LAVAL, Que. — Mercator Transport Group recorded a 95% growth in revenue during the first quarter of 2007, as compared to revenue from the same period in 2006.

The freight forwarding and international logistics companys revenue increased by
$ 1,814,000 or 95 %, to $3,719,000 during the first quarter of 2007, compared to $1,905,000 for the same period in 2006.

The gross profit margin was 11.8 % during the first quarter, compared to 12.4 % for the same period in 2006.

During the first quarter ended July 31, the company’s revenues increased by $840,000, or 29 %, compared to the three-month period ended April 30.

During the first quarter, the company showed net operating losses of $84,000 compared to a net profit of $50,000 in 2006. According to the company, the net loss is primarily due to the hiring of new employees and the increase in consulting fees with legal advisors, the foreign exchange loss and an amount of $19,000 was charged as stock-based compensation cost.

“The first quarter results are in line with the company’s strategic growth, noted Jean-Pierre Aplian, Mercator’s CEO. The increase in revenues, i.e. 95% increase, demonstrate our growth strategy.”