Consolidated Mercantile Incorporated reports third quarter financial results Consolidated Mercantile Incorporated (TSX - "CMC" - common) (NASDAQ - "CSLMF" - common) TORONTO, Nov. 12 /PRNewswire-FirstCall/ -- In March 2004, Consolidated Mercantile Incorporated ("CMI") completed the sale of approximately 48% of its holdings in Polyair Inter Pack Inc. ("Polyair"). After giving effect to this sale, CMI owned 23% of the common shares of Polyair. Polyair's fiscal year end is October 31, and accordingly, the unaudited Consolidated Statement of Operations for the six months ended June 30, 2004 includes the results of Polyair for the four months ended February 2004. As CMI and Polyair no longer have a parent-subsidiary relationship, the investment in Polyair is now accounted for using the Equity Method. Revenues for the period ended September 30, 2004 decreased 47% to approximately $100.4 million from $189.0 million in 2003. The decrease in sales was as a result of the deconsolidation of Polyair. Sales for the third quarter reflect the consolidation of Distinctive Designs Furniture Inc., the Company's furniture manufacturing subsidiary. Net Earnings for the period, which includes the gain on sale of the investment in Polyair, were $5.5 million compared to $1.9 million in the preceding year. Earnings per share for the nine month period was $1.09 compared with $0.37 in the comparable 2003 period. CMI today completed the purchase of an aggregate of 121,875 common shares of Polyair from two individual vendors in a private transaction. After giving effect to this purchase, CMI now owns 1,549,842 common shares of Polyair representing 24% of the outstanding common shares of Polyair. CMI is acquiring the Shares for investment purposes to fulfil its commitment to the vendors pursuant to the terms of agreements dated March 11, 2004. CMI may decide to acquire additional common shares of Polyair in the future but has no specific intention to do so at this time. Consolidated Mercantile Incorporated is a management holding company which provides merchant banking and effects its investment strategy through investment in and management of its core strategic industries including packaging, swimming pool products, furniture and finance. "Safe Harbor" statement under the Private Securities Reform Act of 1995: This release contains forward-looking statements which reflect management's current views of future events and operation. These forward-looking statements are based on assumption and external factors, including assumptions relating to product pricing, competitive market conditions, financial data and other risks or uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. These forward-looking statements represent the Company's judgement as of the date of this release and any changes in the assumptions or external factors could produce significantly different results. DATASOURCE: Consolidated Mercantile Incorporated CONTACT: Stan Abramowitz, Secretary, (416) 920-0500

Copyright