Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

October 17, 2007 14:09 ET

Empire Industries Ltd. Announces Positive Re-Statement of 2nd Quarter Results

WINNIPEG, MANITOBA--(Marketwire - Oct. 17, 2007) - 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 filed restated unaudited interim financial statements and MD&A for the second quarter ending June 30, 2007. The restated unaudited financial statements and MD&A may be accessed at www.sedar.com.

The re-statement arises from management's review of the 2nd quarter statements, which was conducted in connection with the pending business combination of Empire and Tornado Technologies Inc. The restatement of earnings has resulted in an increase in Net Comprehensive Earnings, from $1,690,402 to $2,609,876 for the 6 months ending June 30, 2007.

The restatement results in three material changes to the previously filed financial statements:

- The inclusion of Foreign Exchange Hedge line items (current and long term) totaling $996,309 on the Balance Sheet, with a corresponding inclusion of Derivatives Designated As Cash Flow Hedges on the Statement of Comprehensive Income of $919,474, and an increase of $76,835 in the Future Income Taxes line item on the Balance Sheet. This change was made to more accurately reflect the impact on Empire of hedging instruments owned by a third party that relate to two joint venture agreements between Empire and that third party.

- An increase in the Future Income Taxes line item on the Balance Sheet by a further $1,450,687 to more accurately reflect the future tax liability arising from the acquisition of Empire Dynamic Structures Ltd. in the 2nd quarter. This entry results in a corresponding increase in the Property, Plant And Equipment line item on the Balance Sheet.

- A decrease of $957,734 in the Accounts Payable And Accrued Liabilities line item on the Balance Sheet, with a corresponding decrease in the Accounts Receivable line item on the Balance Sheet. This change was made to bring a subsidiary's accounting into compliance with Empire's corporate accounting policies.

In addition to the changes above, the re-stated 2nd quarter financial statements also include enhanced notes. The MD&A also has been re-stated to reflect the changes in the financial statements.

About Empire Industries Ltd.

Empire Industries Ltd. ("Empire") is a public company that was formed in July 2006. 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.

For more information, please visit Empire's web-site at: www.empind.com.

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.

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

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