Sentex Systems Ltd.

Sentex Systems Ltd.

May 20, 2005 13:10 ET

Sentex Announces First Quarter Results

WINCHESTER, ONTARIO--(CCNMatthews - May 20, 2005) - Sentex Systems Ltd. (TSX VENTURE:SXS) ("Sentex") reports that the revenue for the three months ended on March 31, 2005 was $697,929 ($1,288,481 for the same quarter in 2004), resulting in a net loss of -$178,840 or -$0.01 per share ($23,738 or $0.00 per share for the same quarter in 2004).

Revenue declined 45.8% for the three months ended March 31, 2005 versus the comparative period for 2004. This is mainly due to disruptions related to the restructuring and relocation of NutriBios Corp. manufacturing facility to Winchester during this period.

Cost of sales has increased from 58% for the three months ended March 31, 2004 to 65% in the current three months and, as a result, gross margins have declined. The decline is mainly due to a few sales during this period with very low margins and the write off of certain old inventories. The management is currently carrying out a profit probability review of all products.

General expenses were 73.5% of revenue for the three months ended March 31, 2005 versus 38.8% for the three months ended March 31, 2004. The increase is mainly due to the low sales and the costs associated with the restructuring and relocation of NutriBios Corp. manufacturing operation from Oshawa to Winchester.

During this quarter, the Company's contract with the Oshawa provider of office space, management, administrative, research services and certain manufacturing services was terminated under a 90 days notice. The termination fee was included in this period and this expense will not be recurring in subsequent quarters. The construction of the Company's Winchester plant is on schedule to be completed in the second quarter and will provide more production space for the Company to bring the production and sales of subsequent quarters back to the normal levels.

About the Company:

Sentex Systems Ltd. and its manufacturing plant are located in Winchester, Ontario. It is the parent company of NutriBios Corp., which has a division called Natunola Health, which was acquired in 2002. Effective January 21, 2005 the two divisions combined operations at Winchester, Ontario and continued business as one entity.

NutriBios Corp. is a leading provider of natural and environmentally friendly products to replace antibiotics type growth promoters. The innovative, trial proven, bioactive natural product lines are made from GRAS grade natural additives. These products are marketed around the world.

Natunola Health is a manufacturer and researcher in the field of flax seed derived omega -3 fatty acids, specialty natural products, bio-nutrients and functional supplements for human and animal care markets. The Company also produces canola oil gels and other natural ingredients, for the cosmetic and personal care industry.

Please direct all your inquires to our new telephone, new fax and new
address below.

661, St Lawrence Street,
Winchester, Ontario
K0C 2K0
Tel (613) 774-0008
Fax (613) 774-2226

Some of the statements contained in the release are forward-looking statements, such as estimates and statements that describe the Company's future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements.

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

Contact Information

  • Sentex Systems Ltd.
    Dr. Nam Fong Han
    Chairman & CEO
    (613) 774-0008
    (613) 774-2226 (FAX)