Cunningham Lindsey Group Inc. reported that its revenue for second quarter was $99.2 million, a decrease of $8.5 million from second quarter 2005 revenue of $107.7 million. The decrease resulted from the impact of the strengthening Canadian dollar relative to the foreign currencies in which the company’s revenues are earned.

But Cunningham Lindsey Canada reported revenue for the second quarter revenue of $13.8 million, which was $1.3 million higher than second quarter 2005. The increased revenue was primarily in ENVIRONMENTAL SOLUTIONS Remediation Services.

Revenue in its U.S. operations was $14.9 million for second quarter, an increase of $0.2 million from second quarter 2005. In local currency, revenue from the U.S. operations was US$13.3 million for second quarter, an increase of US$1.5 million from second quarter 2005. The increase in revenue was primarily attributable to an increase in normal claims volumes and increased claims activity following four hurricanes that hit the U.S. during the second half of 2005.

Revenue for second quarter from its British operations was $44.2 million, a decrease of $5.9 million from revenue of $50.1 million in the second quarter of 2005. The reduction in reported revenue was primarily due to the strengthening of the Canadian dollar against the British pound. In local currency, revenue from the British operations was 21.5 million pounds, a decrease of 200,000 pounds from second quarter 2005.

Revenue for second quarter from the European operations was $14.4 million, a decrease of $1.6 million from second quarter 2005. The reduction in reported revenue was due to the strengthening of the Canadian dollar against the Euro.

Revenue from the International operations in second quarter was $11.9 million, a decrease of $2.5 million compared to $14.4 million in second quarter 2005. The strengthening of the Canadian dollar against the British pound had a significant impact on the reported revenue. In local currency, revenue from the International operations was 5.8 million pounds for second quarter, a decrease of 400,000 million pounds compared to second quarter 2005. The decrease in local currency revenues reflects the reduction of storm related claims activity in the Caribbean region in 2006 as compared to 2005.

Earnings before interest, taxes, depreciation, and amortization, for second quarter was $3.7 million compared to $7.8 million for second quarter 2005. The decrease reflects lower earnings in its international operations resulting from reduced storm related claims activity in the Caribbean region in 2006 as compared to 2005, non-recurring premises costs in Britain, as well as the strengthening of the Canadian dollar against foreign currencies.

The company’s net earnings from continuing operations for second quarter were $2.2 million ($0.10 per share) compared to net losses from continuing operations of $0.1 million ($0.01 loss per share) in the second quarter 2005. Based on the continued strong performance in the U.S. operations, the Company recorded a tax asset of $4.8 million (U.S.$4.3 million) in the second quarter in the U.S. operations. The year-to-date 2005 gain on disposal of $2.9 million was due to the sale of a European subsidiary on March 31, 2005.