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Press Release - April 26, 2007
Hammond Manufacturing Company Limited,
394 Edinburgh Road North,
GUELPH , Ontario N1H 1E5.
Tel # ( 519 ) 822 - 2960
Fax # ( 519 ) 822 - 8987
TSE: HMM.A

HAMMOND MANUFACTURING COMPANY LIMITED announces financial results for the first quarter ending March 30, 2007:

  Three months ending:
  Mar 30, 2007 Mar 31, 2006
     
Net Sales 18,259,000 18,296,000
Earnings from Operations 348,000 758,000
Net Earnings 174,000 307,000
   
Earnings (loss) per Share $0.02 $0.03
Shares Outstanding 11,329,300 11,307,300
Net book value per share $1.92 $1.83

GUELPH, ONTARIO – April 26, 2007– We are pleased to report an increase in net sales in the first quarter ending March 30, 2007 of 6.8% from the fourth quarter of 2006. Net sales for the current quarter were basically unchanged (down 0.2%) from the first quarter of the prior year.

Our gross margins decreased by 1.8% in the first quarter of 2007 from the same quarter in 2006. Margins were impacted by higher prices for commodities such as stainless steel and copper. We also had lower loading in our manufacturing operations as a result of softer electrical markets.

We generated positive cash from operations of $170,000 during the quarter including an investment in net working capital of $509,000. Our balance sheet remains strong and we continue to focus on investing cash in order to improve productivity, develop product niches and increase our
market share.

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.

Information Contacts:

Robert F. Hammond, Chairman and CEO
Tel: (519) 822.2960
Fax: (519) 822.8987
Email: ir@hammfg.com

Guelph, Ontario, April 25, 2006