Pan Terra Industries Inc.
TSX VENTURE : PNT

Pan Terra Industries Inc.

August 29, 2005 16:30 ET

Pan Terra Industries Inc.: Fiscal Results for Period ended June 30, 2005

CALGARY, ALBERTA--(CCNMatthews - Aug. 29, 2005) - Pan Terra Industries Inc. (TSX VENTURE:PNT) announces it has reported its financial results for the three-month period ended June 30, 2005 (Q1 2006). Revenue has increased significantly compared to the previous quarter ended from $2,273,896 (Q4 2005) to $8,906,658 (Q1 2006), an increase of 292%. Year-over-year quarterly revenue increased 29% from $6,907,558 earned in Q1 2005.

The Company incurred a loss of $277,173 for this most recent quarter, compared to: a loss of $1,644,547 for the previous quarter and a gain of $37,199 year-over-year. This most recent quarter included a recognized loss on a project that has been performing below management's expectations since December 2004 and additional expenses related to major delays due to inclement weather in June 2005 which caused severe flooding in the southern Alberta region.

In addition to these financial highlights, Pan Terra also had a Work In Progress (WIP) figure of $864,455; this being projects costs in excess of billings for the quarter whose revenue will be accounted for in future periods. Uncompleted projects as at June 30, 2005 are estimated to be 58% completed with a total aggregate contract value of $20.6 million including pending change orders of $0.77 million.

Pan Terra continues to implement technology driven solutions designed to integrate: estimating, real-time project costing and team-based incentive compensation programs aimed at improving safety and profit performance. This management platform is being phased in currently on a selected project-by-project basis but will ultimately be employed company wide. The goal is to enable the company to improve its productivity and profit performance while building infrastructure to keep pace with the growth and opportunities being experienced by the Company.

In addition to increased project cost management, the Company continues to expand in trenchless technology markets, as announced in previous press releases such as the Town of Cochrane, Town of Okotoks and the Foothills Hospital. Pan Terra recognizes that these services provide less disruptive and more cost effective solutions than open cut excavation. As trenchless applications expand, Pan Terra will grow its trenchless business by providing diversified expert solutions including pipebursting, liner technologies, and horizontal directional drilling.

About Pan Terra

Pan Terra is an innovative construction solutions contractor that develops new sites and redevelops existing sites to the point where an owner, developer, or general contractor can proceed with building construction. The focus of the Company is site preparation and underground utility installations and rehabilitation. The Company offers packaged services in industrial, commercial, retail and residential markets. Pan Terra's major clients include leading General Contractors, Owners and Developers. The Company has extensive relationships with architects, engineers, and consultants. Pan Terra's growth plan includes: acquisition of successful companies, leveraging of environmental and trenchless technology solutions and total dedication to exceptional operational performance and achievement.

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

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