Carmanah Technologies Corp.: Financial Results for Q1 2008 – Three-Year Operating Credit Facility with BMO Financial Group

Carmanah Announces Financial Results for Q1 2008

Victoria, British Columbia, Canada - Tuesday, May 13, 2008 - Carmanah Technologies Corporation (TSX: CMH) announces its financial results for the three months ended March 31, 2008.

The first quarter of 2008 represented a further milestone for Carmanah as the company refocused attention on growing its strategic businesses, while ensuring operating costs remain at levels supportable by current sales and margins. Although sales and margins were slightly lower than the same period in 2007, the company recorded net income of $0.1 million compared with a loss of $0.5 million in the same period of 2007. This represents the first quarterly profit since Q3 2006.
Highlights for the Quarter

    * Improved bottom line: net income of $0.1 million compared to $(0.5) million in the same period of 2007
    * Higher EBITDA: $0.7 million in Q1 2008 compared to $(0.3) million in the same period of 2007
    * Positive cash flow from operations: $0.1 million, compared to negative operating cash flow of $3.9 million in 2007
    * Cash balance at the end of the quarter: $4.1 million,  same as at December 31, 2007
    * Sales: $15.1 million for the first quarter of 2008, down marginally from $15.3 million for the same period of 2007 (Adjusting for Q4 2007 sale of the home power business, year-over-year sales are up approximately 4%)
    * Gross margin: 33.6% for 2008, down from 34.7% in 2007
    * Improved operating costs: $5.0 million for Q1 2008, down $0.6 million (10%) from the same quarter in 2007

Summary of Results

According to Ted Lattimore, Carmanah CEO, the first quarter of 2008 delivered further positive evidence that Carmanah is on the right track. "In February, we released a strategic plan for the revised business, emphasizing the transitional nature of 2008 as Carmanah returns to profitability, based on steady sales year over year from existing lines of business," said Lattimore. "Having increased our focus and streamlined the business (through positive action such as the home power divestiture), our first priority is to meet expectations that the company can manage a breakeven position from the current Strategic and Tactical business alignment. This quarter provides the first confirmation that the plan is underway, and that the company can indeed perform to plan levels. Cost controls implemented in 2007 have been carried forward, margins have improved materially, expenses are flat and our strategic solar powered lighting business has led the way in sales. Throughout Q2 we plan to build on this momentum, with the continued implementation of the new strategic plan."

With better working capital management, right-sized inventories, a solid cash balance and no debt, Roland Sartorius, Carmanah CFO, commented on how Carmanah's December 31, 2007 balance sheet provided the platform the company needed to successfully execute on the first stage of its strategic renewal. "With the first quarter behind us, we can see how a positive balance sheet helps the company progress according to plan," said Sartorius. "With increased revenues and margin percentages back in the thirties, we've stabilized operating expenses and achieved a bottom line, all the while protecting our cash position," added Sartorius. "As we head into the second quarter, the company is performing in line with the guidance we provided in 2007. Finally, we received further external support for our plan through the provision of a $10 million three- year committed lending facility that is currently being documented with the Bank of Montreal."

Sales

Sales for the first quarter of 2008 were $15.1 million, $0.2 million lower than the same period in 2007 but over 60% higher for our Strategic business segments than during the same period last year. A summary of revenues from each of the Strategic and Tactical business segments is shown below:


About Carmanah Technologies Corporation

As one of most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world's harshest environments, Carmanah's LED lights and power systems provide a durable, dependable and cost effective energy alternative. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol "CMH" and on the Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For more information, visit carmanah.com.




Carmanah Announces Three-Year Operating Credit Facility with BMO Financial Group

VICTORIA, BC, CANADA (May 13, 2008) Carmanah Technologies Corporation (TSX: CMH), a provider of solar power technology, has negotiated a new $10M, three-year committed operating facility arrangement with BMO Financial Group.



According to Roland Sartorius, Chief Financial Officer for Carmanah, the three-year bank credit facility offers greater convenience, flexibility and stability for the long term than a month-to-month arrangement. "The amount available under this facility is based on certain covenants, including the company's EBITDA performance (earnings before interest, taxes, depreciation and amortization); this format is clearly in line with our corporate commitment to steady, measured growth," said Sartorius. "Carmanah remains debt-free, and we have no immediate plans to draw on the line, although a committed operating facility can prove invaluable for facilitating large orders, mergers and acquisitions, or other opportunities if necessary."

"We are very pleased to be Carmanah Technologies Corporation's new financial partner," said James Gallagher, Regional Vice President, Corporate Finance, BMO Bank of Montreal. "We look forward to assisting this growing and exciting business by providing expert financial advice and ancillary banking services," Gallagher added. BMO Bank of Montreal's clients benefit significantly from full relationship management with considerable resources and financial expertise provided through a single local point of access.

For more information on Carmanah Technologies Corporation, visit www.carmanah.com.

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About Carmanah Technologies Corporation


As one of most trusted names in solar technology, Carmanah has earned a reputation for delivering strong and effective products for industrial applications worldwide. Industry proven to perform reliably in some of the world's harshest environments, Carmanah LED lights and power systems provide a durable, dependable and cost effective energy alternative. Carmanah is a publicly traded company, with common shares listed on the Toronto Stock Exchange under the symbol "CMH" and on the Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For more information, visit carmanah.com.

About BMO Financial Group

Established in 1817 as Bank of Montreal - Canada's first bank - BMO Financial Group is a highly diversified North American financial services organization. With total assets of $366.5 billion as at October 31, 2007, and more than 35,000 employees, BMO provides a broad range of retail banking, wealth management and investment banking products and solutions. BMO Financial Group serves clients across Canada through its Canadian retail and commercial arm, BMO Bank of Montreal, and through its wealth management firms, BMO Nesbitt Burns, BMO InvestorLine and BMO Harris Private Banking.

Carmanah Technologies Corporation

Roland Sartorius, Chief Financial Officer


For further information:
Investors:
Investor Relations: Roland Sartorius
Toll-Free:  1.877.722.8877
[email protected]

Media:
Public Relations: David Davies
Telephone:  +1.250.382.4332
[email protected]


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