Montec Holdings Inc. announces 2007 second quarter results



    MONTREAL, Aug. 29 /CNW/ - Montec Holdings Inc. (TSX-V : MTE), a holding
company focused on acquiring and developing a diversified portfolio of
high-growth technology companies, today announced its operational and
financial results for the fiscal quarter ended on June 30, 2007.

    
    Second quarter highlights

      -  Acquired the telecom expense management services business of Contour
         Telecom Inc.
      -  Generated revenues of $ 2.3 M in first half of 2007.
    

    "In the second quarter we have once again showed our capacity to deliver
on promises and complete another acquisition that strengthens the Montec
Holdings portfolio", said Myer Bentob, President and Chief Executive Officer
of Montec Holdings Inc. "Our subsidiary company, Datex Billing Services, has
successfully integrated all the operating platforms of Contour Telecom Inc.
with remarkable speed. This accomplishment is testimony of Datex's scalability
and demonstrates the synergistic potential of Montec Holdings. As with the
acquisition of Angus Dortmans Associates Inc. subsequent to the quarter's end,
we will continue implementing our strategy of acquiring profitable companies
in certain segments of the high-tech sector. Montec's on-going support will
continue to enhance economies of scale and thus create additional value for
our shareholders".

    Financials

    Given the acquisition of Datex at the end of the previous quarter, and
the acquisition of Contour Telecom Inc. on June 1, 2007, the Company's
statement of operations for the quarter ended June 30, 2007 has been
consolidated to include Contour within Datex' operations. In the quarter ended
June 30, 2006, the Company was a "capital pool company" focused on identifying
and evaluating opportunities to acquire shares or businesses in order to
complete a "qualifying transaction" (as defined in Policy 2.4 of the TSX
Venture Exchange). Thus, comparison of results for this quarter and the
six-month period versus the quarter and six-month period ended June 30, 2006
will reveal no pertinent information.
    Total revenue for the second quarter ended June 30, 2007 was $ 1,230,990
and $ 2,349,731 for the six-month period.
    Earnings before interests, taxes, depreciation and amortization and net
of one time charges relating to the purchase of Contour Telecom Inc. were
positive and totalled $ 56,232. Net loss for the quarter ended June 30, 2007
was $ 192,314 after tax or $ 0.009 per basic and diluted share.
    The Company had cash and cash equivalents totaling $ 70,000 at June 30,
2007.
    Working capital decreased by $ 600,000 to a negative $ 585,000. The
decrease is mainly the result of the acquisition of Contour in June 2007
whereby the acquired business provides telecom management services including
consolidated billing thus a major impact on accounts receivables and payables.
    As of June 30, 2007, there were 14,454,500 common shares issued and
outstanding and 7,294,118 Series A preferred shares issued and outstanding. Of
these, an aggregate of 2,538,000 common shares were held in escrow pursuant to
the policies of the TSX Venture Exchange relating to capital pool companies.
    Additional information about the Company, including the management report
and financial results may be found on SEDAR at www.sedar.com.

    About Montec Holdings Inc.
    Montec Holdings Inc. is listed on the TSX Venture Exchange (TSX-V: MTE).
Montec's objective is to create shareholder value by building a profitable
technology entity with high-growth potential. Structured as a holding company,
it will acquire, in each case, at least 51% shareholdings of a number of
synergetic companies and it will develop a diversified portfolio of
high-growth technology companies. For more information about Montec Holdings,
please visit our website at www.montecholdings.com

    Forward Looking Statements
    This press release contains forward-looking statements which reflect the
Company's current expectations regarding future events. The forward-looking
statements involve risks and uncertainties. Actual results could differ
materially from those projected herein. The Company disclaims any obligation
to update these forward-looking statements.

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

    
    Consolidated Statement of Operations (unaudited)


    -------------------------------------------------------------------------
                             For the three months      For the six months
                                ended June 30             ended June 30
                              2007         2006         2007         2006
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    SALES                 $ 1,230,990  $         -  $ 2,349,731  $         -
    -------------------------------------------------------------------------
    COST OF SALES             399,733            -      652,779            -
                          ---------------------------------------------------
    -------------------------------------------------------------------------
                              831,257            -    1,696,952            -
    -------------------------------------------------------------------------
    EXPENSES
    -------------------------------------------------------------------------
    Salaries and benefits     418,869            -      797,713            -
    -------------------------------------------------------------------------
    Professional fees         108,848       89,271      207,305       89,767
    -------------------------------------------------------------------------
    Bad debts                  77,098            -      151,828            -
    -------------------------------------------------------------------------
    Travel and promotion       54,435       24,337      125,100       25,665
    -------------------------------------------------------------------------
    Rent and utilities         54,972        4,014       91,741        8,011
    -------------------------------------------------------------------------
    Amortization of
     intangible assets         33,462           33       66,870           66
    -------------------------------------------------------------------------
    Amortization of
     property and equipment    45,451            -       71,076            -
    -------------------------------------------------------------------------
    Office expenses            34,828        8,643       57,622        9,522
    -------------------------------------------------------------------------
    Stock exchange and
     transfer agent fees          903       12,666       12,198       17,188
    -------------------------------------------------------------------------
    Interest and bank
     charges                   33,218           50       36,805           92
    -------------------------------------------------------------------------
    Insurance                     747        5,241        9,166       10,482
    -------------------------------------------------------------------------
    Consulting                 19,905        9,500       24,665        9,500
                          ---------------------------------------------------
    -------------------------------------------------------------------------
                              882,736      153,755    1,652,089      170,293
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    INTEREST INCOME                 -        4,955            -       10,595
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    INCOME (LOSS) BEFORE
     INCOME  TAXES AND
     MINORITY INTEREST        (51,479)    (148,800)      44,863     (159,698)
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    INCOME TAXES
    -------------------------------------------------------------------------
    Current                    90,715            -      192,974            -
    -------------------------------------------------------------------------
    Future                    (13,300)           -      (12,000)           -
                          ---------------------------------------------------
    -------------------------------------------------------------------------
                               77,415            -      180,974            -
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    LOSS BEFORE MINORITY
     INTEREST                (128,894)    (148,800)    (136,111)           -
    -------------------------------------------------------------------------
    MINORITY INTEREST          63,420            -      153,800            -
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    NET LOSS AND
     COMPREHENSIVE LOSS
     FOR THE PERIOD          (192,314)    (148,800)    (289,911)    (159,698)
    -------------------------------------------------------------------------
    DEFICIT, beginning
     of period               (552,980)    (265,866)    (455,383)    (254,968)
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    DEFICIT, end of period   (745,294) $  (414,666)    (745,294) $  (414,666)
                          ---------------------------------------------------
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    Basic and diluted net
     loss per share       $    (0.009) $    (0.020) $    (0.013) $    (0.020)
                          ---------------------------------------------------
                          ---------------------------------------------------
    -------------------------------------------------------------------------
    Weighted average
     number of shares
     outstanding           21,748,618    8,004,500   21,748,618    8,004,500
                          ---------------------------------------------------
                          ---------------------------------------------------
    -------------------------------------------------------------------------



    Consolidated Balance Sheets

    -------------------------------------------------------------------------
                                                        As at       As at
                                                      June 30,   December 31,
                                                        2007         2006
                                                    (Unaudited)   (Audited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                   ASSETS
    -------------------------------------------------------------------------
    CURRENT
    -------------------------------------------------------------------------
    Cash                                            $    70,110  $   613,241
    -------------------------------------------------------------------------
    Accounts receivable                               2,598,162      606,581
    -------------------------------------------------------------------------
    Prepaid expenses and deposits                        96,717       39,305
    -------------------------------------------------------------------------
    Due from a company owned by a director                2,945        2,945
    -------------------------------------------------------------------------
    Unbilled revenue                                    315,455            -
                                                    -------------------------
    -------------------------------------------------------------------------
                                                      3,083,389    1,262,072
    -------------------------------------------------------------------------
    PROPERTY AND EQUIPMENT                              351,105      334,602
    -------------------------------------------------------------------------
    DUE FROM A SHAREHOLDER                              426,695      288,682
    -------------------------------------------------------------------------
    INTANGIBLE ASSETS                                 1,939,241    2,006,111
    -------------------------------------------------------------------------
    GOODWILL (note 4)                                 1,413,615    1,122,405
                                                    -------------------------
    -------------------------------------------------------------------------
                                                    $ 7,214,045  $ 5,013,872
                                                    -------------------------
                                                    -------------------------
    -------------------------------------------------------------------------
                                 LIABILITIES
    -------------------------------------------------------------------------
    CURRENT
    -------------------------------------------------------------------------
    Bank indebtedness                               $   190,000  $   120,054
    -------------------------------------------------------------------------
    Accounts payable and accrued liabilities          2,726,403      451,272
    -------------------------------------------------------------------------
    Dividends payable                                   200,000      309,779
    -------------------------------------------------------------------------
    Income taxes payable                                267,856       79,329
    -------------------------------------------------------------------------
    Refundable security deposits                         52,003       50,000
    -------------------------------------------------------------------------
    Due to a company owned by a shareholder of
     the Corporation                                    149,930      194,930
    -------------------------------------------------------------------------
    Current portion of obligations under
     capital leases                                      82,167       68,156
                                                    -------------------------
    -------------------------------------------------------------------------
                                                      3,668,359    1,273,520
    -------------------------------------------------------------------------
    OBLIGATIONS UNDER CAPITAL LEASES                     55,091      105,578
    -------------------------------------------------------------------------
    FUTURE INCOME TAX                                   677,194      689,194
    -------------------------------------------------------------------------
    MINORITY INTEREST                                   153,800            -
                                                    -------------------------
    -------------------------------------------------------------------------
                                                      4,554,444    2,068,292
                                                    -------------------------
    -------------------------------------------------------------------------
                             SHAREHOLDERS' EQUITY
    -------------------------------------------------------------------------
    SHARE CAPITAL (note 5)                            3,109,380    3,109,380
    -------------------------------------------------------------------------
    WARRANTS (note 5)                                   179,929      179,929
    -------------------------------------------------------------------------
    CONTRIBUTED SURPLUS                                 115,586      111,654
    -------------------------------------------------------------------------
    DEFICIT                                            (745,294)    (455,383)
                                                    -------------------------
    -------------------------------------------------------------------------
                                                      2,659,601    2,945,580
                                                    -------------------------
    -------------------------------------------------------------------------
                                                    $ 7,214,045  $ 5,013,872
                                                    -------------------------
                                                    -------------------------
    -------------------------------------------------------------------------
    
    %SEDAR: 00020865E




For further information:

For further information: Myer Bentob, Chairman & CEO, Montec Holdings
Inc., Tel: (514) 630-7262, Email: mbentob@montecholdings.com; Eric Bouchard,
Investor Relations, The Equicom Group Inc., Tel: (514) 844-7997, Email:
ebouchard@equicomgroup.com

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MONTEC HOLDINGS INC.

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