BELLINGHAM, Wash., Sept. 22, 2005 (PRIMEZONE) -- Pinnacle Developments Inc. (Pink Sheets:PNCV) is pleased to announce its intention to further expand operations in the distribution of specialty wood products to be used in residential and commercial construction as well as furniture manufacturing in North America. The company is also expanding into new product lines to provide building materials for the hurricane ravaged Gulf Coast.
The first two species of hardwood to be imported to North America by Pinnacle will be Gmelina (also known as white teak by the Japanese) and Genuine Mahogany (commonly known as Honduran Mahogany). These products will be imported to meet growing demand in North America for specialty wood products produced from species not indigenous to North America. These products will be purchased by Pinnacle in cant format and remanufactured to North American customer specifications.
Management expects that the addition of these two new product lines will provide incremental revenues of $2.4M and $300K in gross margin on an annualized basis.
It is anticipated that U.S. demand for wood products will continue to remain strong as increased demand for hardwood and softwood for residential and commercial construction due to hurricane damage will be an ongoing feature of the U.S. markets. The trade publication Random Lengths reports that the composite price for framing lumber has risen 13.5 percent to US $403 per thousand feet and the price of structural panels rose 32 percent to US $477 per thousand since Hurricane Katrina hit.
Management is optimistic that the company can benefit from the economic expansion stemming from the reconstruction efforts.
Please visit the company's website http://www.pinnacledevinc.com/ for further information.
Certain statements contained herein are "forward looking" statements (as such term is defined in the Private Securities Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements.