GUELPH, ONTARIO – July 19, 2006–

We are pleased to report continued strong growth in sales volume, and positive earnings for the second quarter of 2006, achieved despite continued negative currency impacts. Net sales increased 10.7% for the quarter and 11.2% year-to-date 2006 over the comparable periods for 2005.

Year-to-date 2006 gross margins on net sales are up 1.0% over the average for 2005, but reduced slightly from the first quarter by 0.7%, due to the renewed appreciation of the Canadian dollar in the second quarter. Year-to-date selling, general and administration costs have been contained to 25.3% of net sales versus 28.1% for the comparable period in 2005. Margin improvement and volume growth continue to result in improvements in earnings from operations and bottom line profits.

Cash provided by operations, including change in working capital, totaled $1,025,000 for the quarter, $1,686,000 year-to-date. Total funded debt has been reduced by $1,379,000 in the first six months of 2006. The balance sheet remains strong.

Hammond Manufacturing Company Limited manufactures a broad range of products for the electronic and electrical products industry, including metallic and non-metallic enclosures, racks, small cases, outlet strips, surge suppressors and electronic transformers.

Robert F. Hammond, Chairman and CEO
Tel: (519) 822.2960
Fax: (519) 822.8987
Email: ir@hammfg.com