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<SEC-DOCUMENT>0001217160-07-000064.txt : 20070411
<SEC-HEADER>0001217160-07-000064.hdr.sgml : 20070411
<ACCEPTANCE-DATETIME>20070411172145
ACCESSION NUMBER:		0001217160-07-000064
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070410
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20070411
DATE AS OF CHANGE:		20070411

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			JEWETT CAMERON TRADING CO LTD
		CENTRAL INDEX KEY:			0000885307
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-LUMBER & OTHER BUILDING MATERIALS DEALERS [5211]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			OR
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-19954
		FILM NUMBER:		07761988

	BUSINESS ADDRESS:	
		STREET 1:		32275 NW HILLCREST
		CITY:			NORTH PLAINS
		STATE:			OR
		ZIP:			97133
		BUSINESS PHONE:		5036470110

	MAIL ADDRESS:	
		STREET 1:		P O BOX 1010
		CITY:			NORTH PLAINS
		STATE:			OR
		ZIP:			97133
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>jc8kapril102007.htm
<DESCRIPTION>JEWETT CAMERON FORM 8-K FOR APRIL 10, 2007
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Jewett Cameron Form 8-K</TITLE>
<META NAME="author" CONTENT="Dan McDonell">
<META NAME="date" CONTENT="04/10/2007">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>SECURITIES AND EXCHANGE COMMISSION</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>Washington, D.C. 20549</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>FORM 8-K</B></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>CURRENT REPORT</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>Date of Report (Date of earliest event reported): <B>April 10, 2007</B></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B><U>JEWETT-CAMERON TRADING COMPANY, LTD</U></B></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<TABLE><TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>BRITISH COLUMBIA</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>000-19954</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>NONE</B></P>
</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(State or other jurisdiction of incorporation)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(Commission file no.)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(I.R.S. employer identification no.)</P>
</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067>&nbsp;</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>32275 N.W. Hillcrest, North Plains, Oregon</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><BR>
<TD valign=top width=128.067><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>97133</B></P>
</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(Address of principal executive offices)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(Zip code)</P>
</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067>&nbsp;</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>(503) 647-0110</B></P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067>&nbsp;</TD></TR>
<TR><TD valign=top width=211.2>&nbsp;</TD><TD valign=top width=188.667>&nbsp;</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=122.6><P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>(Registrant&#146;s</P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>telephone No.</P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>including area code)</P>
</TD><TD valign=top width=15.733>&nbsp;</TD><TD valign=top width=128.067>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; padding-left:-45pt; line-height:14pt; font-size:12pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</P>
<P style="margin:0pt; padding-left:-45pt; font-size:12pt"><BR></P>
<TABLE><TR><TD style="border-left:0.5pt solid #000000; border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD style="border-left:0.5pt solid #000000" valign=top width=673.067><P style="margin:0pt; line-height:13pt; font-size:11pt">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD valign=top width=673.067>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD style="border-left:0.5pt solid #000000" valign=top width=673.067><P style="margin:0pt; line-height:13pt; font-size:11pt">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD valign=top width=673.067>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD style="border-left:0.5pt solid #000000" valign=top width=673.067><P style="margin:0pt; line-height:13pt; font-size:11pt">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</P>
</TD></TR>
<TR><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD valign=top width=673.067>&nbsp;</TD></TR>
<TR><TD style="border-left:0.5pt solid #000000; border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=19.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-right:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=15.733>&nbsp;</TD><TD style="border-left:0.5pt solid #000000" valign=top width=673.067><P style="margin:0pt; line-height:13pt; font-size:11pt">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4c))</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify><B><U>Item 2.02 </U></B></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify><B>Second Quarter 2007 Financial Results</B></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=justify>On April 10, 2007, he Company reported its financial results for the second quarter and six months ended February 28, 2007. </P>
<P style="margin:0pt; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt"><B><U>Item 9.01 Financial Statements and Exhibits</U></B></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; line-height:14pt; font-size:12pt"><U>Exhibit No.</U></P>
<P style="margin:0pt; padding-left:36pt; text-indent:144pt; line-height:14pt; font-size:12pt"><U>Description</U></P>
<P style="margin:0pt; padding-left:72pt; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:180pt; text-indent:-144pt; line-height:14pt; font-size:12pt">99.1</P>
<P style="margin:0pt; padding-left:180pt; line-height:14pt; font-size:12pt">Jewett-Cameron Trading Company Ltd. press release dated April 10, 2007.</P>
<P style="margin:0pt; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>SIGNATURES</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=justify>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereto duly authorized.</P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-size:11pt">Dated: April 11, 2007</P>
<P style="margin:0pt; text-indent:144pt; line-height:13pt; font-size:11pt"><U>JEWETT-CAMERON TRADING COMPANY LTD.</U></P>
<P style="margin:0pt; text-indent:36pt; font-size:11pt"><BR></P>
<P style="margin:0pt; font-size:11pt"><BR></P>
<P style="margin:0pt; text-indent:180pt; line-height:13pt; font-size:11pt"><U>By: /s/ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Donald M. Boone</U></P>
<P style="margin:0pt; text-indent:216pt; line-height:13pt; font-size:11pt">President/CEO/Director</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
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</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>jcq2resultsnr.htm
<DESCRIPTION>SECOND QUARTER RESULTS
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>Jewett Cameron Q2 Results</TITLE>
<META NAME="author" CONTENT="Terry Schumacher">
<META NAME="date" CONTENT="04/11/2007">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=center>NEWS RELEASE</P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=center>April 10, 2007</P>
<P style="margin:0pt; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center><B>JEWETT-CAMERON TRADING COMPANY LTD.</B></P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>Telephone: (503) 647-0110, Facsimile (503) 647-2272</P>
<P style="margin:0pt; line-height:13pt; font-size:11pt" align=center>Web: www.jewettcameron.com</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:16pt; font-size:14pt" align=center><B><U>Jewett-Cameron Announces Second Quarter 2007 Results</U></B></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=center><B><U>Sales for the quarter were down 14%, but earnings from operations were up 29% vs. the same period a year ago. &nbsp;Outlook is positive.</U></B></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Jewett-Cameron Trading Company Ltd. (NASDAQ: JCTCF and TSX: JCT) today reported financial results for the second quarter and six months ended February 28, 2007.</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Sales for the second quarter of 2007 totaled $16.4 million compared to sales of $18.9 million for the second quarter of 2006. &nbsp;The company reported net income of $0.3 million or $.20 per diluted share compared to net income of $0.6 million or $.39 per diluted share in the same period a year ago. &nbsp;However, the year ago period included a pre-tax gain of $0.6 million related to the sale of the company&#146;s distribution center in Utah, and excluding this item net income a year ago was $.16 per diluted share.</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>For the six months ended February 28, 2007 Jewett-Cameron reported sales of $31.9 million compared to $37.2 million for the same period a year ago. &nbsp;Net income for the first six months of fiscal 2007 was $0.6 million or $.38 per diluted share compared to net income of $1.2 million or $.74 per diluted share in the same period a year ago. &nbsp;The year ago period included the gain on the sale of the distribution center, and if this is excluded, net income for that period was $.51 per diluted share.</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>&#147;Total company sales for the second quarter were down about 14% from the prior year, yet net income and earnings per share excluding the gain from the sale of property last year were up about 29%,&#148; said CEO Don Boone. &nbsp;&#147;This reflects a coupling of a year over year sales decline in our industrial wood segment with more steady sales in our lumber and building materials segment, which includes higher profit sales than the industrial segment. &nbsp;In fact we continue to experience good sales increases in our non-wood specialty products like dog kennels, our proprietary fence gate systems, perimeter fencing, and greenhouses.&#148;</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Mr. Boone went on to add, &#147;Market conditions are continuing to be difficult for our industrial wood segment. &nbsp;However, in the lumber and building materials segment the third quarter is shaping up to be a good one. &nbsp;A seasonal surge in fencing sales will positively impact our third quarter, and we continue to have good success in increasing sales of our specialty non-wood products.&#148; &nbsp;</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Stock Split</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>At Jewett-Cameron&#146;s annual meeting, which was held on March 9, 2007, shareholders approved a three for two stock split, which was distributed on or about March 23, 2007 to holders of record on March 19, 2007. &nbsp;The stock started trading on a post-split basis on March 15, 2007.</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Financial results for the second quarter and six months ended February 28, 2007 do not reflect this stock split.</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt">About Jewett-Cameron Trading Company Ltd.</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Jewett-Cameron is a wholesale distributor of specialty wood products principally for applications in the marine and transportation industries. &nbsp;The company is also a wholesaler of building materials and a manufacturer and distributor of specialty wood and metal products for home centers and other retailers. &nbsp;Other activities at Jewett-Cameron include the processing and distribution of agricultural seed and the distribution of pneumatic air tools and industrial clamps. &nbsp;The area of most significant growth within Jewett-Cameron is the manufacture and distribution of specialty metal products like dog kennels, gate support systems, perimeter fencing, and greenhouses.</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>Forward-looking Statements</P>
<P style="margin:0pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt" align=justify>The information in this release contains certain forward-looking statements that anticipate future trends and events. &nbsp;These statements are based on certain assumptions that may prove to be erroneous and are subject to certain risks, including but not limited to, the uncertainties of the Company&#146;s new product introductions, the risks of increased competition and technological change in the Company&#146;s industry, and other factors detailed in the Company&#146;s SEC filings. &nbsp;Accordingly, actual results may differ, possibly materially, from predictions contained herein.</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><B>JEWETT-CAMERON TRADING COMPANY LTD. </B></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify>CONSOLIDATED STATEMENTS OF OPERATIONS </P>
<P style="margin:0pt; padding-right:5.65pt" align=justify>(Unaudited)</P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<TABLE><TR><TD valign=top width=306>&nbsp;</TD><TD valign=top width=226.2 colspan=4><P style="margin:0pt; padding-right:5.65pt" align=center><B>Three Month Periods Ended February 28,</B></P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=215.267 colspan=6><P style="margin:0pt; padding-right:5.65pt" align=center><B>Six Month Periods Ended February 28,</B></P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=center><B>2007</B></P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=75.467><P style="margin:0pt; padding-right:5.65pt" align=center><B>2006</B></P>
</TD><TD valign=top width=22.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=121.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=center><B>2007</B></P>
</TD><TD valign=top width=17.4 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=94.467 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=center><B>2006</B></P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>SALES</B></P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>$16,378,530</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>$18,948,343</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>$31,919,499</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>$37,173,300</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>COST OF SALES</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>13,868,269</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>16,187,677</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>26,958,885</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>31,628,215</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>GROSS PROFIT</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>2,510,261</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>2,760,666</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>4,960,614</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>5,545,085</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>OPERATING EXPENSES</B></P>
</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Selling, general and administrative expenses</P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>793,860</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>896,557</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>1,535,670</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>1,529,614</P>
</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Depreciation</P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>81,442</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>70,919</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>149,292</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>142,881</P>
</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Wages and employee benefits</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>1,031,959</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>1,335,467</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>2,138,241</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>2,541,607</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>1,907,261</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>2,302,943</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>3,823,203</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>4,214,102</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Income from operations</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>603,000</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>457,723</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>1,137,411</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>1,330,983</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>OTHER ITEMS</B></P>
</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Gain on sale of property, plant and equipment </P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><BR>
<TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>599,825</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><BR>
<TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><BR>
<TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>599,825</P>
</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Interest and other income</P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>3,807</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>1</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>3,863</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>60,435</P>
</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Interest expense</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>(72,459)</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>(54,823)</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>(125,599)</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>(114,126)</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>(68,652)</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>545,003</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>(121,736)</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>546,134</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Income before income taxes</P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>534,348</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>1,002,726</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>1,015,675</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>1,877,117</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Income taxes </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>213,000</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>385,000</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>406,444</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>709,000</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt double #000000" valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>Net income</B></P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;321,348</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;617,726</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>$ 609,231</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>$1,168,117</P>
</TD></TR>
<TR><TD style="border-top:0.5pt double #000000" valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=110.533>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=96>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt double #000000" valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>Basic earnings per common share</B></P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.20</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.40</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.38</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.76</P>
</TD></TR>
<TR><TD style="border-top:0.5pt double #000000" valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=110.533>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=96>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt double #000000" valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>Diluted earnings per common share</B></P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.20</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=18.067>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.39</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=17.667>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.38</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;.74</P>
</TD></TR>
<TR><TD style="border-top:0.5pt double #000000" valign=top width=306>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=110.533>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=18.067>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=97.6 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=17.667>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=96>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=17.2 colspan=2>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt"><B>Weighted average number of common shares outstanding:</B></P>
</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Basic</P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>1,584,859</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>1,532,359</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>1,584,859</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>1,527,984</P>
</TD></TR>
<TR><TD valign=top width=306><P style="margin:0pt; padding-right:5.65pt">Diluted</P>
</TD><TD valign=top width=110.533><P style="margin:0pt; padding-right:5.65pt" align=right>1,584,859</P>
</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2><P style="margin:0pt; padding-right:5.65pt" align=right>1,572,616</P>
</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96><P style="margin:0pt; padding-right:5.65pt" align=right>1,586,368</P>
</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=right>1,571,424</P>
</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=306>&nbsp;</TD><TD valign=top width=110.533>&nbsp;</TD><TD valign=top width=18.067>&nbsp;</TD><TD valign=top width=97.6 colspan=2>&nbsp;</TD><TD valign=top width=17.667>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD><TD valign=top width=17.2 colspan=2>&nbsp;</TD><TD valign=top width=102.067 colspan=3>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><B>JEWETT-CAMERON TRADING COMPANY LTD. </B></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify>CONSOLIDATED BALANCE SHEETS</P>
<TABLE><TR><TD valign=top width=601.933>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<TABLE><TR><TD valign=top width=396>&nbsp;</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right><B>February 28,</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right><B>August 31,</B></P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right><B>2007</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right><B>2006</B></P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(Unaudited)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt"><B>ASSETS</B></P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt"><B>Current assets</B></P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Cash and cash equivalents</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;577,945 &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;146,810</P>
</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Accounts receivable, net of allowances </P>
<P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of $0 (August 31, 2006-$0)</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=right>7,135,891</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=right>6,822,197</P>
</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Inventory </P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>9,856,497</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>8,750,861</P>
</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Prepaid expenses</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>322,750</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>139,936</P>
</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Income taxes receivable</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;126,765</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Note receivable </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>4,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>4,000</P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Total current assets</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>18,023,848</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>15,863,804</P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt"><B>Property, plant and equipment, net </B></P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>2,119,770</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>2,217,756</P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt"><B>Intangible assets, net </B></P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>836,743</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>101</P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt"><B>Deferred income taxes </B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>143,300</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>142,900</P>
</TD></TR>
<TR><TD valign=top width=396>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=396><P style="margin:0pt; padding-right:5.65pt"><B>Total assets</B></P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>$21,123,661</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; padding-right:5.65pt" align=right>$18,224,561</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt double #000000" valign=top width=396>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=108>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=114>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=center><B><I>- Continued -</I></B></P>
<P style="margin:0pt; padding-right:5.65pt; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><B>JEWETT-CAMERON TRADING COMPANY LTD.</B></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify>CONSOLIDATED BALANCE SHEETS</P>
<TABLE><TR><TD valign=top width=601.933>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<TABLE><TR><TD valign=top width=439.2>&nbsp;</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right><B>February 28,</B></P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right><B>August 31,</B></P>
</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right><B>2007</B></P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right><B>2006</B></P>
</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>(Unaudited)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">Continued</P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>LIABILITIES AND STOCKHOLDERS&#146; EQUITY</B></P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>Current liabilities</B></P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Bank indebtedness </P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>$2,448,266</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Account payable</P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>1,878,116</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>2,514,801</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Accrued liabilities</P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>1,459,862</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>1,537,290</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Accrued income taxes</P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>40,871</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Current portion of long term liabilities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>361,807</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>59,432</P>
</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Total current liabilities</P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>6,148,051</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>4,152,394</P>
</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>Long term liabilities </B></P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Promissory note </P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>2,049,786</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>2,081,963</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Note payable</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>300,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>&nbsp;&nbsp;Total long term liabilities</B></P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>2,349,786</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>2,081,963</P>
</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>Total liabilities</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>8,497,837</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>6,234,357</P>
</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>Contingent liabilities and commitments </B></P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2>&nbsp;</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt"><B>Stockholders&#146; equity</B></P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Capital stock </P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized</P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20,000,000 common shares, without par value</P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10,000,000 preferred shares, without par value</P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;&nbsp;&nbsp;Issued</P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;&nbsp;&nbsp;1,584,859 common shares (August 31, 2006-1,584,859)</P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>2,138,468</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>2,138,468</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Additional paid-in capital</P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>609,600</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>583,211</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Retained earnings</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>9,877,756</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>9,268,525</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Total stockholders&#146; equity</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>12,625,824</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>11,990,204</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=102>&nbsp;</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;<B>Total liabilities and stockholders&#146; equity</B></P>
</TD><TD valign=top width=132><P style="margin:0pt; padding-right:5.65pt" align=right>$21,123,661</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102><P style="margin:0pt; padding-right:5.65pt" align=right>$18,224,561</P>
</TD></TR>
<TR><TD valign=top width=439.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;</P>
</TD><TD valign=top width=132>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><B>JEWETT-CAMERON TRADING COMPANY LTD. </B></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify>CONSOLIDATED STATEMENTS OF CASH FLOWS</P>
<TABLE><TR><TD valign=top width=601.933>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<P style="margin:0pt; padding-right:5.65pt" align=justify><BR></P>
<TABLE><TR><TD valign=top width=475.2>&nbsp;</TD><TD valign=top width=248.4 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=center><B>Six Month</B></P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD valign=top width=248.4 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=center><B>Periods Ended</B></P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=248.4 colspan=3><P style="margin:0pt; padding-right:5.65pt" align=center><B>February 28</B></P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=center><B>2007</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=center><B>2006</B></P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt"><B>CASH FLOWS FROM OPERATING ACTIVITIES</B></P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Net income</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;609,231 &nbsp;&nbsp;</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>$ 1,168,117</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Items not involving an outlay of cash:</P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Depreciation</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>149,292</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>142,881</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Gain on sale of property, plant and equipment</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(599,825)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Deferred income taxes</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(400)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>23,600</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Stock based compensation expense</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>26,389</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Changes in non-cash working capital items:</P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Increase in accounts receivable</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(313,694)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(641,129)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;(Increase) decrease in inventory</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(1,105,636)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>105,768</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Increase in prepaid expenses</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(182,814)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(71,633)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Increase in income taxes receivable</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(126,765)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(71,633)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Decrease in notes receivable</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>25,338</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Increase (decrease) in accounts payable and accrued liabilities</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(714,113)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>317,829</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">&nbsp;&nbsp;Decrease in accrued income taxes</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(40,871)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(310,847)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Net cash provided by (used in) operating activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(1,699,381)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>160,099</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt"><BR></P>
<P style="margin:0pt; padding-right:5.65pt"><B>CASH FLOWS FROM FINANCING ACTIVITIES</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Proceeds (repayment) of bank indebtedness</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>2,448,266</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(805,577)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Promissory note</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(29,802)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(27,963)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Note payable</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>600,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Net cash provided by (used in) financing activities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>3,018,464</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(833,540)</P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt"><B>CASH FLOWS FROM INVESTING ACTIVITIES</B></P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Purchase of property, plant and equipment</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(32,948)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(30,378)</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Purchase of intangible assets and other</P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(855,000)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Proceeds on sale of property, plant and equipment</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>-</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>660,000</P>
</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt">Net cash provided by (used in) investing activities</P>
</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>(887,948)</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>629,622</P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt"><B>Net increase (decrease) in cash and cash equivalents</B></P>
</TD><TD valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>431,135</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>(43,819)</P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt"><B>Cash and cash equivalents, beginning of period</B></P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>146,810</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>609,944</P>
</TD></TR>
<TR><TD valign=top width=475.2>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=108>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=116.4>&nbsp;</TD></TR>
<TR><TD style="border-bottom:0.5pt double #000000" valign=top width=475.2><P style="margin:0pt; padding-right:5.65pt"><B>Cash and cash equivalents, end of period</B></P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=108><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;&nbsp;577,945 &nbsp;&nbsp;</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=116.4><P style="margin:0pt; padding-right:5.65pt" align=right>$ &nbsp;&nbsp;566,125</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt"><B>JEWETT-CAMERON TRADING COMPANY LTD.</B></P>
<P style="margin:0pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt">SEGMENT INFORMATION</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt" align=justify>Following is a summary of segmented information for the six month periods ended February 28:</P>
<P style="margin:0pt" align=justify><BR></P>
<TABLE><TR><TD valign=top width=336>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=136.8><P style="margin:0pt" align=center><B>2007</B></P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.2><P style="margin:0pt" align=center><B>2006</B></P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt"><B>Sales to unaffiliated customers:</B></P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=136.8>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000" valign=top width=97.2>&nbsp;</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Industrial wood products</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>$21,125,358</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>$26,031,360</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Lumber, building materials &amp; other</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>6,316,941</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>7,558,595</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Seed processing &nbsp;and sales</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>4,000,874</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>3,128,027</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Industrial tools</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=136.8><P style="margin:0pt" align=right>476,326</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.2><P style="margin:0pt" align=right>455,318</P>
</TD></TR>
<TR><TD valign=top width=336>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt double #000000" valign=top width=136.8><P style="margin:0pt" align=right>$31,919,499</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt double #000000" valign=top width=97.2><P style="margin:0pt" align=right>$37,173,300</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt"><B>Income (loss) from operations:</B></P>
</TD><TD style="border-top:0.5pt double #000000" valign=top width=136.8>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt double #000000" valign=top width=97.2>&nbsp;</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Industrial wood products</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>$ &nbsp;&nbsp;&nbsp;&nbsp;442,369</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>$1,070,591</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Lumber, building materials &amp; other</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>670,713</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>193,425</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Seed processing &nbsp;and sales</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>81,383</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>63,365</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">Industrial tools</P>
</TD><TD valign=top width=136.8><P style="margin:0pt" align=right>16,759</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=97.2><P style="margin:0pt" align=right>62,809</P>
</TD></TR>
<TR><TD valign=top width=336><P style="margin:0pt">General corporate</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=136.8><P style="margin:0pt" align=right>(73,813)</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=97.2><P style="margin:0pt" align=right>(59,207)</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt double #000000" valign=top width=336>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt double #000000" valign=top width=136.8><P style="margin:0pt" align=right>$ &nbsp;1,137,411</P>
</TD><TD style="border-bottom:0.5pt double #000000" valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:0.5pt double #000000" valign=top width=97.2><P style="margin:0pt" align=right>$1,330,983</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt">For more information contact: Donald M. Boone, President &amp; CEO (503) 647-0110</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-size:12pt">Source: Jewett-Cameron Trading Company Ltd.</P>
<P style="margin:0pt">#</P>
<P style="margin:0pt; font-size:12pt"><BR></P>
<P style="margin:0pt; font-size:12pt"><BR></P>
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