| News Releases
June 23, 2005
Fire Resistant Building Materials Company On Track for Record Breaking Year in Homebuilder Sales
Nine Month Sales of $4,138,616 Represent Steady Growth, Higher Gross Profit and Margins
WATKINS, Minn. & VANCOUVER, B.C. June 23, 2005 - International Barrier Technology Inc. ("Barrier") (OTCBB: IBTGF; TSXV: IBH), a manufacturer of proprietary fire resistant building materials, announces significant sales growth reaching $4,138,616 in the first nine months of fiscal 2005, currently surpassing fiscal 2004 levels, putting the firm on track for a third consecutive record breaking year in sales.
Barrier has achieved significant growth in sales as their flagship product Blazeguard® continues to gain recognition in the marketplace. Sales have grown exponentially in the past few years. Total revenues for fiscal 2002, 2003 and 2004 were $1,860,167, $2,254,562 and $4,082,511 respectfully. Management expects this steady growth to continue, with new contracts and licensing agreements having the potential to substantially impact top line growth.
"This is a very exciting time for Barrier, we are making substantial progress on several different fronts. I personally think this rate of growth is very significant and important for our shareholders to know about," stated Dr. Michael Huddy, President and CEO of International Barrier.
The Company experienced an 81% increase in revenue from fiscal 2003 to fiscal 2004. Gross profit from fiscal 2003 to fiscal 2004 increased as well by over 30% to $636,535. For the nine months ended March 31st, 2005 revenue from sales was $4,138,616 and have already surpassed last year's total revenue, with one quarter left in the fiscal year. Gross profit for the nine months ended March 31st, 2005 was $938,369, once again exceeding fiscal 2004 totals by over 47%. Additionally, discounting amortization and stock-based compensation (both non-cash items), the Company is cash positive for this period. The current reporting period marks the beginning of the first full fiscal year where Barrier will be required to report all stock based compensation as a charge to the operating statement. The non-cash charge for stock compensation for the nine-month period ending March 31st, 2005 was $799,301.
International Barrier has received numerous inquiries from homebuilders, contractors, architects and distributors regarding Blazeguard® and intends to capitalize on this with the addition of the Company's new sales manager of U.S. operations, Mr. James Kleinke, and the increased production capacity of the new manufacturing facility. This facility will automate a large portion of the production line, improve the quality of the finished product and reduce costs substantially. In addition, the facility will be a "model" for future parties interested in Blazeguard® licensing opportunities both domestic and abroad.
With the acquisition of the Pyrotite technology last year, International Barrier's growing partnership with Mule-Hide Products, Inc. (one of the largest U.S. providers of roofing products to the modular industry), the new production facility scheduled for completion later this year and the rising demand for better and more efficient building products, the Company is well positioned for substantial future revenue growth.
About International Barrier Technology Inc.
International Barrier Technology, Inc. develops, manufactures, and markets proprietary fire resistant building materials. Its patented, non-combustible, non-toxic Pyrotite formulation has an extraordinary capability: it releases water when exposed to the heat of fire. Barrier's award-winning Blazeguard® wood panels exceed International Building Code requirements in every targeted fire test and application, and uniquely combine properties that increase panel strength and minimize environmental and human impact. Blazeguard® customers include D.R. Horton (NYSE:DHI), KB Home (NYSE:KBH), and Lennar (NYSE:LEN). Lowe's Companies (NYSE:LOW), Stock Building Supply, and Mule-Hide Products Co., Inc. are Blazeguard® distributors. Pyrotite has potential applications with engineered wood products, paint, plastics, and expanded polystyrene.
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Barrier is part of the DJ Building Materials Index (US)
INTERNATIONAL BARRIER TECHNOLOGY INC.
Per: "David J. Corcoran"
David J. Corcoran
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
Forward-Looking Information: The statements in this news release contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve certain risks, assumptions and uncertainties, including but not limited to the ability to generate and secure product sales. In each case actual results may differ materially from such forward-looking statements. The company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results (expressed or modified) will not be realized.
International Barrier Technology Inc.
Richard Angle, 866-735-3519
ECON Investor Relations, Inc.
Peter Kletas, 866-948-0848
Source: International Barrier Technology Inc.
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