CARMANAH ANNOUNCES SECOND QUARTER PROFITABILITY AND RECORD REVENUE

Victoria, BC -- August 13, 2002 - Carmanah Technologies Corporation (TSX VE: CMH; Berlin and Frankfurt Stock Exchanges: QCX) is pleased to announce its second quarter results for the three months ended June 30, 2002. Highlights for the quarter are as follows:

·   Revenue up 86% over Q2 2001 to $1,513,733
·   Profit of $31,140
·   Revenue growth (86%) outpaced expenditures (44%)
·   Unit sales were up 72% to 10,783 for the first half of 2002
·   Gross profit reaches a record 58% as direct sales increase
·   Investments into developing new markets continues

SUMMARY OF RESULTS FOR 2002

3 Months Ended June 30

Carmanah recorded a record $1,513,733 in revenues. This was an 86% increase of $701,587 over the same period in 2001.

Direct cost of goods totaled $649,836, as compared to $349,949 for the three months ended June 30, 2001. Total operational expenses were $878,155, a 44% increase over the $611,267 in the same period in 2001.

Gross profit as a percentage of sales reached a record 58%. Net income was $31,140 as compared to a net loss of $213,759 for the same period in 2001.

6 Months Ended June 30

Carmanah recorded a record $2,894,777 in revenues. This was an increase of 78% over the same period in 2001. Revenue growth was achieved through (i) the continued growth of marine sales in existing product lines; (ii) expansion into the railway and mining markets with existing products; and (iii) expansion into the transportation and transit markets with entirely new products. Unit sales increased from 6,818 units sold and delivered for the first half of 2001 to 10,783 for the first half of 2002.

Direct cost of goods totaled $1,248,166 as compared to $739,853 for the six months ended June 30, 2001. Gross profit as a percentage of sales was 57% as compared to 55% during the same period in 2001. This increase is a result of the Companys movement towards more direct selling through dedicated sales staff and an aggressive e-commerce program.

Total operational expenses were $1,685,710 as compared to $1,059,422 for the same period in 2001. As a percentage of sales, the operating expenses are down to 59%, as compared to 65% for the same period in 2001. This increase is attributed to the increased staff and administrative expenses necessary to support the Companys expansion into new products and new markets. Increasing investment is being made into markets that will be primary sources of revenues in the months and years to come.

Net income was $6,560 as compared to a net loss of $215,762 for the same period in 2001. The overall increase is a result of an increase in sales.

Cash balance as at June 30, 2002 was $820,084, as compared to $1,060,817 as at December 31, 2001. The decrease was primarily attributable to an increase in inventory levels and a decrease in current liabilities.

About Carmanah Technologies Inc.

Carmanah designs, manufactures and supplies patented, proprietary solar-powered LED lighting solutions to the marine, transit, roadway and railway markets. The company has distributors in over 80 countries and now has more than 45,000 units installed worldwide. The shares of Carmanah Technologies Corporation (parent company) are publicly traded on the TSX Venture Exchange under the symbol "CMH" and on the Berlin and Frankfurt Stock Exchanges under the symbol "QCX". For further information, please visit www.carmanah.com.

On Behalf of the Board of Directors
Carmanah Technologies Corporation

"Praveen Varshney"
Praveen Varshney, Director

For further information, please contact:

Corporate Contact:
Mr. Praveen Varshney, Director
Tel: (604) 629-0264
Toll-Free: 1-866-629-0264

Media Contact:
Mr. David Davies
Harbourwerks Communications
Tel: (250) 382-4332
ddavies@harbourwerks.com

Investor Relations Contact:
Vanguard Shareholder Solutions
Tel: (604) 608-0824
Toll-Free: 1-866-801-0777
ir@vanguardsolutions.ca

CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Balance Sheets

June 30, 2002 and December 31, 2001 (Unaudited - Prepared by Management)

   June 30,   December 31,
   2002   2001
   (unaudited)   (audited)
Assets      
      
Current assets:      
Cash and cash equivalents   $     820,084   $    1,060,817
Accounts receivable   643,531   358,958
Taxes recoverable   9,926   23,888
Prepaid expenses and deposits   35,609   26,777
Inventories   833,308   587,439
Current portion of advances receivable   36,639   49,472
   2,379,097   2,107,351
Advances receivable   111,500   111,500
Capital assets   304,334   279,873
Deferred development costs   105,645   216,895
Patents and other intangibles   35,582   29,487
   $ 2,936,158   $    2,745,106
      
Liabilities and Shareholders Equity      
      
Current liabilities:      
Accounts payable and accrued liabilities   $     333,027   $     340,876
Bank loan   30,000   30,000
Current portion of long-term debt   6,146   27,790
Current portion of obligations under capital lease   12,855   25,800
Current portion of future income taxes   18,000   18,000
   400,028   442,466
Long-term debt   6,473   17,143
Obligations under capital lease   30,304   30,304
      
Shareholders' equity:      
Share capital   3,267,346   3,029,746
Contributed surplus   26,188   26,188
Retained Earnings (Deficit)   (794,181)   (800,741)
   2,499,353   2,255,193
   $ 2,936,158   $    2,745,106

CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Statements of Operations and Deficit

For the six months ended June 30, 2002 and 2001 (Unaudited -- Prepared by Management)

   2002   2001
      
Revenues   $ 2,894,777   $    1,628,983
Cost of goods sold   1,248,166   739,853
Gross margin   1,646,611   889,130
      
Operating expenses:      
Amortization of:      
Capital assets   48,714   41,507
Deferred development costs   111,249   70,119
Patents and other intangible assets   4,155   3,700
Bank charges and interest   21,060   15,583
Office and administration   262,185   180,924
Research and development   319,693   125,287
Sales and marketing   262,682   112,486
Wages and benefits   655,972   509,816
   1,685,710   1,059,422
      
Operating loss for the period   (39,099)   (170,292)
      
Other income:      
Interest and other income   45,659   43,015
Reverse takeover costs   -   (88,485)
   45,659   (45,470)
      
Income (loss) for the period   6,560   (215,762)
      
Deficit, beginning of period   (800,741)   (124,243)
      
Deficit, end of period   $    (794,181)   $    (340,005)
      
Earnings (loss) per share   $         0.0003   $     (0.0343)
      
Weighted average number of shares outstanding   20,480,113   6,285,479

CARMANAH TECHNOLOGIES CORPORATION
Consolidated Interim Statements of Cash Flows

For the six months ended June 30, 2002 and 2001 (Unaudited -- Prepared by Management)

   2002   2001
      
Cash provided by (used in):      
      
Operations:      
    Income (loss) for the period   $         6,560   $    (215,763)
    Amortization, an item not involving cash   164,118   115,326
    Changes in non-cash operating working capital:      
Accounts receivable   (284,573)   (141,344)
Taxes recoverable   13,962   (89,909)
Inventories   (245,869)   (154,168)
Prepaid expenses and deposits   (8,832)   (1,782)
Advances receivable   12,833   -
Accounts payable and accrued liabilities   (7,848)   114,665
   (349,649)   (372,975)
      
Investing:      
Cash received on the reverse takeover of     Carmanah Technologies Inc.   -   1,768,014
Capital asset additions   (83,423)   (94,197)
Patents and other intangibles   -   (10,032)
   (83,423)   1,663,785
      
Financing:      
Shares issued by way of private placement   237,600   -
Bank loan   -   (30,000)
Repayment of long term debt   (32,316)   (27,431)
Obligations under capital leases   (12,945)   69,212
   192,339   11,781
Increase (decrease) in cash and cash equivalents   (240,733)   1,302,591
Cash and cash equivalents, beginning of period   1,060,817   185,634
Cash and cash equivalents, end of period   $     820,084   $    1,488,225