Raydan Manufacturing Reports 2008 Q1 Financial Results



    EDMONTON, Sept. 27 /CNW/ - Raydan Manufacturing Inc. (the "Company")
(TSX-V: RDN) reported financial results for the first quarter ended July 31,
2007.
    Revenue was $5,502,917 with a net profit of $57,359 compared to
$5,806,391 and a net profit of $102,272 for the same period one year ago.
Gross margin as a percentage of sales for the quarter was 19% compared to 22%
for the same quarter last year. This period, general and administrative
expenses were $1,013,259 compared to $1,180,042 from the same quarter last
year, a decrease of 14%. Raydan's financial position at July 31, 2007 remains
strong with a current ratio of 1.9 to 1 and the working capital position at
$2,412,563. As the company continues to grow, management remains focused on
controlling all discretionary spending to improve earnings for the fiscal year
2008.

    
    First quarter ended July 31                 2008                 2007

    Revenue                                $  5,502,917         $  5,806,391
    Gross Profit                           $  1,075,259         $  1,281,631
    Net Income                             $     57,359         $    102,272
    EPS (basic)                            $      0.004         $      0.006
    Shares outstanding (basic)               16,052,960           16,052,960
    

    Raydan remains positive about its operations however is concerned about
the slowdown in activity in the oil & gas sector in Western Canada. In
addition, it is difficult to predict the direction of the US economy going
into 2008. The Company continues to diversify its operations and is in the
process of consolidating its Ontario operations into a new facility in which a
chassis mod shop will be incorporated. This will expand sales into Eastern
Canada and the United States, improving productivity and profitability.
Refurbishment work for the Canadian military continues and management is
exploring new opportunities within the vast military sectors in Canada and the
United States. ArvinMeritor has commenced production of the Company's
proprietary suspension system in Monterey, Mexico and the Company expects to
see sales grow this fiscal year.

    About Raydan Manufacturing

    Raydan Manufacturing Inc. based in Edmonton, Alberta develops and
produces specialized suspension and coupling systems for trucks, trailers and
heavy equipment, as well as a chassis modifications center and a military
service facility. Established in 1992, 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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