Goodfellow Reports 2Q Financials

Delson, Quebec, March 29, 2007--Goodfellow Inc. released it financials for the first six months ending February 28, 2007. The company said its sales decreased 2.6% to $225.7 million compared to $231.7 million a year ago.

Net income increased to $6.0 million or $0.70 per share compared to $4.6 million or 0.54 per share for the same period last year. This result includes the final net settlement after tax of $3.5 million CAD related to the Softwood Lumber Agreement which entered into force on October 12, 2006.

Net income without this non recurring item was $2.5 million or $0.29 per share. During the second quarter ended February 28, 2007, consolidated sales decreased to $106.6 million compared to $111.2 million for the same period last year. Net income decreased to $0.5 million or $0.06 per share compared to $1.5 million or $0.18 per share during the corresponding quarter a year ago. Sales activities during the first six months of fiscal 2007 reflect sagging demand on the US side and weak business activity on new housing markets in Canada. General expenses, selling and administrative costs for the first six months ended February 28, 2007 increased from $34.8 million to $36.7 million. This was due to higher volume of value added products combined with increased thrust in western Canada.

"The second quarter of fiscal 2007 was a disappointment compared with the previous year. Sales were sluggish all winter both in Central Ontario and the U.S. Northeast, areas most hit by the housing slowdown" said Richard Goodfellow, President and Chief Executive Officer. "It is expected during the spring and summer, markets will remain strong for many of our specialty products even with what is clearly a declining new housing market"

Goodfellow Inc. is eastern Canada's largest independent re-manufacturer and distributor of lumber products and Canada's largest distributor of hardwood flooring products. Goodfellow shares trade on the Toronto Stock Exchange under the symbol GDL.