Hammond Manufacturing Company Limited Announces Financial Results for the Third Quarter Ended September 30, 2011

HAMMOND MANUFACTURING COMPANY LIMITED (TSX:HMM.A) announces financial results for the third quarter ended September 30, 2011:

                               Nine months ending:      Three months ending:
                              9/30/11      10/1/10      9/30/11      10/1/10
Net Sales                 $63,477,000  $59,317,000  $21,011,000  $19,726,000
Earnings from operating                                                     
 activities((i))            2,225,000    3,066,000      430,000    1,247,000
Profit for Period           1,171,000    1,781,000      103,000      853,000
Total comprehensive income                                                  
 for the period             1,848,000    1,568,000      971,000      596,000
                                                                            
Earnings per share                                                          
      Basic               $      0.10  $      0.16  $      0.01  $      0.08
      Diluted             $      0.10  $      0.16  $      0.01  $      0.08
                                                                            
Shares outstanding         11,334,300   11,334,300   11,334,300   11,334,300
Net Book value per share  $      2.59  $      2.42  $      2.59  $      2.42
                                                                            
((i)) Earnings from operations is before interest, foreign exchange, equity 
 interest, other income and taxes                                           
NOTE: All numbers have been stated under IFRS                               
      The interim financial results have not been reviewed by an auditor    

To all employees and shareholders:

New orders in Q3 exceeded our forecasts and taxed our capacity in our Guelph factory.

Operating earnings reflect the costs of responding to this surge in backlog level with increased staffing and capacity. Moreover, production was disrupted by a very hot July and August that resulted in lower outputs.

Our focus for Q4/11 is on the recovery of our service levels at normalized productivity levels.

Hammond Manufacturing Company Limited manufactures a broad range of products for the electronic and electrical products industry, including metallic and non-metallic enclosures, racks, small cases, outlet strips, surge suppressors and electronic transformers.

Contacts: Hammond Manufacturing Company Limited Robert F. Hammond Chairman and CEO [phone] [phone] (FAX)[e-mail]