Carmanah Announces First Quarter Revenues Up 65%

Victoria, BC – October 30, 2003 – Carmanah Technologies Corporation (TSX VE: CMH) is pleased to announce its first quarter results for the three months ended March 31, 2002 and 2001.

For the three month period ended March 31, 2002, the Company recorded a record quarter with revenues of $1,381,044. This was an increase of 65% over the same period in 2001. Revenue growth was achieved through (1) the continued growth of marine sales in existing product lines, (2) expansion into the railway and mining markets with existing products, and (3) expansion into the transportation and transit markets with entirely new products. Unit sales increased from 3,241 units sold and delivered for first quarter 2001 to 4,860 for first quarter 2002.

Direct cost of goods totaled $598,330 in the three month period ended March 31, 2002 as compared to $394,214 for the three months ended March 31, 2001. Gross profit as a percentage of sales at March 31, 2002 was 57% as compared to 53% during same period in 2001. This is a result of the Company’s movement towards more direct selling through dedicated sales staff and an aggressive e-commerce program.

Total operational expenses for the three month period ended March 31, 2002 were $831,242 overall, a 65% increase over the $503,747 in the same period in 2001. This is the result of increased staff and administrative expenses to support the Company’s expansion into new products and new markets. Increasing investment is being made into markets that will be primary sources of revenues in the months and years to come.

Net loss for the three month period ended March 31, 2002 was $48,528 as compared to a net loss of $60,107 for the same period in 2001. The overall loss position is a result of additional resources and administrative expenses required to provide and support the extensive sales and marketing activities. The Company also made a further investment of $155,894 into research and development expenses during the three month period ended March 31, 2002 as compared to $98,312 in the same period in 2001.

The Company’s cash balance increased from $192,623 as at March 31, 2001 to $1,174,918 as at March 31, 2002, an increase of $982,295. The increase was primarily attributable to the cash received pursuant to the financing carried out in conjunction with the reverse takeover of Carmanah Technologies Inc. (“CTI”) in 2001.

About Carmanah Technologies Inc.

Carmanah designs, manufactures and supplies patented, proprietary solar-powered LED lighting solutions to the marine, railway and roadway markets. The Company has distributors in over 80 countries and now has more than 44,000 units installed worldwide.

The shares of Carmanah Technologies Corporation (parent company) are publicly traded on the TSX Venture Exchange under the symbol “CMH”. For further information, please visit www.stg-carmanahcom-carmanah.kinsta.cloud.

On Behalf of the Board of Directors

Carmanah Technologies Corporation

” Praveen Varshney “

Praveen Varshney, Director

CARMANAH TECHNOLOGIES CORPORATION

Consolidated Balance Sheets

March 31, 2002 and December 31, 2001

(Prepared by Management)

  March 31,December 31,
20022001
(unaudited)(audited)
Assets
Current assets:
Cash and cash equivalents$ 1,174,918$ 1,060,817
Accounts receivable738,482358,958
Taxes recoverable5,40923,888
Prepaid expenses and deposits41,64226,777
Inventories662,864587,439
Current portion of advances receivable43,58649,472
2,666,9012,107,351
Advances receivable111,500111,500
Capital assets286,484279,873
Deferred development costs158,289216,895
Patents and other intangibles26,54229,487
$3,249,716$2,745,106
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable and accrued liabilities624,785340,876
Bank loan50,00030,000
Current portion of long-term debt22,20427,790
Current portion of obligations under capital lease19,06725,800
Current portion of future income taxes18,00018,000
734,056442,466
Long-term debt17,14317,143
Obligations under capital lease30,30430,304
Shareholders’ equity:
Share capital3,267,3463,029,746
Contributed surplus26,18826,188
Deficit(825,321)(800,741)
2,468,2132,255,193
$ 3,249,716$ 2,745,106

CARMANAH TECHNOLOGIES CORPORATION

Consolidated Statements of Operations and Deficit

For the three months ended March 31, 2002 and 2001

(Unaudited – Prepared by Management)

  20022001
Revenues$ 1,381,044$ 837,854
Cost of goods sold598,330394,214
782,714443,640
Operating expenses:
Wages and benefits323,834212,482
Research and development155,89498,312
Sales and marketing133,17937,344
Office and administration121,48897,904
Bank charges and interest12,9812,380
Amortization of:
   Capital assets22,31518,729
   Deferred development costs58,60635,060
   Patents and other intangible assets2,9451,536
831,242503,747
Operating loss for the period(48,528)(60,107)
Other income:
Interest and other income23,948
Loss for the period(24,580)(60,107)
Deficit, beginning of period(800,741)(124,242)
Deficit, end of period$ (825,321)$ (184,349)
Loss per share$ (0.001)$ (0.007)
Weighted average number of shares outstanding20,305,5998,433,222

CARMANAH TECHNOLOGIES CORPORATION

Consolidated Interim Statements of Cash Flows

For the three months ended March 31, 2002 and 2001

(Unaudited – Prepared by Management)

  20022001
Cash provided by (used in):
Operations:
Loss for the period$ (24,580)$ (60,107)
Amortization, an item not involving cash83,86655,324
Changes in non-cash operating working capital:
   Accounts receivable(379,524)(219,946)
   Taxes recoverable18,479
   Inventories(75,425)83,773
   Prepaid expenses and deposits(14,865)(7,500)
   Advances receivable5,886
   Accounts payable and accrued liabilities283,910(55,460)
(102,253)(203,916)
Investing:
Purchase of capital assets(28,927)(32,485)
Financing:
Shares issued by way of private placement237,600
Bank loan20,000(70,000)
Proceeds from issuance of long term debt (repaid)(5,586)19,579
Principal payments of obligations under capital leases(6,733)(6,189)
Advances received300,000
245,281243,390
Increase in cash and cash equivalents114,1016,989
Cash and cash equivalents, beginning of period1,060,817185,634
Cash and cash equivalents, end of period$ 1,174,918$ 192,623

For further information, please contact:

Corporate Contacts:

Mr. Praveen Varshney, Director

Tel: (604)629-0264

Toll-Free: 1-866-629-0264

Media Contact:Mr. David Davies

Harbourwerks Communications

Tel: (250)382-4332

ddavies@harbourwerks.com

Investor Relations Contact:

Vanguard Shareholder Solutions

Tel: (604) 608-0824

Toll-Free: 1-800-567-6223

ir@vanguardsolutions.ca