Raymor Industries Inc. a leading developer and producer of single-walled carbon nanotubes, nanomaterials and advanced materials, yesterday released its financial statements, along the company’s Management Discussion and Analysis (MD&A) for the second quarter of 2006. Raymor, listed as a top 100 Nanotech public company, posted revenues of $505,827, its largest quarterly revenue to date, an increase of 26% over the previous quarter. This revenue is based solely on sales from metallic powders and thermal spray coating operations. For specifically these two divisions, with the imminent completion of many qualifications, powder and coating sales should continue to increase over the following 12 months. Coupled with single-walled carbon nanotubes (C-SWNT) supply contracts, to be signed shortly with major aerospace, defence and high tech companies, Raymor is poised to capture considerable revenue in 2006.

Highlights from the 2nd Quarter 2006 financial statements and MD&A include the following:

Raymor’s 2nd Quarter performance shows an increase in sales from both an increase in repeat orders from its current client base in  the thermal spray coatings and metallic powders divisions, as well as a new order received from The Boeing Company for a new product. Raymor is expecting to finalise its existing and new accreditations with clients in its thermal spray coating division.

Since March 2006, five patent applications including two international patent applications (PCT) and three US nonprovisional patent applications have been filed concerning processes for producing nanometric filamentary structures such as single-wall Industries Inc. has an exclusive license with INRS concerning the technologies defined in these new five patent applications. Following the start-up of its high capacity C-SWNT production unit, which targets a capacity of 10,000 grams per day per unit, the Company commenced a process of fine tuning the unit to reach an optimal balance between quality, purity and capacity. The Company is presently in a position to conclude long-term agreements for the sale of C-SWNT with previously targeted clients.  Also, the Company still foresees installing additional C-SWNT production units to meet market demands that it has identified.

For the second quarter of 2006, Raymor booked revenues of $505,827,as compared to $410,000 for the same quarterly period in 2005, an increase of 23%. The cost of sale was $445,583 for this quarter of 2006, as compared to $0 for the same period in 2005.  It is important to mention that in 2005, the Company was capitalising all its expenses related to accreditation and development of both powders and coatings divisions, where the production costs were presented at $0. Following the first quarter of 2006, these types of expenses are no longer capitalised, thus presenting its financial statements as per standards complying with other stock markets where the Company still foresees an eventual listing.

Second Quarter expenses increased from $261,202 in 2005 to $638,923 in 2006. This difference is mainly due to an increase in personnel and costs associated with sales and marketing expenses. Investments were made during this quarter by Raymor to expand its sales department in order to pursue new clients and market niches. The company closed this three-month period which ended on June 30, 2006 with a loss of $578,679, as compared to a profit of $148,798 over the same period in 2005.  The 2006 results represent a loss per share of $0.007, as compared to a profit of $0.003 per share in 2005. Again, losses accounted for in 2006 versus the profit from the same period in 2005 are due to the fact that Raymor is no longer capitalizing its expenses related to its powders and coatings divisions.

With respect to the balance sheet as of June 30 2006, Raymor had a cash position of $10,837,803 as compared to $846,474 on June 30, 2005, and $863,026 on December 31, 2005.  Short-term assets as of June 30 2006 increased to $13,222,233 as compared to $1,391,427 as of June 30 2005, and $2,575,279 as of December 31, 2005.

During the second quarter, Raymor invested an amount of $700,945 in its nanotechnology division for improvements on its high capacity (10,000 grams per day per unit) single-walled carbon nanotubes (CSWNT) production unit.

Raymor had short-term liabilities of $1,010,001 on June 30 2006, as compared to $683,669 on December 31 2005 and $211,832 on June 30 2005. The Company finds itself with a solid and improving financial position; given that its short-term liabilities at the end of the second quarter of 2006 were $1,010,001 and the short-term assets were $13,222,233. As compared to the same period in 2005, short term liabilities were $211,832, with short-term assets of $1,391,427.

Raymor’s participation in several conferences as speakers and/or exhibitors has allowed the company to meet and discuss with leaders in the targeted aeronautical, aerospace, and defence sectors, as well as to get the company better known in the US markets. Specifically, Raymor attended the Nanotech 2006 conference in Boston, the NanoBusiness 2006 in New York, the Medical Design and Manufacturing show in New York, the Nanocomposite 2006 conference in Chicago and the OMTEC 2006 show in Chicago. Raymor will present the company’s products and services in other high calibre conferences and trade shows through the year end specifically related to Nanotechnology business development.

In April 2006, Raymor concluded a private placement of 8,333,333 units, for a total of $10,000,000. Each Unit consists of one common share at a price of $1.195, and one-half (1/2) share purchase warrant at a price of $0.005. One (1) whole share purchase warrant shall entitle its holder thereof to purchase one (1) additional common share of the share capital of the Company at $1.75 for a period of 12 months. The securities issued under the private placement are subject to a four-month hold period.

In August 2006, due to its solid cash position, the Company has decided to reduce its operating line of credit and to invest $2,000,000 in secured banking investments, which will generate interest over the following quarters.

Commenting on the results, Stephane Robert, President and CEO of Raymor Industries, had the following to say:

“Having already nearly matched our revenues for all of 2005, Raymor is poised to encounter significant growth this year in AP&C. With the $10 million raised in April, Raymor’s financial position has never been better. With the start-up of our high capacity single-walled carbon nanotubes production unit, the company has hit an important milestone in the execution of its business plan. With this objective achieved, Raymor can aggressively pursue targeted clients in key sectors such as aerospace and defence in order to conclude long-term agreements for the supply of our single-walled carbon nanotubes.”

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