For the six-month period ended July 30, sales totalled $24.9 million, a decrease of $4 million compared with the $28.9 million recorded for the corresponding period in 2005.

The company believes sales decreases are a result of the weakness of the disposable wipes and footwear markets; the strength of the Canadian dollar; and the realisation of a major, non-recurring sale during the second quarter last year in the international market.

The company anticipates a sales turnaround in the disposable wipes market during the third quarter. In the footwear sector, the world-wide migration of manufacturing activities to China continues to affect the company's revenues. ADS estimates that the appreciation of the Canadian dollar had a negative impact of approximately $1 million on sales results during the six-month period, compared with the same period last year.