January 2006

T.J.T., Inc. 2005 net income & EPS up 166% over 2004

Emmett, ID— T.J.T., Inc. reported increased sales and substantially higher income for the second consecutive year.

Sales in fiscal year 2005 increased 15 percent to $22.6 million compared to $19.7 million in 2004. Axle and tire sales increased 17 percent while accessories and siding sales increased seven percent. Increased sales, combined with a one percent increase in axle and tire gross margin contributed to the $709,000 increase in gross profit in 2005 as compared with 2004.

The Company’s net income was $661,000 for the year ended September 30, 2005, or $.15 per basic and fully diluted share, compared to $397,000 or $.09 per basic and fully diluted share in fiscal year 2004. Joint venture income of $453,000 recognized in 2005, compared to $224,000 in 2004, along with increased axle and tire sales, contributed to the 66 percent increase in net income. Selling, general and administrative expenses increased $489,000 due to higher wages and commissions for additional sales personnel, incentive-based compensation, and costs incurred for product development.

Sales increased six percent in the fourth quarter of 2005 as compared to the same period a year ago. Gross profit, during the final quarter of fiscal 2005, improved 25 percent on higher sales, compared to the same period a year ago. Gross margin rose to 29 percent compared to 25 percent in the same year-ago period. Selling, general and administrative expense increased $115,000 as a result of higher incentive compensation expense than in the same quarter of 2004. Net income increased to $309,000 or $.07 per basic and fully diluted share, compared to $.04 in the same 2004 period.

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