Dectron Internationale reports higher Revenues and Gross Margins as the Company consolidates its manufacturing operations

Dectron Internationale reports higher Revenues and Gross Margins as the Company consolidates its manufacturing operations SYMBOL: NASDAQ: DECT Shares Outstanding: 2,973,750 MONTREAL, May 11 /PRNewswire-FirstCall/ -- Dectron Internationale announced today the release of the results for the fiscal year ending January 31st, 2004. The Company reported consolidated revenues of $39,654,922 in 2004 versus $34,424,891 in 2003 and $29,115,406 for 2002. Consolidated revenues increased by 15.2% for the 2004 fiscal exercise due primarily to a stronger presence in the Canadian market for commercial HVAC (Heating Ventilation and Air Conditioning) products and related services. This increase was partially offset by unfavorable foreign currency translations arising from the appreciation of the Canadian versus the US Dollar. Gross Margins increased from $12,392,533 in 2003 to $14,370,980 in 2004. Net Earnings before discontinuing operations decreased by $259,229 from $2,102,247 in 2003 to $1,843,018 in 2004, a decrease of 1.5 percentage points as compared to sales. The decrease is primarily the result of non-recurring restructuring charges, the consolidation of some of the Company's manufacturing operations and unfavorable foreign currency translations. The Company also reported losses from Discontinued Operations of $3,630,854 for 2004 as compared to $1,556,721 for Fiscal 2003. The increase was attributed primarily to the divestment of IPAC 2000 operations, which the Company classified as non-core to its business portfolio. Ness Lakdawala, President and CEO stated, "We are very pleased with the results of our consolidation and restructuring plans." He further noted, "We are confident that our current initiatives will result in stronger alignment within our core business units, while contributing to our long-term goal of enhancing operational efficiencies." Looking forward to 2005, Mr. Lakdawala stated, "In addition to core business activities, we will continue to invest in the development and commercialization of new technologies, such as the Moisture Recovery Systems(R), our proprietary water-generation-from-air systems, primarily used for on-line turbine cleaning applications in offshore oil drilling operations." Dectron Internationale is a global provider of Custom and Semi-Custom IAQ (Indoor Air Quality) and HVAC (Heating Ventilation & Air Conditioning) products and services to the Building Systems, Food Processing, Medical, Petrochemical, and various industrial and commercial markets. Dectron Internationale's core businesses are conducted by its five principal subsidiaries: Dectron Inc., RefPlus Inc., Circul-Aire Inc., Thermoplus Air Inc. and International Water Makers Inc. Dectron, Circul-Aire and Thermoplus Air serve customers in commercial and residential buildings, through a network of manufacturers' representatives and dealers. Industrial facilities and OEM clients also form the customer base of these business units. RefPlus manufactures and supplies commercial refrigeration through a network of wholesalers and dealers in Canada and USA. International Water Makers' proprietary water-generation-from-air system manufactures products for industrial processes, and military and commercial applications. DATASOURCE: DECTRON INTERNATIONALE INC. CONTACT: Product: Brian Monk, V.P Marketing and Sales, Dectron Internationale Inc., 1-888-DECTRON, , http://www.dectron.com/; Investors: Renmark Financial Communications, Michael Small: , Tina Cameron: , (514) 939-3989, http://www.renmarkfinancial.com/