GUELPH, ONTARIO – April 25, 2006 – We are pleased to report continued growth in sales volumes, and positive earnings for the quarter. First quarter net sales reported in Canadian dollars are up 12.8% (16.3% in source currencies) compared to the first quarter of 2005, and up 8.6% from the previous quarter.

Gross margins on net sales improved 2.3% in the quarter from the last quarter in 2005 through focused activities to refine pricing and product mix strategies, and the efforts of our employees to contain costs, and improve productivity. This margin improvement and volume growth resulted in an improvement in earnings from operations and bottom line profits.

Cash provided by operations, including change in working capital, totaled $661,000 for the period. Total funded debt was reduced by $406,000 in the quarter. The balance sheet remains strong. Hammond Manufacturing Company Limited manufactures a broad range of products for the electronic and electrical products industry, including metallic and non-metallic enclosures, racks, small cases, outlet strips, surge suppressors and electronic transformers.

Robert F. Hammond, Chairman and CEO
Tel: (519) 822.2960
Fax: (519) 822.8987
Email: [email protected]