ELGT Electric and Gas Technology Inc (CE)

Electric & Gas Technology, Inc. (OTCBB:ELGT) today announced financial results for its fiscal second quarter ended January 31, 2006. For the quarter ended January 31, 2006, ELGT had net income from operations of $218,137, or $.03 per share, an increase of $127,756, or $.02 per share, from the same period a year ago. Moreover, gross margins for the quarter improved from 30.0% in 2005 to 43.0% in 2006, bringing the year to date gross margin to 32.1%, a 2% increase from 30.2% for the first six months of 2005. ELGT is laying the groundwork for another year of success. In 2005, ELGT made numerous strides to progress the Company in a positive direction that management believes will build a foundation upon which shareholder value can be steadily enhanced. The outlook for 2006 is a positive one in which the Company believes it will see an extension of the trends established in 2005. Revenue and profits are expected to continue strengthening in the second half of 2006. Daniel A. Zimmerman, President and Chief Executive Officer, commented: "We had a great second quarter, demonstrating that the business strategy we have embarked upon can be successfully executed. Our second quarter results reflect the commitment and dedication of ELGT's management and employees. Pursuant to our business plan and corporate vision, we are achieving our top level goals for revenue growth, improved margin and of course profitability. We continue reducing operational redundancies and consolidating business functions where possible. Our synergy-based approach to operations and our model of continuous growth have resulted in significant progress, but the best is yet to come. We expect these trends to rise sharply in the second half of 2006." Continuing, Zimmerman said; "We have accomplished our stated goals and continue to move forward. Our focus will continue to be on top line growth and operational efficiencies that are the keys to sustainable profitability. Our strategy combines aggressive revenue targets with simple and conservative business practices. The Company thanks its shareholders, both new and old, for their commitment and we look forward to exciting years ahead." About Electric and Gas Technologies, Inc. Electric & Gas Technology, Inc. (ELGT) is a publicly traded company that, through its subsidiaries, operates in two distinct business segments: (1) Utilities Products and (2) Contract Manufacturing. Headquartered in Garland, Texas, Reynolds Equipment Company, a wholly owned subsidiary, manufactures and sells gas measurement equipment to the natural gas industry world wide. The Company's products include mechanical instruments, electronic instruments and odorization equipment. Logic Metals Technology, Inc., a second operating subsidiary, has been a dynamic and reliable supplier of close tolerance fabricated metal components and assemblies to a variety of industries. The Company supplies precision fabricated parts to the telecommunications, electronics, medical, banking and sorting industries. Logic Metals provides precision sheet metal fabrication prototypes, small and large run parts and assemblies with exacting quality and engineering specifications. For additional information, visit our website www.elgt.com. 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.