Petro Field Industries Inc.

Petro Field Industries Inc.

August 24, 2006 13:55 ET

Petro Field Earns $1,231,207 in First Nine Months of 2006

CALGARY, ALBERTA--(CCNMatthews - Aug. 24, 2006) - Petro Field Industries Inc. (TSX VENTURE:PF) ("Petro Field" or the "Company"), a manufacturer and supplier of engineered products, primarily for the energy industry in North America, continued its impressive financial performance in the third quarter of 2006. Earnings were $332,262 ($0.03 per share) on sales of $5,912,817 in the three months ended June 30, 2006. The comparable 2005 results were earnings of $251,966 ($0.02 per share) on sales of $5,201,550.

For the nine months, earnings were $1,231,207 ($0.11 per share) on sales of $21,166,559 versus earnings of $630,469 ($0.06) on sales of $17,561,439 in 2005. Earnings and sales both represent records for the nine month period. Indeed, 2006 earnings increased 95% over 2005 levels.

FINANCIAL HIGHLIGHTS (in 000's - except per share amounts)

3 months ended June 30 9 months ended June 30
2006 2005 2006 2005

Sales $5,913 $5,202 $21,167 $17,561

Gross Margin 23.96% 21.74% 22.18% 17.61%

Earnings $ 332 $ 252 $ 1,231 $ 630
Earnings per share $ 0.03 $ 0.02 $ 0.11 $ 0.06

EBITDA (a) $ 691 $ 432 $ 2,222 $ 1,076
EBITDA per share $ 0.05 $ 0.04 $ 0.20 $ 0.11

(a) EBITDA is defined as earnings before interest on LTD, income
taxes, depreciation and amortization. EBITDA is a non-GAAP

During the quarter the Company raised $6.5 million through the issuance of a combination of debentures and units on a private placement basis (see News Release dated May 25, 2006).

Subsequent to the end of the third quarter several notable events occurred:

- On July 26, 2006 the Company completed the acquisition of the business and assets of Tornado Technologies Inc. (see News Release dated July 26, 2006).

- The Company's principal bankers increased the operating lines available to the Company from $4 million to $10 million. This increase will accommodate the acquisition of the Tornado business as well as other growth initiatives.

- Effective August 1, 2006, Mr. Robert Rajewski joined the Board of Directors of Petro Field Industries Inc. Mr. Rajewski has many year of experience in the North American oil patch. He was the beneficial owner of Tornado Technologies Inc. and was responsible for the development of all that company's patented and proprietary products.

Petro Field Industries Inc. is a Calgary, Alberta - based fabricator of oil and gas processing equipment. With the recently concluded purchase of the Tornado assets the Company has become an industry recognized leader in the design and fabrication of combustion and emission control solutions for the North American industrial marketplace. The common shares of Petro Field trade on the TSX Venture Exchange under the trading symbol "PF".

The Company's Management Discussion & Analysis and related financial statements for the three and nine month periods ended June 30, 2006 will be available on and the Company's website,, in several days time.

This News Release contains forward-looking statements subject to various risk factors and uncertainties, which may cause the actual results, performances or achievements of Petro Field to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, fluctuations in the markets for oil and gas and related products and services, political and economic conditions, the demand for the products and services provided by Petro Field, industry competition and Petro Field's ability to attract and retain both customers and key personnel.

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

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