ATF Artaflex

Artaflex Inc. (TSX VENTURE:ATF) ("Artaflex" or the " Company"), a specialist at
delivering integrated product solutions and support to the global technology and
electronics industry, today reports audited financial results for the year ended
July 31, 2012 and unaudited financial results for the three months ended July
31, 2012.


Artaflex reports in U.S. dollars and all numbers below are expressed in
thousands of U.S. dollars, except per share information and gross margin
percentages.


The financial statements for the year ended July 31, 2012, including required
comparative information, have been prepared in accordance with International
Financial Reporting Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB").


Further information will be available on the Company's website at
www.artaflex.com and the System for Electronic Document Analysis and Retrieval
("SEDAR") at www.sedar.com on November 29, 2012.




2012 Financial Highlights:                                                  
                                                                            

--  Sales increased by $2,084 or 11.0% in 2012 compared to 2011, 
--  Gross margin decreased to 12.9% compared to 24.8% for the same period
    last year, 
--  Net loss and comprehensive loss for period of $4,361 compared to net
    income of $937 for the same period last year, 
--  Adjusted EBITDA loss of $2,208 compared to an Adjusted EBITDA gain of
    $2,244 for the same period last year, 
--  Loss of $0.33 per share compared to net income of $0.08 per share for
    the same period last year, 
--  Net cash provided by operating activities of $990 during the year
    compared to net cash used by operating activities of $632 for the same
    period last year.

                                                                            
Q4 2012 Financial Highlights:                                               
                                                                            

--  Sales increased by $2,786 or 70.6% compared to the same quarter last
    year, 
--  Gross margin decreased to 3.6% compared to 14.7% for the same quarter
    last year, 
--  Net loss of $2,942 compared to net loss of $341 for the same quarter
    last year, 
--  Adjusted EBITDA loss of $1,471 compared to an Adjusted EBITDA loss of
    $345 for the same quarter last year, 
--  Loss of $0.19 per share compared to loss of $0.03 per share for the same
    quarter last year, 
--  Net cash provided by operating activities of $558 compared to cash used
    in operating activities of $154 for the same quarter last year.



Sales increased 11.0% to $20,983 in 2012 compared to $18,899 in 2011. For the
year 2011, sales to the Company's four largest customers represented an
aggregate of 57% (2011 - 77%) of the Company's total sales. Sales attributed to
the purchase of Adeptron accounted for an estimated increase of $9,371. The
stand-alone Artaflex sales declined by approximately $6,000 due primarily to the
loss of a large customer in 2012. Sales for the fourth quarter of 2012 of $6,733
increased 70.6% from $3,947 for the same period in 2011, primarily due to the
acquisition of Adeptron in 2012.


Gross profit for the year decreased $1,996 or 42.5% to $2,700 compared to $4,696
for the year 2011. Gross profit, expressed as a percentage of sales for the year
2012, declined to 12.9% compared to 24.8% for 2011. The decrease in gross profit
for the year is primarily due to the acquisition of Adeptron which historically
has lower gross profit percentages and due to duplicate costs during the period
of integration of the two Markham facilities. Management has and continues in
its efforts to improve gross profits through cost reduction and effectively
utilizing the synergies from the Adeptron acquisition. Gross profit for the
fourth quarter of 2012 decreased $340, to $242 compared with $582 in the same
period of 2011. Gross profit as a percentage of sales for the fourth quarter of
2012 was 3.6% compared to 14.7% for the same period in 2011. The decrease in
gross profit and percentage in the quarter is largely due to the acquisition of
Adeptron which historically had a lower gross profit and the incurrence of
duplicate costs during the period of integration of the two Markham facilities.


Selling, general and administrative ("SG&A") expense for the year 2012 increased
129.2% to $5,918 compared to $2,582 for the year 2011. The increase was
primarily due to one-time legal and professional costs associated with the
acquisition of Adeptron and the attempt at another acquisition which
subsequently was terminated. In addition, Artaflex incurred significant
professional fees in order to switch from a private company to a public entity.
SG&A expenses as a percentage of sales was 28.2% up from 13.7% in 2011. SG&A
expenses increased $1,252 to $2,357 in the fourth quarter compared to $1,105 for
the same period in 2011. The increase in SG&A expense for the fourth quarter was
largely due to the one-time costs associated with the Adeptron acquisition and
the terminated acquisition. Overall the percentage of SG&A as a percentage of
sales for the fourth quarter of 2012 was 35.0% up from 28.0% for the same period
in 2011.


The net loss and comprehensive loss in 2012 was $4,361 compared to a net income
of $937 in 2011. Net loss for the fourth quarter 2012 was $2,942 compared to a
net loss of $341 for the same period of 2011.


Adjusted EBITDA loss was $2,208 in 2012 compared to adjusted EBITDA income of
$2,244 in 2011. During the fourth quarter of 2012 adjusted EBITDA loss was
$1,471 compared with a loss of $345 in the same period last year.


EBITDA means earnings before interest, taxes, depreciation and amortization.
Adjusted EBITDA means earnings before interest, taxes, depreciation,
amortization, stock-based compensation and restructuring costs. EBITDA and
Adjusted EBITDA are not recognized measures under IFRS. However, management
believes that EBITDA and Adjusted EBITDA as herein defined are useful
supplemental measures to net income (loss), as it provides investors with an
indication of cash earnings prior to debt service, capital expenditures, income
taxes and other non-recurring and non-cash items. Readers should be cautioned,
however, that EBITDA and Adjusted EBITDA should not be construed as an
alternative to net income (loss) determined in accordance with generally
accepted accounting principles as an indicator of the Company's performance or
to cash flows from operating, investing and financing activities as a measure of
liquidity and cash flows. The Company's method of calculating EBITDA and
Adjusted EBITDA may differ from the methods by which other companies calculate
EBITDA and Adjusted EBITDA and, accordingly, the EBITDA and Adjusted EBITDA used
herein may not be comparable to measures used by other companies.


About Artaflex:

Artaflex is a specialist at delivering integrated product solutions and support
to the global technology and electronics industry. As a leading global provider
of complete Electronics Manufacturing Services (EMS), Artaflex offers world
class manufacturing facilities and global partners throughout Canada, the United
States, Israel and China, allowing Artaflex to provide its customers the
flexibility and scalability to competitively achieve total solutions to their
present and future electronics outsourcing needs. Visit Artaflex at:
www.artaflex.com.


This news release may contain forward-looking statements and information
relating to such matters as expected financial performance, business prospects,
technological developments, development activities and like matters. These
statements involve risk and uncertainties, including but not limited to risk
factors described in documents filed with regulatory authorities, such as the
company's most recently filed annual and quarterly MD&A's. Actual results could
differ materially from those projected as a result of these risks and should not
be relied upon as a prediction of future events. Artaflex Inc. undertakes no
obligation to update any forward-looking statements to reflect events or
circumstances after the date on which such statement is made, or to reflect the
occurrence of unanticipated events, unless required to do so under applicable
law.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Artaflex Inc.
Paul Walker
Chief Executive Officer
905-754-1033
paul_walker@artaflex.com


Artaflex Inc.
Frank Skerlj
Chief Financial Officer
905-754-1036
frank_skerlj@artaflex.com
www.artaflex.com

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