MagIndustries Corp.

MagIndustries Corp.

October 29, 2009 06:00 ET

MagIndustries Corp. Reports Extension of the MOU With Sinohydro Corporation

TORONTO, CANADA--(Marketwire - Oct. 29, 2009) - MagIndustries Corp. ("MagIndustries" or the "Company") (TSX:MAA) reports that Sinohydro Corporation Limited ("Sinohydro" or the "Subscriber"), the counterparty to the Memorandum of Understanding (the "MOU") signed and disclosed on June 12, 2009, has requested an extension of the MOU to November 30, 2009.

In a letter received by the Company on October 28, 2009, Mr. Du Nan, Deputy Manager Director of Sinohydro Corporation Limited, requested the extension to allow completion of Sinohydro's evaluation and decision process. Mr. Du commended MagIndustries for its "positive understanding" of the complexities of Sinohydro's processes and its cooperation to date in providing all requested information.

The MOU provides for a proposed purchase of 400 million common shares of MagIndustries by the Subscriber at a price of CDN$ 0.70 per common share (the "Investment"). Closing of the Investment will take place following receipt of all required approvals, including regulatory approval and approval of the Company's shareholders.

Mr. Bill Burton, CEO of MagIndustries, stated "We have come to understand that Sinohydro's decision making processes are complex and iterative, particularly as they advance toward their first ever investment into a publicly listed Canadian Company. We are nonetheless very pleased with the positive tone of our dialogue with Sinohydro and our sense that they are making progress on their investment decision."

Sinohydro is one of the world's leading companies in the water conservation and hydropower industries. Its strength is comprised of a group of 10 holdings companies, and a network of seventeen wholly-owned subsidiaries. Sinohydro also has an international network of 42 overseas branch companies and representative offices.

Sinohydro, one of the world's largest builders and operators of power generation facilities, has developed into a large diversified group based on its leadership in excavation, earthmoving, underground structures, dredging and reclamation projects which promote the "SINOHYDRO" brand in the global construction market. With operations worldwide, it holds a leading position in building, civil infrastructure, mechanical and electrical plant manufacturing and installation. Today, the Group ranks 50th in the Top 225 International Contractors listing by the Engineering News Record and stands in 4th place among Chinese contractors in term of overseas revenues. Sinohydro's diversified company interests extend to mineral resources, including potash, managed by its Sinohydro Mineral Resource Group. Sinohydro reported US$9 billion in revenue in 2008.

About MagIndustries Corp.

MagIndustries is a Canadian company whose common shares are listed on the TSX and trades in Canadian currency under the symbol "MAA". The Company has 360,522,462 shares outstanding on an undiluted basis. MagIndustries' resource subsidiaries are operating and developing major industrial projects in the Republic of Congo and the Democratic Republic of Congo. More information on the Company is available at its website,

Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions, and other risks detailed from time-to-time in the Company's ongoing filings. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

Cusip: 55917T 102

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