Algo Group announces first quarter results



    MONTREAL, June 15 /CNW Telbec/ - Algo Group Inc. (TSX: AO) today
announced results for its first quarter ended March 31, 2007.
    Sales from continuing operations for the three months amounted to       
$6.2 million compared with $7.9 million in 2006, a decrease of $1.7 million.
The decrease relates primarily to the ladies fashion and the sportswear
divisions. The sales results from home furnishings remain consistent with last
year.
    The net loss during the first quarter of 2007 was $1.1 million ($0.01 per
share) which amount approximated the loss in the same quarter during 2006. The
current net loss from continuing operations, however, was higher than last
year at $1.2 million ($0.01 per share) versus $0.6 million ($0.01 per share)
in 2006. The loss from discontinued operations was lower than in 2006 when the
loss was $570,000 on sales of $4.7 million compared to a small profit of
$49,000 on nominal sales in 2007.

    
    SELECTED ANNUAL AND QUARTERLY CONSOLIDATED FINANCIAL INFORMATION
    (in thousands of dollars except per share amounts)

    -------------------------------------------------------------------------
                                                      For the 3 months ended
                                                               March 31
    -------------------------------------------------------------------------
                                                          2007          2006
    -------------------------------------------------------------------------
    Sales                                         $      6,155  $      7,918
    -------------------------------------------------------------------------
    Loss from continuing operations                     (1,173)         (605)
    -------------------------------------------------------------------------
    Loss from discontinued operations                       49          (570)
    -------------------------------------------------------------------------
    Net loss                                            (1,124)       (1,176)
    -------------------------------------------------------------------------
    Net loss per share basic and diluted
     from continuing operations                   $      (0.01) $      (0.01)
    -------------------------------------------------------------------------
    Net loss per share basic and diluted          $      (0.01) $      (0.01)
    -------------------------------------------------------------------------
    Weighted average number of shares
     outstanding                                   170,258,995   155,258,995
    -------------------------------------------------------------------------

    Cost of sales and expenses decreased to $6.3 million in 2007, compared to
$8.3 million in 2006. This is mainly the result of lower sales, and a
reduction in overhead.

    Sector Review

    Algo designs and imports a wide selection of ladies' fashion apparel, as
well as men's, boy's and children's sportswear which it markets principally to
retail outlets in Canada and the United States. The Company also designs and
imports home furnishings which are distributed to retail stores in Canada and
the United States.
    The Company previously designed and imported fashion fabrics which it
marketed to apparel manufacturers and retailers in Canada and the United
States. During the 2006 fiscal year, the Company discontinued its fashion
fabrics business unit.
    The Company diversifies its sales by participating in various segments of
the apparel and home furnishings industry. This diversification is intended to
protect Algo from being excessively dependent, from year to year, upon any one
of its business units for contribution to the Company's total earnings.
    As at March 31, 2007, the Company had three reporting business units:

    - Ladies Fashion Apparel sales decreased from $2.5 million in 2006 to
      $1.7 million in 2007.

    - Sportswear sales were lower than the prior year at $4.0 million as
      compared with $5.0 million in 2006. Notwithstanding the decrease in
      sales, the Sportswear division continued to contribute to the overall
      performance of the Company.

    - Home Products contributed $462,000 of sales during the first quarter in
      2007, up from $452,000 of sales last year.
    

    We refer to our Press Release dated June 8, 2007 for further information
concerning the Company's recent agreement with its primary lender.

    ALGO GROUP PROFILE

    Algo Group Inc is a Canadian importer of ladies' fashion apparel, as well
as men's, boy's and children's sportswear that is marketed throughout North
America. The Company also imports home furnishings products that it markets to
retailers in North America, and holds licenses to sell various brand products
including Levi's Home in Canada and the United States.

    Except for historical information provided herein, this press release may
contain information and statements of a forward-looking nature concerning the
future performance of the Company. These statements are based on suppositions
and uncertainties as well as on management's best possible evaluation of
future events. Such factors may include, without excluding other
considerations, fluctuations in quarterly results, evolution in customer
demand for the Company's products and services, the impact of price pressures
exerted by competitors, and general market trends or economic changes. As a
result, readers are advised that actual results may differ from expected
results.




For further information:

For further information: Ken Labelle, C.A., Algo Group Inc., Chief
Financial Officer, (514) 908-7804; Investor Relations: Rick Leckner, Maison
Brison, (514) 731-0000

Organization Profile

ALGO GROUP INC.

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MaisonBrison Communications

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