SOURCE: New Century Companies, Inc.

May 16, 2007 08:30 ET

New Century Companies, Inc. Announces First Quarter 2007 Financial Results

LOS ANGELES, CA -- (MARKET WIRE) -- May 16, 2007 -- New Century Companies, Inc. (OTCBB: NCNC)

--  1Q2007 Revenues of approximately $3.18 million, up 87% over 1Q2006
--  1Q2007 Operating income of $465 thousand compared to an operating loss
    of ($51,756) for the same period in 2006
--  Shareholders Equity improves by approximately $1.56 million
    
New Century Companies, Inc. (OTCBB: NCNC), a leading manufacturer and re-manufacturer of machine tools, today announced financial results for the first quarter ending March 31, 2007.

New Century posted revenue of approximately $3.18 million for the quarter ended March 31, 2007, an increase of 87% compared to the approximately $1.48 million for the comparable period ended March 31, 2006. NCNC ended the quarter with $3.2 million of new orders, an increase of approximately 100% over first quarter orders of $1,669,000 booked in 2006. This trend should help improve the performance of Q2 2007 versus the comparable period last year. Traditionally, the first, second and fourth quarters are generally the higher revenue producing quarters for NCNC. There is a seasonal slow down during the summer months. The current backlog should mitigate some of the seasonality.

Gross profit for the quarter was approximately $1.8 million, an increase of 37% over the same period the prior year. Operating income for the quarter was approximately $465,000 compared to an operating loss of ($51,790) for the same period in the prior year. The increase in gross profit and operating income can be attributed primarily to the shifts in product mix to higher margin products and enhanced pricing acceptance.

New Century posted a Net loss for the quarter ended March 31, 2007 of approximately ($10,963) or $0.00 loss per basic share, compared to net loss of approximately ($1.2) million or a loss of ($0.09) per diluted share for the same period last year. The first quarter of 2007 had approximately $894,000 in mostly non-cash related expenses related to consulting fees and interest expenses compared to approximately $598,000 of similar expenses for the same period in 2006.

Shareholders Equity for the Company improved to $1.5 million or an increase of $1.56 million compared with ($66,598) for the same period for the prior year.

David Duquette, President and CEO of New Century, commented, "We are pleased with our Q1 results as we start 2007. We continue to achieve double-digit top line growth as we execute our 2007 growth plan. Part of our 2007 strategic plan includes further monetizing our CNC development technology through the expansion of additional product lines for key customers while targeting new market verticals for expansion within our industry focus. In management's opinion, the current market is tight on supply for CNC products, and delivery delays are common for new product orders. We have been successful at delivering our products and services in a timely manner, with a high degree of quality as compared to the rest of our market. Our performance has been rewarded with increased order backlogs. We look forward to keeping our shareholders appraised as new business is received and completed."

If you are interested in being added to New Century's investor e-mail lists, please contact Mark McPartland of Alliance Advisors at (910) 221-1827 or via email at markmcp@allianceadvisors.net

About New Century Co.

New Century Companies, Inc. is one of the leading U.S.-based makers of machine tools, primarily vertical boring mills and large lathes such as vertical turning centers (VTCs). It specializes in re-manufacturing, starting with existing major castings and fitting them with state-of-the-art, computer-controlled equipment. These products generally cost 40% to 60% less to make than new ones. New Century passes these savings on to its customers, which include such leading manufacturers as General Electric Co., General Dynamics Corp., Siemens AG and Gardner Denver. New Century machines are used to manufacture jet engine components, airplane landing gear parts, power generation equipment, oil and gas production components and construction materials, to name just a few applications. New Century's production facility is in Santa Fe Springs, CA.

Visit New Century's Web site at www.newcenturyinc.com.

Safe Harbor

Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

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