Glentel Inc. 3rd quarter earnings increase by 125% to $0.42 per share



    TSX Stock Symbol: GLN

    BURNABY, BC, Oct. 25 /CNW/ - Glentel Inc. today reported its results for
the 3rd quarter ended September 30, 2007.
    Sales for the 3rd quarter grew 32%, to $61,336,000 compared to
$46,386,000 in the same period of 2006. Operating income before interest and
taxes increased to $7,038,000 for the 3rd quarter of 2007 compared to
$2,944,000 in 2006. Net income for the quarter increased 125% to $4,430,000,
$0.42 per share, compared to $1,972,000, $0.19 per share, for the same quarter
in 2006.
    Sales for the nine months ended September 30, 2007 increased 21%, to
$152,675,000 compared to $126,126,000 in the same period of 2006. Operating
income before interest and taxes increased to $9,290,000 compared to
$4,652,000 in 2006. Net income for the same period was $5,779,000, $0.56 per
share, compared to $3,078,000, $0.30 per share, for the first nine months of
2006.
    "I am extremely pleased to report such outstanding results for the 3rd
quarter," said Thomas Skidmore, Glentel's president and chief executive
officer. "We experienced strong retail activity throughout our three retail
banners and celebrated the 10th anniversary of WirelessWave. The Business
Division completed the integration of its 2006 acquisitions. We look forward
to and anticipate a strong performance in the 4th quarter as well, which
historically is the Company's strongest quarter of the year."
    Retail Division sales of retail cellular products and services grew 40%,
to $51,316,000 for the 3rd quarter compared to $36,772,000 in 2006. The
aggressive marketing and new enhanced phone plans for customers, first
introduced by the cellular networks in the 2nd quarter, had a positive effect
on sales in the 3rd quarter. As a result, same-store cellular phones and other
wireless devices sold in the Retail Division grew 22% in the 3rd quarter over
the corresponding period in 2006 for stores that were open throughout both
periods.
    As a result of the strong sales in the quarter, operating income before
interest and taxes for the division grew 106% to $8,535,000 compared to
$4,143,000 in the same period the previous year.
    Business Division sales of terrestrial radio systems, satellite network
services, advanced mobile solutions, and service/engineering support grew 4%,
to $10,020,000 for the 3rd quarter compared to $9,614,000 in 2006. While the
Division experienced a modest growth in sales, in the 3rd quarter it
successfully completed the integration of the acquisitions made in 2006 which
resulted in a 20% improvement in operating income in the 3rd quarter of 2007
compared to last year.
    During the 3rd quarter the Business Division experienced growth in sales
in certain product segments of its business. Broadband opportunities have been
one segment of growth which saw a number of successful implementations in the
quarter. Radio system sales were also strong in the 3rd quarter including the
delivery and installation of repeaters and controllers for the University of
Saskatchewan in Saskatoon. The Business Division is optimistic it will be able
to build on it's successes from the past quarter and will continue to see
increases in sales and earnings in the future.
    As a result, operating income before interest and taxes for the quarter
in the division was $668,000 compared to $555,000 in 2006.

    Financial highlights, in thousands of Canadian dollars (except per share
data), are as follows:

    
    -------------------------------------------------------------------------
                                    Three months ended    Nine months ended
                                      September 30th        September 30th
    -------------------------------------------------------------------------
                                     2007       2006       2007       2006
    -------------------------------------------------------------------------
    Sales                           $61,336    $46,386   $152,675   $126,126
    -------------------------------------------------------------------------
    Income, before interest,
     taxes and amortization           8,565      4,158     13,628      8,072
    -------------------------------------------------------------------------
    Operating income, before
     interest and taxes               7,038      2,944      9,290      4,652
    -------------------------------------------------------------------------
    Net income                       $4,430     $1,972     $5,779     $3,078
    -------------------------------------------------------------------------
    Income per share                  $0.42      $0.19      $0.56      $0.30
    -------------------------------------------------------------------------
    

    About Glentel:

    Glentel is an international wireless solutions provider operating
237 corporate locations in Canada through its Retail and Business Divisions,
under the trading names of Glentel Wireless, WirelessWave, Tbooth/La Cabine T,
and Wireless etc.

    Forward-Looking Statements:

    Statements in this release relating to matters that are not historical
fact are forward-looking statements based on current expectations, forecasts
and assumptions that involve risks and uncertainties that could cause actual
outcomes and results to differ materially. Factors that could cause or
contribute to such differences include, but are not limited to, general
economic conditions, changes in technology, reliance on third-party
manufacturing, managing rapid growth, limited intellectual property
protection, and other risks and uncertainties described in Glentel's public
filings with securities regulatory authorities.

    NO STOCK EXCHANGE, SECURITIES COMMISSION OR OTHER REGULATORY AUTHORITY
    HAS APPROVED OR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

    To request a copy of Glentel's annual report, go to www.newswire.ca,
Tools for Investors, and click on reports@cnw.





For further information:

For further information: Thomas E. Skidmore, President & CEO, Tel (604)
431-2302, tskidmore@glentel.com; or Dale B. Belsher, Chief Financial Officer &
Investor Relations, Tel (604) 415-6500

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