23.3.2007: Meldung: Dynetek reports 2006 Q4 and year end results

Dynetek Industries Ltd., a leader in the design, manufacturing and marketing of proprietary fuel storage cylinders and systems for compressed natural gas (CNG) and hydrogen, today reported results for the three months and the twelve months ended December 31, 2006.

Financial Highlights
<<
- Revenues from cylinder and systems sales for the twelve months ended
December 31, 2006 of $35.9 million increased $12.4 million or 53%
compared with the twelve months ended December 31, 2005.
- Revenues from cylinder and system sales for the three months ended
December 31, 2006 of $11.3 million increased $5.4 million or 92%
compared with the same period of 2005.
- Confirmed order book in excess of $29.0 million as at
December 31, 2006 to be delivered in 2007.
- Twelfth consecutive quarter of positive EBITDA(1).
- Cash flow from operations for the year ended December 31, 2006 was
$1.1 million.
>>

Christian Rasche, President and Chief Executive Officer, noted that the increase in fourth quarter revenues reflects shipments which were deferred from the second and third quarters due to delivery delays in raw materials. As noted in Dynetek"s second quarter 2006 report, heavy rains and flooding shut down the manufacturing plant of a key raw material supplier and prevented it from delivering for a period of time. Although Dynetek has worked closely with the supplier to overcome past delivery issues, many shipments by Dynetek of cylinders and systems were delayed from the second and third quarters into the fourth quarter. Normally Dynetek ships its products by sea at low cost. In order to maintain market leadership and customer needs, Dynetek incurred unexpected airfreight costs of approximately $1.3 million and additional labour and overtime costs of approximately $0.2 million in order to fill our European orders by year end. Dynetek continued to airfreight its products overseas until mid February 2007, at which time it resumed shipping by sea at lower cost.

"2006 was a tremendous year for cylinders and system sales for Dynetek," commented Mr. Rasche. "In Europe we experienced a 54% increase in our CNG cylinder and system sales from one year ago. Our Canadian operation also saw a 53% increase in cylinder and system sales."

"We were frustrated in 2006 with our raw material supply and the difficulties it caused in our ability to deliver to our customers," said Mr. Rasche. "Without the additional airfreight expense and labour costs, Dynetek would have been profitable."

(1) Earnings before interest, taxes, non-cash foreign exchange,
impairment of other assets, stock based compensation, depreciation
and amortization (EBITDA) is a non-GAAP measure and may not be
comparable to similar measures used by other companies. Management
believes EBITDA is a useful measure to assist in the assessment of
Dynetek"s ability to generate cash flows from its operations.


Year in Review

- Total revenue for the twelve months ended December 31, 2006 of
$38.4 million compared to $26.7 million for the same period of 2005.

- Total revenues for the three months ended December 31, 2006 of
$12.1 million, which is $5.3 million or 78% increase compared to the
same period of 2005.

- Cylinder and system sales for the European operations for the
twelve months ended December 31, 2006 were $22.8 million representing
an increase of $8.0 million or 54% compared to 2005.

- Cylinder and system sales for the Canadian operations for the twelve
months ended December 31, 2006 were $13.1 million representing an
increase of $4.4 million or 51% compared to 2005.

- Contribution margins decreased from 23% in fourth quarter of 2005 to
16% in the comparative fourth quarter for 2006, and from 25% for the
year ended December 31, 2005 to 21% for the year ended December 31,
2006, primarily due to abnormal airfreight costs as noted above.

- Cash flow from operations for the fourth quarter ended December 31,
2006 was $1.8 million compared to $1.3 million for the same period of
2005.

- Dynetek"s Canadian operation delivered 27 bulk transportation modules,
representing revenue of $4.6 million, to John Thompson Engineering
PTY, a division of Burns and Roe Worley, located in Sydney, Australia.
Dynetek"s BT modules are being used to transport compressed
natural gas (CNG) to a power plant located in Western Australia.

- Signed a letter of intent with Delphi Automotive Systems Do Brazil
LTDA. ("Delphi SA"). Delphi SA is a wholly owned subsidiary of Delphi
Corp., of Troy, Michigan. The letter of intent records the intention
of Dynetek and Delphi SA to negotiate a commercial agreement to
establish an exclusive distributorship arrangement and the prospect
for a manufacturing plant in Brazil for the production of DyneCell
cylinders for CNG in transit bus and automotive applications into the
South American market.

- Signed a sub-project agreement with ATF Advanced Technologies & Fuels
Canada Inc. (ATFCAN), to supply six CNG fuel storage systems,
including related engineering and on the ground support, to Tata
Motors Limited of India.

- Supplied the on-board hydrogen fuel storage systems to Ford Motor
Company for the first three hydrogen powered vehicles delivered
December 7th to Parliament Hill in a unique pilot project to test the
vehicles in real-life conditions. Dynetek is providing its certified
350bar (5000psi) storage solution for these hydrogen fueled internal
combustion engines.

- Moved the Dynetek Europe operation to a larger facility and along with
additional production equipment increased manufacturing capabilities.


In early 2007 Dynetek announced that it had accepted a purchase order representing approximately $7 million (CAD) in sales with Magna Steyr, an operating unit of Magna International Inc. The purchase order involves the development, certification and supply of 700bar compressed hydrogen fuel storage systems, including related engineering, to Magna Steyr in connection with DaimlerChrysler"s fuel cell program. Dynetek will commence delivery of storage systems for system and vehicle testing in the later part of 2007.

Additional information relating to Dynetek

Additional information concerning Dynetek is available on SEDAR at www.sedar.com.

Dynetek Industries Ltd. is a leading international company engaged in the design, manufacturing and marketing of fueling systems and high-pressure components including valves and regulators. The key component of the storage system is the DyneCell (R) cylinder, capable of storing high pressure gases including compressed natural gas (CNG), hydrogen, and various industrial gases. Dynetek"s cylinder and fuel storage systems applications include but are not limited to: the transportation industry, including passenger automobiles, light and heavy-duty trucks, transit and school buses; the bulk hauling of compressed gases; and stationary storage or ground storage refueling applications.

Forward looking statements

In addition to historical information, this news release contains forward-looking statements and should be read in conjunction with the financial statements and related notes for the year ended December 31, 2006. Forward-looking statements are based upon current assumptions, expectations and estimates that involve a number of risks and uncertainties and actual results could differ materially from those discussed in the forward-looking statements. Readers are encouraged to review the section in the Management"s Discussion and Analysis titled "Principal Risks and Uncertainties" for a discussion of factors that could affect Dynetek"s future operations and financial results. Forward-looking statements are based upon management"s assumptions, expectations and estimates at the time the statements are made. Dynetek does not update forward-looking statements should circumstances or management"s assumptions, expectations or estimates change, except where required by law.

Dynetek Industries Ltd.

Consolidated Balance Sheets
(thousands of Canadian dollars)
(unaudited)

December December
31 31
2006 2005
-------------------------------------------------------------------------
-------------------------------------------------------------------------

ASSETS
Current assets
Cash and cash equivalents 2,030 2,809
Accounts receivable 8,246 6,516
Inventory 11,859 10,392
Prepaid expenses 696 719
-------------------------------------------------------------------------
22,831 20,436

Intangible assets and deferred costs 5,917 5,054

Capital assets 17,263 16,216

Future income tax 2,355 2,505
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48,366 44,211
-------------------------------------------------------------------------
-------------------------------------------------------------------------

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities 7,891 5,145
Operating bank line 2,650 -
Current portion of long-term debt 185 137
-------------------------------------------------------------------------
10,726 5,282

Long-term debt 1,293 1,341

SHAREHOLDERS" EQUITY
Share capital 52,433 52,432
Contributed surplus 2,391 2,182
Deficit (18,477) (17,026)
-------------------------------------------------------------------------
(36,437) 37,588

48,366 44,211
-------------------------------------------------------------------------
-------------------------------------------------------------------------



CONSOLIDATED STATEMENTS OF OPERATIONS AND DEFICIT
(thousands of Canadian dollars except share capital and per share
amounts)
(unaudited)

Three months ended Year ended
December 31 December 31
2006 2005 2006 2005
-------------------------------------------------------------------------

REVENUE
Sales 11,334 5,858 35,932 23,521
Research and
development 771 603 2,409 2,841
Investment and other
income 14 317 84 397
-------------------------------------------------------------------------
12,119 6,778 38,425 26,759
EXPENSES
Cost of goods sold 9,513 4,538 28,454 17,648
General and
administrative 1,293 1,002 4,045 3,464
Research and product
development 650 461 2,210 2,773
Marketing 509 546 1,859 1,703
Interest 62 - 84 -
Depreciation 698 328 1,757 1,223
Amortization of
intangible assets and
deferred costs 320 139 811 476
Foreign exchange loss 75 258 297 983
Stock based compensation 56 105 209 399
Impairment of other
assets - - - 535
-------------------------------------------------------------------------
13,176 7,377 39,726 29,204
-------------------------------------------------------------------------
Loss before income taxes (1,057) (599) (1,301) (2,445)
-------------------------------------------------------------------------

PROVISION FOR TAXES
Future income taxes 150 - 150 -
-------------------------------------------------------------------------
150 - 150 -
-------------------------------------------------------------------------

NET LOSS (1,207) (599) (1,451) (2,445)
-------------------------------------------------------------------------

Deficit, beginning of
period (17,270) (16,427) (17,026) (14,581)
-------------------------------------------------------------------------
DEFICIT, END OF PERIOD (18,477) (17,026) (18,477) (17,026)
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Per Share Information
Net loss per share (basic
and diluted) (0.06) (0.03) (0.07) (0.12)
Weighted average number
of common shares
outstanding 20,940,295 20,793,601 20,940,295 20,793,601
-------------------------------------------------------------------------
-------------------------------------------------------------------------



CONSOLIDATED STATEMENT OF CASH FLOWS
(thousands of Canadian dollars)
(unaudited)

Three months ended Year ended
December 31 December 31
2006 2005 2006 2005
-------------------------------------------------------------------------
-------------------------------------------------------------------------

Cash flows provided by
(used for) operating
activities
NET LOSS (1,207) (599) (1,451) (2,445)
Items not involving cash
Depreciation 698 328 1,757 1,223
Amortization of
intangible assets and
deferred costs 320 139 811 476
Stock based compensation 56 105 209 399
Impairment of other
assets - - - 535
Future income tax 150 - 150 -
Unrealized foreign
exchange loss (282) 43 (280) 597
-------------------------------------------------------------------------
(265) 17 1,196 785
Changes in non-cash
working capital
Accounts receivable (876) 644 (1,730) 1,894
Inventory 1,150 (209) (1,467) (901)
Prepaid and other (362) (382) 23 (104)
Accounts payable and
accrued liabilities 1,934 1,307 2,746 758
Unrealized foreign
exchange (loss) in
non-cash working
capital 173 (36) 200 (392)
-------------------------------------------------------------------------
Cash flow from operations
(deficiency) 1,754 1,340 968 2,040
-------------------------------------------------------------------------

INVESTING ACTIVITIES
Additions to intangible
assets and deferred
costs (649) (426) (1,674) (1,328)
Additions to capital
assets (861) (355) (2,804) (1,588)
Unrealized foreign
exchange gain (loss) in
investing activities - - - 19
-------------------------------------------------------------------------
(1,510) (781) (4,478) (2,897)
-------------------------------------------------------------------------
FINANCING ACTIVITIES
Exercise of options - - 1 30
Settlement of long-term
debt - (298) - (298)
Operating bank line 475 - 2,650 -
-------------------------------------------------------------------------
475 (298) 2,651 (268)
-------------------------------------------------------------------------

Foreign exchange gain
(loss) on cash held in a
foreign currency 109 (7) 80 (205)
-------------------------------------------------------------------------
Increase (decrease) in
cash and cash
equivalents 828 254 (779) (1,330)

Cash and cash equivalents,
beginning of period 1,202 2,555 2,809 4,139
-------------------------------------------------------------------------

Cash and cash equivalents,
end of period 2,030 2,809 2,030 2,809
-------------------------------------------------------------------------
-------------------------------------------------------------------------



Corporate Information

Board of Directors Officers and Management Bankers

Bank of Nova Scotia
Heinz O. Portmann Heinz O. Portmann Calgary, Alberta
Chairman of the Board Chairman of the Board
Dynetek Industries Ltd. Auditors
Calgary, Alberta Dr. Christian Rasche Deloitte & Touche LLP
President and Chief Calgary, Canada
Executive Officer

Andrew T.B. Stuart (i) Michael D. Portmann
President and Chief Vice President and
Executive Officer General Manager Legal Counsel
Sustainability Shift Gowling Lafleur
Inc Ulrich Imhof Henderson LLP
Toronto, Ontario Vice President, Calgary, Alberta
Engineering
Peter A. Leus(i)(v) Transfer Agent and
Director Karen Y. Minton Registrar
Starlaw Holdings Ltd. Vice President, CIBC Mellon Trust
Montreal, Quebec Finance and CFO Company
with offices in
Michael J. Lang(x)(i) Norman E. Hall Toronto, Montreal and
Chairman Corporate Secretary Calgary
Stonebridge Merchant
Capital Corp. Stock Listing
Calgary, Alberta Toronto Stock Exchange
Trading Symbol: DNK
Larry A. Wright(x)(v)
Executive Vice Investor Relations
President To obtain additional
Multimatic Inc information about
Markham, Ontario Dynetek or to be placed
on our mailing list
William K. Kovalchuk(x) Corporate Head Office for quarterly reports
President 4410 - 46th Avenue SE please contact:
Claret Asset Calgary, Alberta, Christian Rasche
Management Corp. Canada Dynetek Industries Ltd.
Montreal, Quebec T2B 3N7 Investor Relations
Tel (403) 720 0262 4410 - 46th Avenue SE
Robb D. Thompson Fax (403) 720 0263 Calgary, Alberta,
Vice President Web site: Canada
Finance and CFO http://www.dynetek.com T2B 3N7
Berkana Energy Corp. Tel (403) 720 0262
Calgary, Alberta Subsidiary Fax (403) 720 0263
Dynetek Europe GmbH Email:
Dr. Christian Rasche Breitscheider Weg 117a invest(at)dynetek.com
President and Chief D-40885 Ratingen
Executive Officer Germany
Dynetek Industries Ltd.
Witten, Germany


(x) Audit Committee member
(i) Compensation Committee member
(v) Corporate Governance Committee member


For further information

Christian Rasche, President and Chief Executive Officer, Dynetek Industries Ltd., 4410-46 Avenue S.E., Calgary, Alberta, T2B 3N7, Tel: (403) 720-0262, Toll-free: 1-888-396-3835, Fax: (403) 720-0263, Web: www.dynetek.com
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