TORONTO, ONTARIO–(EMWNews – Aug. 7, 2008) – Automodular Corporation (“Automodular” or “the Company”) (TSX:AM) reports net earnings of $1.7 million or $0.07 per share for the six months ended June 30, 2008 compared to $3.7 million or $0.17 per share in the same period in 2007. Net earnings for the quarter ended June 30, 2008 were $1.0 million or $0.04 per share compared to $2.2 million or $0.10 per share in the same period in 2007.

Operating earnings are lower in the current year primarily as a result of downsizing in our Oshawa operations. Oshawa truck operations were negatively impacted by the reduction from a 3-shift to a 2-shift operation effective January, 2008 and by a strike at one of our customer’s suppliers which resulted in production down-time of seven weeks for two of our Oshawa-area facilities. In our Oshawa car operations, the elimination of certain car platforms and consolidation of the two Oshawa car plants into one at the end of 2007 and subsequent slow rampup in the first quarter of 2008 further depressed earnings year over year.

The current quarter includes a $0.6 million charge related to costs incurred as a result of the closure of certain Oshawa-area operations following the expiry of commercial contracts. The prior period included a $0.6 million charge related to closeout costs incurred as a result of the closure of the Company’s Lansing, Michigan-based operations.

The first half results are summarized below (all figures in ‘000s except per share):

                     Three months ended June 30    Six months ended June 30
                     --------------------------    ------------------------
                           2008            2007          2008          2007
                       --------        --------      --------      --------
Sales                  $ 25,013        $ 27,050      $ 45,823      $ 54,771
Net earnings           $  1,013        $  2,222      $  1,684      $  3,699
Earnings per share(i)  $   0.04        $   0.10      $   0.07        $ 0.17
Shares outstanding(i)    25,751          22,049        25,751        22,049
(i)(basic and fully diluted)

While earnings year over year are lower, they are ahead of management’s expectations. On balance, the Company is cautiously optimistic that earnings from operations for 2008 will approximate 2007 earnings. Automodular’s ability to meet these results depends substantially on production volumes which may be impacted by the soft automotive market in the US.

The Directors have declared a dividend of $0.03 per share payable September 30, 2008, to shareholders of record September 16, 2008. In addition, Automodular Corporation will be making an additional contribution of $500,000 to its existing Performance Share Unit Plan for senior executives.

Automodular Corporation is a supplier of sub-assembly, sequencing, transportation and logistics services to four Original Equipment Manufacturer plants in Ontario and Ohio. The Company has seven operating facilities and employs over 900 people.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Company’s periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.