Raydan Manufacturing Reports 2008 Financial Results



    Fourth quarter profitability improves

    EDMONTON, Aug. 15 /CNW/ - Raydan Manufacturing Inc. (the "Company")
(TSX-V: RDN) reported financial results for the fiscal year ended April 30,
2008.
    Annual revenue was $19,632,614 with a loss of ($897,606) compared to
revenue of $23,146,784 and a net profit of $220,561 for the same period one
year ago. Revenue for fourth quarter was $5,026,000 with a loss of ($8,000)
vs. $5,277,000 and a loss of ($256,000) for the same period one year ago.

    
    Fiscal year ended April 30                           2008           2007

    Revenue                                      $ 19,632,614   $ 23,146,784
    Gross Profit                                 $  2,910,990   $  4,497,567
    Net Income                                   $   (897,606)  $    220,561
    EPS (basic)                                  $      (0.06)  $      0.014
    Shares outstanding (basic)                     16,052,960     16,052,960
    

    Consolidated revenues decreased 15% from the prior year. Raydan Alberta
revenue decreased 18% due to the industry reduction in new truck sales (Truck
News magazine reported sales of Class 8 Trucks were down by 29% for April 2008
YTD compared to April 2006 YTD) and the resulting effect on the Manufacturing
and Chassis modification divisions. Gross profit margins suffered from a
combination of fixed costs and lower revenue. Revenue for Raydan Ontario was
down 10% due to the down turn in the economy and the delay in obtaining a new
location for the Chassis Modification facility. A new location has been leased
effective October 1, 2008 in Baden, Ontario and will provide a greater
potential to gain market share within the Chassis Modification sector to
supplement their current truck body installation work.
    The Company continues to fulfill orders for the Canadian military and
work with ArvinMeritor under terms of a licensing agreement to manufacture and
fulfill orders for the Air Link suspension. In addition, the Company is
working on the introduction of several new products for the Air Link
suspension to expand the market for Raydan's products. New truck sales are
expected to be stronger for 2008/2009 as Truck Manufacturers introduce the
pre-buy of the 2009 units. Management is controlling all discretionary
spending towards an expected increase in business activity later this year.

    About Raydan Manufacturing

    Raydan operates in Alberta under Raydan Manufacturing Inc (hereafter
referred to as "Raydan Alberta") and in Ontario under Raydan Manufacturing
Ontario Inc. (hereafter referred to as "Raydan Ontario"). The Raydan Alberta
operation includes: the Manufacturing and Chassis modification division, Parts
and Service division and Military refurbishment division. The Raydan Ontario
operation includes: the Parts and Services division and the Chassis
Modification division. Raydan exports its innovative, high-quality products to
end-users and original equipment manufacturers (OEMs) in the heavy-duty truck,
crane, fire/rescue and other severe use sectors around the world.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    This news release contains forward-looking statements that involve risks
and uncertainties, which may cause actual results to differ materially from
the statements made. Potentially, many factors could cause our actual results
to vary materially from those described herein as intended, planned,
anticipated or expected. Raydan Manufacturing Inc. does not intend and does
not assume any obligation to update these forward-looking statements.

    %SEDAR: 00014612E




For further information:

For further information: Raydan Manufacturing Inc.: Joan Richardson,
Tel: (780) 955-2859, Toll Free: 1-888-472-9326, jrichardson@raydanmfg.com,
www.raydanmfg.com; Business Development: John Lewis, Linear Capital Corp.,
(416) 364-2266, jrlewis@linearcapital.com, www.linearcapital.com

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RAYDAN MANUFACTURING INC.

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