Raydan Manufacturing Reports 2007 Q3 Financial Results


    EDMONTON, March 28 /CNW/ - Raydan Manufacturing Inc. (the "Company")
(TSX-V: RDN) reported financial results for the third quarter ended
January 31, 2007.
    Quarterly revenue increased 127% to $5,562,385 with a net profit of
$23,641 compared to revenue of $2,450,343 and a net loss of $181,342 for the
same period one year ago. Revenue for the nine month period increased 91% to
$17,870,658 with a net profit of $477,110 compared to $9,340,498 and net
profit of $340,828 for the same period one year ago. The product mix was
steady with manufactured products accounting for 55% of total sales and parts
and service contributing 45%.
    For the quarter ended January 31, 2007 working capital remained strong at
$2.5 million compared to $1.9 million at the end of fiscal 2006. Operating
cash flow from operations in the quarter was a positive $58,222 compared to a
negative $(2,601) for the same period in fiscal 2006.

                      Three months ended Jan. 31   Nine months ended Jan. 31
    Fiscal year               2007          2006          2007          2006

    Revenue           $  5,562,385  $  2,450,343  $ 17,870,658  $  9,340,498
    Gross Profit      $  1,090,835  $     55,053  $  3,764,000  $  1,551,028
    Earnings before
     tax              $     23,641  $   (255,410) $    657,110  $    467,603
    Net Earnings      $     23,641  $   (181,342) $    477,110  $    340,828
    EPS (basic)       $      0.001  $     -0.012  $       0.03  $      0.022

    Raydan's Alberta operations grew by 32% with contributions from both the
manufacturing and parts and service divisions. Management continues to monitor
and modify processes and systems to improve product performance and
profitability. Raydan's rapid growth during the persistent labor shortage
continues to be a challenge and employee attraction and retention remains a
    Raydan's Ontario operations contributed to revenue growth with Sturdy
Truck Body (Sturdy) increasing revenue to approximately $200,000 per month
from $45,000 per month when acquired in April 2006. Delta Spring (Delta) has
faced several challenges, most notably an inability to grow due to space
constraints, resulting in inefficiencies. Raydan's strategic plan was for both
Sturdy and Delta to consolidate into a single new facility by June 2007 and
incorporate a new chassis modification center to bring Raydan's products into
eastern Canada. Negotiations for a new facility have progressed slowly but
management is confident that an agreement will be concluded in time for the
companies to relocate by the fall of 2007. In the interim a plan has been put
in place for Delta and Sturdy to achieve profitability on a more consistent
    Nationally, the Company anticipates an increase in demand from its
recently achieved National Safety Mark designation, for it's ability to
increase the gross vehicle weight (GVW) and perform wheel base alterations for
the heavy truck industry across Canada. Internationally, Raydan continues to
gain recognition and expects increased acceptance and growth worldwide.
    "We are pleased with the year over year increase in revenue and
profitability in what is traditionally our slowest quarter," stated Ray
English, President and CEO of Raydan Manufacturing. "Additionally, Raydan
continues to make significant strides in bringing its manufactured products to
the attention of international customers."

    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.

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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