GUELPH, ONTARIO – July 21, 2004 – We are pleased to report continued positive sales momentum, and improved bottom line earnings, for the second quarter ending July 2, 2004. Year-to-date net sales were 3.7% higher then the comparable six-month period in 2003. Underlying sales growth in source currencies (removing the impact of currency translation) increased by 7.8% for the six-month period in 2004 over the first half of 2003.

Earnings from operations improved by 3.6% for the six-month period, and were higher by 22.8% for the second quarter, comparing the respective 2004 to 2003 periods. Margin improvement has been attained by product mix and refinement of sales focus, through better capacity utilization with increased volume, and by continued cost reduction and productivity improvements achieved through the efforts of our employees.

Long-term debt was reduced $479,000 in the quarter. Total funded debt has been reduced by $256,000 year-to-date ($421,000 in the second quarter), and is down $999,000 from the funded debt level at the end of the second quarter of 2003. Lower debt levels, and lower interest rates, have reduced interest expense by 19% compared to the total interest expense reported for the first half of 2003, contributing to the bottom line improvement.

The balance sheet remains strong, net book value per share ending the quarter at $1.87.

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