Brampton Brick Limited

Brampton Brick Limited

April 07, 2006 11:54 ET

Brampton Brick Limited Divests Its Interest In Richvale York Block Inc.

BRAMPTON, ONTARIO--(CCNMatthews - April 7, 2006) - Brampton Brick Limited (TSX:BBL.SV.A)announced today that it has sold its 38.2% interest in Richvale York Block Inc. ("Richvale") for estimated total proceeds of $9,341,000, of which $6,529,000 was received on closing with the balance of $2,812,000 to be received over the next 6 months. The estimated proceeds of $9,341,000 and the deferred payments of $2,812,000 are subject to adjustment based on the final determination of Richvale's working capital as at the closing date of April 6, 2006.

In a related transaction, the Company acquired from Richvale land, building and manufacturing equipment located immediately adjacent to the Company's clay brick facility in Brampton for cash consideration of $7,500,000. The Company intends to utilize these facilities to produce various concrete products which will complement its existing masonry products and the landscape products of Oaks Concrete Products Ltd., the Company's 70% owned subsidiary. The Company will not be producing standard concrete block and does not intend to enter into this market.

Certain statements contained herein constitute "forward-looking statements". Such forward-looking statements involve known and unknown risks, uncertainties and other factors, including, but not limited to, those identified under "Risks and Uncertainties" in the Company's 2005 Annual Report, which may cause actual results, performance or achievements of the Company to be materially different from any future result, performance or achievements expressed or implied by such forward-looking statements.

Brampton Brick is Canada's second largest manufacturer of clay brick. Products are used for residential construction and for industrial commercial, and institutional building projects. Oaks Concrete Products Ltd., a 70% owned subsidiary, manufactures concrete paving stones, retaining walls and enviro products and sells related accessory products for residential use and for industrial, commercial and institutional building projects. Da Vinci Stone Craft Ltd., a 75% owned subsidiary of Oaks Concrete Products Ltd., manufactures fireplace surrounds and accessory products. Medical Waste Management Inc., a 65% owned subsidiary, operates a facility for the destruction of biomedical and pharmaceutical waste, including the only commercially operated medical waste incinerator in Ontario.

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