Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

January 03, 2007 06:00 ET

Empire Industries Accelerates Its Oil Sands Strategy With Investments in Fort McMurray Based, Sorge's Fabrication and Welding

TORONTO, ONTARIO--(CCNMatthews - Jan. 3, 2007) - Empire Industries Ltd., (TSX VENTURE:EIL) ("Empire"), today announced that it has closed the purchase of 100% of Sorge's Pro Welding Ltd. ("Sorge's Fabrication"), a private company based in Fort McMurray, Alberta . Empire further announced that it closed the purchase of a 49% interest in Sorge's Welding Ltd. ("Sorge's Welding"), an Aboriginal majority owned, private company, also based in Fort McMurray. Sorge's Welding and Sorge's Fabrication currently generate $8 million of revenue per annum. Both companies are profitable and the total investment by Empire was $2.1 million cash.

"These two transactions will provide Empire with an excellent base of operations for implementation of the company's strategy to successfully address the construction and maintenance challenges and opportunities in the Ft. McMurray region of Northern Alberta. Empire is committed to add financial and operational resources to build on Sorge's reputation for quality, service, safety and enhancement of Aboriginal goals. This will enable this Aboriginal controlled contractor to broaden its services to address the growing demands of the oil sands industry in this hotbed of activity," said Mr. Guy Nelson, CEO of Empire. "We want to target the estimated 4 million man hours of outsourced maintenance services in the region through our Aboriginal partnership and we want to pursue specific aspects of steel fabrication and erection services as a local fabricator for the approximately $50 billion of capital projects slated for the region over the next decade."

The management team of Sorge's Welding and Sorge's Fabrication will continue in their current capacities and will be supplemented by the financial and operational resources of Empire which is one of the largest steel fabrication companies in Western Canada. "The Sorge family is very excited about Empire becoming its partner to pursue field construction and maintenance services in the Ft. McMurray region of Alberta. With this new partnership, Sorge's Welding will be able to respond proactively to the rapidly growing market demand for qualified contractors to take on larger, more complex scopes of work," said Mr. Richard Sorge.

About Empire Industries Ltd.

Empire Industries Ltd. is a public company that was formed in July 2006. Empire Industries Ltd. is one of Western Canada's fastest growing steel fabrication and construction service providers. It operates its business through four wholly owned subsidiaries; Empire Iron Works Ltd., George Third and Son Ltd., Ward Industrial Equipment Ltd. and Hopkins Steel Works Ltd. Empire's mandate is to increase shareholder value by growing profits organically, by targeting acquisitions and by expanding its market share in the burgeoning industrial, commercial and institutional construction marketplace of Western Canada. The Corporation trades on the TSX Venture Exchange under the trading symbol EIL.

This press release may contain forward-looking statements that are subject to risk factors associated with capital spending in Western Canada and the overall Canadian economy. The Corporation believes that the expectations reflected in this press release are reasonable but results may be affected by a variety of variables. Forward-looking statements are based upon the beliefs, estimates and opinions of management on the date the statements are made. The Corporation undertakes no obligation to update these forward-looking statements if management's beliefs, estimates and opinions, or other factors, should change.

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

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