XPEL Technologies Corp. Announces Financial Results

SAN ANTONIO--Nov. 3, 20040, 2004--XPEL Technologies Corp. (CNQ:XPEL.U)

-- Operating Revenues Increased 35.4%

-- Design Access Program Revenues Improved 49.1%

Nevada-based XPEL Technologies Corp. (CNQ:XPEL.U) today announced results for the Nine Months and Three Months ended September 30, 2004, as compared to the same periods ended September 30, 2003.

XPEL's Chairman and CEO W. R. Brunner, commented, "The numbers are right in step with the planned growth strategy we have previously outlined in our filings and communications to shareholders. In order to produce the kind of growth that our key indicator is showing at nearly 50% (Design Access Program Revenue or "DAP") for the nine months ended in September, we had to ramp up the SG&A expenses. We did this purposefully with the intention of seeing some early results." Mr. Brunner further stated, "The XPEL Team is fully committed to the goal of growing the DAP Dealer base from where it is today with approximately 200 worldwide Dealers to 3,500 in five years. When looking at the growth produced from the existing X-Pel(TM) Product Dealers, we believe our stockholders can easily share in our enthusiasm for reaching this goal."

Nine Months ended September 30, 2004 Compared to the Nine Months ended September 30, 2003

Operating revenues increased to US$2,014,213 from US$1,488,050, or 35.4% between the periods. More importantly, the Company's primary focus of generating increased DAP revenue showed improvement from US$374,698 to US$558,602, or approximately 49.1% between periods. The Company attributes the increase in this key indicator to more aggressive sales and marketing activities. Other income increased period to period by approximately US$135,580 from US$200,497 to US$336,077, or 67.6%, and is related to the increasing demand for plotter/cutters and bulk paint and headlight protection film, which are enabling equipment and supplies needed by DAP Dealers to produce X-Pel(TM) products remotely using the Internet.

Cost of sales increased from US$644,795 to US$1,017,726, or 43.3% to 50.5% of revenue, period to period. Cost of sales is primarily related to the re-selling of lower margin contribution third party enabling supplies such as bulk paint and headlight protection film, which is used by its DAP Dealers for the production of products utilizing the Company's proprietary DAP software program.

Total expenses increased approximately US$437,435 from US$748,742 to US$1,186,177, or approximately 58% between periods. General and administrative expenses increased from US$564,803 to US$892,517, or 58% between periods. This increase was due mainly to increased professional fees, and an increase in the number of full time employees from 11 in September 2003 to 15 in September 2004. Sales and marketing expenses increased to US$164,138 from US$81,728, or 101% between periods. The increase in Sales and marketing expenses is attributable to "stepped-up" activities in relation to the Company executing its growth strategy.

The Company had a net loss of US$189,653 for the first nine months of 2004 as compared to net earnings of approximately US$94,513 for the first nine months of 2003. Although revenue increased between periods, expenses increased even more, as the Company added to its employee base. These additions fill needs in the Company's required skill sets for increased efficiencies in product design, and more effective management and deployment of its growth strategy.

Three Months ended September 30, 2004 Compared to the Three Months ended September 30, 2003

Operating revenues increased to US$636,810 from US$513,079, or 24.1% from the third quarter of 2003 to the third quarter of 2004. More importantly, the Company's primary focus of generating increased DAP revenue showed improvement from US$142,351 to US$205,634, or approximately 44% between periods. Other income increased quarter over quarter by US$42,645, from US$54,805 to US$97,450, or approximately 78%, and is related to increased demand for plotter/cutters and bulk paint and headlight protection film.

Cost of sales increased as a percentage of revenue from US$163,605 to US$338,862, or 31.9% to 53.21%, period to period. Cost of sales is primarily related to the increased re-selling of lower margin contribution third party enabling supplies of bulk paint and headlight protection film.

Total expenses increased approximately US$54,582 from US$315,943 to US$370,525, or approximately 17% between periods. General and administrative expenses increased from US$248,530 to US$286,751, or 15% between periods. Sales and marketing expenses decreased slightly from US$33,578 to US$30,952, or 8% between periods.

The Company incurred a net loss of US$72,541 for the quarter ended September 2004 as compared to net earnings of US$33,531 for the quarter ended September 2003. The Company may incur a net loss for the remainder of 2004, due to expenses related to becoming a publicly traded company, and increased product awareness activities. However, management believes these activities will generate additional corporate visibility, as well as brand and product recognition, resulting in increased revenues and X-Pel(TM) Product Dealer growth.

This Press Release should be read in conjunction with the Company's Financial Statements and associated Notes and Management's Discussion and Analysis filed at SEDAR (www.sedar.com).

XPEL Technologies Corp. (www.xpel.com), publicly traded on the Canadian Trading and Quotation System Exchange, is the worldwide leader in the electronic delivery of top automotive aftermarket products, utilizing the Internet as an integral component for its design, manufacturing, distribution and customer relationship strategies. The Company's DAP software utility offers Dealers the industry's most efficient and productive tool set for better serving customers with "best of breed" solutions. XPEL has clear advantages over the competition through its proprietary corporate framework consisting of an expansive library of installation-friendly window tint, paint and headlight protection products, coupled with a unique web-based remote manufacturing and distribution software, superior installation training curriculum and facilities, and established and growing sales distribution channels.

Certain statements contained herein ("The XPEL Team is fully committed to the goal of growing the DAP Dealer base from where it is today with approximately 200 worldwide Dealers to 3,500 in five years. When looking at the growth produced from the existing X-Pel(TM) Product Dealers, we believe our stockholders can easily share in our enthusiasm for reaching this goal.") are considered "forward-looking statements." These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management. Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, price competition, the inability to obtain additional capital, loss of key personnel, unavailability of leased facilities, technological changes, service interruptions, equipment failures, customer attrition, general economic conditions, relationships with vendors, government supervision and regulation, changes in industry practices, and other factors.

The CNQ has not reviewed and does not accept responsibility for the adequacy and accuracy of this information.

Cusip: U98409102