HOUSTON -- In anticipation of the Q3 2006 earnings release, the Management expects a minor pre tax loss for that reporting period. The loss will entirely arise from the Company's business segment Pallet-Management-Services in the US through:
* non-recurring, higher than expected legal
* a temporary decline in productivity and profitability in the US Pallet-Management-Services Segments (PMS) due to the partial replacement of the US Pallet-Management-Services workforce as a result of the ICE investigations.
Cash flow is expected to continue to be positive in Q3 2006 and for entire 2006.
Additional information regarding the investigations of the ICE can be found in the quarterly report Q1 2006 and Q2 2006, in the press release dated April 21, 2006 and on the Company's web-site.
The Company anticipates improvement in the productivity and profitability of the PMS business segment as well as declining legal costs and therefore expects a positive result for the fourth quarter 2006.
This release contains forward-looking statements that reflect Management's current view with respect to future events. All statements contained in this release that are not clearly historical in nature or necessarily depend on future events are forward-looking. The words "anticipate", "believe", "expect", "estimate", "planned" and similar expressions are generally intended to identify forward-looking statements. These statements are based on current expectations, estimates and projections of the Management on currently available information. Many factors could cause the actual results, performance or achievements to be materially different from those that may be expressed or implied by such statements. We do not assume any obligation to update the forward-looking statements contained in this release.