Velan Inc.

Velan Inc.

August 28, 2008 15:18 ET

Velan Inc. Announces an Expansion of its Montreal Facilities

MONTREAL, QUEBEC--(Marketwire - Aug. 28, 2008) - Velan Inc. (TSX:VLN) announced today an important expansion of its three Montreal plants in Saint-Laurent, which will include additional plant facilities, machinery, and equipment to increase capacity, improve productivity and enhance the Company's R&D capabilities. The total cost of this project will be approximately $25 million over the next three years.

Investissement Quebec has granted Velan Inc. an interest-free loan of 23.6% of the capital cost up to a maximum of $6 million. Velan Inc. is also applying for support from the Federal Government.

Mr. A. K. Velan, Founder and Chief Executive Officer of Velan Inc., stated "We are a Montreal-based global company and are pleased to announce this important expansion of our manufacturing facilities in our home town. This investment reflects the increased potential for our engineered valves in special markets such as nuclear, navy, and the oil and petrochemical industries. We would like to thank Investissement Quebec and Minister Raymond Bachand, Minister of Economic Development, Innovation and Export Trade, for their recognition of the importance of the project and for their financial support".

Except for historical information provided herein, this press release may contain information and statements of a forward-looking nature concerning the future performance of the Company. These statements are based on suppositions and uncertainties as well as on management's best possible evaluation of future events. As a result, readers are advised that actual results may differ from expected results.

T.C. Velan, President

Contact Information

  • VELAN Inc.
    Tom Velan
    514-748-8635 (FAX)
    VELAN Inc.
    Mr. John D. Ball
    Chief Financial Officer
    514-748-8635 (FAX)