ELGT Electric and Gas Technology Inc (CE)

Electric & Gas Technology, Inc. (OTCBB:ELGT) today announced financial results for its fiscal year ended July 31, 2005. Daniel A. Zimmerman, President and CEO of ELGT, said, "I am very pleased to announce to the shareholders and friends of ELGT that we completed our fiscal year 2005, which ended July 31, with revenues of $8,508,352, an increase of $2,152,844, or 34% over the prior year. Equally significant is that along with this organic growth we were able to produce a profit." Mr. Zimmerman continued, "This has truly been a landmark year for the company and these results confirm to me that the strategic direction we chose a little over a year ago is the right one for ELGT." For the year ended July 31, 2005, ELGT had net income from operations of $148,031 versus a loss of $2,990,641 for the same period a year ago; Gross Margins for the year improved from 26.9% in 2004 to 30.5% in 2005. "These results validate our turnaround efforts and reflect the impact of consolidation on operations," Zimmerman said. Zimmerman continued, "What was certainly a daunting prospect a year and a half ago was mitigated by simply attacking the issues one after another. By building upon each completed task the process gained momentum. From a corporate standpoint a lot of time and energy was expensed on non-recurring clean up activities. This same energy can now be directed at more productive initiatives." On the revenue gains posted by each of the company's operating segments, Reynolds Equipment Company and Logic Metals Technology, Inc., Zimmerman commented, "The fact that our team was able to focus on revenue building and at the same time successfully consolidate discreet operating companies proves that our approach works. This experience will serve us well as we execute a conservative but determined acquisition campaign." Zimmerman concluded, "The turnaround is fresh on our minds but now we are turning our attention to a business building mode; that is why we are a public company. 2006 will have its own challenges and the recent success raises expectations, not the least of which is our own. We have a lot of work to do to achieve our goals!" Electric & Gas Technology, Inc. (ELGT) is a publicly traded company that, through its subsidiaries, operates in two main areas: (1) Utilities Products and (2) Contract Manufacturing. This release contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, which represents the Company's expectations or beliefs concerning, among other things, future operating results and various components thereof and the adequacy of future operations to provide sufficient liquidity. The Company cautions that such matters necessarily involve significant risks and uncertainties that could cause actual operating results and liquidity needs to differ materially from such statements, including, without limitation: (i) increased competition, (ii) the price-sensitive nature of product demand, (iii) the Company's dependence upon favorable pricing from its suppliers and (iv) other risks indicated herein and in filings with the SEC.