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Press Releases
May 16, 2005
FOR IMMEDIATE RELEASE
Company Contact
Ryan L. Roth, Corporate Communications Manager
800-340-TILE (8453), rroth@iwttesoro.com
IWT TESORO CORPORATION REPORTS ANALYST COVERAGE
WESTPORT, CONN. — May 16, 2005 — IWT Tesoro Corporation (OTCBB: IWTT), a leading provider of ceramic, porcelain and natural stone wall and floor covering materials through our subsidiary International Wholesale Tile (IWT), today announced that New York-based Spelman Research, an independent, fee-based investment research firm, initiated coverage of IWT Tesoro Corporation on April 20, 2005.
Spelman issued a speculative buy rating and a target price of $3.60. Their report states that “IWTT deserves a closer look” and that the stock currently trades at “attractive P/Sales multiples”.
This is the fourth year in a row that IWT Tesoro Corporation has reported year-over-year revenue increases of more than 25%. From 2000 to 2001, revenues were up 29%, and from 2001 to 2002, revenues were up 31%. From 2002 to 2003, revenues were up 29%, and from 2003 to 2004, revenues were up 38%. Spelman recognized this positive trend, as well as cited that the Company’s distributor-only business model appeals to retailers, and there are strong industry fundamentals in the expected increase of the floor tile market. Additionally, Spelman forecasted IWT Tesoro Corporation’s growth to continue in 2005 and 2006.
Henry “Bud” Boucher, chairman and chief executive officer of IWT Tesoro Corporation stated, “We are very pleased that Spelman Research recognized our double-digit growth and significant upside potential.”
The Spelman Research coverage of IWTT can be downloaded at www.iwttesoro.com.
About IWT Tesoro Corporation
IWT Tesoro Corporation of Westport, Conn. is a publicly traded building products company that is purely wholesale-driven. This focus is at the core of IWT Tesoro Corporation’s long-term growth and market strategy. Its flagship subsidiary, International Wholesale Tile Inc. (www.internationalwholesaletile.com), is located in Palm City, Fla.; Dallas, Texas; and Irvine, Calif. and is a distributor of ceramic, porcelain and natural stone products with more than 17 million square feet of material in stock, including Tesoro, The Collection, a compilation of premium porcelain and natural stone materials (www.tesorocollection.com). In addition to International Wholesale Tile, IWT Tesoro Corporation has three additional subsidiaries. The first is IWT Tesoro Transport Inc., a federally licensed freight carrier that handles in- and out-bound freight operations. The second is IWT International Ltd., formed to leverage IWT Tesoro Corporation’s international purchasing network developed as a result of its strong partnerships with international buying groups and factory agents representing natural stone and tile manufacturers from around the world. The third subsidiary is The Tile Club Inc., organized to acquire licensing, manufacturing and distribution rights for high-end designer and artistic-based decorative tiles and to also act as an agent for foreign manufacturers from whom International Wholesale Tile has acquired exclusive distribution rights. On the Web: www.iwttesoro.com.
About Spelman Research
Spelman Research Associates Ltd. is an independent, fee-based research, publishing and distribution firm whose contract analysts adhere to the ethics and standards of CFA Institute. On the Web: www.spelmanresearch.com.
Safe Harbor Statement
Certain statements in this press release may constitute "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may address, among other things, the Company’s business and financing plans, regulatory environments in which the Company operates or plan to operate, and trends affecting the Company’s financial condition or results of operations, the impact of competition, the start up of certain operations, roll out of products and services and acquisition opportunities. When used herein, the words "believes", "expects", "plans", "estimates" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance and achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
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