Agoracom

RICHMOND, BC, March 2  - CON-SPACE Communications Ltd. (CCB - TSX Venture), (http://www.con-space.com ), a world leader in specialized voice communication products, today announced 2007 Second quarter financial results for the period ended December 31, 2006.

"CON-SPACE ended its Second quarter for fiscal 2007 with a 26.6% increase in sales over that of the comparative quarter last year," said Jim Swanson, Company Chairman. "This result gave the Company the highest 2nd quarter sales plus the highest first half sales we have seen. Our increasing performance and the addition of our new President, Mike Thirlwell, continues to give us very positive feeling regarding the balance of this fiscal year."

Results

Sales in the second quarter totaled $1,593 k representing a 26.6% increase over the $1,258 k in the comparative quarter during the prior year. December sales were very strong and the increased activity has carried through into the third quarter.

Cost of goods sold rose slightly to 58.5% year to date versus 57.6% last year. This resulted in a gross margin of $1,221 k or 41.5% for the first six months compared to $1,240 k or 42.4% for the respective prior period.

Marketing and Promotion expenses are up 36.4% over the prior year while Insurance costs also increase $14 k from the prior year. Netted in expenses is an exchange loss of $136 k related to a twelve month forward foreign exchange contract that was initiated to mitigate currency risk.

Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the quarter was $108 k ($147 k ytd) compared to $74 k or ($375 k ytd) in the prior year.

Net earnings for the quarter ended at $82 k ($77 ytd) up 317% over the prior year's second quarter's $20 k ($192 k ytd).

Outlook

The outlook for the second half of Fiscal 2007 is positive as the Company will be launching its new Armory Product Line at the end of the third quarter. This product launch will officially mark the CON-SPACE's entrance into the broader communication market. The Company is currently in the process of building a new distribution channel to service that market. The new line is expected to be well-received as CON-SPACE has built a very strong reputation in the safety industry.

The Company is also directing more attention to building its OEM business in the second half as Management recognized that the manufacturing of private label products provides significant opportunities to grow the business. Several potential opportunities have been identified and a marketing plan has been developed.

With no long-term or short term debt and over $1.7 million in cash, the Company is moving forward with numerous growth plans including acquisition activities and fully expects a profitable growth year to emerge as this year progresses.

About CON-SPACE

CON-SPACE is recognized worldwide as the leading designer and manufacturer of specialized voice communication equipment used by Police, Fire, Rescue, Government Agencies, Militaries, Municipalities and general industry. The Company has distribution throughout North America, Great Britain, Australia, and parts of Asia, South America, and Europe. The Company also supplies many other manufacturers with Private Labeled products.

This press release is available on the company's official on-line investor relations site for investor commentary, feedback and questions. Investors are asked to visit http://www.agoracom.com and view the CON-SPACE Investor Contact & Information Centre. Alternatively, investors are asked to e-mail all questions and correspondence to CCB(at)Agoracom.com

"Forward-looking" statements in this release involve risks and uncertainties associated with, among others, economic, industry conditions, technological development, and competition and should not be relied upon as actual results may differ materially from those projected.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

For further information

James L. Swanson, Chairman, CON-SPACE, Tel: (800) 755-2528 or invest@con-space.com

Investor Relations: AGORACOM Investor Relations, http://www.agoracom.com or CCB@agoracom.com