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Gold/Mining/Energy : SMM on TSE - Simmonds Capital -- Ignore unavailable to you. Want to Upgrade?

To: Ed Pakstas who wrote (270)	5/27/1999 9:48:00 PM
From: Ed Pakstas	Read Replies (3) \| Respond to of 372

**NEWS RELEASE** NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS FOR: SIMMONDS CAPITAL LIMITED TSE SYMBOL: SMM MAY 27, 1999 Simmonds Capital Reports $1.5 Million Profit For The First Quarter Of 1999 TORONTO, ONTARIO--Simmonds Capital Limited (SCL) today announced a net profit of $1.5 million on sales of $8.0 million for the three month period ended March 31, 1999. This compares with a net loss of $79,000 on sales of $9.1 million for the same period a year ago. This represents a basic earnings per share of $0.10 compared with a loss per share of $0.01 in the prior year period. Sales revenues decreased 12 percent from the prior year primarily due to declines in the distribution business which offset sales growth in the contract manufacturing business. Due to a change in the product mix from all three operating divisions, both gross margin and operating expenses were lower than the prior year period. Gross margins were 26 percent of revenue in the first quarter of 1999 and operating expenses were reduced by 16 percent from the prior year period. The financial results for the first quarter of 1999 include other income of $2.2 million, including a gain from the sale of the SCL Plastics division, management fees earned, and gains from the renegotiation of the remaining long term loan and the settlement of leases. Mr. John Simmonds, CEO of SCL, stated "I am very pleased with the results for the first quarter. In addition to the $1.5 million net profit, the company made significant progress on several strategic growth initiatives. This includes a three year exclusive manufacturing contract with Develcon, a division of Vianet Technologies, Inc. Since the launch in April of the TrackPower satellite horse racing service, we have been very pleased with the development of the TrackPower business and the appreciation of our investment in American Digital Communications." Simmonds Capital Limited (TSE:SMM) is a diversified management company with strategic investments in contract manufacturing, electronics distribution, wireless communications, and internet service markets including both equity investments and wholly owned operations. /T/ SIMMONDS CAPITAL LIMITED Selected Financial Results Three months ended March 31 1999 1998 $ 000's $ 000's Sales $8,027 $9,117 Other income $2,235 $ 611 Net income (loss) after tax $1,519 $ (79) Basic earnings (loss) per share $ 0.10 $(0.01)