Wednesday, May 26, 2004
International Barrier Reports Sales Growth of 187% to $1.3 Million in Fiscal Third Quarter
Fire Resistant Building Material Manufacturer Achieves Record Quarter and Nine Month Revenue Watkins, MN, Vancouver, BC, May 26, 2004 - International Barrier Technology Inc. ("Barrier") (IBTGF: OTCBB; IBH: TSXV), a manufacturer of proprietary fire resistant building materials, achieved record quarterly and nine-month revenue for the fiscal quarter and nine months ending March 31, 2004. Fiscal third quarter revenue was $1,327,664, a year-over-year increase of 187.1%. Year-to-date revenue of $2,454,018 reflects a 50.2% increase compared to the same period in fiscal 2003 and has already exceeded the one-year revenue record of $2,313,853 established in 1994. The new distributor relationship with Mule-Hide Products Co., Inc., a leading supplier of commercial roofing products, was a contributing factor in this sales growth.
Sales volume grew 157% compared to the same quarter last year, setting an all-time quarterly record of 1,140,000 square feet. Sales in Florida were 604,000 square feet, reflecting continuing success of Barrier's marketing and sales strategy using manufacturer's representatives. With the recent launch of this strategy in the mid-Atlantic, sales are also growing in this new sales region. Private label sales of Barrier's fire resistant oriented strand board panels through Mule-Hide Product Co., Inc. began in January, immediately following the announcement of the sales agreement with Mule-Hide in December. Demand, new accounts, and sales through Mule-Hide are all growing, with positive indicators of growth from the commercial modular building market, which is an important new market for Barrier.
Barrier dramatically improved its financial position, ending the period with cash of $587,456 and working capital of $478,992, compared to cash of $56,453 and a working capital deficit of $681,162 in Q3 last year.
"Sales growth has far exceeded the minor reduction in revenue we experienced in the first and second fiscal quarters, when distributors adjusted inventories in response to dramatic increases in substrate prices," said Dr. Mike Huddy, president. "With our plan to continue expanding sales through the appointment of new manufacturer's reps and indications of strong growing demand through our distribution relationship with Mule-Hide, I expect to see Barrier continue to achieve important new sales milestones through the rest of the year and beyond."
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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 Centex (CTX: NYSE), D.R. Horton (DHI: NYSE), KB Home (KBH: NYSE), and Lennar (LEN: NYSE). Lowe's Companies (LOW: NYSE), 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
Barrier is part of the DJ Building Materials Index (US)
INTERNATIONAL BARRIER TECHNOLOGY INC.
Per: "MICHAEL HUDDY"
President & Director
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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