SOURCE: Vencor International, Inc.

May 10, 2006 15:31 ET

Vencor International, Inc. Reports Fiscal 2005 Year End Financial Results

LOS ANGELES, CA -- (MARKET WIRE) -- May 10, 2006 -- Vencor International (OTC: VCOR) operating through its wholly owned subsidiary RobeWorks, is pleased to announce its fiscal year 2005 financial results.

--  2005 Revenues were $2,115,978;
--  1st Quarter 2006 Revenues Increased 18% year over year;
--  1st Quarter Gross Profit Rises, Expenses slashed.
For the three month period ended March 31, 2006, net sales increased 18% to $657,409 compared to $557,111 for the fiscal first quarter of the prior year. Gross Profit margins increased to 55.2% compared to 50.6% and Income from Operations increased to $93,116 compared to a loss of $48,245 for the first quarter of the prior year.

"We are very excited about our results for the first quarter and believe we have made significant strides in reducing our overhead and cutting our G&A expenses. Our downsizing allowed us to cut Operating Expenses by over 18% for the quarter, year over year, as well as improving Income from Operations by nearly 23%," stated David Harkham, CEO of Vencor International Inc.

Ben Armillo Vice President of Operations stated, "Turning an Operating Profit for the first quarter is very encouraging given the many changes we made in staffing. We now feel we have a strong and dedicated team in Sales and Marketing that can be properly supported by our revamped production staff." He added, "We have laid the foundation to handle the new business we are bidding and look forward to a strong second quarter and second half of the year."

Harkham added, "Fiscal year 2005 was a challenging year for Vencor and Robeworks with many adjustments required during the integration of the acquisition. We went through a difficult first year as we cleaned up several years of issues and finally settled a couple of legal matters which have now allowed us to position and focus the company for a strong future."

Revenues dropped by 49% for fiscal year 2005 to $2,115,978 as compared to $4,327,228 for the prior year with a loss from operations of $254,281 for the year.

Vencor is currently working to develop and integrate exciting new products for their customers that are designed to increase brand loyalty and further separate Robeworks as one of the leading providers of fine quality robes.

Safe Harbor Statement

The information contained in this press release, including any "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 contained herein, should be reviewed in conjunction with the company's annual report, financial filings and other publicly available information regarding the company, copies of which are available from the company upon request. Such publicly available information sets forth many risks and uncertainties related to the company's business and such statements, including risks and uncertainties related to that are unpredictable and outside of the influence and/or control of the company.

Contact Information