Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

January 08, 2008 09:00 ET

Empire Industries Ltd. Announces Closing of Acquisition of Parr Metal Fabricators

WINNIPEG, MANITOBA--(Marketwire - Jan. 8, 2008) - Empire Industries Ltd.("Empire") (TSX VENTURE:EIL), one of Western Canada's fastest growing steel fabrication and construction service providers today announced that it has successfully completed its previously announced purchase of the assets and business of Parr Metal Fabricators Ltd. ("Parr Metal") of Winnipeg, Manitoba (www.parrmetal.com).

Highlights:

- Purchase price of $0.45M plus working capital, estimated to be $0.6M

- Purchase price payable in cash at closing with working capital to be paid 90 days after closing

- In 2006, Parr Metal generated revenue of $5 million and normalized EBITDA of $0.5 million.

- Long term property lease of $108,000 per year for a 22,000 square foot shop and 8,000 square foot office.

- Two year option to purchase the property for $1.2 million with a right of first refusal if this option is not exercised.

- Current management will be staying on.

Parr Metal has been in operation for over 30 years. Parr Metal is a leading custom fabricator of carbon steel, stainless steel and aluminum industrial piping and products, such as pressure vessels, pressure piping, tanks, stacks and conveyor systems.

"Parr Metal fills an important role in Empire's strategic plan," stated Guy Nelson, CEO of Empire Industries Ltd. "With Parr Metal's custom plate and tank fabrication capability, Empire has taken another step towards fulfilling its mission of creating shareholder value by adding value to steel."

"We have worked with Empire for years, both as a supplier and as a customer. It was only natural for the two companies to join forces," said Cesare Sacco, General Manager of Parr Metal. "The Parr Metal management team is looking forward to working with Empire as part of the same team."

About Empire Industries Ltd.

Empire Industries Ltd. ("Empire") is a public company that was formed in July 2006 in a reverse takeover of Empire Iron Works Ltd., a Western Canadian steel fabricator and construction services provider that commenced operations in 1958. Empire is one of Western Canada's fastest growing steel fabrication and construction service providers. Empire's mission is to increase shareholder value by adding value to steel. Empire realizes its mission by growing profits organically and through strategic acquisitions in the burgeoning industrial, commercial and institutional construction marketplace of Western Canada. Empire trades on the TSX Venture Exchange under the trading symbol EIL.

This press release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. These statements are identifiable by their use of verbs such as "expect", as well as by the use of future or conditional tenses. These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Empire assumes no obligation to revise or update these forward-looking statements to reflect the occurrence of unanticipated future events, except as may be required under applicable securities laws. . EBITDA is a non-GAAP measure, defined as earnings before interest and bank charges, income taxes, depreciation and amortization.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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