Ableauctions Reports First Quarter 2005 Results.

FIFE, Wash. -- Ableauctions.com Inc. (AMEX:AAC) (the "Company") today announced the results of operations for the quarter ended March 31, 2005.

Revenues

The Company reported revenue of $1,149,744 for the quarter ended March 31, 2005, compared to revenue of $791,524 during the same period in 2004, an increase of 45%. The increase in revenues reflects a stronger performance in the Company's operations generally, especially in the business sector related to the liquidation of surplus inventory, which is managed through its subsidiaries iTrustee.com Technologies, Ltd. and Unlimited Closeouts, Inc. The increase in revenues was due primarily to the Company's decisions to expand the on-line inventory liquidation business, to increase auction broadcast services, and to more effectively advertise its services. The Company expects the rate of growth of its auction broadcast services, particularly iCollector.com and Naalive.com, to keep pace with the growth of its liquidation services for the remainder of 2005. For the first quarter in 2005, live auction sessions for iCollector.com and Naalive.com have increased over 100% from the corresponding quarter last year. The total number of new registered bidders for live auctions grew by 30% in the first quarter and the Company's client base grew by 17% in the quarter from December 31, 2004.

Income

The Company reported lower net income for the quarter ended March 31, 2005, of $73,073 before depreciation, amortization and non-recurring expenses, compared to $94,957 during the same period in 2004, a decrease of 23%. The decrease in lower net income is a result of increased expenditures in the first quarter of 2005 as the Company began implementing advanced systems and processes in order to assist it in keeping pace with its expansion plans for the liquidation and auction broadcasting businesses. The Company's performance in 2004 marked significant growth over 2003, fueled primarily by the rapid expansion of its liquidation business. In the first quarter of 2005, the Company further expanded its liquidation and auction broadcasting services, adding support staff, developers and revenue generators. The Company expects to announce some of its specific initiatives before May 31, 2005.

The Company has focused on overall profitability over the last two years and has maintained positive cash flow from operations and from the interest and dividends earned by its investments. In 2005, the Company is focused on expansion and for the remainder of 2005, the Company expects to continue its expansion strategy, investing profits back into its core business units and forging long term relationships with industry leaders. The increased expenditures associated with the expansion may cause certain sectors of the Company's business to incur losses, but management believes that by continuing to develop and expand, profitability will be achieved over time.

In the first quarter of 2005, the Company incurred a one-time charge of $210,482 relating to legal fees and incidental costs pertaining to the suit brought against Liveauctioneers LLC, its Chief Executive Officer and founder, Julian Ellison, and co-founder John Ralston. In February 2005 a jury in the Supreme Court of the State of New York, County of New York, found in favor of the Company and iCollector.com Technologies Ltd. (iCollector). The jury found that Mr. Ellison breached fiduciary duties owed to iCollector and further found that Liveauctioneers LLC, Mr. Ellison, and Mr. Ralston engaged in unfair competition. The jury returned a verdict awarding the Company and iCollector $417,300 in damages. The former officer has appealed the judgment. The ultimate recovery of or costs to the Company, if any, from this action is not presently determinable and will be recorded at the time of that determination.

After depreciation, amortization and the one-time charge, the Company reported a net loss of $169,563 for the quarter ended March 31, 2005, compared to a gain of $51,923 during the same period in 2004.

Shareholder's Equity

Shareholders' equity, defined as the carrying amount of the Company's assets minus its liabilities, increased to $11,720,927 for the quarter ended March 31, 2005, from $11,505,806 as at December 31, 2005.

Gross profits were $272,428 or approximately 24% of revenues for the three-month period ended March 31, 2005, compared to $277,862 or approximately 35% of revenues for the same period in 2004. The decrease in gross profit as a percentage of revenue is attributed to greater revenues from our liquidation services group, Unlimited Closeouts, Inc. and iTrustee.com, which operate on lower gross profit margins than our auction broadcasting services.

The Company has made significant progress to date towards accomplishing many of its objectives and milestones. In 2005 the Company has emerged with an impressive business model and has laid a solid foundation on which to build an exciting technology company going forward.

About Ableauctions.com

Ableauctions.com Inc. (AMEX "aac") is a high-tech liquidator and on-line auction facilitator that operates the domains iCollector.com, Naalive.com, Unlimited Closeouts.com and iTrustee.com.

As an on-line auction facilitator, the Company, with the experience of over 3,000 auctions, has developed state-of-the-art technology to broadcast auction over the Internet (www.ableauctions.com/technology) and currently provides technology and related services to auction houses, enabling them to broadcast auctions over the Internet. The Company broadcasts business and industrial auctions over the Internet for auctioneers and members of the National Auctioneers Association (NAA) and art, antique and collectible auctions for numerous galleries and auction houses around the world through eBay Live Auctions.

As a liquidator, the Company, through Unlimited Closeouts and iTrustee, purchases overstocks, order cancellations and discontinued products from major manufacturers and importers, then sells the merchandise to major retail chains, other resellers or the public.

For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information, contact Investor Relations at [e-mail].

This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and the Company's business strategy. The words or phrases "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our staff, management, financing, competition, on-line auction business, our ability to implement or manage our expansion strategy, general economic conditions, our ability to license our software to other auction houses, our ability to acquire profitable companies and integrate them into our business successfully and other factors that are detailed in our Annual Report on Form 10-KSB and on documents we file from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company does not realize nor book the full revenue of auctions that it facilitates in its financials, only the net auction fees, that can vary from time-to-time, that it realizes.