GDG ENVIRONMENT GROUP Announces its 2009 Second Quarter Financial Results and Maintains its EBIDTA for the Second Quarter

GDG ENVIRONMENT GROUP, (TSX VENTURE:GDG), a Canadian recognized leader in the integrated control of biting flies, focused since 1980 in offering a broad range of environmental services targeting the improvement of quality of life and the protection of public health, today announced its financial and operating results for the three and six-month periods ended June 30, 2009 ("the trimester"). All amounts in this release are expressed in Canadian dollars unless otherwise indicated.

Highlights

- EBIDTA totalled $587,766 (18%) for the three-month period ended June 30, 2009 compared to $649,083 (18%) for the comparative period in 2008.

- The registration by its subsidiary GDG Environnement of the new product Ragweed Off for the ecological control of ragweed has allowed GDG, along with its strategic partner, to grab the majority of municipal and government contracts for ragweed control. These revenues will be reflected in the financial statements of the next quarter since operations are performed during the third quarter.

- The solicitation process, for the control of biting flies, is now over. The Company maintains its market leadership position despite a reduction in sales for the three-and-six month periods ended June 30, 2009 due to the current economic context.

- Within the mainframe of an important R&D project, the Company hired, as R&D Director, a prominent researcher and expert in nanotechnology and biosensor development.

Financial results- three month period ended June 30 2009

- The Corporation generated revenue in the amount of $ 3,254,902 in the three month period ended June 30, 2009, compared to $ 3,628,752 for the same period in 2008; a 10.3 % decrease. Decrease in sales, for the three month period ended June 30, 2009, is due to the current economic context resulting in a strong competition and downward price pressure.

- The net earnings for the three month period ended June 30, 2009 are at $222,473 compared to $324,773, or $0.01 per share, for the same period in 2008.

The decrease in quarterly net earnings, in comparison with the same period last year, is due mainly to the reduction of income, increased investment in research and development, and financial expenses.

- The gross margin for the three month period ended in June 30 2009 is established at $ 1,098,104 compared to 1,045,809 for the same period in 2008.

A reduction of our material resources helped improve the gross margin: 33.7 % in the quarter of June 2009 compared to 28.8 % in the same quarter of 2008.

- Operating expenses for the quarter ended June 30, 2009 have increased by 33%, which represents $758,487, compared to $570,312 for the same period in 2008. These expenses include the costs for the R&D program, which are $ 105,449 for quarter ended June 2009, compared to $ 13,129 for the same quarter in 2008, and financial expenses related to long-term debts: debentures issued for the reverse takeover, which took effect on April 24, 2008.

- EBIDTA totalled $587,766 (18%) for the three-month period ended June 30, 2009 compared to $649,083 (18%) for the comparative period in 2008, maintaining its results.

Financial results- six month period ended June 30 2009

- The Corporation generated revenue in the amount of $ 3,764,219 in the six month period ended June 30, 2009, compared to $ 4,168,218 for the same period in 2008; a 9.7 % decrease. Decrease in sales, for the six month period ended June 30, 2009, is due to the current economic context resulting in a strong competition and downward price pressure.

--------------------------------------------------------------------------
GDG ENVIRONMENT GROUP LTD.
DATA EXTRACTED FROM CONSOLIDATED FINANCIAL STATEMENTS - EARNINGS
--------------------------------------------------------------------------
                 Period ended   Period ended   Period ended   Period ended
                 three months   three months     six months     six months
--------------------------------------------------------------------------
(In thousands   June 30, 2009  June 30, 2008  June 30, 2009  June 30, 2008
 of dollars)       (unaudited)    (unaudited)    (unaudited)    (unaudited)
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                            $              $              $              $
--------------------------------------------------------------------------
Sales                   3,255          3,629          3,764          4,168
--------------------------------------------------------------------------
Cost of sales           2,157          2,583          2,564          2,984
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Gross margin            1,098          1,046          1,200          1,184
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                         33.7%          28.8%          31.9%          28.4%
--------------------------------------------------------------------------
Selling and
 administrative
 expenses                 405            383            815            731
--------------------------------------------------------------------------
Research and
 Development              105             13            162             21
--------------------------------------------------------------------------
EBIDTA (1)                588            650            223            432
--------------------------------------------------------------------------
Financial charges         174            109            343            126
--------------------------------------------------------------------------
Depreciation of
 fixed assets              74             65            144            125
--------------------------------------------------------------------------
Total operating
 expenses                 758            570          1,464          1,003
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Earning before the
 following items:         340            476           (264)           181
--------------------------------------------------------------------------
Other revenue
 (expenses)                (3)            17            (14)           600
--------------------------------------------------------------------------
Earnings before
 income tax               337            493           (278)           781
--------------------------------------------------------------------------
Income taxes
 (recovered)              115            168            (73)            76
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net earnings              222            325           (205)           705
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net earnings per
 share - Basic
 (note 15)               0.01           0.01          (0.01)          0.01
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Net earnings per
 share - Diluted         0.01           0.01          (0.01)          0.01
--------------------------------------------------------------------------
--------------------------------------------------------------------------
Weighted average
 number of shares
 outstanding       59,621,685     56,780,680     59,621,685     52,580,932
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(1)The Company uses only one financial measure that is not consistent with
   Canadian GAAP, namely earnings before interest, income taxes,
   depreciation and amortization (EBITDA). Such a measure is used because
   management believes that it provides meaningful information about the
   Company's performance and operating results. Such a non-GAAP measure has
   no standardized meaning as prescribed by GAAP and is not necessarily
   comparable to similarly titled measures presented by other companies.
   Accordingly, it should not be considered independently of other figures.

Leave of absence of Mr. Jean Sebastien Berube

Mr. Jean Sebastien Berube, President and Chief Executive Officer for GDG Environment Group recently informed the Company that he had to take an indefinite sick leave.

Mr. Jean-Guy Lanouette, former President and current Chairman of the Board for GDG Environment Group, was entrusted by the administrators with the responsibility of assuming Mr. Berube's duties until he returns.

Mr. Lanouette, the founder of G.D.G. Environnement, President and CEO from 1980 until February 2009, will fully ensure continuity in the development of GDG Environment Group and its activities.

About GDG Environment Group (www.groupegdg.com)

Since 1980, GDG Environment Group, a recognized Canadian leader in the integrated control of biting flies, offers a broad range of services targeting the improvement of quality of life and the protection of public health, mainly through the biological control of biting flies, vector control and the surveillance and prevention of West Nile Virus in Canada.

GDG Environment Group operates 3 divisions: GDG Environnement, front-runner in the biological control of biting flies and vector control, GDG Aviation which manages all aerial operations for the Group and Diamond Sylvico, a Northern Quebec subsidiary, firmly established in the Cree Community of Waskaganish (James Bay territory).

GDG Environment Group relies on substantial logistics for the realizations of its mandates: a taxonomy and molecular biology laboratory, a modern fleet of 8 airplanes and helicopters and more than 120 road vehicles.

The Group markets its expertise throughout the country and has a strong team of scientists and managers plus a team of nearly 200 professionals and technicians in the summer. The Group is established as the most important player in Canada, after more than 500 successful mandates in the field of biological control of biting flies and in the management of disease vectors.

Listed on the TSX Venture Exchange since April 2008, the shares of GDG Environment Group are traded under the ticker "GDG" - (TSX VENTURE:GDG).

The current Company's financial statements and management's discussion and analysis will be available on www.sedar.com and www.groupegdg.ca.

Forward-looking statements

This press release contains forward-looking statements which reflect GDG Environment Group's current expectations regarding future events. Those statements involve known and unknown risks and uncertainties, which could cause the Company's actual results, performance and achievements to differ materially from those in the forward-looking statements. GDG Environment Group disclaims any obligation to update these forward-looking statements.

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

SOURCE: GDG Environment Group Ltd.

GDG Environment Group Ltd.
Isabelle MARTIN
Chief of finance and Vice President Operations
819-373-3097
isabelle.martin@gdg.ca

Related terms: aviation, biology, canada, ceo, community, debentures, diamond, disease, earnings, ebitda, environment, environmental services, financial results, gaap, government contracts, investment, market, note, president, quebec, research and development, revenue, sales, takeover, tax, taxes