Liquidation World Inc. (LQW – TSX; LIQWF – Nasdaq) announces the results of operations for the 52 weeks ended October 6, 2002. Revenue decreased 5% to $174,520,000 from $183,400,000 during the 53 weeks ended October 7, 2001. Revenues have been reduced from previously announced results to reflect only the net commission earned on consignment sales. This adjustment has no effect on net earnings. Net earnings decreased 68% to $2,205,000 ($0.26 per share) during fiscal 2002 from $6,981,000 ($0.83 per share) during the 2001 fiscal year.

During the final quarter, the thirteen weeks ended October 6, 2002, revenue decreased 12% to $42,595,000 from $48,594,000 during the fourteen weeks ended October 7, 2001. Net earnings in the fourth quarter of 2002 decreased 81% to $385,000 ($0.05 per share) compared to $1,990,000 ($0.24 per share) in the fourth quarter of 2001.

For the year, cash flow from operations increased 52% to $7.4 million from $4.9 million in the previous year including opening and stocking of 10 outlets during the year.

“Several factors conspired to weaken our financial results,” said Mr. Gillespie, Company Founder & C.E.O. “Most lenders hoped that improvements in the economy would assist their clients with weak performance and accordingly, deferred on some tough decisions. Also there has been a drought on natural disasters, which typically yield salvage inventory that we acquire for our outlets. These factors resulted in reduced sales and significantly reduced earnings. During the year, we were able to add 10 outlets and put over $5 million in the bank that will help us to leverage our performance when the direction of the economy becomes more clear.”

Mr. Gillespie added "the Company continues to strive for its goal of being the most complete solution provider in North America for companies with problem inventories. Two years ago we added reverse logistics and reprocessing capabilities to our menu of services through our investment in Product Management Canada Inc. Last year we continued to complement our service menu with the provision of store closure services to our retail clients, and this year we added turnaround consulting services that provides solutions beyond inventory issues with the acquisition of start up Clear Thinking Group, Inc.”

About Liquidation World
Liquidation World offers a uniquely diversified menu of solutions for organizations with asset recovery issues. Services include auctions, reverse logistics and processing, store closure sales management, turnaround consulting, and retail liquidations of consumer merchandise through 98 outlets across North America. Liquidation World solves asset recovery problems, in a professional manner, for the financial services industry, insurance companies, manufacturers and other organizations. Liquidation World opened its first retail outlet in 1986 and is now the largest liquidator in Canada, with more than 1,600 employees in outlets and offices across Canada and the United States.

For more information, please contact:
Dale Gillespie, C.E.O.
Andrew Searby, CA, Executive V.P. and Chief Financial Officer
E-mail: investorinfo@liquidationworld.com
Website: www.liquidationworld.com
Telephone: (403) 250-1222
Fax: (403) 291-1306