RIVIERE-DU-LOUP, QUEBEC -- (MARKET WIRE) -- 09/26/06 -- Premier Tech (TSX: PTL.A). At its Annual Shareholders Meeting held today at Hotel Hilton Montreal Aeroport, Premier Tech released its consolidated results for the three-month period ended September 2, 2006. All amounts are expressed in Canadian dollars unless otherwise indicated.

Consolidated sales for the three-month period ended September 2, 2006, reached $49.6 million, down 6.8% from the first quarter of the previous year, which reached $53.2 million. The decline in the Company's sales is mainly attributable to decreased shipments from the Horticulture and Agriculture Group (GHA) and the Environmental Technologies Group (ETG), down 25.4% and 2.7%, respectively, during the first quarter compared with the same period the previous year, and to the negative impact of foreign exchange fluctuations. Sales for the Industrial Equipment Group (IEG) grew by 22.7%, compared with the same period a year ago.

During the three-month period ended September 2, 2006, the Company posted earnings before income taxes of $3.2 million, compared with a loss before income taxes of $0.4 million, for the quarter ended August 27, 2005. This performance includes a non-recurring gain of $4.1 million described hereinafter. Apart from this special item, the Company would have posted a $0.9 -million loss before income taxes.

For the three-month period ended September 2, 2006, net earnings thus totaled $3 million, or $0.18 per share, or $3.7 million more than the net loss of $0.7 million, or $0.04 per share, for the corresponding period a year earlier.

Special item

On June 19, 2006, the Company entered into a partnership agreement consisting in cooperation and technology transfers with multiple deliverables, which will be carried out during the next five fiscal years. As part of this agreement, the Company received US$4 million in consideration of deliverables realized to date, which resulted in a non-recurring gain of $4.1 million.

Segmented results

During the first quarter, GHA's segmented earnings stood at $0.2 million, or 1% of sales, compared with $1.7 million, or 5.6% of sales, for the same period of the previous year. The decrease in segmented earnings is primarily a reflection of lower product volumes shipped, which resulted in a lower gross margin in dollars, as well as a greater weighting of sales and administration costs as a percentage of sales.

During the same period, IEG posted segmented earnings of $3.6 million, or 17.8% of sales, compared with a segmented loss of $1.3 million, or 8.1% of sales, for the first quarter of the previous year. This increase in segmented earnings stems, on the one hand, from a non-recurring gain of $3.4 million as the result of a partnership and technology transfer agreement. On the other hand, the reduction in the cost structure, which began in the spring of 2005, both in Europe and in North America, reached its full effect during the first quarter of fiscal year 2007, while only a part of this cost reduction applied to the first quarter of the preceding fiscal year and, as such, contributed to IEG's improved financial performance.

Finally, for the first quarter, ETG's segmented earnings stood at $0.5 million, or 6.5% of sales, compared with $1 million, or 12.9% of sales, for the first quarter of the previous year. The $0.5 million drop is attributable primarily to a reduction in the gross margin on sales associated with its sales composition, higher prices for some raw materials and an increase in sales and administration costs, compared with the corresponding period of the previous year.

Outlook

The Company begins fiscal year 2007 with confidence. Following the re-engineering efforts of the past two fiscal years, Premier Tech is now facing the future resolutely. The Company can now focus its energy on developing its markets, its products and its customers. Meanwhile, the various teams are still working hard on different continuous improvement initiatives in an effort to further improve the groups' activities.

Premier Tech continues to be realistic in dealing with the competition and in tackling external factors. This responsive approach to market requirements makes it possible for the various groups to pursue strategies and action plans that will ensure Premier Tech's success, development and recognition in the short, medium and long term. The Company also plans to be prudent and rigorous in its choice of strategies and in its investments, in order to keep improving its financial performance and its profitability.

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PREMIER TECH LTD            Three-month period    Three-month period
(in thousands of             ended September 2,      ended August 27,
 dollars, except                          2006                  2005
 per share amounts)
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                                             $                     $
Operation

Sales                                   49,582                53,207
Earnings (loss) before income
 taxes                                   3,228                  (445)
Net earnings (loss)                      2,983                  (664)
Net earnings (loss) per share             0.18                 (0.04)
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Financial position

Total assets                           188,291               186,906
Working capital                         41,140                40,403
Long-term debt                          41,223                46,809
Debt bearing interest                   58,630                64,970
Total liabilities                      132,727               141,411
Shareholders' equity                    55,564                45,495
Shareholders' equity per share            3.40                  2.79
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Number of shares outstanding        16,342,195            16,314,695
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Corporate profile

For more than 80 years, Premier Tech has been building its know-how and reputation on the various technology-oriented opportunities offered by sphagnum peat moss, an abundant natural resource in Canada. Its seven business units, gathered in three groups - Horticulture and Agriculture, Industrial Equipment and Environmental Technologies - have the mission to become technological and commercial leaders in their respective fields of expertise. Buoyed by a multidisciplinary team of over 1 500 people based in America, Europe and Asia, Premier Tech is building on the development of its personnel, on innovation, research and development, and on the introduction of value-added products. Its strategic approach is supported by ongoing worldwide market development efforts. Premier Tech shares are listed on the Toronto Stock Exchange, in Canada, under the symbol PTL.A.

Contacts:
Premier Tech
Mr. Martin Noel, CA, CBV
Senior Vice-President
Chief Financial Officer
418-867-8297 (FAX)
418-867-8883 Ext. 6438
noem@premiertech.com