Hot House Growers Profits Rise

TORONTO - Nov 9/05 - SNS -- Hot House Growers Income Fund reported net income of CDN $3,429,00 on sales of $25,075,000 during the third quarter ending September 30, compared to a net of $360,000 on sales of $18,000,000 during the same three-month period last year.

This lifted fiscal year to date net income to $6,799,000 on sales of $53.7 million, compared to a net of $3,191,000 on sales of $42.095 million during the same nine-month period of the previous fiscal year.

"With an increased growing area, higher average product prices through 2005's peak selling season, and improved operational efficiencies, we have recorded significant year-over-year improvements in revenue, EBITDA, net income and distributable cash. As a result, we have been able to reduce our operating line of credit, and can now restart cash distributions to our unitholders," said Stephen Fane, President and CEO of HHGI.

The company said its business is partially hedged. However, with approximately 72% of sales to the U.S. market, a declining US dollar can have a significant impact on both sales and earnings.

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