Consolidated Mercantile Incorporated reports first quarter financial results

Consolidated Mercantile Incorporated reports first quarter financial results Consolidated Mercantile Incorporated (TSX - "CMC" - common) (NASDAQ - "CSLMF" - common) TORONTO, May 14 /PRNewswire-FirstCall/ -- During the quarter, Consolidated Mercantile Incorporated ("CMI") completed the sale of approximately 48% of its holdings in Polyair Inter Pack Inc ("Polyair"). After giving effect to this sale, CMI owns 23% of the common shares of Polyair. Polyair's fiscal year end is October 31, and accordingly, the unaudited Consolidated Statement of Operations for the three months ended March 31, 2004 includes the results of Polyair for the four months ended February 2004. As CMI and Polyair no longer have a parent- subsidiary relationship, the investment in Polyair is now accounted for using the Equity Method. Revenues for the period ended March 31, 2004 increased 51% to approximately $76.7 million from $50.8 million in 2002. Net Earnings for the period, which includes the gain on sale of the investment in Polyair, increased to $5.5 million compared to $131,050 in the preceding year. Earnings per share for the quarter was $1.12 compared with $0.02 in the comparable 2003 period. The increase in sales was due to an increase in the sale of pool products and the inclusion of an additional month of Polyair's sales. Consolidated Mercantile Incorporated is a management holding company which provides merchant banking and effects its investment strategy through investment in and management of its core strategic industries including packaging, swimming pool products, furniture and finance. "Safe Harbor" statement under the Private Securities Reform Act of 1995: This release contains forward-looking statements which reflect management's current views of future events and operation. These forward-looking statements are based on assumption and external factors, including assumptions relating to product pricing, competitive market conditions, financial data and other risks or uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's judgement as of the date of this release and any changes in the assumptions or external factors could produce significantly different results. DATASOURCE: Consolidated Mercantile Incorporated CONTACT: Stan Abramowitz, Secretary, (416) 920-0500