CVTech Group Inc. announces net earnings of 1.1 m$ for the 3rd quarter of 2007



    DRUMMONDVILLE, QC, Nov. 9 /CNW Telbec/ - CVTech Group Inc. ("CVTech")
(TSX: CVT), which has its head office in Drummondville, is pleased to announce
net earnings of $ 1.1 millions with an increase of its revenues of 37% and an
increase of its earnings before interest, tax and amortisation ("EBITDA") of
99% at the end of the third quarter of 2007.

    
    For the quarter ended September 30, 2007, CVTech has realized:

    - Net earnings of $1.1M as opposed to $201,000 for the corresponding
      quarter in 2006;

    - An increase of revenues of 37%, totalizing $30.2M; and

    - An increase of EBITDA of 99 % at $3.6M.

    RESULTS OF OPERATIONS

    The following tables summarize certain financial data relating to the
operating results of CVTech and should be read in conjunction with the
financial statements and associated notes available on the SEDAR database
(www.sedar.com).

    Selected quarterly financial information

    Statement of Earnings

                                                Three Months     Nine Months
                                                       Ended           Ended
                                                September 30,   September 30,
    -------------------------------------------------------------------------
    (in thousands of dollars,                   2007    2006    2007    2006
     except per share data)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                   $       $       $       $

    Revenues                                  30,230  22,050  98,056  60,781

    Earnings before income taxes               1,861     419   7,693     980

    Net earnings                               1,064     201   4,811     469

    Financial expenses                           560     336   1,648     904

    Depreciation and amortization              1,209   1,061   3,533   2,794

    EBITDA                                     3,630   1,816  12,874   4,678

    Basic and diluted net earnings
     per share                                  0,02       -    0,09    0,01

    Basic weighted average number of
     shares outstanding ('000)                53,535  49,838  51,709  49,554

    Diluted weighted average number of
     shares outstanding ('000)                55,610  52,063  53,528  51,840

    Shares outstanding as at Sept. 30 ('000)  54,872  50,666  54,872  50,666
    -------------------------------------------------------------------------


    Balance Sheet Data

                                        September 30        December 31
    -------------------------------------------------------------------------
    (in thousands of dollars)                   2007    2006    2005    2004
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                   $       $       $       $

    Cash and cash equivalents                 10,847   1,501   1,686     804

    Total assets                              77,414  71,012  50,245  19,424

    Bank loans                                     -   6,332   2,788       -

    Long-term liabilities                     26,101  22,947  15,571   6,613

    Shareholders' Equity                      30,796  23,081  20,708   6,196
    -------------------------------------------------------------------------
    

    OVERVIEW

    CVTech is a management corporation. Some of its subsidiaries design,
manufacture and sell continuously variable transmissions ("CVT"). Another
subsidiary, Thiro Ltd. ("Thiro"), provides services for the construction and
maintenance of electrical transmission and distribution lines. It has two
indirect subsidiaries: Thiro USA Inc. ("Thiro USA") and J.J.L. Déboisement
inc. ("J.J.L.") Thiro USA, like Thiro, provides services for the construction
and maintenance of electrical transmission and distribution lines. J.J.L.
specializes in vegetation control on rights-of-way for transmission and
distribution lines. The subsidiary CVTech-AAB inc. ("AAB") specializes in the
remanufacturing of crankshafts and cylinders.
    CVTech is the owner of the trademarks and CVTech R&D inc. holds the
intellectual property on products which are part of its technological
solutions.
    CVTech currently has a staff of approximately 615 employees of which
170 employees form the CVT systems and related products segments and
445 employees form the electricity segment.

    FORWARD-LOOKING STATEMENTS

    The present document may contain forward-looking statements that reflect
the current expectations of management with regard to future events. These
forward-looking statements depend on a certain number of factors and are
subject to risks and uncertainties. The actual results could differ from those
anticipated. Management undertakes no obligation to update or revise the said
forward-looking statements on receipt of new information or subsequent to
future events other than the ones required by law.

    For further information with regard to CVTech, the reader is invited to
consult the SEDAR database and the Corporation's Website at:
www.groupecvtech.com.
    %SEDAR: 00021045EF




For further information:

For further information: André Laramée, MBA, President and CEO, CVTech
Group Inc., (819) 477-3232; Mario Trahan, CMA, Chief Financial Officer, CVTech
Group Inc., (819) 477-3232

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