Royal Laser Corp. Reports Financial Results for the Second Quarter of Fiscal 2010 Ended September 30, 2009

TORONTO, ONTARIO, Nov 12 (MARKET WIRE) --
Royal Laser Corp. (the "Company" or "Royal Laser") (TSX: RLC) today
reported its financial results for the second quarter ended September 30,
2009 ("Q2 Fiscal 2010").

The summarized financial results for the three and six months ended
September 30, 2009, as compared to three and six months ended September
30, 2008, were:

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Three Months Ended Six Months Ended
September 30, September 30,
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2009 2008 2009 2008
Revenues $67,598,369 $ 86,420,225 $ 118,279,472 $178,714,067
Cost of sales $63,055,117 $ 70,505,386 $ 111,073,796 $145,814,127
Gross margin $ 4,543,252 $ 15,914,839 $ 7,205,676 $ 32,899,940
Adjusted
EBITDA(i) $ 1,147,824 $ 10,264,907 $ 3,001,068 $ 20,730,793
Adjusted
EBITDA(i)
per share $ 0.01 $ 0.11 $ 0.03 $ 0.22
Net earnings
before taxes $ (981,770) $ 7,466,475 $ (1,456,006) $ 15,180,446
Net earnings
(loss) $ (264,612) $ 5,075,655 $ (560,743) $ 10,338,759
Earnings/
(loss)
per share
(basic) $ 0.00 $ 0.05 $ (0.01) $ 0.11
Earnings/
(loss) per
share
(diluted) $ 0.00 $ 0.05 $ (0.01) $ 0.11
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As at As at
September 30, 2009 March 31, 2009
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Working
capital $ 53,086,850 $ 46,223,794
Shareholder's
equity $ 78,691,235 $ 79,450,131
Book value
per share
(ii) $ 0.84 $ 0.85
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(i) Adjusted EBITDA refers to earnings (loss) before interest, taxes,
depreciation and /amortization, non-cash stock-based compensation, and
unusual items; See reconciliation of this non-GAAP measurement below.

(ii) Book Value Per Share is defined as Shareholder's Equity divided by the
number of shares outstanding.

HIGHLIGHTS:

-- The Company's revenues for the three and six months ended September 30,
2009 decreased to $67,598,369 and $118,279,472, compared to $86,420,225
and $178,714,067 during the three and six months ended September 30,
2008. Decreased revenue occurred primarily due to lower sales revenues
in the Steel Processing Business, led by a decline in the average price
of steel by 30% and 21% during the three and six months ended September
30, 2009, compared to the same period in 2008. Sales volumes increased
2% and decreased 19% during the three and six months ended September 30,
2009, as compared to same period in 2008. The overall reduction in
volumes was due to diminished demand for steel in the North American
automotive and general manufacturing sectors, led by plant shutdowns as
major automotive players completed financial restructurings.
-- Gross margin percentage for the three and six months ended September 30,
2009 was 7% and 6% compared to 18% and 18% for the three and six months
ended September 30, 2008, representing a decrease in gross margin of 11%
and 12%. The change in margin is a direct result of diseconomies of
scale resulting from lower volumes, inconsistent and slower turnarounds
at steel producing mills, a drop in the market price of steel and the
strength of the Canadian dollar and its effect on sales revenues.
-- Working Capital increased to $53,086,850 and remains strong at September
30, 2009 compared to $46,223,794 at March 31, 2009 and increased
predominantly because of a decreased investment in inventory in the
Steel Processing Business, caused by the decrease in the price of steel.
-- Adjusted EBITDA was $1,147,824 and $3,001,068 for the three and six
months ended September 30, 2009 compared to $10,264,907 and $20,730,793
for the three and six months ended September 30, 2009.

Commenting on the results of this past quarter in the Steel Processing
Business, Beric Sykes, CO-CEO states: "The second quarter of Fiscal 2010
has seen some interesting challenges, as historically high volatility in
the price of steel, demand and supply of steel, and end-user consumption
have created numerous issues for all aspects of the steel supply chain.
While the broader economic recovery remains tepid, and we remain
cautiously optimistic about a further gradual recovery in the steel
market, our operating environment remains challenging."

Commenting on the results of this past quarter in the Industrial Business
segment, Bill Iannaci, CO-CEO states: "The second quarter of Fiscal 2010
continued to be quite challenging for the industrial, retail and
construction markets that we service. Although there has been a gradual
recovery from the global recession in some market segments, we continue
to focus on being a low-cost producer, to capitalize on the economic
recovery, when it occurs."

The Company's unaudited consolidated financial statements for the quarter
ended September 30, 2009, together with Management's Discussion and
Analysis have been filed on SEDAR and are available at www.sedar.com.

The following table reconciles Adjusted EBITDA to net income (loss) and
comprehensive income (loss) in the three and six months ended September
30, 2009:

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Three Months Ended Six Months Ended
September 30, September 30,
2009 2008 2009 2008
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Adjusted EBITDA: $1,147,824 $10,264,907 $3,001,068 $20,730,793
Deduct:
Income taxes (recovery) (717,158) 2,390,820 (895,263) 4,841,687
Interest expense, net 462,404 835,913 966,326 1,688,082
Depreciation/amortization 798,470 1,633,649 1,629,591 3,240,338
Depreciation/amortization -
included
in cost of sales 767,150 - 1,626,953 -
Non-cash
stock-based compensation 72,174 328,870 175,731 621,927
Unusual items:
Legal claim expense 29,396 - 58,473 -

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Net income (loss) and
comprehensive income (loss) $(264,612) $5,075,655 $(560,743) $10,338,759
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About Royal Laser Corp.

Royal Laser Corp., through its operations, services, processes and
distributes flat-rolled steel targeted at the multi-billion dollar
automotive OEM, automotive after-market, and custom fabricates products
for the industrial, environmental, automotive and construction industries
in Canada, the United States and recently Mexico. The Company's common
shares trade on the Toronto Stock Exchange under the symbol "RLC" and
there are approximately 97 million shares outstanding.

For further information on the Corporation, please visit SEDAR at
www.sedar.com.

To receive Company news by email, please contact info@royallaser.com and
specify "Royal Laser news" in the subject line.

Forward-Looking Statements

Certain statements contained in this press release include statements
which contain words such as "anticipate", "could", "should", "expect",
"seek", "may", "intend", "likely", "will", "believe" and similar
expressions, statements relating to matters that are not historical
facts, and such statements of our beliefs, intentions and expectations
about development, results and events which will or may occur in the
future, constitute "forward-looking information" within the meaning of
applicable Canadian securities legislation and are based on certain
assumptions and analysis made by us derived from our experience and
perceptions. All such forward-looking information is based on certain
assumptions and analyses made by us in light of our experience and
perception of historical trends, current conditions and expected future
developments, as well as other factors we believe are appropriate in the
circumstances. The risks, uncertainties, and assumptions are difficult to
predict and may affect operations, and other factors, many of which are
beyond our control, and are as discussed under the heading "Trends, Risks
and Uncertainties" and in the Annual Information Form of Royal Laser
dated June 29, 2009 and filed on SEDAR at www.sedar.com , as well as
Royal Laser's periodic reports filed with the Ontario Securities
Commission and other regulatory authorities. Actual results, performance
or achievements could differ materially from those expressed in, or
implied by, this forward-looking information and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking information will transpire or occur, or if any of them do
so, what benefits will be derived therefrom. Except as required by law,
Royal Laser Corp. disclaims any intention or obligation to update or
revise any forward-looking information, whether as a result of new
information, future events or otherwise. The forward-looking information
contained herein is expressly qualified by this cautionary statement. The
Toronto Stock Exchange does not accept responsibility for the adequacy or
accuracy of this release.

Contacts:
Royal Laser Corp.
Beric Sykes
Co - Chief Executive Officer
(416) 798-9396

Royal Laser Corp.
Niral Merchant
Chief Financial Officer
(416) 798-9396

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