Reko Announces Third Quarter Results for Fiscal 2013

Reko International Group Inc. (TSX VENTURE:REK) today announced results for its
third quarter ended April 30, 2013.




Financial Highlights:                                                       
                                     Three Months           Nine Months     
                                      (unaudited)           (unaudited)     
                                --------------------------------------------
                                --------------------------------------------
                                     Fiscal     Fiscal     Fiscal     Fiscal
                                       2013       2012       2013       2012
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Sales                               $10,871    $11,388    $32,112    $33,006
Net income                              224        214      1,187        534
EPS basic                              0.03       0.03       0.18       0.09
Working capital                                             8,690      7,052
Shareholders' equity                                       27,219     25,299
Shareholders' Equity per Share                               4.24       3.94
----------------------------------------------------------------------------



Reko is pleased to report that the strategic initiatives it undertook in 2011
allowed it to report a substantial improvement in profitability and working
capital, during a period when sales volumes were $1 million lower than the prior
year. In addition to allowing Reko to regain profitability, the 2011 strategic
initiatives also better matched Reko's capacity to normal market demand levels,
focused the Company on its most productive markets, improved downside risks in
periods of weaker demand and allowed us to position ourselves to respond to
changing market conditions.


Consolidated sales for the quarter ended April 30, 2013, were $10.9 million,
compared to $11.4 million in the prior year, a decrease of $0.5 million or 4.4%.
The decrease in sales was largely related to a reduction in demand in the
capital equipment market. We expect demand in this sector to continue to be
lower than the prior year for at least the next quarter. Consolidated sales for
the nine months ended April 30, 2013 were $32.1 million, compared to $33.0
million in the prior year, a decrease of $0.9 million, or 2.7%.


Gross profit for the three months ended April 30, 2013 was $1.7 million, or
15.6% of sales, compared to a gross profit of $2.0 million, or 17.5% of sales,
in the prior year. The decrease in gross profit in the quarter is consistent
with the decrease in sales. Gross profit for the nine months ended April 30,
2013 was $5.1 million, or 15.9% of sales, compared to a gross profit of $4.9
million in the prior year, or 14.8% of sales that year.


Selling and administrative expenses for the three months ended April 30, 2013
were $1.2 million, or 11.0% of sales, compared to $1.3 million, or 11.4% sales,
in the prior year. The decrease in selling and administrative expenses in the
quarter relates to reduced wages and expenses from fewer administration
employees, reductions in professional fees associated with implementing IFRS in
the prior year. Selling and administrative expenses for the nine months ended
April 30, 2013 were $3.5 million, or 10.9% of sales, compared to $3.9 million in
the prior year, or 11.8% of sales in the prior year.


Net income for the quarter was $0.2 million or $0.03 per share, compared to net
income of $0.2 million, or $0.03 per share in the prior year. Net income for the
nine months ended April 30, 2013 was $1.2 million or $0.18 per share, compared
to net income of $0.5 million or $0.09 per share in the prior year.


"Our third quarter results were heavily impacted by the low level of contract of
awards," stated Diane Reko, chief executive officer. "The reduced demand in the
capital equipment market has decreased the volumes in our custom machining
facility, an impact we believe will continue into the fourth quarter. The
automotive market has also delayed project awards due to launch delays. We
continue to review market conditions and have increased our sales efforts to
actively look for potential new opportunities."


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.




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