Sentex Systems Ltd.

Sentex Systems Ltd.

August 08, 2005 12:37 ET

Sentex Announces High Profit for Second Quarter Results

WINCHESTER, ONTARIO--(CCNMatthews - Aug. 8, 2005) - Sentex Systems Ltd. (TSX:SXS) ("Sentex") is pleased to report that the revenue for the three months ending on June 30 2005 was $1,190,183. The net profit before taxes for this quarter was $174,214 or $0.01 earning per share as compared to a loss for the same period in 2004 of $10,267 or $0.00 per share.

The Company achieved one of the largest pre-tax net profit quarters for the three months ended June 30, 2005 versus the comparative period for the past few years. This is mainly due to savings in operating costs as a result of consolidating all divisions in Winchester, Ontario.

Revenue declined 16.2% for the three months ended June 30, 2005 versus the comparative period for 2004. However, the profit margin increased and thus the large pre-tax net profit for this quarter.

Cost of sales has decreased from 52% for the three months ended June 30, 2004 to 47.3% in the current three months and, as a result, gross margins have increased. This positive result due to management successfully carrying out a profit probability review of all products.

General expenses were 38.1% of revenue for the three months ended June 30, 2005 versus 48.8% for the three months ended June 30, 2004. This is another positive indication that the relocation and restructuring of NutriBios' manufacturing operation from Oshawa to Winchester reduced general expenses.

The expansion at the Company Winchester plant is now completed and under budget. With the new expansion, the Company now has a total of 23,000 sq ft of manufacturing and working space.

In a recent Board meeting, Sentex re-appointed Dr. Nam Fong Han as the President and CEO and appointed Dr. Murray McLaughlin as the Chairman of the Board.

Dr. McLaughlin received his agricultural education at Nova Scotia Agricultural College, Macdonald College (McGill University) and Cornell University (M.Sc., Ph.D.). His career over the last thirty years has included several research and marketing positions: Green Giant (Ontario); ELANCO (Ontario; Saskatchewan); President of Ag-West Biotech in Saskatoon, where he helped establish a world leading ag-biotech center; Deputy Minister, Saskatchewan Agriculture and Food and President of Ontario Agri-Food Technologies (OAFT). He held the position of President and CEO of Foragen Technologies Management Inc., a venture capital company involved in agricultural technology and company creation. Today he manages his consulting business, McLaughlin Consultants.

Dr. McLaughlin is a member of several boards and advisory groups relating to agriculture biotechnology and commercialization. He also is an active participant of several associations. He received the Canadian Agri-Marketer of the Year Award for 1996, for his initiative in biotechnology and was the Alumni of the Year (1997) for Nova Scotia Agricultural College. He also received the National Merit Award from the Ottawa Life Science Council in 2000. Dr. McLaughlin will bring his contacts and create market opportunities for Sentex.

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.

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.

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