Malette Industries Inc.
TSX VENTURE : MLT

Malette Industries Inc.

March 02, 2007 16:05 ET

Malette Industries Subsidiary to File a Proposal Under the Bankruptcy and Insolvency Act

MONTREAL, QUEBEC--(CCNMatthews - March 2, 2007) - Malette Industries Inc. (TSX VENTURE:MLT) announced today that on February 26, 2007, Malette International Inc. ("International"), a wholly-owned subsidiary of Malette Industries, filed a notice of intention to file a proposal to its creditors under the Bankruptcy and Insolvency Act. The filing of the notice will provide International with a thirty-day period to file its proposal. Ernst & Young has been appointed to act as trustee. International has not been in operation since the closure of its plant in East Farnham at the end of December 2006.

In addition, on February 27, 2007, the National Bank of Canada, the principal creditor of Malette Hardwood Flooring Inc., another operating subsidiary of Malette Industries, obtained a judgment from the Superior Court of Quebec appointing an interim receiver. Malette Harwood Flooring has not been in operation since the closure of its plant in Chambly on February 23, 2007.

On February 2, 2007, the Autorite des marches financiers(Quebec) and certain other securities regulatory authorities issued a cease trade order over all securities of Malette Industries for its failure to file its financial statements for the year ended September 30, 2006.

Effective March 1, 2007, Hubert Marleau, Jean-Luc Lavigne and Mazen Haddad have resigned from the board of directors of Malette Industries and Patsie Ducharme has resigned as CFO. Gilles Malette, Gaston Malette and Denis Malette remain on Industries' board of directors. The board of directors is currently reviewing all available options with a view to preserve the value of the business and assets as it assesses alternatives to satisfy its creditors.

About Malette Industries

Malette Industries, through its wholly-owned subsidiaries is involved in the manufacturing and distribution of hardwood flooring products, principally for the construcction and renovation markets.

The TSX Venture Exchange has not reviewed the contents of this press release and accepts no responsibility for the adequacy or the accuracy thereof.

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