SOURCE: Recab International, Inc.

June 13, 2006 16:36 ET

Recab International, Inc. Announces First Quarter Revenues in Excess of $4.7 Million

FT. LAUDERDALE, FL -- (MARKET WIRE) -- June 13, 2006 -- Recab International, Inc. (PINKSHEETS: RCAB) (the "Company") announced its unaudited operational results for the quarter ending March 31, 2006. The Company's Saudi Arabian subsidiary generated revenues of 17,782,499 Saudi Riyal (approximately $4,742,000 USD), with Operational Net Profit of 1,907,176 Saudi Riyal (approximately $508,000 USD). The unaudited income statement for the Company's Saudi Arabian subsidiary is as follows:

                               Saudi Riyal            USD
SALES                           17,782,499         4,742,000

LESS:

COSTS OF SALES                  13,222,310         3,525,949

GROSS MARGIN                     4,560,189         1,216,050

OTHER COSTS:                             -                 -

SALES & DISTRIB. COSTS             651,846           173,826

ADMINISTRATION COSTS             2,001,167           533,645

Operation Net Profit             1,907,176           508,580

Financial Charge                         -                 -

amortz. Inst. Interest              30,762             8,203

Profit on sales of assets          334,796            89,279

OTHER INCOME                       166,505            44,401

NET PROFIT (LOSS) Before Zakat   2,377,715           634,057

Zakat                                    -                 -

NET PROFIT (LOSS) after Zakat    2,377,715           634,057

The Company also released the Income Statement and Balance Sheet for the Saudi Arabian subsidiary for the year ended December 31, 2005. These statements are as follows, with all number in US Dollars:

ASSETS
------
                                                 2005
Current Assets
        Cash and Bank Balances                117,076
        Accounts Receivable                13,791,612
        Inventory                             798,540
        Prepayments and Other Assets        1,040,244
                                           ----------

        Total Current Assets               15,747,472

Due from Affiliates                         4,279,842
Deferred Charge                                 5,048
Investment in Affiliated Companies          1,530,011
Deferred Installment Interest               2,660,375
Property and Equipment, Net                 7,349,177
Pre-Operating Expenses, Net                 1,693,164
Goodwill, Net                                 462,128
                                           ----------

Total Assets                               33,727,217
                                           ==========


LIABILITIES AND PARTNERS' EQUITY

Current Liabilities
        Short term Notes payable           10,872,832
        Due to Bank                           289,719
        Accounts payable                    5,621,751
        Accrued expenses and other
         liabilities                        1,108,718
                                           ----------

        Total Current Liabilities          17,893,020

Long Term Notes Payable                    11,124,802
End of Service Benefits                       407,751
                                           ----------

Total Liabilities                          29,425,573

Partners' Equity
        Capital                            10,666,098
        Statutory Reserve                     147,095
        Partners' current account          (8,139,478)
        Retained earnings                   1,627,929
                                           ----------

Total Partners' Equity                      4,301,644
                                           ----------

                                           33,727,217
                                           ==========



                                               2005

Revenue                                    14,733,604

Costs of Revenue                          (11,115,545)
                                           ----------

Gross Income                                3,618,059

Selling and Marketing Expenses               (879,280)

General and Administrative Expenses        (2,529,603)

Finance Charges                               (67,005)

Other Income                                  272,511
                                           ----------

Net Income Before Zakat                       414,682

Zakat                                         (10,346)
                                           ----------

Net Income                                    404,336

The Audited Reports for the Company's Saudi Arabian subsidiary are posted and available at www.pinksheets.com.

ABOUT RECAB INTERNATIONAL, INC.

Recab International, Inc., f/k/a Reality Wireless Networks, Inc., a Nevada corporation, is the United States based parent corporation of Arabian Recab. The 25-year-old Saudi Arabian based company focuses primarily on the transportation, building materials supply and public works industries. Arabian Recab recently merged with Recab International, Inc., in order to expand and strengthen its investment opportunities within the United States.

This press release may contain "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of such terms and other comparable terminology. These forward-looking statements include, without limitation, statements about our market opportunity, our strategies, competition, expected activities and expenditures as we pursue our business plan, and the adequacy of our available cash resources. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Actual results may differ materially from the predictions discussed in these forward-looking statements. Changes in the circumstances upon which we base our predictions and/or forward-looking statements could materially affect our actual results. Additional factors that could materially affect these forward-looking statements and/or predictions include, among other things: (1) managing acquisitions and expansion of operations; (2) our ability to manage existing debt; (3) the risks inherent in the investigation, involvement and acquisition of a new business opportunity; (4) unforeseen costs and expenses; (5) potential litigation with our shareholders and/or former or current investors; (6) the Company's ability to comply with federal, state and local government regulations as well as the laws and treaties of other sovereign nations; (7) the risks associated with foreign currency; and (8) other factors over which we have little or no control.

Contact Information

  • Contact:
    Recab International, Inc.
    1314 E Las Olas Blvd #222
    Fort Lauderdale, FL 33301
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