Prestige Telecom Announces Positive First Quarter Results



    
    First quarter revenues up 75% to $8.6 million compared to last year

                       EBITDA Margin increased to 6.23%

         Net Income of $94,057compared to $67,738 net loss last year
    

    MONTREAL, Aug. 20 /CNW Telbec/ - Prestige Telecom Inc. ("Prestige" or the
"Company") (TSX Venture: PR) a leader in providing Engineering, Materials
Furnishing and Installation services ("E,F&I") to the telecommunications and
cable TV industries with operations in Montreal, Toronto, Calgary and Plano,
Texas, announced today its financial results for its first quarter, ended
June 30, 2007. Prestige posted a sharp turnaround in profitability and strong
revenue growth in all segments of its business.
    These results do not take into account the closing of Prestige's recent
$4.4 million private placement or the qualifying transaction with CPVC
Blackcomb Inc. ("Blackcomb") both of which took place after the end of the
first quarter. Following Prestige's amalgamation with Blackcomb on July 30,
2007, the Company's predecessor, Prestige Telecom Ltd., changed its name to
Prestige Telecom Inc. and listed its common shares on the TSX Venture Exchange
under the symbol PR.
    The Company reported that revenues in the first quarter ended June 30,
2007 were $8.6 million, a 75% increase compared to the $4.9 million recorded
in the same period last year. Gross Margins increased to 22.44% from 20.55%
recorded in the prior year period.
    It also reported an EBITDA of $535,411 which represents 6.23% as a
percentage of revenues. This is a substantial increase in EBITDA from $109,804
or 2.24 % of revenue in the same period last year. Earnings Before Income
Taxes of $120,132 also reflect a sharp improvement from the pre-tax loss of
$86,843 recorded in the prior year period. The Company reported Net Income of
$94,057 in the first quarter compared to the net loss of $67,738 that was
recorded for the period ended June 30, 2006.
    The Company reported strong revenue growth in its three business
segments, namely engineering, installation and materials furnishing.
    "Our strong revenue growth clearly demonstrates the trend by
telecommunication and cable companies to increasingly outsource more of their
engineering and installation needs to companies such as Prestige," stated
Brian McFadden, President and Chief Operating Officer. "Our focus in the
coming quarters will continue to be the increase in internal efficiencies to
improve gross margins and overall profitability as well as selectively
acquiring companies to help us increase the service offering to our customers
and expand our national footprint."
    In the quarter ended June 30, 2007, Prestige Telecom provided E,F&I
services to wireless, wireline and cable TV network operators as well as OEM
network equipment vendors across Canada.)
    A complete copy of the financial statements of Prestige Telecom is
available on SEDAR, at www.sedar.com.


    
           SELECTED FINANCIAL INFORMATION OF PRESTIGE TELECOM LTD.

    Consolidated statement of income         For the three-month period
                                                     ended June 30
                                            2007                 2006
                                               $                    $
    Sales                              8,592,398            4,910,583
    Cost of sales                      6,663,923            3,901,347
    -------------------------------------------------------------------------
    Gross margin                       1,928,475   22.44%   1,009,236  20.55%
    Operating expenses                 1,393,064              899,432
    -------------------------------------------------------------------------
    EBITDA                               535,411    6.23%     109,804   2.24%
    Amortization                         170,563               68,367
    Financial expenses                   262,670              146,563
    Foreign exchange                     (17,954)             (18,283)
    -------------------------------------------------------------------------
    Income (loss) before  taxes          120,132              (86,843)
    -------------------------------------------------------------------------
    Income taxes                         (26,075)              19,105
    -------------------------------------------------------------------------
    Net income (loss)                     94,057              (67,738)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income (loss) per share
     basic and diluted                      0.09                (0.07)


    Consolidated balance sheet                 As at June 30  As at March 31
                                                        2007            2007
                                                  (unaudited)       (audited)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
                                                           $               $
    ASSETS
    Current assets                                12,425,581       9,311,392
    Capital assets                                 2,198,240       1,852,229
    Intangible assets                                981,981         594,987
    Goodwill                                         578,166         578,166
    -------------------------------------------------------------------------

    TOTAL ASSETS                                  16,183,968      12,336,774
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    Current liabilities                           11,952,486       8,771,829
    Long-term debt including
     liability portion of debentures               4,530,169       3,971,950
    Other                                            434,696         420,435
    SHAREHOLDERS' DEFICIENCY                        (733,383)       (827,440)
    -------------------------------------------------------------------------

    TOTAL LIABILITIES AND
     SHAREHOLDERS' DEFICIENCY                     16,183,968      12,336,774
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    About Prestige Telecom

    Prestige Telecom is a leading provider of network engineering, materials
furnishing, installation and support services (commonly referred to as E,F&I
services) required to construct, operate and maintain wireline, wireless, and
cable television networks.
    Prestige Telecom assists telecommunications original equipment
manufacturers ("OEM") and service providers to engineer, install and upgrade
their wireless, wireline and cable television network infrastructures to
support enhanced voice, high speed data and video services.
    In Canada, Prestige Telecom operates from three full service locations
based in Baie d'Urfe (Montreal), Quebec; Mississauga (Toronto), Ontario and
Calgary, Alberta and has more than 250 professional and technical personnel.
Prestige Telecom operates in the United States market through a mutual
subcontractor agreement with Comforce Telecom Inc. under the trade name
Prestige Comforce Professional Services ("PCPS"). PCPS is based in Plano,
Texas and provides services to customers throughout the United States.
    To learn more about Prestige Telecom Inc. (TSX Venture: PR), please visit
our website at www.prestige-tel.com.

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




For further information:

For further information: Brian Mc Fadden, President and Chief Operating
Officer, (514) 457-4488, bmcfadden@prestige-tel.com; Elisabeth Preston,
Corporate Legal Counsel, (613) 614 4884, epreston@langmichener.ca

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PRESTIGE TELECOM INC.

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