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Commercial Solutions News Archive


press release 2006-16

FOR IMMEDIATE RELEASE
Toronto Stock Exchange
Symbol “TSX: CSA


COMMERCIAL REPORTS Q3 EARNINGS INCREASE OF 60%


Q3 Highlights

Earnings

Edmonton, Alberta, August 14, 2006 - COMMERCIAL SOLUTIONS INC. ("Commercial" or "Company") (TSX:CSA) a leading Canadian distributor of bearings, power transmission, industrial, safety, survey and resource management equipment products and services, services, today announced its financial results for the third quarter ended June 30, 2006. A complete copy of the Company's report is available on the Internet at www.sedar.com. Financial highlights from the fiscal 2006 third quarter are as follows:

For the three-month period ended June 30, 2006, Commercial reported increased revenue of $33.1 million compared to revenue of $25.4 million for the same period last year, representing a year-over-year increase of 30 percent. For the quarter, the Company reported a 45 percent increase in Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) of $2.7 million versus $1.9 million for the same period last year. Net income for the quarter increased 60 percent to $1.5 million compared to $0.9 million during the third quarter of fiscal 2005.

For the nine-month period ended June 30, 2006, earnings increased 110 percent to $5.1 million or $0.33 per share ($0.29 diluted) as compared to $2.4 million or $0.23 per share ($0.20 diluted) from the comparable nine-month period in 2005. Consolidated revenues rose by 42 percent to $97.6 million from $68.9 million and EBITDA improved by 110 percent to $9.2 million from $5.0 million for the prior year.

For the three months and nine months ended June 30, 2006, the EBITDA margins continued to improve to 8.2 percent and 9.4 percent from 7.4 percent and 7.3 percent in the comparative periods.

"We are very encouraged by the strong financial results we have been able to achieve this year, and continue to seek opportunities to grow and expand our portfolio of product offerings across Canada", said Jim Barker, President & CEO of Commercial. "The acquisition of Excel Bearings Inc. and Rig Products Inc. in this quarter further diversifies our Industrial Supplies and Oilfield Parts & Supplies segments and expands our footprint as a leading national supplier. We look forward to the successful integration of these two acquisitions into our family of companies."

For the three-month and nine month periods ended June 30, 2006, the basic weighted average number of shares outstanding were 17,531,525 (19,719,234 fully diluted) and 15,471,999 (17,733,599 fully diluted) respectively.

About Commercial

Headquartered in Edmonton, Alberta, Commercial is one of Canada's leading independent industrial distributors with 30 Services Centres and approximately 300 employees located across Canada. Commercial offers more than 160,000 items critical to maintenance repair and operations (MRO) and original equipment manufacturer (OEM) customers. The Company represents 500 leading manufacturers and serves over 10,000 customer accounts within a broad cross-section of industries, including oil and gas, forestry, food processing, chemical processing, mining and aggregate, utilities, agriculture and construction. Commercial trades under the symbol "CSA" on the Toronto Stock Exchange. For further information on the Company, please visit www.commercialsolutions.ca and for detailed financial information visit www.sedar.com.

Forward Looking Statements

From time to time, the Company may publish forward-looking statements relating to such matters as expected financial performance, business prospects, development activities and like matters. These statements involve risk and uncertainties, including but not limited to the risk factors previously described. Actual results could differ materially from those projected as a result of these risks and should not be relied upon as a prediction of future events. Commercial undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events.

FOR FURTHER INFORMATION PLEASE CONTACT:

Commercial Solutions Inc.
Eric Sauze
Chief Financial Officer
(780) 577-2215
esauze@csinet.ca


or

Genoa Management Limited
John Sadler or Ali Mahdavi
+1 (866) 430-6247
info@genoa.ca
www.genoa.ca

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