GUELPH, ONTARIO – July 26, 2007 – We are pleased to report an increase in net sales in the second quarter ending June 29, 2007 of 5.1% from the second quarter of 2006. Net sales for the current quarter also increased by 6.0% from the first quarter of this year.

Our gross margins changed only slightly (down 0.1%) from the second quarter of 2006. Higher production levels offset the negative impacts on margins of the stronger Canadian dollar and higher prices for commodities such as stainless steel and copper.

We generated positive cash from operations of $395,000 during the quarter including an investment in net working capital of $861,000. 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.