The two-day World Economic Forum on East Asia has brought to Tokyo more than 300 business, government and civil society leaders from 35 countries to discuss the theme "Creating a New Agenda for Asian Integration."

Asian companies are redefining their roles in the global marketplace, according to Lee Boon Yang, Minister of Information, Communications and the Arts of Singapore. Companies such as Korean electronics maker Samsung and Singapore's Hyflux, which is developing membrane technology for water treatment, demonstrate that investment in R&D is crucial to promoting innovation, he said. Added Zhang Xiaoqiang, Vice-Chairman, National Development and Reform Commission, People's Republic of China: "R&D investment allows companies to improve their competitiveness."

The age of the multinational and the traditional country representative with limited geographic responsibilities is over, panellists agreed. Instead, enterprises will be "globally integrated", argued Hirotaka Takeuchi, Dean, Graduate School of International Corporate Strategy, Hitotsubashi University, Japan. Networking, collaboration and partnering will be keys to success.

In the same way, remarked meeting Co-Chair Kunio Nakamura, President, Matsushita Electric Industrial Co., Japan, each economy will have to find its niches and take advantage of them, competing and collaborating with others at the same time. Asia's manufacturing sector is developing along those lines, he explained. In future, Japan could generate growth by using its expertise in environmental management to contribute technology and skills to promote sustainable development elsewhere.

As they become globally integrated, companies will develop a common culture. "Values are going to be extremely important," Takeuchi observed. "You can't have an integrated enterprise without a commonly shared set of values." But there could be such a thing as "too much globalization", warned meeting Co-Chair Sir Martin Sorrell, Group Chief Executive, WPP, United Kingdom. Cultural differences should not be underestimated, particularly when companies are fighting to hire the best talent, Sorrell suggested.

The sharp drop in shipments boosted the inventory-to-shipment ratio to 1.31 in April, equal to the ratio's recent high set in February.

Uncertainty in the manufacturing sector, due in part to the strengthened value of the Canadian dollar and soaring input costs, have contributed to some weakness in shipment activity. As a result, the trend of the inventory-to-shipment ratio has been on a gradual, upward movement over the last few months.

The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.

A cool start to spring

In April, two-thirds of the manufacturing industries, accounting for 66% of total shipments, posted declines. Both the durable (-1.8%) and nondurable goods (-1.1%) sectors recorded lower shipments for the month.

A quarter-end boost in production in March by some aerospace manufacturers led to a larger than normal drop in production in April. Production of aerospace products and parts fell 37.8% to $892 million in April, following last month's 38.2% surge. Despite the decline, a gradual recovery in global demand for aircraft and parts has fuelled growth in Canada's aerospace industry compared to last year.

Food manufacturers also reported wide ranging declines, as shipments tumbled 4.2% to $5.6 billion. Decreases were extensive and included the dairy products, grain and oilseed milling and meat products industries.

The fabricated metal products industry also registered a 3.4% drop in shipments to $3.1 billion, following some big orders shipped in recent months.

Shipments fall despite price hikes for gas and metals

In spite of strong demand and sky-high prices for primary metals and petroleum, the strength of these industries only partly offset the overall decline in shipments for April.

Soaring prices contributed to a 5.5% jump in shipments of primary metals to $4.4 billion. Robust demand and low inventories for certain metals, including copper, zinc and nickel, have driven up prices in recent months. The industrial price index of primary metals has risen 13% since December, soaring 6.4% in April alone.

Motor vehicle shipments increased 2.7% to $5.3 billion in April, following a 6.8% decline in March due to temporary plant closures. Notwithstanding April's gain, the auto sector continues to struggle with a range of challenges from weakening retail sales in North America, to rising interest rates and high consumer debt in the United States. Year-to-date shipments of motor vehicles were down 9.5% in the first four months of 2006 compared to the same period in 2005.

April saw the return of record high prices for petroleum products. By mid-month, the price of crude oil exceeded $73 US per barrel, surpassing its previous apex in September 2005. Unease regarding supply as the summer driving season fast approaches, coupled with global tensions concerning Iran and other oil-producing regions have contributed to the recent price speculation. Petroleum shipments rose 2.6% to $4.9 billion in April and might have been higher but temporary refinery shutdowns largely counterbalanced the 9.6% spike in petroleum prices.

Manufacturers produce less in April

The volume of goods shipped also fell for the third time in the last four months. At 1997 prices, shipments dropped 1.4% to $46.8 billion.

Notwithstanding the many challenges of the last year, manufacturers have held their own as the volumes of goods shipped remained relatively stable over the last 12 months. That said, these challenges may have eroded opportunities for market expansion and employment growth. Constant dollar shipments for the period January-to-April 2006 were essentially unchanged with that of the same period last year.

Quebec and Alberta were among the seven provinces and the Yukon to post lower shipments in April. Big declines in aerospace production coupled with the food and wood products industries pulled down shipments in Quebec by $393 million (-3.1%) to $12.1 billion.

The machinery and chemical products industries contributed to the relatively widespread decreases among Alberta's manufacturers. Shipments fell by $164 million (-3.1%) to $5.1 billion in Alberta, marking the third decrease in the last four months by the province's manufacturers.

Manufacturing shipments, provinces and territories
	March 2006r	April 2006p	March to April 2006
	Seasonally adjusted
	$ millions		% change
Canada	51,198	50,432	-1.5
Newfoundland and Labrador	268	223	-16.5
Prince Edward Island	121	116	-3.5
Nova Scotia	799	804	0.6
New Brunswick	1,259	1,216	-3.4
Quebec	12,491	12,098	-3.1
Ontario	25,178	25,097	-0.3
Manitoba	1,083	1,094	1.0
Saskatchewan	917	965	5.2
Alberta	5,253	5,089	-3.1
British Columbia	3,820	3,721	-2.6
Yukon	1	1	-3.7
Northwest Territories including Nunavut	7	7	2.8
r revised p preliminary

Dissatisfaction prevails among manufacturers

With the recent erosion in both the value and the volume of goods shipped, dissatisfaction has emerged among manufacturers as reported in the April Business Conditions Survey. Manufacturers are anticipating tough times in the months ahead as the effects of the high-valued Canadian dollar and soaring input costs continue to cut into their bottom lines.

Inventories trimmed in April

Manufacturers' inventories were reduced by 0.5% to $66.0 billion in April, the first decline since December. The aerospace industry (-11.6%) was the main contributor, but that was partly offset by inventory gains in the primary metals (+4.4%) and chemical products (+2.0%) industries.

April's decrease in inventories was concentrated in the goods-in-process stage of fabrication, which fell by 2.3% to $15.3 billion. This followed a healthy 2.6% rise in March, and the recent volatility was due to aerospace manufacturers working through orders for their quarter end last month.

Inventories of raw materials edged up 0.2% to $28.7 billion, the fourth increase in a row, while finished product inventories remained constant at $22 billion.

Fewer orders on the books

New orders fell 2.3% to $50.1 billion in April. The aerospace industry (-49.3%) has been partly responsible for the flux in new orders received in recent months. Excluding aerospace products and parts, new orders were down 1.0%.

Other industries with sizeable declines included machinery (-9.4%) and motor vehicle parts (-3.5%). The decrease in new orders overall was slightly offset by a 5.4% gain in contracts received by the hot primary metals industry.

Unfilled orders decline, but the level remains healthy compared to 2005

The backlog of unfilled orders weakened somewhat in April as some cancelled orders contributed to a 0.9% decrease to $42.9 billion.

April's setback was only the second decline in unfilled orders in the last eight months. So far in 2006, the average level of unfilled orders has remained 10.6% above last year's average.

Manufacturers of big ticket industries including aerospace products and parts (-1.1%) and machinery (-2.3%) contributed to the decline in unfilled orders.

Note to readers

Non-durable goods industries include food, beverage and tobacco products, textile mills, textile product mills, clothing, leather and allied products, paper, printing and related support activities, petroleum and coal products, chemicals, and plastics and rubber products.

Durable goods industries include wood products, non-metallic mineral products, primary metals, fabricated metal products, machinery, computer and electronic products, electrical equipment, appliances and components, transportation equipment, furniture and related products and miscellaneous manufacturing.

Unfilled orders are a stock of orders that will contribute to future shipments assuming that the orders are not cancelled.

New orders are those received whether shipped in the current month or not. They are measured as the sum of shipments for the current month plus the change in unfilled orders. Some people interpret new orders as orders that will lead to future demand. This is inappropriate since the "new orders" variable includes orders that have already been shipped. Readers should note that the month-to-month change in new orders may be volatile. This will happen particularly if the previous month's change in unfilled orders is closely related to the current month's change.

Not all orders will be translated into Canadian factory shipments because portions of large contracts can be subcontracted out to manufacturers in other countries. Also, some orders may be cancelled.

Beer volumes up 23%, net income $126 thousand

WATERLOO - Brick Brewing Co. Limited (TSX:BRB) today released its first quarter financial results for the quarter ended April 30, 2006.

"In this quarter we continued to see strong demand for our brands with overall volumes up 23%," said Jim Brickman, Executive Chairman and Founder. "We are also looking forward to the launch of our new J.R. Brickman Founder's Series of premium craft brewed beers which we expect will bring renewed enthusiasm for our premium portfolio of brands," Brickman added.

"We are in the midst of managing a transition where we will strive to move from a successful small brewer to a competitive mid-size brewer," Doug Berchtold, President and CEO said: "Continuing the successful Kitchener start-up is the important element of this plan," Berchtold added.

First Quarter Financial Highlights

- Net revenue for the first quarter increased to $7.7 million compared to $7.0 million for the same period last year, an increase of 10%. Beer volumes increased by 23% over the first quarter last year. Gross revenues increased 20% however marginal production taxes increased 13% or $629 thousand compared to the same quarter last year.

- Net income before taxes was $190 thousand compared to $752 thousand in the first quarter last year.

- Earnings before interest, taxes, depreciation and amortization (EBITDA) was $630 thousand compared to $1.05 million in the same quarter last year.

- Cost of goods on a per unit basis for beer decreased 1% in the first quarter compared to last year. These cost reductions are attributable to the higher volumes and ongoing efficiencies in both production and distribution.

- Distribution fees paid to LCBO and TBS were reduced by 6% or $195 thousand in the first quarter this year compared to the same period last year as a result of increased direct delivery to retail stores.

First Quarter Operational Highlights

- During the quarter, trial production commenced at the new Kitchener packaging facility and the "ramp up" of this facility produced temporarily higher operating costs and overheads than recent historical performance. On April 20, the line was commissioned for ongoing production.

- In the recent federal budget the government announced that effective July 1, 2006 the excise tax rate for annual production over 75,000 hectolitres would increase and excise tax rates for annual production below that level would be reduced. The overall impact of this change for Brick will be a permanent reduction in the excise tax payable of $763 thousand annually.

"This latest transaction reflects our continuing drive to sharpen our focus on those areas of our business that we believe offer the greatest opportunities and rewards," said Ron Jutras, ATS President and CEO. "The sale of the Berlin business today follows the divestiture of our Precision Metals business in January, the closure of the Niagara ASG facility in December 2005, and the closure of the McAllen Texas PCG facility in July 2005. These actions are only one element of a broader group of steps we're employing, all of which are intended to improve margins and returns across our business - both near term and in future - in direct response to changes in our markets and the pursuit of new opportunities. Our initiatives also include further actions designed to reduce costs, increase focus on strategic customer accounts that offer the greatest long-term potential, strengthen our global business platform and expand our capabilities in targeted markets, including China and at Omex, both announced last month."

The name of the purchaser and transaction terms were not disclosed. ATS expects to record a non-cash loss in respect of the sale of no more than $2 million in its first quarter of fiscal 2007.

9:30 – 10:45 a.m.: Dr. James P. Womack, Lean Enterprise Institute on “Preparing Your Home Base for Global Success”

12:45 p.m. – 1:30 p.m.: Dr. Jayson Myers, CME on “The Realities for North American and Canadian Manufacturers - Understanding the Big Picture”

3:00 p.m. – 4:00 p.m.: Art Church, Mancor Industries on “Competitive Success - It Starts at the Top”

4:00 p.m. – 5:15 p.m.: International Keynote Panel: Moderated by Tony Laraia, Chairman AME on “Trends in Lean Deployment in Europe - Practical Competitive Insights from UK Practitioners”

Wednesday, June 14, 2006

12:15 p.m. – 1:15 p.m.: Terry Evanshen, former CFL Football Hall of Famer, Motivational Speaker on “Seize Each Day”

4:00 p.m. – 5:00 p.m.: Chris Griffiths, President & CEO of Garrison Guitars on “ Leading with the Right Chord in 2006”

Thursday, June 9

10:15 a.m. – 11:15 a.m.: Keynote: Norman Bodek, PCS Press on

“Success in Manufacturing Begins with the Power Within You”

11:15 a.m. – 12:15 a.m.: Closing Keynote: Dr. Dan Shunk, Arizona State University on “Getting Your Home Operations in Order - To Compete and Win in the Global Marketplace”

Tours

Monday June 12, 2006

Morning: Toyota Motor Manufacturing Canada
Afternoon: Diamond Air

Tuesday June 13, 2006
Morning: Canadian Blue Bird Coach, Raytheon, CGL Manufacturing
Afternoon: Bombardier, Corporate Express Canada, CFN Precision

Wednesday June 14, 2006
Morning: CTS Canada, Research in Motion, CGL Manufacturing
Afternoon: Research in Motion, Nestle Waters Canada

Thursday June 15, 2006
Morning: Goodrich Landing Gear, Custom Foam

For more details about the program, please visit www.measureupforsuccess.com.

"Canadian plants have again demonstrated that they are competitive, not only in terms of productivity, but also in terms of quality," said Richard Cooper, executive director of J.D. Power and Associates' Canadian operations. "This will be an important issue, as Canada (and particularly Ontario) seeks to continue its recent successes in winning investment dollars in the highly competitive North American production environment."

This is the second consecutive year GM's Oshawa No.2 plant has received the prestigious Gold award. The plant, which produces the Buick Allure/LaCrosse and Pontiac Grand Prix, averages just 43 problems per 100 (PP100) vehicles.
DaimlerChrysler's Windsor plant receives a PP100 score of 47. The plant produces the Pacifica, Town & Country, Caravan and Grand Caravan models.

Several Canadian-produced models rank within the top three of their respective segments in the study. They are:

- Toyota Corolla (Toyota's Cambridge, Ontario, plant) ranks highest in the compact car segment

- Honda Civic (Honda's Alliston, Ontario, plant) ranks third in the compact car segment

- Chevrolet Monte Carlo (GM's Oshawa No.1, Ontario, plant) ranks third among midsize sporty cars

- Pontiac Grand Prix (GM's Oshawa No.2, Ontario, plant) ranks highest in the large car segment

- Honda Ridgeline (Honda's Alliston, Ontario, plant) ranks second in the midsize pickup segment

- Lexus RX 330/RX 400h (Toyota's Cambridge, Ontario, plant) ranks third among midsize premium multi-activity vehicles (MAV)

Other 2006 Plant Quality Award Recipients

Magna Steyr, owned by Toronto-based Magna International Inc., receives the Gold Plant Quality Award in Europe for its plant in Graz, Austria. The plant, which assembles under contract for major manufacturers, produces the BMW X3, Mercedes-Benz E-Class/Wagon and the Saab 9-3 Convertible.

BMW's Dingolfing, Germany, plant, which produces the BMW 5, 6 and 7 Series, receives the Silver Plant Quality Award, and Porsche's Valmet, Finland, plant, which produces the Cayman and Boxster, receives the Bronze Plant Quality Award.

In the Asia Pacific region, Toyota's Higashi-Fuji, Japan, plant, which produces the Lexus SC 430, receives the Silver Plant Quality Award. Toyota's Kyushu, Japan, plant, which produces the Lexus IS 250/IS 350, Lexus RX 330/400h and Toyota Highlander/Highlander Hybrid, and American Honda's Saitama, Japan, plant, which produces the Acura RL, Acura TSX and Honda CR-V, tie for the Bronze Plant Quality Award.

2006 Initial Quality Study Findings

The Initial Quality Study, now in its 20th year, finds that the way in which technology is integrated into new-vehicle design, particularly interior features and controls, is considered by consumers to be as important to quality as are defects and malfunctions.

The study, which serves as the industry benchmark for new-vehicle quality measured at 90 days of ownership, has been completely redesigned for 2006 to capture problems experienced by owners in two distinct categories-quality of design and quality of production (defects and malfunctions).

"New vehicles today are often packed with new technologies that unfortunately can be complicated and frustrating for the average consumer when their integration is not well executed," said Joe Ivers, executive director of quality and customer satisfaction research for J.D. Power and Associates. "In the eyes of consumers, design flaws can have as much of an impact on their perceptions of quality as can a defect. Yet, many manufacturers have tended to address quality solely on the plant floor without considering design factors."

Based on both design quality and production quality considerations, the study finds that automakers can vary widely in their performance on these two components. Brands with the fewest defects and malfunctions include Lexus, Porsche, Toyota, BMW, Hyundai and Chrysler. Brands with the fewest design problems include Porsche, Hyundai, GMC, Jaguar, Lexus and Nissan.

"Without considering both quality factors, one might fail to recognize vehicles that are, in fact, excellent in certain ways," said Ivers. "For example, BMW vehicles have among the fewest defects and malfunctions, along with Toyota. But BMW approaches controls and displays in a way that creates some problems for customers, leading to more design-related problems overall than Toyota incurs. Automakers differ significantly in how they define quality and what parts of the organization they hold accountable for it. Clearing both critical quality hurdles is an accomplishment experienced by only a limited number of brands."

2006 IQS Ranking Highlights

Lexus and Toyota models continue to dominate initial quality rankings, capturing 11 out of 19 segment awards in 2006. Lexus models rank highest in every segment in which they compete. In addition, the LS 430 ties the Porsche Cayman for having the fewest quality problems in the industry. Other top-ranking Lexus models include: IS 250/IS 350, ES 330, SC 430, GX 470 and LX 470.

Toyota remains a quality benchmark, capturing five model-level awards -for the Corolla, Solara, Camry, Highlander and Sequoia - more than any other non-luxury brand.

Porsche and Lexus lead the luxury brands, while Hyundai, Toyota and Honda set the pace among non-luxury brands. Averaging just 91 PP100, Porsche tops the overall nameplate rankings. Porsche's success can be partly attributed to the all-new Cayman, which tops the compact premium sporty segment. Porsche is followed in the rankings by Lexus, Hyundai, Toyota and Jaguar, respectively.

Hyundai ranks among the top three nameplates in the study for the first time in the history of IQS. Highlights include a top ranking for the Hyundai Tucson in the compact multi-activity vehicle (MAV) segment, and top-three segment performances for the redesigned Sonata and all-new Azera, as well as the Elantra and Tiburon.

Honda also maintains its position as a quality leader. Although Honda does not receive any awards outright, five Honda models rank among the top three of their respective segments.

Other nameplates receiving model awards in 2006 include Chevrolet, Chrysler, Ford, Kia, Mazda, Pontiac and Suzuki.

The 2006 Initial Quality Study is based on responses from 63,607 purchasers and lessees of new 2006 model-year cars and trucks surveyed after 90 days of ownership. The redesigned IQS is based on a new 217-question battery-up from 135 in previous years-to provide manufacturers with richer information to improve problem determination and drive product improvement. The study also groups models in a revised J.D. Power and Associates vehicle segmentation list.

The 2006 study has been redesigned for the first time since 1998. Improvements to the study include:

- An enhanced questionnaire for owners to aid in identification of both defect and design problems
- Expanded coverage of new technologies
- Additional details about the problems reported to help OEMs better identify how to address them

Note: To be consistent with the international practice for measuring foreign affiliate trade statistics, only the data for majority-owned foreign affiliates are included. For operational reasons, depository institutions and foreign branches of firms were excluded from the estimates. Sales and employment figures of non-bank majority-owned foreign affiliates represent 100% of the sales and employment, even if the Canadian ownership is less than 100%.

Mayor Kate Quarrie is pleased to welcome North America Stainless Canada Inc. (NAS) to Guelph with the opening here of their newly constructed facility. "North American Stainless is an exceptional community partner and their operation will provide many new employment opportunities for the city of Guelph, "Mayor Quarrie said. "I wish them every success in our city."

The NAS facility in Guelph is a 128,000 square foot slitting operation and distribution centre. NAS is owned by the Acerinox Group, the second largest supplier of stainless steel in the world. Acerinox owns mills and service centres in the U.S., Spain, South Africa and now Canada, and sells in more than 80 countries worldwide.

"Guelph is increasingly being recognized by outstanding companies as a place to locate and do business," Mayor Quarrie indicated." North America Stainless Canada has made a commitment to our city that shows confidence in the Guelph community as a place to invest."

Management Commentary

"ATS continues to take decisive measures to combat the soaring value of the Canadian dollar and difficult automotive market conditions and to improve our operating processes," said ATS President and CEO Ron Jutras. "While I am not satisfied with our financial performance, I am pleased with the substantial progress we've made internally this year and since the third quarter to strengthen our approach, remove costs, streamline operations, and gain greater leverage from our global name, assets, capabilities and purchasing power.

"Our progress to date is reflected in the sequential improvement in Automation Systems Group operating earnings from the third quarter and recent performance gains made in our Asian and Western USA ASG operations. PCG has also staged a major turnaround in spite of the substantial negative impact of currency. It is now winning attractive new business and is focusing on achieving greater synergy with our strategies and business model. Our ASG Munich operation returned to profitability and Photowatt International delivered strong results this year."

Developments in Solar Business

Fiscal 2007 Capacity Expansion Plan. Today ATS announced expansion plans for Photowatt Technologies in France, the Company's crystalline solar cell manufacturing business. The plans call for Photowatt France to increase its capacity approximately 50% to 60 megawatts of integrated capacity by the end of fiscal 2007. Estimated capital expenditures related to the expansion are approximately (euro) 25 million. The Company has a number of strategies to secure silicon to utilize this new capacity.

"Expanding our capacity should enable us to continue to strengthen our ability to meet market demand," said Mr. Jutras. "Based on our success in the marketplace to date, and opportunities we see before us, this is a logical next step for our solar business."

Non-cash Charge Related to Delay in Commercializing Spheral Technology. ATS took a non-cash accounting charge of approximately $65 million after tax ($1.10 per share) against previously capitalized development costs and other long-lived assets associated with its Spheral Solar(TM) Power (SSP) technology. It was necessary to take this accounting charge due to uncertainty and delays in achieving commercial production of the technology. ATS remains committed to commercializing SSP and will focus substantial internal and external resources to establish a manufacturing process with acceptable costs and yields for commercial production.

"We continue to be positive about the prospects for SSP technology," said Mr. Jutras. "However, at present, we have been unable to resolve production issues that have impacted our plans to produce SSP products commercially. As we work through the development process, we will take the appropriate steps to align SSP's manufacturing resources to reflect this current focus."

Photowatt Technologies Funding Strategy. Photowatt Technologies continues to advance toward an initial public offering with considerable progress made to date in legal, tax, accounting and other corporate separation matters. While more work is required, ATS has devoted substantial resources to pursue its solar funding strategy and continues to expect to launch the offering in the third or fourth quarter of calendar 2006, as previously stated.

Outlook

"Going forward, we intend to build on underlying business momentum to achieve tangible value for our shareholders," said Mr. Jutras. "This means a continued focus on improving our margin performance, especially at facilities that are underperforming - including our ASG flagship operation in Cambridge - and leveraging greater cost efficiencies and benefits from our market leadership. Importantly, we begin fiscal 2007 with a healthy ASG backlog level to support continued advancement. Overall, fiscal 2007 will be an important, and I expect, progressive year for ATS as we seek to fulfill our solar funding strategy and deliver substantially more value from our global improvement initiatives."

CME is pleased to invite manufacturers to attend our Ontario Manufacturing 20/20 Summit being held on June 22, 2006 at the Mississauga Convention Centre.

Given what is happening in the manufacturing sector it is imperative that immediate steps be taken. That’s what we heard, time and again, during our Manufacturing 20/20 initiative, the largest-ever public consultation on the future of Canadian industry. We challenged over 3,000 members of Canadian industry to identify the obstacles facing their business and devise long-term solutions, envisioning a preferred future for the industry and charting a course to take us there. Incorporating feedback from all meetings, CME’s Call to Action (www.cme-mec.ca) outlines what all of us – industry, business, governments and all Canadians – must do to ensure we are successful and that our standard of living is not only maintained but enhanced.

Government and the private sector must work closely together to secure and strengthen Ontario’s manufacturing base. The Summit will be ‘action-oriented’ bringing together 200 manufacturers, community leaders and government representatives from across Ontario to focus in on the key manufacturing issues that we need to address as expeditiously as possible, such as skills, energy, global competitiveness, innovation, leadership and the image of manufacturing. Invitations have been extended to the Premier, key Ministers, Deputy Ministers and senior government representatives.


June 22, 2006
8:00 a.m. – 1:30 p.m.
Mississauga Convention Centre
75 Derry Road West, Salon D
Mississauga, ON L5W 1G3

Highlights include:

Future of Manufacturing Breakfast;
Presentations from Dr. Jayson Myers, Senior Vice President and Chief Economist, Canadian Manufacturers & Exporters, the Hon. Joe Cordiano, Minister of Economic Development and Trade, the Hon. Donna Cansfield, Minister of Energy, Ian Hardgrove, President & Chief Executive Officer, 3M Canada and the Hon. Perrin Beatty, President and CEO, Canadian Manufacturers & Exporters;

Panel Presentations; and, Keynote Luncheon.

Our goal is certainly ambitious, but we are confident that Ontario manufacturers and the Ontario government are up to the challenge and through cooperation, communication and collaboration we will be able to develop and implement an action plan for Ontario.

Be part of Manufacturing 20/20 - building a new vision for the future of manufacturing in Canada. Register today!

There is no fee for Summit participation, but pre-registration is essential.

To register visit www.cme-mec.ca/pdf/ONSummitRegistrationForm.pdf or contact Marie Morden at marie.morden@cme-mec.ca

WINNIPEG - Humpty Dumpty Snack Foods Inc. , a leading North American marketer and distributor of high-quality snack food products, and HD Snax Ltd. ("HD Snax"), a wholly-owned subsidiary of Old Dutch Foods Ltd. ("Old Dutch") are pleased to announce that all conditions precedent to the take-over bid (the "Offer") by HD Snax to acquire 100 per cent of Humpty Dumpty's common shares (the "Common Shares") at a price of $2.85 pursuant to an Offer/take-over bid circular dated April 7, 2006 have been satisfied or waived.

Upon the expiry of the Offer on May 15, 2006 at 8:00 p.m. (Toronto time), a total of 9,249,811.4737 Common Shares, representing 98% of the total issued and outstanding Common Shares were validly deposited with Computershare Investor Services Inc. as depositary (the "Depositary"). All Common Shares validly deposited were and not withdrawn from the Offer were taken-up and paid for by HD Snax today. HD Snax intends to acquire all outstanding Common Shares not tendered to the Offer pursuant to a compulsory acquisition under the Business Corporations Act (Ontario) as previously announced and as stated in the take-over bid circular. Humpty Dumpty intends to apply to have the Common Shares delisted from The Toronto Stock Exchange and upon the acceptance of such application it will apply to provincial securities regulators to cease to be a reporting issuer under applicable securities laws.

Humpty Dumpty's current directors have tendered their resignations from the board of directors of Humpty Dumpty, effective upon take-up by HD Snax of all Common Shares validly deposited to and not withdrawn from the Offer. A new board of directors, comprised of Steven C. Aanenson, Erik E. Aanenson, Bonna Jean Bateman, David Oye, Iris Treichel and Greg Dick, has been appointed to fill the vacancies created by the resignations of the existing directors of Humpty Dumpty.

Since September 2003, total wholesale sales have generally been rising, with strength in most trade groups. Previously, slumping motor vehicle sales were the main cause of a decline that began in March 2003.

In constant prices, wholesale sales rose 0.2% in March.

During the first three months of 2006, the value of wholesale sales was 2.4% higher compared with the previous quarter. This increase was attributable in part to the strong showing of the automotive products sector, which posted a quarterly growth rate of 5.4%. The machinery and electronic equipment (+5.0%) sector and the building materials (+3.6%) sector also registered solid gains.

Productive month for personal and household goods wholesalers

After falling 3.4% in February, sales of the personal and household goods sector rose 3.6% in March. The increase was entirely attributable to rebounding sales of household and personal products (+8.3%). Although sales of household goods had been relatively lacklustre over the previous two months, sales have risen steadily since mid-2003, partly owing to the booming real estate market.

Machinery and equipment wholesalers maintain their momentum

For a fourth consecutive month, the machinery and electronic equipment sector registered a gain (+3.3%), with strength in all groups in the sector.

Wholesalers of computers and electronic equipment (+3.5%) and office and professional equipment (+4.0%) benefited from increased investment in March. For wholesalers of computers and electronic equipment, this was only the third increase in nine months. By contrast, wholesalers of office and professional equipment, who registered their fourth consecutive monthly gain, have generally posted rising sales since October 2003.

Wholesalers in the machinery and equipment group posted a 2.8% increase in March. This group has experienced almost continual growth since March 2004. The rise in prices of raw materials has prompted increased investment, which has greatly contributed to the growth of this group. According to the survey of private and public investment intentions for 2006, investment in equipment should remain robust in 2006, considering the excellent prospects in the energy and utilities sectors. Among wholesalers in general, the machinery and equipment group ranks fourth in sales and first in inventories.

Second consecutive decrease for automotive products

After falling 2.6% in February, motor vehicle wholesalers saw sales slip another 3.6% in March. In the past two months, wholesalers in this group have felt the effects of declining vehicle exports. Approximately one-quarter of the sales of this trade group are destined for foreign markets. During the last half of 2005, sales in this group went through a period of robust growth led by exports.

For a fifth time in seven months, wholesale sales of motor vehicle parts declined (-0.4%). Wholesalers in this industry, who do not supply auto plants but sell mainly to retailers and dealers, have posted generally stable sales since July 2004.

Central Canada and six other provinces and territories post gains

Wholesale sales were up in Central Canada in March, increasing by 0.9% in Quebec and 0.6% in Ontario. For Quebec wholesalers, this was a sixth gain in eight months. In both provinces, the increase in March was mainly attributable to household goods and machinery and electronic equipment, two sectors that registered robust gains at the national level.

The two westernmost provinces continued to enjoy the strongest sales growth in the country. In Alberta, wholesale sales increased for an eighth consecutive month on the strength of numerous sectors, notably machinery and electronic equipment and automotive products. British Columbia wholesalers recorded their fourth increase in five months, which was mainly attributable to the machinery and electronic equipment sector as well as the building materials sector.

First decline in wholesalers' inventories in four months

Inventories declined 0.3% in March following three consecutive monthly increases. The decrease in inventories was general in March, with 11 of the 15 trade groups registering a decline. Despite March's drop, the trend in total inventories has generally been upward since November 2003.

The strong increase in sales, combined with a decrease in inventories, caused the inventory-to-sales ratio to fall to 1.20, down from 1.22 in February. The inventory-to-sales ratio is still relatively low on a historical basis. This ratio has generally been stable since October 2004, following a downward period that began in October 2003.

MONTREAL - Imperial Tobacco Canada announced today that beginning in late-August 2006 it will offer Direct to Store Delivery (DSD) of its products to retailers across Canada.

"At this time in our history, this important initiative makes good business sense for Imperial Tobacco Canada. In recent years we have undertaken measures to become more efficient in an increasingly competitive and challenging environment," said Benjamin J. Kemball, president and CEO of Imperial Tobacco Canada. "Direct to Store Delivery is the logical next step. DSD will enable us to be more effective at managing our products from manufacture to delivery and in protecting our competitive position."

This strategic decision will create close to 1,000 new job opportunities for Canadians through direct positions at Imperial Tobacco Canada and through the Company's association with transportation, information technology and warehousing partners.

"We will work throughout the summer with our retail partners and key accounts to ensure the flawless execution of this complex initiative," continued Mr. Kemball. "I am very proud of each and every Imperial Tobacco Canada employee for the dedication they have shown over the last few years in responding to the challenges we have faced. The innovation and determination demonstrated by our employees proves that Imperial Tobacco Canada truly is and will continue to be Canada's leading tobacco company."

Direct to Store Delivery is a proven system of distribution in many other product categories such as beverages and snacks. Imperial Tobacco Canada will be the first tobacco company in Canada to implement this system for tobacco delivery at a national scale. Today, Imperial Tobacco Canada products are sold to retailers through licensed wholesalers. Under DSD, retailers who wish to do so will place orders directly through an Imperial Tobacco Canada account representative or continue to do business with their current wholesalers.

KITCHENER - On March 21, 2006, the Company announced that it had entered into an agreement with Old Dutch Foods Ltd. ("Old Dutch") and HD Snax Ltd. ("HD Snax"), a wholly-owned subsidiary of Old Dutch, pursuant to which HD Snax has agreed to make an all-cash offer to acquire 100 per cent of the Company's common shares at $2.85 per share in a transaction valued at approximately $26.7 million (or $27.4 million on a fully diluted basis).

On April 7, 2006, the Company's Directors' Circular recommending the transaction was mailed to shareholders. The offer will be open for acceptance until 8:00 p.m., Toronto time, on May 15, 2006 unless extended or withdrawn.

Second Quarter Financial Review - Three Months Ended March 31, 2006 ------------------------------------------------------------------- Compared to Three Months Ended March 31, 2005

Net sales for the second quarter totalled $30.9 million, a 5.5% decrease from the same quarter in fiscal 2005. This decrease is primarily attributable to softness in private label business.

Gross profit was $10.9 million or 35.4% of net sales, an improvement compared to 34.9% of net sales in the prior year.

Selling and administrative costs in the quarter were $12.2 million, an increase from $11.0 million in the prior year as a result of a shift towards more Company distribution routes and fewer distributors. This change had the effect of increasing reported net sales as well as increasing selling and administrative costs. Selling and administrative costs comprised 39.7% of net sales compared to 33.6% in the prior year, partly as a result of reduced sales volume.

Restructuring charges recorded in the second quarter of $646,000 relating to the Brampton plant closure consisted primarily of special termination benefits, professional fees and decommissioning costs. The sale of the Company's Kitchener property for approximately $2,000,000 was recognized during the second quarter of fiscal 2006. This transaction is expected to close during the third quarter.

EBITA for the three months ended March 31, 2006 was a loss of $1.7 million compared to EBITA of $408,000 in the second quarter of the previous year. Excluding the restructuring charges and the gain recognized on the sale of real estate, EBITA for the quarter just ended was a loss of $1.3 million.

Amortization costs decreased by 13.6% to $1.2 million, compared to the same quarter of fiscal 2005, due to a reduced level of capital lease obligations. Interest expense increased by 8.4% to $376,000 compared to the corresponding quarter of the prior year, partly due to increased borrowing on the Company's operating line.

Net loss of $3.9 million or $0.41 per share, compared with a net loss of $789,000 or $0.08 per share in the second quarter of the prior year.

Six Month Financial Review - Six Months Ended March 31, 2006 Compared to

Six Months Ended March 31, 2005

Results of Operations

For the six months ended March 31, 2006, net sales totalled $66.1 million, a 6.5% decrease compared with the corresponding period of the prior year. This decrease is attributable to softness in both branded and private label business.

Gross profit totalled $24.2 million or 36.6% of net sales, compared to $26.0 million or 36.8% of net sales in the corresponding period of the prior year, as lower capacity utilization of facilities was offset by improved sales margins.

Selling and administrative costs were $23.6 million or 35.7% of net sales compared with $22.3 million or 31.5% of net sales during the same period of the prior year. These costs comprised a higher percentage of net sales compared to the prior year, as a result of reduced sales volume, as well as the shift towards more Company sales distribution routes.

Restructuring charges in the first six months of $2.6 million relating to the Brampton plant closure, consisted primarily of contractual and special termination benefits, professional fees and decommissioning costs. The Company has not yet quantified the cash proceeds to be received upon the sale of excess equipment resulting from the plant closure.

EBITA for the six months ended March 31, 2006 was a loss of $1.7 million compared to EBITA of $3.8 million in the comparable period of the previous year. Excluding the restructuring charges and the gain recognized on the sale of real estate, EBITA for the first six months of fiscal 2006 was $571,000.

Amortization costs decreased by 12.7% to $2.4 million, compared to the same period in fiscal 2005, as a result of the reduced level of capital lease obligations compared to the prior year. Interest expense remained flat compared to the corresponding quarter of the prior year.

Liquidity and Capital Resources

During the quarter, Humpty Dumpty repaid $1.2 million of its capital lease obligations and repaid $288,000 of its subordinated and bank term loans. The Company also funded $286,000 in pension payments and invested $1.4 million in capital assets, with $1.2 million of its capital asset investment financed by capital leases. The remaining cash required to meet these funding commitments, as well as the operating loss incurred in the quarter, was generated primarily through a $4.0 million increase in the Company's operating line.

Humpty Dumpty's bank term debt facilities require the Company to maintain specific financial ratios. All interest and principal payments have been made as required under the terms of the credit agreements. The Company was in breach of certain of its bank covenants at March 31, 2006. The bank subsequently issued a waiver with respect to these covenants.

Financial Position

At March 31, 2006, bank indebtedness was $10.4 million, compared with $4.1 million at September 30, 2005 and $4.8 million a year ago. Bank term debt and subordinated debt at March 31, 2006 totalled $11.5 million, compared with $12.7 million in the prior year and $12.1 million at September 30, 2005. Capital lease obligations were $6.3 million at March 31, 2006, a decrease from $8.9 million in the prior year and $7.2 million at September 30, 2005.

Manufacturing activity picked up in March, with wide ranging gains led by a surge in aerospace production and a rebound in shipments of petroleum products.

Following a rather lacklustre start to the year, shipments rose 1.6% to $51.4 billion in March, the first increase so far in 2006. Meanwhile, the trend for shipments remained stable, although it has weakened in recent months.


March's advance by manufacturers was extensive as 17 of the 21 industries, accounting for 92% of total shipments, posted increases. Although widespread, much of the strength was concentrated in the aerospace and price-driven petroleum industries. Excluding these industries, shipments rose a more moderate 0.3%.

Weak start to the year partly quelled in March
The first quarter of 2006 began on a tenuous note as manufacturers cut shipment activity in both January (-0.4%) and February (-2.3%). A decline in petroleum prices, plus a marked slowdown in the production of motor vehicles largely contributed to the year's slow start. First quarter shipments were up just 2.2% compared to the first three months of 2005.

Aircraft and parts soar
A big boost in production of aerospace products and parts contributed to a 1.4% upturn in shipments by the durable goods industries to $29.2 billion, the first increase since December.

Aerospace manufacturers led all industries with a 35.7% jump in production to $1.4 billion. Global demand for domestic and military-related aerospace products and parts has contributed to the revival of the industry over the last year. Production so far in 2006 has risen 4.0% compared to the first three months of last year.

Petroleum prices rebound
Continuing unrest in key oil-exporting countries, coupled with rising demand and constraints in production capacity, contributed to March's 5.4% rebound in the industrial price of petroleum and coal products. As a result, shipments of petroleum products soared 7.2% to $4.7 billion.

Following last fall's price surge, petroleum prices had declined substantially in late 2005 and early 2006, which contributed to a significant 9.8% drop in shipments in February alone. But the recent swell in geopolitical unease, notably the international concerns regarding Iran, has again contributed to significantly higher prices for petroleum products. By April, the price of crude oil surpassed the previous record levels attained in September 2005.

Led by the rebound in petroleum, shipments of nondurable goods bounced back 1.9% to $22.2 billion in March, following recent declines.

Robust demand, coupled with big orders shipped in March also contributed to sizeable gains in the machinery (+3.1%) and primary metals (+1.6%) industries. Higher prices (+1.5%) boosted shipments of primary metals, due to soaring demand for copper, zinc and aluminium.

Manufactures pump out more goods
Despite the impact of rising prices in March, manufacturers posted the first increase in the volume of goods shipped since December. At 1997 prices, shipments rose 0.9% to $47.9 billion.

Quebec's aerospace and petroleum manufacturers reported big improvements in March, resulting in a $453 million (+3.8%) jump in shipments to $12.5 billion; this was only the second increase in Quebec's shipments since October 2005.

Ontario's manufacturers posted shipments of $25.4 billion, up $109 million (+0.4%), due in part to the petroleum and machinery industries. Following a weak January (-2.2%) and February (-1.0%), year-to-date shipments by Canada's leading manufacturing province remained below levels of one year ago (-2.5%).

Aerospace manufacturers boost inventories

Total inventories rose 0.4% to $66.3 billion in March. Goods-in-process inventories carried the bulk of the increase, climbing 2.8% to $15.6 billion due to a recent buildup by aerospace manufacturers as they work through major orders. Inventories have been gradually accumulating over the last two years, soaring 12.5% in value since March 2004.

Inventories of raw materials remained steady at $28.7 billion, while strong demand for petroleum products contributed to the paring down of finished product inventories (-1.0%) to $22.0 billion.

Higher shipments suppress the inventory-to-shipment ratio

Following last month's sizeable advance in the inventory-to-shipment ratio to 1.31, the ratio settled back in March to 1.29. The rebound in shipment activity was enough to pull back the ratio from its recent year-high.

The inventory-to-shipment ratio is a key measure of the time, in months, that would be required to exhaust inventories if shipments were to remain at their current level.