Cymat reports results for Q2 of fiscal 2007

Listing: TSX

Symbol: CYM

TORONTO, Dec. 14 /CNW/ - Cymat Technologies Ltd. today reported financial results for the second quarter of fiscal 2007 ending October 31, 2006.

The Company reported revenues of $432,558 for the second quarter, compared with $149,832 for the same period in fiscal 2006. This was an increase of 190%. Cymat flat panel revenues, from its Alusion line, increased 270% over the prior quarter and 470% compared to the corresponding quarter in fiscal 2006.

The net loss for the three-month period was $3,109 or $0.00 per share, compared with $1,577,557 or $0.03 per share for the same period the prior year. The loss was smaller than the comparable period because of the gain of $1,594,823 from the Plan of Arrangement with Brompton Financial Limited.

Overview:

-   Change in strategic focus from a research-based to revenue-based
    commercial operation yielded strong results.
-   Significant quarter on quarter revenue growth primarily from flat
    panel sales for architectural applications.
-   The Brompton Plan of Arrangement closed in August, which provided
    Cymat with $1.8 million of non-dilutive funds. A number of one-time
    costs were associated with this transaction and transitioning Cymat
    to a revenue focused company.
-   Cymat entered the blast mitigation market utilizing its flat panel
    and 3-dimensional aluminum foam capability.

Cymat's strategy to transition from a research-focused to a revenue-focused enterprise has begun to yield good results as revenues are up significantly both year-over-year and quarter-over-quarter. Cymat has a current backlog of approximately $1.2 million related to Alusion, its architectural product line. This backlog relates primarily to the company's contract to provide automobile display platforms for Audi dealerships. To date the company has delivered over 150 of these platforms. Cymat foresees continued revenue growth in both Europe and North America for its Alusion products.

Key Financial Information

The following shows key financial information for the second quarter and

Cymat comparables.

Three Months ended:                 October 31, 2006    October 31, 2005

Revenues                                    $432,558            $149,832
SG&A                                       ($645,983)          ($670,529)
Gain on Arrangement                       $1,594,823                  $0
Net loss                                     ($3,109)        ($1,577,557)
Net loss per share(x)                         $(0.00)             $(0.03)


Balance Sheet Items as at:          October 31, 2006      April 30, 2006

Cash and Cash equivalents                   $691,506            $912,934
Working Capital                             $304,043            $639,359
Shares Outstanding                        51,454,437          51,421,094

(x) Net loss per share has been calculated using the weighted average
    number of common shares outstanding during the quarter ended
    October 31, 2006 and October 31, 2005.

Subsequent to quarter-end, the company announced in November that it had entered into a long term licensing agreement with Georg Fischer Automotive, a global automotive supplier with annual revenues in excess of $1.5 billion, to develop and manufacture automotive components utilizing Cymat's proprietary Low Pressure Foam Casting technology.

In December, Cymat announced an agreement with M-Partners and D&D Securities for a private placement of securities with anticipated proceeds of $2 - $3 million. Proceeds from this financing will be used to increase production capacity, reduce order cycle times, hire additional sales staff and provide general working capital.

Cymat's products are experiencing substantial growth as a result of the company's recent sales focus. This financing coupled with the non-dilutive $1.8 million funding from the recent Brompton transaction, should provide Cymat with sufficient resources to achieve profitability.

The interim financial statements and management discussion has been filed on SEDAR. Cymat Technologies Ltd. trades on the TSX stock exchange under the trading symbol CYM.

Cymat Technologies Ltd. (TSX: CYM) ("Cymat" or the "Company") announced that at the request of the Ontario Securities Commission, it has re-filed its MD&A for the year ended April 30, 2006 due to the inadvertent omission of information concerning conclusions about the effectiveness of disclosure controls and procedures. Management had concluded that such controls and procedures were effective and sufficient but had failed to state this in its MD&A. This is an important formality and such disclosure is now included in the re-filed MD&A and Cymat also took this opportunity to provide a more fulsome description of its patent suite which can be accessed at www.sedar.com.

About Cymat:

Cymat develops innovative materials for industry. The company has exclusive worldwide rights, through patents and licenses, for producing Stabilized Aluminum Foam. The ultra-light metallic foam is manufactured by bubbling gas through molten alloyed aluminum containing a dispersion of fine ceramic particles and can be produced as either Near-net Shapes or Flat Panels. The result is a revolutionary material with a wide array of features including very low density, mechanical energy absorption, thermal and acoustic insulation, is recyclable, time and temperature insensitive and has a relatively low cost of production. Cymat is collaborating with a number of partners spanning the automotive, transportation and construction industries. The company's principal market focus is automotive, where aluminum foam is ideally suited to the industry's objectives to make vehicles lighter, safer and better for the environment. For further information, visit the Web site www.cymat.com.

The foregoing press release contains forward-looking statements relating to the development of markets, development programs, future revenues and improvements in technology, which are subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include the availability of funding, existing and future relationships with suppliers and manufacturers, the results of research and development activities, risks of technological breakthroughs that make Cymat stabilized aluminum foam less attractive, risks relating to the breadth, scope and enforceability of intellectual property rights, general industry and market conditions, availability of qualified personnel, and reliance on co-development partners. For additional information with respect to these and other factors, see the reports filed by Cymat Technologies Ltd. with the Ontario Securities Commission. Cymat Technologies Ltd. disclaims any intention or obligation to update or revise any forward-looking statements.