August 08, 2006
Ableauctions Reports Second Quarter 2006 Results

OJAI, Calif.--Aug. 8, 2006--Ableauctions.com Inc. (AMEX: AAC - News; the "Company") today announced the results of operations for the quarter ended June 30, 2006.

REVENUES:

During the three months ended June 30, 2006, the Company reported revenue of $1,802,774, compared to revenue of $613,849 during the same period in 2005, an increase of 194%. The increase in revenues was attributable primarily to an increase in revenues earned from the Company's liquidation services.

Revenues from the Company's online auction business for the three months ended June 30, 2006 increased by almost 30% from the previous quarter, and increased by over 70% compared to the same period in 2005.

The number of live auction sessions facilitated by the Company during the three months ended June 30, 2006 increased by almost 66% from the previous quarter, and increased by over 75% compared to the same period in 2005. The Company's database of registered bidders for live auctions grew by 18% in the second quarter and the Company's client base grew by 5% in the second quarter.

For the six months ended June 30, 2006, the Company reported revenues of $3,841,926 compared to revenues of $1,763,593 during the same period in 2005, an increase of $2,078,333 or 118%.

Cost of sales for the quarter ended June 30, 2006 was $1,159,441 or 64% of revenues during the three-month period ended June 30, 2006, compared to $332,461 or 54% of revenues during the same period in 2005. The increase in the cost of sales as a percentage of revenue is attributed to the lower gross profit margins realized from the operations of the Company's liquidation services, as compared to its online auction business.

Gross profits were $643,333, or 36% of revenues for the three-month period ended June 30, 2006, compared to $281,388 or 46% of revenues for the same period in 2005. The decrease in gross profit as a percentage of revenue is also attributed to the performance of the Company's liquidation services, which realizes lower gross profit margins than its online auction business. Future gross profit margins may vary considerably from quarter-to-quarter depending on the performance of the Company's various divisions.

During the three-months ended June 30, 2006, operating expenses were $721,966 or approximately 40% of revenue, resulting in an operating loss of $124,912 after depreciation and amortization, compared to operating expenses of $345,513 or approximately 56% of revenue for the three months ended June 30, 2005, resulting in an operating loss of $98,194 after depreciation and amortization. The increases in operating expenses were incurred in conjunction with the Company's growth and are primarily due to increases in personnel (commissions, salaries and benefits, management fees) and professional (accounting and legal) expenses. While the Company has maintained overall profitability over the last three fiscal years, not all of its operations achieve positive operating results. The Company still incurs losses from certain operations, such as the auctions it conducts for the NAA, that are in the development stage. The Company is able to maintain positive cash flow from the revenues that are produced by its other operations and from the interest and dividends earned by its investments. Management's objective is to attain profitability in all of the Company's operations and fund its expansion program from the interest and dividends earned by its investments. The Company expects operating costs to remain high as it expands operations, programs, projects and the staff to accommodate its growth.

NET INCOME:

The Company reported net income of $39,770 for the quarter ended June 30, 2006, compared to a net income of $47,801 during the same period in 2005, and net income of $180,080 for the six-month period ended June 30, 2006 compared to a loss of $121,762 during the same period in 2005.

SHAREHOLDER'S EQUITY:

Shareholders' equity, defined as the carrying amount of the Company's assets minus its liabilities, increased to $13,304,319 at June 30, 2006 compared to $12,789,331 at December 31, 2005.

Looking forward, management continues to look for innovative ways to enhance its business, especially in the live auctions segment. While the Company has not been successful in finding suitable companies to acquire, it continues its search while expanding its operations organically. In order to increase shareholder value, the Company will continue to invest any excess capital it has including, if it deems it to be in the best interests of its shareholders, repurchasing and retiring some of its stock in the marketplace.

The Company's objective is to become a leading provider of liquidation and merchandising services. Management believes that the Company's long term success in this area of our business depends on its continued innovation and integration of technologies and services for auctioneers and liquidators worldwide.

About Ableauctions.com

Ableauctions.com Inc. (AMEX:AAC) is a high-tech liquidator and on-line auction facilitator that operates the domains iCollector.com, Naalive.com, Unlimited Closeouts.com and iTrustee.com.

As an on-line auction facilitator, the Company, with the experience of over 3,000 auctions, has developed state-of-the-art technology to broadcast auctions over the Internet (www.ableauctions.com/technology) and currently provides the technology and related services to auction houses, enabling them to broadcast auctions over the Internet. The Company broadcasts business and industrial auctions over the Internet for auctioneers and members of the National Auctioneers Association (NAA) and art, antique and collectible auctions for numerous galleries and auction houses around the world through eBay Live Auctions.

As a liquidator, the Company, through Unlimited Closeouts and iTrustee, purchases overstocks, order cancellations and discontinued products from major manufacturers and importers, then sells the merchandise to major retail chains, other resellers or the public.

For a comprehensive Corporate Update and prior releases, visit www.ableauctions.com. For more information, contact Investor Relations at investorrelations@ableauctions.com

This press release contains forward-looking statements, particularly as related to, among other things, the business plans of the Company, statements relating to goals, plans and projections regarding the Company's financial position and the Company's business strategy. The words or phrases "would be," "will allow," "intends to," "may result," "are expected to," "will continue," "anticipates," "expects," "estimate," "project," "indicate," "could," "potentially," "should," "believe," "considers" or similar expressions are intended to identify "forward-looking statements." These forward-looking statements fall within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 and are subject to the safe harbor created by these sections. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of risks and uncertainties. Such forward-looking statements are based on current expectations, involve known and unknown risks, a reliance on third parties for information, transactions or orders that may be cancelled, and other factors that may cause our actual results, performance or achievements, or developments in our industry, to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from anticipated results include risks and uncertainties related to the performance of our staff, management, financing, competition, on-line auction business, our ability to implement or manage our expansion strategy, general economic conditions, our ability to license our software to other auction houses, our ability to acquire profitable companies and integrate them into our business successfully and other factors that are detailed in our Annual Report on Form 10-KSB and on documents we file from time-to-time with the Securities and Exchange Commission. Statements made herein are as of the date of this press release and should not be relied upon as of any subsequent date. The Company cautions readers not to place undue reliance on such statements. The Company does not undertake, and the Company specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. Actual results may differ materially from the Company's expectations and estimates. The Company does not realize nor book the full revenue of auctions that it facilitates in its financials, only the net auction fees, that can vary from time-to-time, that it realizes.