.7 million, up 2.2% from $155.3 million during the same period last year. Same store sales for the first three quarters decreased 6.1% from the prior year.

Complete financial results for the second quarter will be announced in August.

Commenting on the quarter, President & CEO Jonathan Hill said:

At Liquidation World, we have built a buying team that is capable of successfully stocking a growing store base with a variety of quality merchandise at excellent prices. The activities of all of our buyers continue to generate a relatively predictable level of baseline revenue and, during the third quarter, we even saw sales gains in certain key categories.

The icing on the cake in our business, however, is the truly extraordinary merchandise that comes from what we often describe as 'event deals'. Event deals genuinely wow our customers with their value, create positive word-of-mouth, and serve to differentiate Liquidation World from other retailers. And, they are key to maximizing traffic and sales in our outlets. Unfortunately, the frequency and scale of these types of deals are unpredictable and, over the past 2 quarters, we simply have not had enough of this type of merchandise in our stores.

While event deals are unpredictable by nature, we believe there is more we can do to source and procure more, bigger and better event deals as they happen. Moving forward, we will adjust our buying strategy to reinforce our prospecting activities as they relate to event deal merchandise.

During the quarter the Company opened new stores in Mississauga, Ontario and Belleville, Ontario. No stores were closed during the quarter. The Company continues to pursue a growth strategy, but will moderate the pace of growth and expect to end the year with approximately 119 stores instead of 125 as previously reported. However, at least three additional stores are expected to open during the first quarter of fiscal 2008.

About Liquidation World

Liquidation World liquidates consumer merchandise through 116 retail outlets located throughout Canada and the northwest US. The Company solves asset recovery problems in a professional manner for the financial services industry, insurance companies, manufacturers, wholesalers and other organizations. Liquidation World opened its first retail outlet in Calgary, Alberta in 1986 and, today, with more than 2,000 employees, is one of the largest liquidators in North America.

Forward-Looking Statements

This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties, and actual results may differ materially. Due to fluctuations in gross margins and expenses, an increase in revenue does not directly correlate to an increase in net earnings.

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