Liquidation World Inc. (LQW - TSX; LIQWF - Nasdaq) announces the results of operations for the thirteen weeks ended April 7, 2002. Revenue decreased 5% to $42,551,000 from $44,993,000 during the corresponding period in 2001. Net earnings decreased 51% to $756,000 ($0.09 per share) during the second quarter of fiscal 2002 from $1,534,000 ($0.18 per share) during the corresponding period in fiscal 2001.

The quarter marks the 62nd consecutive quarter of profitability (all quarters since inception).

On a cumulative basis, revenue decreased 3% to $91,267,000 during the twenty-six weeks ended April 7, 2002 from $93,898,000 during the period ended April 1, 2001. Net earnings decreased 39% to $2,321,000 ($0.27 per share) during the first half of fiscal 2002 from $3,818,000 ($0.45 per share) during the first half of fiscal 2001. Additional details are provided in the financial statements below.

“There continues to be a strong supply of surplus inventories for liquidation,” remarked Dale Gillespie, President and C.E.O. “However, there has been an absence of significant insolvency or insurance deals that provide marketing impact. As expected, we continued to experience softer margins in our retail operations during the second quarter as mainstream retailers continued discounting inventories to drive sales.”

“We are encouraged by the growth and development of our non-retail services including auctions, reverse logistics and store closure sales management. We believe that, in time, the recently added turnaround consulting practice will contribute significantly to our service offering and to our profitability.”

“We are seeing more opportunities to open retail outlets as the weak economy continues and suitable real estate vacancies rise. With over $6 million in the bank and no debt at quarter end, we are well positioned to continue to grow.”

Liquidation World recently opened new outlets in Ponoka, Alberta and Winnipeg, Manitoba bringing to 95 the total number of outlets open and operating. These outlets extend Liquidation World’s market penetration and take advantage of existing marketing and logistical infrastructure.

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 95 outlets across North America. Liquidation World solves asset recovery problems, in a professional manner, for banks, trustees, 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.