OPMEDIC GROUP Inc.
TSX : OMG

OPMEDIC GROUP Inc.

July 04, 2006 23:59 ET

OPMEDIC GROUP Inc. Announces its financial results for the third quarter of 2006

MONTREAL, July 4 - Not for dissemination in the United States.

OPMEDIC GROUP Inc. ("OPMEDIC GROUP")(TSX: "OMG"),
a healthcare-related services company providing facilities and
services to patients and surgeons, is pleased to announce financial results
for the third quarter ended May 31, 2006.



HIGHLIGHTS:

- Quarterly and year-to-date revenues of $1.980 million and
$5.548 million, respectively, compared to $1.771 million and
$5.210 million in previous year;
- Quarterly and year-to-date net earnings of $268,561 and $723,774,
respectively, compared to $309,812 and $752,051 in previous year;
- Quarterly and year-to-date E.P.S of $0.02 and $0.05 respectively,
exactly the same results as last year


Consolidated revenues for the quarter ended May 31, 2006 totaled
$1.980 million, a 12 % increase compared to the $1.771 million for the third
quarter of fiscal year 2005. The volume activity in prenatal screening tests
and ultrasounds including the new 3D technology is still increasing. More than
half of the increase of $0.209 million comes from this division. Also, an
increase of $0.123 million comes in equal part from more insemination with
donor sperm in the wholly-owned subsidiary Cryoconservation Center, general
surgeries and interest revenues from the cash of the initial public offering
was diminished by a decrease in revenues from fertility activities which was
mainly due to the stability of the demand and the increased competition.

For the nine-month period ended May 31, 2006, revenues amounted to
$5.548 million compared to $5.210 million for the same period of the previous
year. A 6 % increase which is explained by various activities for $0.502
million, less the decrease in revenues from fertility. More than half of the
increase is explained by the increase in volume activity in prenatal screening
tests and ultrasound including the new 3D technology. The other half of the
increase is explained by the insemination with donor sperm, general surgeries
and interest revenues from the cash of the initial public offering in equal
parts.

The costs of services for the third quarter went from $0.777 million in
2005 to $0.815 million in 2006. The new costs for the opening of the OPMEDIC
division in Laval were mainly offset by the decrease in the doctor's
consultation fees. A new remuneration schedule was put in place in the month
of April 2005, and has allowed the Company to decrease costs of services
substantially. It is the last quarter where the consultation fees remuneration
is different from last year.

For the nine-month period ended May 31, 2006, costs of services amounted
to $2.155 million compared to $2.490 million in 2005 an improvement of
$0.335 million. The major reason is the decrease of doctor's consultation
fees.

Gross profit for the third quarter ended May 31, 2006 was up 17 % from
$0.994 million in 2005 to $1.165 million in 2006 an increase of
$0.171 million.

For the nine-month period ended May 31, 2006, the gross profit was
$3.393 millions compared to $2.720 million for the previous year, an
improvement of 25 %.

The gross margin for the third quarter improved to 59 % in 2006 compared
to 56 % in 2005. For the nine-month period ended May 31, 2006, the gross
margin reach 61 % compared to 52 % for the previous year.

The net earnings and basic earnings per share for the second quarter
ended May 31, 2006 were $268,561 and $0.02. In 2005, those numbers amounted to
$309,812 and $0.02.

For the nine-month period ended May 31, 2006 net earnings and basic
earnings per share were $723,774 and $0.05 compared to $752,051 and $0.05 for
2005.

EBITDA for the third quarter of 2006 totaled $0.501 million, compared to
$0.576 million for 2005.

For the nine-month period ended May 31, 2006, EBITDA amounted to
$1.542 million compared to $1.454 million in 2005, an increase of 6 %.


Detailed financial results can be accessed on the OPMEDIC GROUP web site
at www.opmedicgroup.com.


About OPMEDIC GROUP


OPMEDIC GROUP is a company incorporated under the laws of the Province of
Quebec which provides healthcare-related services including surgical
facilities and services to patients and surgeons (with its OPMEDIC division),
fertility treatments, medical imaging, laboratory services and diagnostic
procedures (with its PROCREA Cliniques division) and sperm banking services
(with its PROCREA Cryopreservation Centre subsidiary). OPMEDIC GROUP's Common
Shares trade on the Toronto Stock Exchange under the symbol "OMG".


This news release does not constitute an offer to sell or to solicitation
of an offer to buy any security and shall not constitute an offer,
solicitation or sale in any jurisdiction in which such offerting would be
unlawful. This news release contains certain forward-looking statements that
reflect the current views and/or expectations of OPMEDIC GROUP with respect to
its performance, business and future events. Such statements are subject to a
number of risks, uncertainties and assumptions. Actual results and events may
vary significantly.

The Content of this press release has not been approved by nor submitted
to the TSX which assumes no liability therefore.

Contact Information