Raydan Manufacturing Reports 2008 Q2 Financial Results



    EDMONTON, Dec. 27 /CNW/ - Raydan Manufacturing Inc. (the "Company")
(TSX-V: RDN) reported financial results for the six month period ended October
31, 2007.
    Quarterly revenue was $4,494,113 with a loss of ($460,090) compared to
revenue of $6,501,883 and a net profit of $351,267 for the same period one
year ago. Revenue for the six month period was $9,997,030 with a loss of
($378,231) compared to revenue of $12,308,274 and a net profit of $453,539 for
the same period one year ago. The Company remains focused on controlling all
discretionary spending.

    
                      Three months ended Oct. 31    Six months ended Oct. 31
    Fiscal year               2008          2007          2008          2007

    Revenue            $ 4,494,113   $ 6,501,883   $ 9,997,030   $12,308,274
    Gross Profit       $   467,119   $ 1,662,676   $ 1,542,379   $ 2,953,980
    Earnings before
     tax               $  (460,090)  $   501,767   $  (378,231)  $   633,539
    Net Earnings       $  (460,090)  $   351,267   $  (378,231)  $   453,539
    EPS (basic)        $    (0.029)  $     0.022   $    (0.024)  $     0.028
    

    The vocational truck market dropped significantly in 2007 due to the
pre-buy of 2006 in response to the emission control measures to be introduced
in 2008. While Raydan is not overly dependent on the oil industry, the
downturn experienced by that sector in Alberta has had a ripple effect
throughout the entire economic spectrum. Most areas are now recovering and by
March, it is expected that the Alberta economy will rebound.
    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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