Mile Marker International, Inc. Announces Second Quarter 2006 Results

POMPANO BEACH, Fla.--Aug. 4, 2006--Mile Marker International, Inc. (OTCBB:MMRK), a specialty vehicle parts distributor, today announced its second quarter 2006 financial results.

In its Form 10-QSB filing with the U.S. Securities and Exchange Commission today, Mile Marker International, Inc. announced that it earned net income of $60,648, or $0.01 per common share, for the second quarter ended June 30, 2006, based on sales revenues of $4,949,473. During the same period in 2005, the Company reported net income of $686,672, or $0.07 per common share, based on sales of $6,020,205.

Sales revenues were $12,239,274 for the first six months of 2006, compared to $13,501,928 for the first six months of 2005 and $24,812,219 for the full year of 2005. Net income for the first six months of 2006 was $855,268 compared to $1,728,700 for the first six months of 2005 and $3,178,267 for the full year of 2005. Fully diluted earnings per share were $0.09 in the first six months of 2006, compared to $0.17 for the first six months of 2005 and $0.32 for the full year 2005.

Richard Aho, President and CEO of Mile Marker International, Inc., said: "We are obviously disappointed with our financial results this quarter. We did not receive any significant military orders for replacement winches during this quarter, and our commercial sales declined mainly due to significantly reduced OEM orders. Both of these sales areas are heavily dependant upon government budgetary considerations beyond our control. As we have repeatedly stressed, our quarterly results are very volatile due to the timing of purchase orders under our multiple military contracts. The timing of such military orders is intermittent, unpredictable and highly dependant upon government budgetary priorities and considerations. However, we are aware of media reports that the U.S. Army's equipment budget is expected to triple for the 2007 Fiscal Year beginning on October 1, 2006. Consequently, we've had to invest significant amounts for inventory, personnel and facilities in order to be able to fulfill these potential military orders promptly as required by our contracts. While these costs have adversely affected our financial results in the short run, we expect to see a substantial benefit from these investments once we receive significant military purchase orders from our potential backlog of $47 million over the next four years."

Included in this release are certain "forward-looking" statements, involving risks and uncertainties, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's financial performance. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual future results may differ materially from those anticipated, depending on a variety of factors, sales and earnings growth, ability to attract and retain key personnel and general economic conditions, including uncertainties relating to global political conditions, such as terrorism. Information with respect to important risk factors that should be considered is contained in the Company's Annual Report on Form 10-KSB and its Form 10-QSB as filed with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.