Amisco Announces Fiscal 2007 Financial Results

L’Islet, Quebec, February 6, 2008 – Amisco Industries Ltd. recorded net sales of $29.6 million during the fiscal year ended November 30, 2007, down 16.1% from the previous year. The Company achieved net earnings of $522,692 or $0.1293 per share for fiscal 2007, compared with $19,214 or $0.0047 per share for fiscal 2006. This growth is due to the change in the fair value of financial assets held for trading (forward exchange contracts) recognized in 2007.

In Canada, sales went from $12.3 million in 2006 to $11.3 million in 2007, a decrease of 8.1%. U.S. sales fell from $23.0 million in 2006 to $18.3 million in 2007, a decline of 20.4%. The latter were affected primarily by: conditions in the residential real estate sector in the United States resulting from the increase in interest rates and numerous bank repossessions, thereby reducing the purchasing power of property owners and furniture spending; the competition from Asian furniture manufacturers; and the increase in the value of the Canadian dollar in relation to the U.S. dollar. In fact, U.S. sales were recognized at an average conversion rate of 1.1848 in 2007, versus 1.2470 in 2006. In U.S. dollars, sales declined by 16.2% in the United States.

Despite the decline in net sales, gross profit fluctuated very little, standing at $6.7 million in 2007, versus $7.3 million for the previous year. The gross profit margin therefore improved from 20.6% in 2006 to 22.7% in 2007. The improvement in the gross profit margin is due primarily to the reduction in manufacturing costs.

The Company recorded net investment income of $775,314 in 2007 ($20,629 in 2006). Of this amount, $698,822 is attributable to the change in the fair value of financial assets held for trading (forward exchange contracts). This change is due to the appreciation in the value of the Canadian dollar in relation to the U.S. dollar in 2007.

Earnings before income taxes totalled $745,692 in 2007, up from just $28,214 in 2006. Net earnings therefore amounted to $522,692 or $0.1293 per share, compared with $19,214 or $0.0047 per share last year. The weighted average number of shares outstanding stood at 4,040,916 in 2007, versus 4,073,860 in 2006.