Commercial Consolidators Doubles EPS, Earnings Up 180% Year-to-Date.

Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 23, 2000

Commercial Consolidators (CDNX:CCZ.)(FRANKFURT:CJ9)

Commercial Consolidators Corp., technology assembler and distributor for businesses and consumers throughout the Americas, today reported record EBITDA and net income for the quarter and the six months.

The company posted record results in the quarter. For the three months ended August 31, 2000, sales revenue increased 86% to $20.3 million from $10.9 million for the comparable quarter in 1999. Net after-tax earnings for the quarter increased 233% to $2.0 million, or $0.12 per share, from $0.6 million for the same quarter last year.

For the six-month period ended August 31, 2000, sales revenue increased 118% to $44.1 million from $20.2 million for the comparable 1999 period. Net after-tax earnings for the period increased 180% to $3.4 million, or $0.20 per share, from $1.2 million for the same period last year.

Commercial Consolidators' financial results for the six months are summarized as follows:

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                                Six months ended   Six months ended
                                 August 31, 2000    August 31, 1999
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                              (In thousands except per share amounts)
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Sales                                    $44,073            $20,231
Cost of sales                             34,533             16,449
Operating expenses                         3,475              1,669
                                         --------------------------
EBITA                                    $ 6,065            $ 2,113
Net Income                               $ 3,354            $ 1,196
Net earnings per share                     $0.20              $0.10
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The robust increases in sales and earnings for the quarter and year-to-date were driven by strong growth in the consumer electronics division, specifically the audiovisual and wireless product lines. Outstanding sales and earnings were also generated by the company's hotel property management software subsidiary, with the successful launch of "hotelpms.com," one of the first web-based hotel property management software solutions available in the market place.

Profit margins have continued to increase strongly with the strategic diversification of the company's product lines, and operating and financing expenses as a percentage of sales have decreased against the comparable period last year. This has resulted in net income as a percentage of sales increasing from 5.9% to 7.6% for the six-month period.

"The company's strong financial performance reflects the successful integration of its recent strategic acquisitions as well as the continued growth of its core operations in Latin America," said Guy Jarvis, CEO. "The company has again exceeded its forecasts for top-line and bottom-line growth while diversifying its product lines and its customer base throughout the Americas. We expect this combination of growth and diversification to translate into enhanced value for our shareholders."

The company is also pleased to announce that it has retained Ciris International Inc. of Toronto, Ontario to provide public-relations and media-relations services for the company. Ciris has been retained on a month-to-month basis with a budget of up to $7,000 per month. Ciris is a full-service investor-relations and corporate-communications firm that specializes in working with clients to position them effectively with their target audiences. With a broad range of clients -- small-cap to multi-national, resource-based to high-tech, Ciris' goal is to help clients build positive and enduring relationships with stakeholders.

About Commercial Consolidators Corp.

Commercial Consolidators is a leading assembler and distributor of consumer electronics and business technologies in the Americas. The company represents such international recognized brand names as Sanyo, Samsung, Philips, Sony, Epson, Mita, Acer, Fujitsu, and Panasonic. Through the successful implementation of its core business strategies, Commercial Consolidators has enjoyed a minimum growth rate in revenues of 50 percent per year for the last four years.

ON BEHALF OF THE BOARD OF DIRECTORS

Guy Jarvis, CEO

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.