CVTech Group Inc. publishes its 2007 annual results and its 2007 fourth quarter results



    DRUMMONDVILLE, QC, March 28 /CNW Telbec/ - CVTech Group Inc. ("CVTech")
(TSX: CVT) announces net earnings of $6.0 M with an increase of its revenues
of 39% and an increase of its Earnings before Interest, Tax and Depreciation
and Amortization ("EBITDA") of 112% for the year ended December 31, 2007. All
amounts in this press release are in Canadian dollars.

    
    Financial Highlights of 2007

    Financial highlights of the year ended December 31, 2007 are the
following:

    - An increase of its Revenues of 39% compared to last year.

    - An increase of its Net Earnings of 534% compared to the year ended
      December 31, 2006.

    - An increase of EBITDA of 112% compared to last year.


    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 annual financial information

    Statement of Earnings
                                                      Year Ended December 31
    -------------------------------------------------------------------------
    (in thousands of dollars,
     except per share data)                         2007      2006      2005
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                       $         $         $

    Revenues                                     129,439    93,068    23,432

    Earnings (Loss) before income taxes            9,575     2,120    (1,271)
    -------------------------------------------------------------------------

    Net Earnings (Net Loss)                        5,963       941    (1,116)

    Income Tax Expense (Recovery)                  3,612     1,179      (155)

    Financial Expenses                             2,040     1,449       563

    Depreciation and Amortization                  4,765     4,166     1,328
    -------------------------------------------------------------------------

    EBITDA                                        16,380     7,735       620

    Basic and diluted Net Earnings
     (Net Loss) per share                           0.11      0.02     (0.03)
    Basic weighted average number of shares
     outstanding (in thousands)                   52,500    49,833    36,774
    Diluted weighted average number of
     shares outstanding (in thousands)            54,421    52,004    36,774
    Shares outstanding as at December 31
     (in thousands)                               54,872    50,682    48,725
    -------------------------------------------------------------------------


    Balance Sheet Data
                                                           As at December 31
    -------------------------------------------------------------------------
    (in thousands of dollars)                       2007      2006      2005
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                       $         $         $

    Cash and cash equivalents                     10,887     2,291     1,686

    Total assets                                  76,310    72,049    50,245

    Bank loans                                         -     7,122     2,788

    Convertible Debentures (including
     current portion)                              3,472     2,599         -

    Long-term liabilities (including
     current portion)                             22,287    20,699    15,536

    Shareholders' Equity                          31,894    23,081    20,708
    -------------------------------------------------------------------------


    Fourth quarter of 2007

    For the fourth quarter ended December 31, 2007 CVTech has realized:

    - Net earnings of $1.2 M as opposed to $473,000 for the corresponding
      quarter in 2006;

    - Revenues of $31.1 M compared to $32.3 M for the same quarter in 2006.

    

    Revenues from the CVT systems and related products segments have
decreased of $536,000 and Revenues from the electricity segment have also
decreased of $620,000 for the fourth quarter of 2007 compared to the same
quarter in 2006.
    The CVT systems and related products segments present a net loss of
$372,000 for the fourth quarter of 2007 compared to a net loss of $2,300 for
the same quarter in 2006. The electricity segment generated Net Earnings of
$1.5 M for the fourth quarter of 2007 compared to Net Earnings of $475,000 for
the same quarter in 2006.

    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. Thiro has two
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. specializes in the
rebuilding of crankshafts and reconditioning of cylinders, and the
distribution of engine parts.
    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 comprising
170 employees in the CVT systems and related products segments and
445 employees in 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.




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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