Antigua Enterprises Inc. reported a 3.0% sales increase for the second quarter ended June 30, 2005 to $13.2 million from $12.8 million last year. Despite the sales gain, gross margins declined 10 basis points as a percentage of sales while SG&A Expenses increased 130 points. Net income dropped 22.3% for the quarter, down to $0.98 million from $1.261 million last year.

Consolidated Statement of Operations (in U.S. Dollars):

                           Three Months Ended       Six Months Ended
                                 June 30                June 30
                      ------------------------ -----------------------
                          2005        2004         2005        2004
                      ----------- ------------ ---------- ------------
Sales                 $13,191,825 $12,812,206 $22,601,670 $21,642,076
Cost of Sales           8,115,642   7,864,756  14,039,554  13,505,306
                      ----------- ------------ ---------- ------------
Gross Profit            5,076,183   4,947,450   8,562,116   8,136,770
                      ----------- ------------ ---------- ------------

Selling Expenses        2,363,742   2,182,674   4,605,977   4,283,456
General &
 Administrative
 Expenses               1,246,078   1,158,284   2,268,219   2,227,646
                      ----------- ------------ ---------- ------------
Operating Expenses      3,609,820   3,340,958   6,874,196   6,511,102
                      ----------- ------------ ---------- ------------

Income from Operations  1,466,363   1,606,492   1,687,920   1,625,668
                      ----------- ------------ ---------- ------------
Other Income
 (Expense):
Interest Expense         (345,042)   (368,777)   (657,402)   (711,254)
Other                      19,101      23,759      37,665      47,537
                      ----------- ------------ ---------- ------------
                         (325,941)   (345,018)   (619,737)   (663,717)
                      ----------- ------------ ---------- ------------
Income Before Income
 Taxes                  1,140,422   1,261,474   1,068,183     961,951
Provision for Income
 Taxes                    160,228           -     160,228           -
                      ----------- ------------ ---------- ------------

Net Income               $980,194  $1,261,474    $907,955    $961,951
                      ----------- ------------ ---------- ------------
                      ----------- ------------ ---------- ------------

Net Income Per Share        $0.02       $0.03       $0.02       $0.02

Weighted Average
 Common Shares
 Outstanding           42,587,190  41,999,202  42,293,196  41,999,202

During the second quarter, the company determined its procedures to expense certain selling and marketing costs during interim periods were not correct. Previously, costs were expensed in the periods management believed would receive the benefit of the expenditures. The correct procedure is to expense the costs when incurred. Operating income shown above has been restated to reflect the correct procedures.