June 30, 2006

December 31, 2005

Assets

Current assets:

Cash and cash equivalents

$

4,481

$

4,688

Pledged bank deposit

27

27

Investment securities

6

6

Accounts receivable (net of allowance for doubtful

accounts of $4,623;  2005 - $4,643)

32,650

27,457

Inventory

24,565

20,335

Due from related companies

2,983

3,517

Note receivable

265

266

Deferred tax asset

210

-

Income tax recoverable

-

89

Prepaid royalties

1,994

2,025

Other prepaid expenses and current assets

2,516

3,729

Total current assets

69,697

62,139

Fixed assets, net

21,543

21,097

Goodwill

25,926

26,017

Prepaid land lease

87

90

Intangibles, net

8,562

9,041

Note receivable

111

244

Total assets

$

125,926

$

118,628

June 30, 2006

December 31, 2005

Liabilities and Shareholders' Equity

Current liabilities:

Bank indebtedness

$

29,644

$

22,343

Trade accounts payable

17,197

16,938

Accrued payroll and related costs

681

2,106

Other accounts payable and accrued liabilities

17,901

10,134

Obligations under capital leases

2,363

2,404

Due to related parties

1,314

2,829

Income taxes payable

785

634

Total current liabilities

69,885

57,388

Long term debt

4,197

5,111

Note payable

-

704

Deferred tax

2,992

3,311

Obligations under capital leases

2,177

3,452

Shareholders' equity:

Capital stock:

Voting ordinary shares, $0.13 par value

100,000,000 ordinary shares authorized

16,597,169 ordinary shares issued and outstanding,

(2005 – 16,310,467)

2,158

2,120

Preference stock

2,000,000 Series A preference shares , $0.13 par value

1,669

1,669

Deferred non-voting stock

2 deferred non-voting share, $0.13 par value

-

-

Additional paid-in capital

70,236

69,826

Accumulated loss

(27,934)

(25,549)

Accumulated other comprehensive income-

cumulative currency translation adjustment

546

596

Total shareholders’ equity

46,675

48,662

Total liabilities and shareholders' equity

$

125,926

$

118,628

Six months ended June 30

2006

2005

Net sales

$

62,672

$

50,514

Cost of goods sold

46,333

37,925

Gross profit

16,339

12,589

Other operating income

(1,062)

(770)

Operating costs and expenses:

General and administrative

11,052

9,529

Selling and distribution expenses

5,010

4,109

Depreciation and amortization

1,186

1,035

Total operating costs and expenses

17,248

14,673

Operating  income (loss)

153

(1,314)

Non-operating expense (income):

Interest expense

1,242

769

Interest income

(11)

(32)

Total non-operating expense

1,231

737

Loss before income taxes

(1,078)

(2,051)

Income taxes:

Current

495

116

Deferred

(316)

(13)

Total income taxes

179

103

Net loss from operations

(1,257)

(2,154)

Dividends

(1,395)

(1,160)

Net loss available to ADS shareholders

$

(2,652)

$

(3,314)

Six months ended June 30

2006

2005

(Loss) earnings per American Depositary

Shares  (“ADS”):

Weighted average ADS outstanding:

Basic

16,311,437

16,196,166

Diluted

48,263,043

18,538,469

Net (loss) earnings available to ADS

shareholders

Basic

$

(0.16)

$

(0.20)

Diluted

(0.16)

(0.20)