Redishred Capital Corp. Announces 2008 Second Quarter Results

    MISSISSAUGA, ON, Aug. 25 /CNW/ -

    - Redishred Capital Corp.'s ("Redishred") royalty and fee revenue for the
      second quarter was $211,832 CDN for the period of April 1, 2008 to
      June 30, 2008. Royalty and fee revenues are generated by franchises of
      the PROSHRED(R) franchise system and are originally denominated in
      US Dollars.

    - Same location sales in our PROSHRED(R) franchise system for the period
      of April 1, 2008 to June 30, 2008 were $2,235,432, an increase of 81.2%
      from the same period in 2007.

    - Same locations sales in our PROSHRED(R) franchise system for the period
      of Jan 1, 2008 to June 30, 2008 were $3,661,652, an increase of 93.6%
      from the same period in 2007

    - The Arlington, VA franchise location commenced operations in the second

    Financial Highlights:

    For the three months ended,               June 30, 2008    June 30, 2007
                                             ---------------  ---------------

    Operating Loss (Before depreciation,
     amortization and interest)                   $ 188,169         $ 11,795

    Net Loss                                      $ 372,857         $ 11,795

    Loss per Share                                $     .02         $    .01

    Weighted Average Number of Common Shares     22,884,614          879,122

    For the six months ended,                 June 30, 2008    June 30, 2007
                                             ---------------  ---------------

    Operating Loss (Before depreciation,
     amortization and interest)                   $ 251,778         $ 13,537

    Net Loss                                      $ 380,625         $ 13,537

    Loss per Share                                $     .03         $    .07

    Weighted Average Number of Common Shares     13,741,833          191,781

    Acquisition Targets Adjusted

    As a result of delayed regulatory approval of the qualifying transaction
and due to global capital market volatility, management has adjusted its
acquisition targets for fiscal year 2008. Based on acquisition activity to
date, management is revising its acquisition target to $20M for 2008. For the
12 month period following the closing of the qualifying transaction,
management anticipates completing $42M in acquisitions as per the original
business plan. The company believes it will meet its targets for franchise

    Management's Comments on the Industry

    The demand for the outsourcing of shredding and recycling services, as
offered by the company, continues to increase in double digits. With industry
insiders reporting that only 37% of USA companies having outsourced these
services, future prospects for industry growth remains strong. With tighter
regulatory requirements, an increasing number of convictions and fines and a
growing awareness of the need to both shred and recycle, the company is
optimistic about its short, intermediate and long term development plans.
    The company is well positioned to capitalize on this growth opportunity as
PROSHRED(R) pioneered the mobile document destruction industry in Canada two
decades ago, has achieved a solid foothold in the US market and is recognized
as an North American industry leader as a member of the National Association
of Information Destruction and having achieved the ISO 9001:2000

    Management's Comments on the Quarter

    During the second quarter of 2008, the company's new management team began
executing on its strategic business plan which has been designed to deliver
intermediate and long term growth in both sales and earnings, through
acquisitions, joint ventures as well as its traditional franchising platform.
Notwithstanding the fact that management was focused on completing a number of
structural modifications to support future growth, the company's franchise
network and sales continued to grow.
    John Prittie, President and CEO of Redishred Capital Corp. and PROSHRED(R)
was very pleased to announce the opening of its latest franchise location in
Northern Virginia during Q2 and notes "this location is very strategic in that
it helps solidify our position in the north east USA". Mr. Prittie also noted
that "there is a very high level of interest in PROSHRED(R)'s franchise
program due to the growth in the industry and the number of new franchise
candidates looking for 'business-to-business' franchise opportunities". The
company is currently evaluating a number of franchise applications and
continues to be active in the International Franchise Association. Concurrent
to our franchising activities the company is currently identifying and
evaluating a number of acquisition targets with the aim to open 40 corporate
locations across the United States over the next 5 years.
    As previously noted above, "there is a real opportunity to grow our
business organically and it is very exciting to see that our same store system
sales grew at an outstanding 81% in the 2nd quarter of fiscal year 2008 when
compared to the same period in 2007", noted Mr. Prittie. "The Q2 result
exceeded our expectation, and clearly demonstrates that there is an increasing
awareness and need to destroy confidential information and recycle shredded
material, as promoted by PROSHRED(R)'s direct selling and marketing programs."
    Mr. Prittie also stated, "I would like to personally thank all PROSHRED(R)
franchisees and National Support Centre staff for their hard work in attaining
this tremendous result. I am looking forward to continued growth in our sales
and market share through franchising, joint ventures and acquisitions in the
last half of fiscal year 2008".

    Financial Statements

    Redishred's June 30, 2008 Financial Statements and Notes and Management's
Discussion and Analysis can be found at


    Redishred Capital Corp. is the owner of the PROSHRED(R) trademarks and
intellectual property. PROSHRED(R). shreds and recycles confidential documents
and proprietary materials for tens-of-thousands of customers in the United
States in all industry sectors. PROSHRED(R) pioneered the mobile document
destruction and recycling industry in Canada in 1986 and is the only company
with both ISO 9001:2000 and NAID certifications. The company utilizes
state-of-the-art equipment and operates its business with trained, certified
and bonded customer service professionals. It is PROSHRED(R)'s vision is to be
the 'system of choice' and provide shredding and recycling services on a
global basis.

    Note: The TSX Venture Exchange has neither approved nor disapproved of the
information contained herein. This news release contains forward looking
statements that reflect the current expectations of management of Redishred
and Redishred's future results, performance, achievements, prospects and
opportunities. Wherever possible, words such as "may", "will", "estimate",
"believe", "expect", "intend" and similar expressions have been used to
identify these forward looking statements. These statements reflect current
beliefs and are based on information currently available to management of
Redishred. Forward looking statements necessarily involve known and unknown
risks and uncertainties. A number of factors, including those discussed in the
2008 management information circular and the filing statement dated February
29, 2008 under "Risk Factors", could cause actual results, performance,
achievements, prospects or opportunities to differ materially from the results
discussed or implied in the forward looking statements. These factors should
be considered carefully and a reader should not place undue reliance on the
forward looking statements. There can be no assurance that the expectations of
management of Redishred will prove to be correct.
    In particular, certain statements in this document discuss Redishred's
anticipated outlook of future events. These statements include, but are not
limited to:

    (i)   anticipated acquisition activity, which may be impacted by global
          capital and credit market volatility as well as the company's
          limited cash resources with which to identify and evaluate the
          acquisitions. This may negatively impact the number of locations
          opened which would have negative impacts to Redishred's income and
          cash flows
    (ii)  franchise development targets may not be met due to the poor
          economic situation in the United States
    (iii) anticipated industry growth may slow, which may cause Redishred's
          system sales and royalty revenue to see slowed growth

    Readers are cautioned that such forward looking statements are subject to
certain risks and uncertainties that could cause actual results to differ
materially from these statements. Redishred can give no assurance that actual
results will be consistent with these forward-looking statements.
    %SEDAR: 00025575E

For further information:

For further information: Jeffrey Hasham, CA, Chief Financial Officer,
Redishred Capital Corp. (TSX.V - KUT), (416) 849-3469, Fax: (905) 812-9448,

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