Royal Laser Corp.
TSX : RLC

Royal Laser Corp.

August 15, 2006 13:33 ET

Royal Laser Corp. Releases Q1 June 30, 2006 Results

TORONTO, ONTARIO--(CCNMatthews - Aug. 15, 2006) - Royal Laser Corp. ("Royal Laser" or the "Corporation")(TSX:RLC) announced today the release of its consolidated financial results for the three months ended June 30, 2006.

HIGHLIGHTS:

- Increased revenues of $57.4 million compared to $8.3 million in 2005 representing the acquisition of and inclusion of the results of Venture Steel Inc. for the two months ended June 30, 2006.

- Gross margin of $6.1 million compared to $1.9 million in 2005

- Cash flow from operations before working capital changes of $2.1 million compared to $1.0 million in 2005

- EBITDA, before stock based compensation, of $2.4 million compared to $1.0 million in 2005

- Net loss of $2.0 million, compared to net income of $0.7 million in 2005

- Total assets increased to $169.8 million, compared to $49.8 million in 2005

- Increase in shareholder's equity to $79.4 million from $17.2 million in 2005

- Earnings per share of ($0.03) for the quarter ended June 30, 2006 compared to $0.01 for the previous year. Earnings per share, after adjusting for stock based compensation were $0.02 during this quarter.

Commenting on the quarterly results, Bill Iannaci, CEO stated: "This past quarter has been one of transition, as we have begun to integrate the operations of Venture Steel and begin to execute our business plan. We remain excited about the strong fundamentals of the Royal Laser platform, as well as the additional growth prospects that Venture Steel has provided us, and we look forward to continuing and improved profitability over the coming quarters and next year."

The complete reports of the Corporation's consolidated financial statements and related notes for the three months ended June 30, 2006 together with Management's Discussion and Analysis of financial conditions have been filed on SEDAR and are available at www.sedar.com.

Royal Laser Corp., through its wholly owned operating subsidiaries, manufactures custom wood and metal products targeted at the retail in-store development industry, as well as being a custom flat rolled steel service centre targeted at the automotive and the OEM industrial products, construction industries and retail in-store development industry, in Canada, the United States and increasingly, overseas. Further information can be found at www.royallaser.com as well as www.sedar.com.

Forward-Looking Statements

Certain statements contained in this press release include statements which contain words such as "anticipate", "could", "should", "expect", "seek", "may", "intend", "likely", "will", "believe" and similar expressions, statements relating to matters that are not historical facts, and such statements of our beliefs, intentions and expectations about development, results and events which will or may occur in the future, constitute "forward-looking information" within the meaning of applicable Canadian securities legislation and are based on certain assumptions and analysis made by us derived from our experience and perceptions. All such forward-looking information is based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances. The risks, uncertainties, and assumptions are difficult to predict and may affect operations, and other factors, many of which are beyond our control, and are as discussed under the heading "Trends, Risks and Uncertainties" and in the Annual Information Form of Royal Laser to be dated on or around June 29, 2006 and to be filed on SEDAR at www.sedar.com, as well as Royal Laser's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results, performance or achievements could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits will be derived therefrom. Except as required by law, Royal Laser Corp. disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. The forward-looking information contained herein is expressly qualified by this cautionary statement.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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