VEGA ALTA, Puerto Rico , July 28 /PRNewswire-FirstCall/ -- Margo Caribe, Inc. (Nasdaq: MRGO) today announced that it does not expect to file its annual report on Form 10-KSB for the year ended December 31, 2005 (the '2005 Form 10- KSB'), by July 31, 2006 . The delay is principally related to the work necessary to complete the preparation of the Company's consolidated financial statements for the year ended December 31, 2005 . The Company now expects to file its 2005 Form 10-KSB by August 31, 2006 , and to file its quarterly reports on Form 10-Q for the first two quarters of 2006 as soon as practicable thereafter. The Company anticipates that the estimated schedule will provide sufficient time for the Company to complete the preparation and audit of the 2005 Form 10-KSB and the preparation of the quarterly reports on Form 10-QSB for the first two quarters of 2006.

The Company is requesting an extension from the Nasdaq Listing Qualifications Department of the current July 31, 2006 , and August 30, 2006 , deadlines for coming into full compliance with Nasdaq Marketplace Rule 4310(c)(14). As previously reported, the Company is currently not in compliance with that Rule because of its failure to timely file its 2005 Form 10-KSB and its quarterly report on Form 10-Q for the first quarter of 2006. If an extension is not granted, the Company's common stock could be subject to delisting from Nasdaq.

About Margo Caribe

Margo Caribe, Inc. is currently engaged in the business of growing and distributing a wide range of both indoor and outdoor tropical foliage and flowering plants in Puerto Rico and the northeast Caribbean. The Company is also engaged in the sale and manufacturing of lawn and garden products throughout Puerto Rico , the northeast Caribbean and the Southeast United States . In addition, the Company is in the process of securing permits for a residential project in Arecibo, Puerto Rico .

Forward-Looking Statements

This press release contains certain 'forward-looking statements' concerning Margo Caribe's economic future performance. The words 'expect,' 'anticipate,' 'hope' and similar expressions are meant to identify 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995.

Margo Caribe cautions readers not to place undue reliance on any such 'forward-looking statements,' which speak only as of the date made and advises readers that various factors, including regional and national economic conditions, natural disasters, competitive and regulatory factors and legislative changes, could affect Margo Caribe's financial performance and could cause Margo Caribe's actual results for the future periods to differ materially from those anticipated or projected.

Margo Caribe does not undertake and specifically disclaims any obligation to update any 'forward-looking statements' to reflect occurrences or unanticipated events or circumstances after the date of such statements.

SOURCE Margo Caribe, Inc.