IPL Inc.
TSX : IPI.A

IPL Inc.

October 12, 2010 16:51 ET

IPL Announces Shareholder Approval of the Amalgamation of IPL With Certain Affiliates of Novaca and the Fonds de solidarite (FTQ)

SAINT-DAMIEN, QUEBEC--(Marketwire - Oct. 12, 2010) - IPL Inc. (TSX:IPI.A) ("IPL"), one of North America's leading manufacturers of plastic products, is pleased to announce that, at a special meeting of holders of multiple voting shares of IPL (the "Shareholders") held earlier today (the "Special Meeting"), the Shareholders approved the by-law authorizing the previously announced amalgamation of IPL with certain affiliates of Novacap and the Fonds de solidarité FTQ (the "Amalgamation") in accordance with the provisions of sections 123.115 and following of the Companies Act (Québec) and the reduction of the issued and paid-up share capital of the multiple voting shares of IPL.

The special resolution was approved by more than 99 % of the votes cast by Shareholders at the Special Meeting.

Pursuant to the Amalgamation, each Shareholder will receive one redeemable share (an "Amalco Redeemable Share") of the amalgamated company ("Amalco") for each multiple voting share of IPL held immediately prior to the Amalgamation. Each Amalco Redeemable Share will immediately upon the Amalgamation be redeemed for $6.50 payable in cash by Amalco. Subject to satisfaction of customary conditions, it is anticipated that the Amalgamation and the transactions contemplated thereby will close on or about October 15, 2010.

IPL, Novacap and the Fonds de solidarité FTQ will hold a press conference at 2 :00 p.m. on Monday October 18, 2010 at its plant in Saint-Damien. Until then, IPL does not intend to make any additional comment.

About IPL

IPL is one of the leading North American producers of moulded plastic products through injection and extrusion for various industrial manufacturing sectors. IPL employs close to 900 people in its four plants located in Saint-Damien, Saint-Lazare and Lawrenceville (Québec), and Edmundston (New Brunswick). The Company manufactures and markets over 400 products for the packaging, materials handling and environment sectors. IPL also provides highly technical value-added custom moulding services for the transport industry, as well as for various industrial uses. Further information about IPL is available at www.ipl-plastics.com.

About Novacap

With over $790 million in assets under management, Novacap is one of Canada's leading private equity and venture capital firms. Since 1981, its partnership strategy has helped over 50 companies accelerate growth and maximize value. Novacap is one of North America's top private equity firms, with first-quartile returns in North America. Further information about Novacap is available at www.novacap.ca.

About the Fonds de solidarité FTQ

The Fonds de solidarité FTQ helps drive our economy. With net assets of $7.3 billion as at May 31, 2010, the Fund is a development capital investment fund that channels the savings of Quebecers into investments in all sectors of the economy to help further Québec's economic growth. The Fund is a partner, either directly or through its network members, in 2,052 companies. With its 577,511 owner-shareholders, it has helped, on its own or with other financial partners, to create, maintain and protect 150,133 jobs. For more information, visit www.fondsftq.com.

Forward-Looking Statements

Except for historical information provided herein, this press release contains "forward-looking statements" within the meaning of the applicable securities legislation regarding the proposal to privatize IPL, including the statement regarding the terms of the proposed Amalgamation. Therefore, readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of IPL to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements in this press release. These risks and uncertainties include, but are not limited to, the satisfaction of the conditions to consummate the Amalgamation, including the occurrence of any event, change or other circumstances that could give rise to termination of the Merger Agreement, a delay in the consummation of the Amalgamation or failure to complete the Amalgamation for any other reason, the amount of the costs, fees, expenses and charges related to the Amalgamation, and the risks associated with general economic conditions. The forward-looking statements in this press release are made as of the date of this press release and, except as required by law, IPL disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information or future events.

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