Reko Announces Second Quarter Results for Fiscal 2014

Reko International Group Inc. (TSX VENTURE:REK) today announced results for its
second quarter ended January 31, 2014.




Financial Highlights:                                                       
                                        Three Months         Six Months     
                                         (unaudited)         (unaudited)    
                                    ----------------------------------------
                                        Fiscal    Fiscal    Fiscal    Fiscal
                                          2014      2013      2014      2013
----------------------------------------------------------------------------
Sales                                 $  9,298  $ 10,504  $ 17,767  $ 21,241
Net income                                  54       212        96       963
EPS basic                                 0.01      0.03      0.02      0.15
Working capital                                              8,682     8,395
Shareholders' equity                                        27,819    26,995
Shareholders' Equity per Share                                4.33      4.20
----------------------------------------------------------------------------



Consolidated sales for the quarter ended January 31, 2014, were $9.3 million,
compared to $10.5 million in the prior year, a decrease of $1.2 million or
11.4%. The decrease in sales was largely related to decreases in demand across
all markets. Consolidated sales for the six months ended January 31, 2014 were
$17.8 million, compared to $21.2 million in the prior year, a decrease of $3.4
million, or 16.0%.


Gross profit for the quarter ended January 31, 2014, was $1.5 million, or 16.1%
of sales, compared to a gross profit of $1.6 million, or 15.2% of sales, in the
prior year. Gross profit for the six months ended January 31, 2014 was $2.7
million, or 15.2% of sales, compared to a gross profit of $3.4 million in the
prior year, or 16.0% of sales in the prior year.


Selling and administrative expenses for the quarter ended January 31, 2014 were
$ 1.1 million, or 11.8% of sales, compared to $1.2 million, or 11.4% sales, in
the prior year. The decrease in SG&A relates to the recovery of a receivable
that had previously been written off, partly offset by an increase in sales
commission due to a change in customer mix. Selling and administrative expenses
for the six months ended January 31, 2014 were $2.3 million, or 12.9% of sales,
compared to $2.2 million in the prior year, or 10.4% of sales in the prior year.


Net income for the quarter ended January 31, 2014 was $0.1 million or $0.01 per
share, compared to net income of $0.2 million, or $0.03 per share in the prior
year. The decrease in net income for the three month period was primarily the
result of foreign exchange losses incurred during the period as emanating from
marking to market the company's foreign exchange hedge position. The foreign
exchange loss equated to $0.04 per share, or $0.3 million. Net income for the
six months ended January 31, 2014 was $0.1 million or $0.02 per share, compared
to net income of $0.9 million or $0.15 per share in the prior year.


"Sales volumes in both the capital equipment market and automotive market
started to improve late in the quarter," stated Diane Reko, chief executive
officer. "This increase in sales allowed us to show a significant improvement in
our operating profitability compared to last quarter. Overall financial results
were impacted by foreign exchange losses due to a stronger U.S. dollar, and our
policy of hedging our currency exposure resulting from our large book of U.S.
dollar receivables. While this had an impact upon our financial results in the
quarter, a stronger U.S. dollar will improve our profitability going forward."


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.


About Reko International Group Inc.

Reko International Group Inc. is a publicly traded, certified woman owned
manufacturing company located in Southwestern, Ontario. Established in 1976,
Reko International Group Inc. is a diverse value-added designer and manufacturer
of customized machining and engineering solutions to OEMs and their Tier I
suppliers in dynamic sectors as rail equipment, oil and gas distribution,
mining, military, capital equipment, and automotive. For more information, visit
www.rekointl.com.




REKO INTERNATIONAL GROUP INC.                                               
469 Silver Creek Industrial Drive Lakeshore, Ontario                        
N8N 4W2                                                                     
http://www.rekointl.com/                                                    



SUBSIDIARIES/DIVISIONS:

Canada:



--  Concorde Precision Machining Inc. 
--  Reko Manufacturing Group Inc. 



United States: 



--  Reko International Sales Inc. 
--  Reko International Holdings Inc. 
    --  Reko Global Services, LLC 



FOR FURTHER INFORMATION PLEASE CONTACT: 
Reko International Group Inc.
Carl A. Merton
Chief Financial Officer
[phone]
www.rekointl.com