R.A.N.K.I.N. Technologies Inc. Q2 Revenues Increase by 141 % as sales of Boomerang units rise by 162 %

12/20/99

MONTREAL, Quebec, Dec. 20, 1999/ Rankin Technologies Inc. is pleased to announce favorable second quarter earnings ended October 31, 1999 with a 141% increase in revenues and 162% rise in sales of “Boomerang” units.

Rankin Technologies continues to grow at a rapid rate, leading to record operating results for the second quarter. Overall, revenues increased by 141%, to $ 884,478 from $ 336,824 in the last year’s compared period and posted a net earnings before taxes of $ 187,996 (.0085 per share) compared to a net loss of $ 22,546 (.0017 per share) a year earlier.

For the six months ended October 31, 1999, revenues increased 128% to $ 1,623,713 from
$ 710,797 in the first six months of 1998. Net income before taxes was $ 344,751 (.0157 per share) in the first six months of 1999 compared to a loss of $ 25,546 (.0017 per share) a year earlier.

In the quarter ended October 31, 1999, sales of Boomerang units rose by 162% to 2,128 activations from 813 a year earlier. These results reflect sales predominantly in the Provinces of Quebec and Ontario with a large percentage sold to individual customers rather than corporate accounts. For the six months ended October 31, 1999, sales of Boomerang units rose by 157% to 3,890 from 1,513 a year earlier.

Second Quarter Year to Date
For the three months ended For the six months ended
1999 1998 1999 1998
Revenues $ 884,478 $ 366,824 $ 1,623,713 $ 710,797
Net earnings (Net Losses) $ 187,996 $( 22,112) $ 344,751 $ (25,546)
Activations 2,128 813 3,890 1,513
Earnings/losses per share 0.0085 (0.0015) 0.0157 (0.0017)

"We are extremely pleased with the progress of the Company," said Mr. Peter Lashchuk, the Company's President. “With the dedication and efforts of our employees, we have strengthened our foundation and are now poised to enter a new millennium positioned for a new period of growth in earnings for periods to come. With our recent expansion into the Dominican Republic, and our current negotiations with insurance companies outside of the province of Quebec, we are confident that we will experience significant exponential growth. Our current monthly rate of activations has surpassed 1,350 and we confidently anticipate reaching 1,500 by January 2000.

During the second quarter, Rankin purchased a large quantity of raw materials for production inventory. This purchase was made to take advantage of substantially reduced prices.

Company Background

Rankin Technologies Inc. markets and distributes the Boomerang, a proprietary product utilizing technology patented by the Company. The Boomerang is the central device in a cellular-based asset tracking system capable of locating stolen automobiles, heavy equipment and valuable objects. Utilizing the cellular systems of major regional telecommunications companies, the Boomerang is capable of functioning indoors, underground, inside metal freight containers and in many other previously inaccessible locations.

Boomerang is a registered trademark of Rankin Technologies Inc. It’s headquarters and production facilities are located in Montreal, Quebec. Rankin products are sold and distributed in the Provinces of Quebec, Ontario and British Columbia. Rankin Technologies Inc. shares are traded on the Canadian Venture Exchange (CDNX) under the trading symbol “BMG.A”.

Boomerang® is a registered trademark of Boomerang Tracking Inc. It's headquarters are located in Montreal, Quebec. Boomerang products are sold and distributed in the provinces of Quebec, Ontario, British Columbia and in the Dominican Republic. Boomerang Tracking Inc. shares are traded on the Toronto Stock Exchange (TSE) under the trading symbol "BMG".