DRUMMONDVILLE, QC, Aug. 12 /CNW Telbec/ - CVTech Group Inc. ("CVTech" or "the Corporation") (TSX: CVT) today announced its second quarter results for the period ended June 30, 2009. As in the previous quarter, overall results reflect the softness in the economy affected the Corporation's two segments of operations, as well as timing issues in the award of contracts related to large electrical power distribution and transmission projects. Unless otherwise indicated, all amounts are in Canadian dollars.

SECOND-QUARTER RESULTS

Consolidated revenues in the second quarter of 2009 reached $27.0 million, down $3.4 million or 11.1% from $30.4 million in the second quarter of 2008. Earnings before interest, taxes, depreciation and amortization ("EBITDA") were $2.2 million or 8.2% of revenues, compared with $2.8 million or 9.3% of revenues a year earlier. Net earnings were $0.9 million or $0.02 per diluted share, compared with $0.6 million or $0.01 per diluted share a year earlier. Net earnings for the second quarter of 2009 reflect $465,000 in prior-year income tax credits for a subsidiary of the Corporation.

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Financial highlights Quarters ended Six months ended

(in $ thousands, June 30 June 30

except per-share data) 2009 2008 2009 2008

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Revenues 27,022 30,384 53,721 67,422

EBITDA(x) 2,211 2,824 4,325 7,711

Net earnings for the period 925 555 1,239 2,451

Per share - basic and

diluted ($) 0.02 0.01 0.02 0.04

Weighted average number

of shares outstanding

(diluted, thousands) 58,135 57,752 58,035 57,551

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(x) Earnings before interest, taxes, depreciation and amortization

SEGMENT RESULTS

Revenues in the CVT and related products segment totalled $3.5 million in the quarter ended June 30, 2009, compared with $5.9 million for the same quarter in 2008. The decline was due essentially to the effect of economic uncertainty on demand for recreational vehicles. Reflecting previous cost-reduction measures, the net loss for this segment increased only slightly to $258,000 from $147,000 a year earlier.

Revenues in the electricity segment decreased slightly to $23.5 million in the second quarter of 2009 from $24.4 million in 2008.