Royal Laser Corp.
TSX : RLC

Royal Laser Corp.

January 31, 2007 14:33 ET

Royal Laser Corp.-Announces Intent to Acquire Business Assets of Hamilton Specialty Bar Corporation

TORONTO, ONTARIO--(CCNMatthews - Jan. 31, 2007) - Royal Laser Corp. ("Royal Laser")(TSX:RLC) today announced that it has entered into a letter of intent ("LOI") with Hamilton Specialty Bar Corporation ("HSB") that provides Royal Laser with exclusive rights to negotiate definitive terms for the acquisition of substantially all of the assets of HSB as a going concern, subject to the completion of confirmatory due diligence, regulatory approval, judicial approval and third party consents (the "Transaction"). The Transaction is supported by the sole shareholder of HSB and the holders of its secured debt.

The purchase consideration includes common shares of Royal Laser with a value of not more than up to $1 Million. The company acquiring the assets of HSB will be wholly-owned by Royal Laser and it has the necessary financing to complete the Transaction.

About Hamilton Specialty Bar Corporation

HSB is a steel recycler and producer of high-quality bar products, including Special Bar Quality ("SBQ") rounds, round-edge flats, steel bar products used in industrial, truck and automotive applications. On January 5, 2007, HSB made an application for protection from its creditors under the Companies' Creditors Arrangement Act ("CCAA") and obtained an Initial Order ("Initial Order") from The Honourable Mr. Justice Spence of the Ontario Superior Court of Justice. The Initial Order approved a sale and marketing process for the sale of the HSB assets. Information regarding the HSB CCAA filing can be obtained at the website of A. Farber & Partners Inc., the Court-appointed monitor of HSB, at www.afarber.com.

The company had revenues in 2006 of approximately $185,000,000 million (unaudited) and produced 292,000 tons of finished product steel, and in 2005 had revenues of approximately $197,000,000 and produced 280,000 tons of finished product steel. HSB has the capacity to produce up to 400,000 tons of finished product steel. Further information on the company can be found at www.hsbsteel.com.

Royal Laser Corp brings to the Transaction an ability to increase production volume and decrease production cost per ton through the effective use of technology and supply chain strategy, coupled with the expertise and experience of the senior management of the Company. Dr. Les McLean, currently the COO of Venture Steel Inc., one of Royal Laser's subsidiaries, who holds a PhD in Engineering from McMaster University, and who spent 25 years with a major steel producer in Hamilton, Ontario, the last 8 of which were as VP Technology, will assume a senior management role in HSB on behalf of Royal Laser, post closing. Royal Laser intends to continue to improve the operations of HSB, for the benefit of its customers, its employees and the Hamilton community.

Royal Laser Corp., through its wholly owned subsidiary Venture Steel Inc., is already in the steel service centre and steel distribution business and currently processes approximately 300,000 tons of steel. Other subsidiaries are in the business of manufacturing finished, OEM and automotive products from steel and other materials. Further information can be found at www.royallaser.com as well as www.sedar.com.

Forward-Looking Statements

This press release contains forward-looking statements based on assumptions, uncertainties and management's best estimates of future events. When used herein, words such as "intend" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on assumptions by and information available to Royal Laser. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include risks and factors as are detailed from time to time in the Royal Laser's periodic reports filed with the Ontario Securities Commission and other regulatory authorities. Actual results may differ materially from those currently anticipated. The forward-looking statements contained herein are expressed qualified by this cautionary statement.

The Toronto Stock Exchange does not accept responsibility for the adequacy or accuracy of this release.

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