November 29, 2006 15:17 ET

Raymor Announces 3rd Quarter Results

MONTREAL, QUEBEC--(CCNMatthews - Nov. 29, 2006) - Raymor Industries Inc. (TSX VENTURE:RAR), a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advanced materials, today released its financial statements, along the company's Management Discussion and Analysis (MD&A) for the third quarter of 2006. Raymor, listed as a top 100 NANOTECH public company, posted revenues of $632,166, its largest quarterly revenue to date, an increase of 25% over the previous quarter. This revenue is based solely on sales from metallic powders and thermal spray coating operations. For specifically these two divisions, with the imminent completion of many qualifications, powder and coating sales should continue to increase over the following 12 months. Coupled with single-walled carbon nanotubes (C-SWNT) supply contracts, to be signed shortly after qualification with major aerospace, defense and high tech companies, Raymor is poised to capture considerable revenue.

Highlights from the 3rd Quarter 2006 financial statements and MD&A include the following:

- The Company's third quarter performance shows an increase in sales from repeated orders from its current client base in both the thermal spray coatings and metallic powders divisions. The Company has added four (4) new international clients for its powders division including Johnson Matthey Plc (UK), Stealth Medical Technologies (USA), Korea Institute of Industrial Technology, and the University of Twente (Netherlands).

- In November, the Company announced new additional orders totalling $600,000 from a major US orthopedic implant company, which has received approval from the US Food and Drug Administration (FDA) for its process using the Company's titanium powders. Information from the client indicates that monthly orders valid until the end of March 2007 will be renewed and substantially increased by at least 100% of its current level for the rest of 2007.

- The company made the decision to install a second plasma atomization unit to produce spherical metallic powders in order to meet expanding demands from its client base in the biomedical, aerospace and defense sectors.

- For its coating division, the Company recently announced a major expansion of its thermal spray coating production capacity to address growing market demand in aerospace and power generation. More specifically, the Company will add two new workstations, one for Atmospheric Plasma Spraying (APS) and one for High Velocity Oxy Fuel spraying (HVOF) to its existing APS/HVOF booth, for a total of three APS/HVOF workstations. New infrastructure will also be put in place for a fourth APS/HVOF workstation. In addition, as the only commercial provider of Vacuum Plasma Spray (VPS) coating services in Canada, the Company will install a second VPS production unit. This new unit will be specifically dedicated for the coating of orthopedic implants and other biomedical components. All of these workstations will be installed by the end of this year.

- Moreover, the Company is currently processing several accreditations of new clients in its powders and coatings division for applications in the biomedical and aerospace sectors.

- Following the start-up of its high capacity single-walled carbon nanotubes (C-SWNT) production unit, which targets a capacity of 10,000 grams per day per unit, the Company is currently fine tuning its unit to reach an optimal balance between quality, purity and capacity. In its third quarter, the Company has received an initial order for the supply of C-SWNT from a major US firm which is one of the 30 companies that form part of the Dow Jones Industrial Average. This initial order is very important for the Company since it will be used for the purpose of qualifying Raymor as a supplier of C-SWNT for applications such as composite components for aircraft. Upon qualification, the Company expects to be in a position to conclude long-term agreements for the sale of its C-SWNT with targeted clients. The Company still foresees installing additional C-SWNT production units to meet market demand it has identified.

- For its third quarter of 2006, the Company booked revenues of $632,166, as compared to $375,085 for the same quarterly period in 2005, an increase of 68.5%. The cost of sales was $382,457 for this quarter of 2006, as compared to zero for the same period in 2005. It is important to mention that in 2005, the Company was capitalizing all its expenses related to accreditation and development of both powders and coatings divisions, where the production costs were presented at zero. Since the beginning of 2006, these types of expenses are no longer capitalized, thus presenting the Company's financial statements in accordance with standards of other stock exchanges where the Company anticipates an eventual listing.

- In this quarter, the Company made the decision to move to a new facility in order to reduce costs and to facilitate the expansion of all nanomaterials and advanced materials production lines. Investments were made by the Company for its move and acquisition of new manufacturing equipment for its coating and powder division in order to satisfy its actual growing demand for the first and second quarter of 2007. Expenses increased from $316,242 in 2005 to $833,577 in 2006. This increase is also due in part to the new location set-up prior to moving as well as additional spending in technical personnel, marketing expenses related to market development and in legal fees in closing several transactions.

- The Company closed this three-month period which ended September 30, 2006 with a loss of $583,868, as compared to a profit of $58,843 over the same period in 2005. The 2006 results represent a loss per share of ($0.007), as compared to a profit of $0.001 per share in 2005. Again, losses accounted for in 2006 versus the profit from the same period in 2005 are due to the fact that the Company is no longer capitalizing its expenses related to its powders and coatings divisions.

- With respect to the balance sheet as of September 30, 2006, the Company had a cash position of $3,507,148 as compared to $863,026 on September 30, 2005, and $863,026 on December 31, 2005. Short-term assets as of September 30, 2006 decreased to $9,197,755 as compared to $13,222,233 as of June 30, 2006, and $2,575,279 as of December 31, 2005. The Company strategically decided to invest $3,200,000 of its funds in secured investment generating interest over the next following quarters, the purchase of 50% share of the joint venture of PyroGenesis and additional manufacturing equipment for an amount of $2.8 million.

- The Company would like to highlight that its participation at several conferences as speakers and/or exhibitors has allowed the Company to meet and discuss with leaders in the targeted aeronautical, aerospace, and defense sectors, as well as to get the Company better known in the US market. The Company attended the NanoTX 2006 conference in Dallas, the International Congress of Nanotechnology 2006 by IANANO in San Francisco and the National Nano Engineering Conference (NASA Tech Briefs) in Boston. We will be presenting the Company's products and services in other high calibre conferences and trade shows related to Nanotechnology business development.

- The Company has acquired the remaining 50% share of the AP&C joint venture, which was announced in 2004. The joint venture agreement included a clause whereby the Company could buy out the partner's participation in the agreement. As a result of this new acquisition, the Company takes full title of all the processing equipment, maintains all its exclusive intellectual property rights, and recuperates the shared profits previously in place under the joint venture agreement. This acquisition, which occurred more than two years ahead of the schedule laid out in the joint venture agreement, was concluded at conditions much more favorable to the Company than were outlined in the original agreement.

- In order to reduce costs and to facilitate the expansion of all nanomaterials and advanced materials production lines, the Company is moving its main office and all of its manufacturing activities by the end of December 2006 to a 77,000 sq. ft. facility located in Boisbriand, Quebec, a suburb of Montreal. This new facility will cost 30% less to operate on a square-footage basis as compared to the Company's current location, and will be more strategically located to service existing and projected clients. The Company will minimize the impact of the move on daily operations by preparing the facility with its new production equipment while continuing to operate in Montreal.

Commenting on the news, Stephane Robert, President and CEO of Raymor Industries, had the following to say:

"Raymor experienced its second consecutive record quarter with respect to sales. With our strategic decision to move to a new facility more adaptable for expansion, coupled with our previously announced capital expenditures also related to expansion, as well as the completion of the qualification efforts in our powders, coatings and primarily in our nanotechnology division, Raymor has lined up all the elements for success in 2007 and beyond."

The complete financial statements and MD&A for the third quarter of 2006 are available at www.sedar.com and www.raymor.com.

About Raymor Industries

RAYMOR INDUSTRIES INC. (TSX-V:RAR) has as its mission to become a leading developer of high technology for the production of single-walled carbon nanotubes, nanomaterials and other advanced materials for high value-added applications. In November 2004, Raymor Industries created a wholly-owned, industrial subsidiary, AP&C Advanced Powders and Coatings, specializing in nanotechnology and advanced materials, and comprising four operational divisions: (1) nanotechnology products, including nano-powders, nano-coatings, and single-walled carbon nanotubes (C-SWNT) for "the applications of tomorrow"; (2) thermal spray coatings, which largely targets military, aeronautical, aerospace, specialized industrial, and mining applications; (3) spherical metallic powders, primarily used for biomedical and aerospace applications; and (4) net-shape forming, a component manufacturing technique used for ballistic protection and other aerospace and military applications. Raymor holds the exclusive rights to more than 20 patents throughout the world, with other patents pending.

Stephane Robert, President.




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