LUFKIN, Texas, June 1 /PRNewswire-FirstCall/ -- Mike Boatman, President of TreeCon Resources, (OTC Pink Sheets: TCRS) has reported that operating income for the second quarter of 2006 increased by $28,677 to $944,112 over the same quarter of 2005. During the three-month period that ended March 31, 2006 revenues fell by approximately 15.3% from $11,924,836 to $10,102,002. TreeCon Resources, formerly known as Overhill Corporation, is a holding company that, through its subsidiaries, distributes, leases and provides financing for industrial and logging equipment and is also engaged in sawmill operations. Net income for the quarter that ended March 31, 2006 was $601,190, or $.0323 per share compared to $.0436 per share in the same quarter of 2005. Net income was down, primarily due to a $248,400 increase in interest expense related to financing for the purchase of approximately $2,000,000 in timber land currently held for sale and higher interest rates on other outstanding debt. The company is currently evaluating offers for this timber land. Revenues were down as a result of weather related softness in the equipment business and reduced operations at the company's sawmill as the company repaired facilities damaged by the storms of last fall. The facilities have been repaired, and the sawmill is now in full operation. Mr. Boatman said that gross profit for the second quarter of fiscal 2006 was $2,566,855 which was an increase of $48,241 from $2,518,614 for the second quarter of fiscal 2005. TREECON RESOURCES, INC. 3 mos ended 3 mos ended 03/31/06 03/31/05 Consolidated Consolidated Change GROSS REVENUES $10,102,002 $11,924,836 ($1,822,834) GROSS PROFIT 2,566,855 2,518,614 48,241 OPERATING INCOME 944,112 915,435 28,677 NET INCOME $601,190 $811,438 (210,248) EARNINGS PER SHARE $0.0323 $0.0436 ($0.0113) 6 mos ended 6 mos ended 03/31/06 03/31/05 Consolidated Consolidated Change GROSS REVENUES $22,870,340 $23,652,385 ($782,045) GROSS PROFIT 5,251,753 4,812,190 439,563 OPERATING INCOME 1,969,894 1,721,082 248,812 NET INCOME $1,396,711 $1,720,466 (323,755) EARNINGS PER SHARE $0.0750 $0.0924 ($0.0174) This release contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and intended to enjoy the protection of the safe harbor for forward-looking statements provided by that Act. These forward-looking statements are subject to risks, uncertainties and other factors, including, the cost of goods, competitive pressures, inflation, consumer spending patterns and debt levels, trade restrictions, changes in tariff and freight rates, weather conditions, changes in gasoline, diesel fuel and other energy costs, labor costs, health care costs and accident costs, interest rate fluctuations and other capital market conditions and other risks. We urge you to consider all of these risks, uncertainties and other factors carefully in evaluating the forward- looking statements contained in this release. As a result of these matters, including changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from historical results or from anticipated results implied in the forward-looking statements contained in this release. These forward-looking statements are made only as of the date of this report and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances. DATASOURCE: TreeCon Resources, Inc. CONTACT: Mike Boatman of TreeCon Resources, Inc., +1-936-634-3365, or

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