Consolidated Mercantile Inc. (CSLMF)

Consolidated Mercantile Incorporated, through its subsidiaries, manufactures furniture and protective packaging products. The company has 50.33% interest in Distinctive Designs Furniture, Inc., which manufactures and imports leather and fabric upholstered furniture for sale to Canadian department stores, mass merchants, and independent furniture stores, as well as to customers in the United States. It offers its products under Distinctive and Kroehler brand names. The company also has a 22.8% interest in Polyair Inter Pack, Inc., which manufactures protective packaging and specialty pool products. Its products include polyethylene bubble protective packaging, polyethylene foam for surface protection and cushioning, plastic and paper mailers, packaging systems, insulation materials, and foamin-place packaging, as well as produces solar covers and pool wall foam. Consolidated Mercantile Incorporated was founded in 1940. The company was formerly known as Erie Flooring and Wood Products Limited and changed its name to Erie Diversified Industries, Ltd. in 1968; to Lambda Mercantile Corporation, Ltd. in 1973; to Consolidated Mercantile Corporation in 1987; and to Consolidated Mercantile Incorporated in 1998. Consolidated Mercantile is headquartered in Toronto, Canada.

For the six months ended 30 June 2006, Consolidated Mercantile Incorporated's revenues decreased 19% to C$14.7M. Net loss from continuing operations totaled C$3.2M, up from C$1M. Revenues reflect a decrease in sales of Company's products due to competitive products available in the market. Net loss reflects a decrease in gross margins, higher amortization expense and the presence of loss on foreign exchange vs. gain.