Sofame Technologies Inc.
TSX VENTURE : SDW

Sofame Technologies Inc.

June 06, 2005 14:26 ET

Sofame Continues to Build Revenue; Second Quarter Results

MONTREAL, QUEBEC--(CCNMatthews - June 6, 2005) - SOFAME TECHNOLOGIES INC. (the "Company") (TSX VENTURE:SDW) is please to announce its Second Quarter, ended March 31, 2005, results. Complete Financial Statements and the Management Discussion and Analysis can be found at SEDAR.com.

Revenue for the Quarter was $551,074 representing and increase of $325,547 over the same Quarter 2004. Revenue for the last 6 months ended March 31, 2005 was $999,052, a $322,547 increase over the comparable period 2004. Net income for the Quarter was $5,519 compared to a loss of ($23,876) for the corresponding Quarter 2004. The net loss for the 6 month period ended March 31, 2005 was ($4,398) compared with a net loss of ($37,774) for 6 months ended March 31, 2004. Gross margins were 35.9%.

"The decline in revenues since the end of the fiscal year 2003 has abated. As can be noted, the last two Quarter's revenues have increased substantially. Revenues for the Quarter presently discussed ($551,074.00) is largely superior to the average Quarterly revenues realized in 2004. ($279,840.00). The sales for the present Quarter are the best since the second Quarter 2003. As a matter of fact, the sales for the two first Quarters of 2005 represent more than 89% of the annual sales of last year ending September 30th 2004 and more than 55% of the annual sales of the year ending of September 30th 2003. On top of this, with our present order book for the third Quarter 2005, we anticipate to show a greater revenue than the revenue realized in 2004 and relatively similar to the fourth Quarter of 2004," stated Luc Mandeville, CEO of Sofame Technologies Inc. He added "Following the reorganization plan we implemented in February 2003, the revenues for the Quarter were sufficient to cover our fix costs. This strategy allowed the Corporation to obtain a net profit during this Quarter for the first time since the third Quarter of 2003. Also, the gross margin obtained for this Quarter 35.9% is largely superior to the gross margin for the fiscal year 2004, which was 18.9%."

About Sofame

Sofame Technologies Inc. designs, engineers and manufactures the most energy-efficient direct contact water heating and heat recovery systems available in the industry. Combining highly innovative direct-contact water heating and flue gases heat recovery, these patented technologies deliver up to 100% fuel efficiency and flue gas temperatures as low as 5oC above incoming water temperature. Its industrial, commercial and institutional markets cover space heating, domestic water heating, fresh air heating and process water heating. Sofame's technologies, recipient of numerous awards, offer an economical source of heat or hot water, as well as a major reduction of greenhouse gases emissions.

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