Industrialex Manufacturing Corp.

Industrialex Manufacturing Corp.

January 27, 2006 09:35 ET

Industrialex Manufacturing Canada, Ltd. Ceases All Operations

WINDSOR, ONTARIO--(CCNMatthews - Jan. 27, 2006) - Industrialex Manufacturing Canada, Ltd., a wholly owned subsidiary of Industrialex Manufacturing Corp. (TSX VENTURE:IXC.U), today announced that it is deemed to have made an assignment in bankruptcy as a result of the non-filing of a Proposal. The Company embarked on putting a new cost structure in place while under a Notice of Intent to File a Proposal (NOI), which was filed on December 27, 2005. While under the NOI, the Company continued to provide ongoing work to its customers. The Company presented to its Labor Union a proposal for wage and benefit concessions as a vital first step in restructuring its cost structure. The proposal was rejected by CAW Local 195 which represents the company's work force. The Company determined that without the restructuring of wages and benefits of its work force, which is a major percentage of its operating costs, it could not solely survive on cost restructuring from its creditors.

In making the announcement, Mr. Ahmad Akrami, the Company's Chairman and CEO stated: "With the current business model for the Windsor Plant, a key factor in turning this business around would be the restructuring of the labor costs. The decision by the Union for no wage and benefit concessions, forced the board of directors to determine that without this vital realignment of its labor costs, there was no rationale to continue operations. Restructuring costs from the vendors alone would not turn this into a profitable business. It is a very sad day for all of us, the Industrialex Team here in Windsor. We had a great team and significant base of high quality customers."

Headquartered in Arvada, Colorado, Industrialex is a leading provider of industrial coating services to a broad range of manufacturers. The Company operates plants in Arvada and Colorado Springs.

On behalf of the Board of Industrialex Manufacturing Corp.

Paul R. Napoli, Corporate Controller

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from Industrialex's expectations and projections.

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

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