Empire Industries Ltd.
TSX VENTURE : EIL

Empire Industries Ltd.

March 01, 2012 07:00 ET

Empire Industries Divests KWH, Somerset Business Units

WINNIPEG, MANITOBA--(Marketwire - March 1, 2012) - Empire Industries Ltd. (TSX VENTURE:EIL) today announced it has divested its KWH Constructors and Somerset Engineering business units for $1.4 million dollars. Consideration for the transaction was effected through an exchange of Empire promissory notes which were originally issued to the purchasers as part of the original acquisition of KWH/Somerset by Empire in 2007.

This divestiture is part of the company's plan to reduce its investment in domestic steel fabrication and erection outside of Alberta and to deploy more of its resources towards expanding its engineered products businesses.

This transaction will result in a gain of approximately $1.3 million, which will be recorded in Empire's first quarter 2012 financial statements.

About Empire Industries Ltd.

Empire Industries Ltd. manufactures specialized engineered products and sells these products domestically and in select international export markets. The company has developed, designed and engineered products for the global attractions market that provide an enhanced consumer experience. The company also provides steel fabrication & installation services, primarily to the industrial, commercial and infrastructure market in Western Canada. The company also has two key strategic equity partnerships; a 49% ownership of ACE Industrial Services that operates in the oil sands industrial maintenance services market, and a 45% ownership of a Chinese joint venture company in the steel fabrication market in Asia. Empire's common shares are listed on the TSX Venture Exchange under the symbol EIL.

Reader Advisory

This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Empire's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". These forward looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking information is provided as of the date of this press release, and Empire assumes no obligation to update or revise them to reflect new events or circumstances, except as may be required under applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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