CVTech Group Inc. announces net earnings of 1.6 M$ for the 2nd quarter of 2007



    DRUMMONDVILLE, QC, Aug. 10 /CNW Telbec/ - CVTech Group Inc. ("CVTech")
(TSX: CVT), is pleased to announce that it has closed the first half-year of
2007 with an increase in its revenues and net income, and a healthy cash
position at the end of the second quarter of 2007.
    CVTech Group 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. It has two indirect subsidiaries: Thiro USA Inc. and J.J.L. Déboisement
inc. Thiro USA Inc., like Thiro Ltd., provides services for the construction
and maintenance of electrical transmission and distribution lines. J.J.L.
Déboisement inc. specializes in vegetation control on rights-of-way for
transmission and distribution lines. The subsidiary CVTech-AAB inc. ("AAB")
specializes in the remanufacturing of crankshafts, cylinders and industrial
engines.

    
    Financial highlights for the quarter ended June 30, 2007

    - Revenues of $34.0M, an Increase of 58% compared to the quarter ended
      June 30, 2006;

    - Net earnings of $1.6M as opposed to a net loss of $47,000 for the
      corresponding quarter in 2006;

    - EBITDA of $4.2M, an increase of 257% over the corresponding quarter in
      2006.

    RESULTS OF OPERATIONS

    The following tables summarize certain financial data relating to the
company and should be read in conjunction with the financial statements and
associated notes on the SEDAR database.

    Selected quarterly financial information

    Statement of Earnings

                                  Three Months Ended       Six Months Ended
                                         June 30,               June 30,
    -------------------------------------------------------------------------
    (in thousands of dollars,
     except per share data)         2007        2006        2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                       $           $           $           $
    Revenues                      34,007      21,592      67,527      38,731

    Earnings (loss) before
     income taxes                  2,504          (2)      5,825         561

    Net earnings (net loss)        1,626         (47)      3,743         267

    Financial expenses               547         301       1,088         567

    Depreciation and amortization  1,195         892       2,323       1,733

    EBITDA                         4,246       1,190       9,236       2,862

    Basic and diluted net
     earnings per share             0.03           -        0.07        0.01

    Basic weighted average
     number of shares
     outstanding ('000)           50,862      49,414      50,796      49,411

    Diluted weighted average
     number of shares
     outstanding ('000)           52,504      49,414      52,246      51,845
    Shares outstanding as at
     June 30 ('000)               50,865      48,738      50,865      48,738
    -------------------------------------------------------------------------


    Balance Sheet Data
    -------------------------------------------------------------------------
     (in thousands of dollars)                              2007        2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                               $           $
    Cash and cash equivalents                              8,961       1,501

    Total assets                                          74,662      71,012

    Bank loans                                                 -       6,332

    Long-term liabilities                                 27,632      22,947

    Shareholders' Equity                                  25,743      23,081
    -------------------------------------------------------------------------
    

    OVERVIEW

    CVTech is a management company that has wholly-owned subsidiaries:
CVTech-IBC inc., CVTech R&D inc., CVTech-AAB inc. ("CVTech-AAB") and Thiro
ltée ("Thiro"). The company also has a 74% interest in the Indian company,
CVTech Castmaster India PVT Ltd. CVTech is the owner of the buildings and the
land where it exercises its activities.
    CVTech-IBC inc. manufactures continuously variable power transmission
systems ("CVT") serving major manufacturers of recreational and utility
vehicles as well as minicars. In addition, CVTech-IBC inc. operates a branch
in France in order to serve the aftermarket parts segment and to maintain a
proper customer service for the European market. CVTech R&D inc. is
responsible for the design of CVT Systems for the clients of CVTech-IBC inc.
Its main source of income is derived from royalties paid by CVTech-IBC inc. on
the sales of products developed by CVTech R&D inc.
    On October 17, 2006, CVTech Distribution inc. changed its corporate name
for CVTech-AAB inc., and on December 31, 2006, Atelier Adrien Bernard inc.
("AAB"), acquired in September 2006, was wound up into CVTech-AAB inc.
CVTech-AAB specializes in the rebuilding of industrial crankshafts, cylinders
and engines, the plating of cylinders and the sale of engine-related parts.
CVTech-AAB inc. is part of the CVT segment and is therefore presented in the
transmission systems and related products segment in the segment information
note to the company's interim consolidated financial statements.
    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.
    Thiro is a general contracting firm specializing in the construction and
maintenance of electrical power houses and substations as well as transmission
and distribution lines. Thiro has two wholly-owned subsidiaries: J.J.L.
Déboisement inc. and Thiro USA inc. J.J.L. Déboisement inc. specializes in the
vegetation control on rights-of-way for transmission and distribution lines.
Thiro USA inc. mainly carries out the above-listed Thiro activities, namely
the construction and maintenance of transmission and distribution lines.
    CVTech currently has a staff of approximately 665 employees of which
175 employees form the CVT systems and related products segments and 490
employees form 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 at: www.sedar.com and the Company Website at:
www.groupecvtech.com.
    %SEDAR: 00021045EF




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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