GUELPH, ONTARIO – October 20, 2004 – We continue to report positive sales momentum, and improved earnings from operations, for the third quarter ended October 1, 2004, however, both sales and earnings were adversely affected by the impacts of currency changes and increased material costs.

The Canadian dollar appreciated 4.9% relative to the US dollar in the third quarter, reversing its trend from the first half of 2004. This negatively impacted currency translation of sales. Removing the impact of currency translation, underlying sales growth in source currencies increased by 10.1% and 15.0% for the nine-month period and third quarter respectively, 2004 over 2003.

Net earnings are improved by 11.7% year-to-date 2004 against the comparable period for 2003. Third quarter earnings were negatively impacted by non-cash balance sheet foreign exchange losses due to the change in currency rates, which reduced earnings by $112,000 in Q3 2004 (compared with a $24,000 foreign exchange gain in third quarter earnings of 2003). Additionally, the exceptional rise in costs for copper and steel has impacted Moloney Electric Inc., resulting in significant operating losses. The Company’s non-cash share of these losses was $122,000 for the quarter, and $278,000 year-to-date 2004.

We are strongly focused on the pursuit of productivity savings, product niches, and increased 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. Note: effective November 2, 2004, the TSX symbol for the Company will change to: HMM.SV.A

Robert F. Hammond, Chairman and CEO
Tel: (519) 822-2960
Fax: (519) 822-7289
Email: ir@hammfg.com