Colonial Commercial Corp. Reports Third Quarter Financial Results.

HAWTHORNE, N.J. -- Colonial Commercial Corp. ("Colonial") (OTC Bulletin Board: "CCOM," "CCOMP"), today announced its financial results for the third quarter and nine months ended September 30, 2006.

For the quarter ended September 30, 2006, sales increased by 10.6%, or $1,839,901, to $19,217,556 from $17,377,655 for the same period in 2005. Gross margins increased to 29.7% from 29.3% for the same period in 2005. Gross profit increased by 12.2%, or $620,871, to $5,713,326 from $5,092,455 for the same period in 2005. Operating income increased by 33.1%, or $212,964, to $855,793 from $642,829 for the same period in 2005. Pre-tax income increased by 28.4%, or $123,808, to $560,286 from $436,478 for the same period in 2005.

The Company's net income decreased by 48.0%, or $489,172, to $529,447 for the quarter ended September 30, 2006, or $0.10 per diluted share, compared to net income of $1,018,619, or $0.19 per diluted share, for the same period in 2005. This decrease in net income primarily reflects $641,500 in non-cash income that was reported in the quarter ending September 30, 2005 in relation to a recalculation of the future utilization of the Company's federal income tax loss carryforward. No such non-cash income was reported in the quarter ended September 30, 2006.

For the nine months ended September 30, 2006, sales increased by 8.4%, or $4,030,766, to $52,257,581 from $48,226,815 for the same period in 2005. Gross margins increased to 30.1% from 30.0% for the same period in 2005. Gross profit increased by 8.7%, or $1,263,381 to $15,741,026 from $14,477,645 for the same period in 2005. Operating income decreased by 5.4%, or $75,532, to $1,333,425 from $1,408,957 for the same period in 2005. Pre-tax income decreased by 38.1%, or $327,179, to $531,272 from $858,451 for the same period in 2005.

The Company's net income decreased by 66.5%, or $891,677, to $448,191 for the nine months ended September 30, 2006, or $0.08 per diluted share, compared to net income of $1,339,868, or $0.25 per diluted share, for the same period in 2005. This decrease in net income was caused by a decrease in pre-tax income of $327,179, and $641,500 in non-cash income that was reported in the nine months ending September 30, 2005 in relation to a recalculation of the future utilization of the Company's federal income tax loss carryforward. No such non-cash income was reported in the nine months ended September 30, 2006.

William Pagano, CEO of the Company, said, "We are pleased with our continued growth in sales and increased pre-tax profit this quarter. We are anticipating future growth in sales of our commercial products for the balance of 2006 and for 2007. Additionally, in September, we announced our entrance into the distribution and sales of appliances to contractors and independent appliance dealers in the New York metropolitan area, and in portions of Connecticut, Delaware and Eastern Pennsylvania. We believe that the addition of the appliance sales, emphasis on our commercial sales, and continued increase in market penetration of HVAC and plumbing products provides an exciting future for our Company."

Colonial distributes heating, ventilating and air conditioning, ("HVAC"), equipment, parts and accessories, climate control systems, and plumbing supplies to HVAC contractors, primarily in the New York metropolitan area through its Universal Supply Group, Inc. ("Universal"), American/Universal Supply Inc. ("American") and The RAL Supply Group, Inc. ("RAL") subsidiaries. These contractors purchase and install equipment and systems for residential, commercial and industrial users. The Company provides control system design, custom control panel fabrication, technical field support, in-house training and climate control consultation for engineers and installers. It is a leader in the design of direct digital control systems, and systems that control multi-location facilities through the Internet. The Company also distributes home appliances to dealer groups and appliance stores through its Goldman Universal division. The Company is headquartered in New Jersey, and, with its affiliates, operates out of seven locations in New Jersey; nine in New York and one in Pennsylvania. For more information on Colonial Commercial Corp.'s operations, products and/or services, please visit www.colonialcomm.com.

Safe Harbor Statement: The foregoing press release may contain statements concerning Colonial Commercial Corp.'s financial performance, markets and business operations that may be considered "forward-looking" under applicable securities laws. Colonial cautions readers of this press release that actual results might differ materially from those projected in any forward-looking statements. Factors which might cause actual results to differ materially from any results that are projected in the forward-looking statements include the following: continued acceptance of the company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the company's periodic report filings with the Securities and Exchange Commission. These and certain other factors which might cause actual results to differ materially from those projected are detailed from time to time in Colonial's periodic reports and registration statements filed with the Securities and Exchange Commission, which important factors are incorporated herein by reference. Colonial undertakes no obligation to update forward looking statements to reflect changed assumptions, the occurrence of unanticipated events, or changes in future operating results, financial condition or business over time.

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