Liquidation World Inc.

Liquidation World Inc.

October 11, 2006 08:00 ET

Liquidation World Reports Record Revenue for Fiscal 2006

Fourth Consecutive Record Quarter Driven by 10.6% Same Store Sales Growth 125 Stores Expected to be in Operation by End of Next Fiscal Year

CALGARY, ALBERTA--(CCNMatthews - Oct. 11, 2006) - Liquidation World Inc. (TSX:LQW) today announces revenue for the fourth quarter of fiscal 2006, representing 13 weeks of operations ending October 1, 2006.

Revenue for the quarter increased 13.0% to $52.9 million from $46.8 million during the same period last year, and set a new Q4 record. Same store sales increased 10.6% over prior year.

Fiscal 2006 revenue increased 13.0% to $208.2 million from $184.2 million during fiscal 2005 and established a new annual revenue record. Fiscal 2006 same store sales increased 12.5% over prior year.

Liquidation World will release complete financial results in mid-December 2006.

Liquidation World President and CEO, Jonathan Hill, said, "Fiscal 2006 has been a watershed year for Liquidation World and we are obviously pleased with these results. We recorded our largest year-over-year sales increase since 1998 and exceeded $200 million in revenue for the first time in the Company's 20-year history."

Looking forward to fiscal 2007, the Company will continue to add new locations and anticipates having approximately 125 stores in operation by fiscal year end. The addition of new stores is intended to further leverage the investments that the Company has made in its people, systems and infrastructure over the past year and, as such, will be realized without significant incremental overhead expense.

Speaking further to Liquidation World's 2007 plans, Mr. Hill said, "During 2006, we placed great emphasis on building a more structured, disciplined and accountable team. Those changes are having a positive impact that is reflected in our sales results. Specifically, we have seen solid revenue growth in several underdeveloped product categories, improved inventory turns, a significant reduction in the proportion of aged and non-performing inventory and strong same store sales growth. For fiscal 2007, we will continue to drive same store sales growth by delivering more branded, higher quality and higher ticket goods from more suppliers. Our challenge is to consistently deliver price leadership while maintaining margins in line with historical norms. Along with these objectives, we foresee further improvement in inventory turnover and will continue to emphasize the freshness and quality of the products in our stores."

About Liquidation World

Liquidation World liquidates consumer merchandise through 106 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 1,800 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 other expenses, an increase in revenue does not directly correlate to an increase in net earnings.

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