Expansion Plans Continue with the Announcement of 5 Additional New Outlets

Liquidation World Inc. (LQW – TSX) today announces results for the third quarter of fiscal 2006, representing 13 weeks of operations ending July 2, 2006.

Revenue for the quarter increased 6.4% to $49.2 million from $46.3 million for the same quarter last year, and set a new Q3 record. Same store sales increased 3.8% over prior year. Earnings were $42,000 ($0.01 per share), compared to a loss of $1.3 million ($0.16 per share) in the same period last year.

Fiscal year-to-date revenue increased 13.1% to $155.3 million from $137.3 million. Cumulative earnings were $2.7 million ($0.31 per share) compared to a loss of $6.9 million ($0.82 per share) through Q3 2005. Further detail is provided in the financial statements available in the PDF version of this press release.

Liquidation World’s President and Chief Executive Officer, Jonathan Hill, said:

I am pleased that our results reflect another quarter of dramatic improvement from the prior year. The Company generated record third quarter revenue and rebounded from a $1.3 million dollar loss in Q3, 2005. Although sales were strong, our planned investments in personnel and infrastructure resulted in a modest profit. I am confident that these investments will support a much larger, more profitable business in the future. With this infrastructure now largely in place, we are turning our attention to growing our business. To that end, we are pleased to announce that we have secured 5 locations in addition to the 9 recently announced for a total of 14 new stores which will open prior to the end of the calendar year. Net of expected closures associated with lease completions and non-performance, we plan to be operating 113 stores by the end of the first quarter of 2007. Our infrastructure, personnel and systems are now in place to support additional growth beyond this.

Our sales and gross margins continue to be positively impacted by the changes we have made to our merchandising team. We have seen very strong performance in a number of key categories and a general increase in the quality, value and selection of our merchandise. Notwithstanding this, we foresee continued  mprovement in our mix and level of inventory as we further leverage the information available to us through our new merchandise management system.

With the completion of its third quarter, Liquidation World has experienced four consecutive quarters of improving performance. Mr. Hill commented:

We are encouraged by these results as they continue to reinforce the appropriateness of our investments in people and infrastructure which will support our plans for growth.

About Liquidation World

Liquidation World liquidates consumer merchandise through 101 outlets across North America and also provides store-closure sales management. It 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 1,800 employees in outlets and offices across Canada and the United States.

This release includes forward-looking statements and potential future circumstances and developments. Forward-looking statements regarding future performance are subject to risks and uncertainties, and actual results may differ materially.

Liquidation World has scheduled a conference call
to begin promptly at 11 a.m.
Calgary time (1:00 p.m. EDT) on August 9th, 2006.
Conference call dial in number is 1-877-888-3490 or 416-695-9753

A replay of the conference call will be accessible on Liquidation World’s website within twenty four hours at www.liquidationworld.com by selecting “Investor Info”, “News Releases”, and “Q3 Conference Call”.

About Liquidation World

Liquidation World liquidates consumer merchandise through 101 outlets across North America and also provides store-closure sales management. It 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 1,800 employees in outlets and offices across Canada and the United States.

For more information, please contact:

Jonathan Hill, President and CEO
416-587-0688 phone
866-237-3778 fax
jonathanh@liquidationworld.com

Andrew Searby, CA, Executive VP, and CFO
403-250-1222 phone
403-291-1306 fax
investorinfo@liquidationworld.com