McCoy Corporation
TSX : MCB

McCoy Corporation

May 06, 2008 09:00 ET

McCoy Corporation Announces $4.2 Million Contract for Heavy-Duty Trailers

EDMONTON, ALBERTA--(Marketwire - May 6, 2008) - McCoy Corporation ("McCoy" or "the Corporation") (TSX:MCB) today announced that its Trailer Manufacturing segment has entered into an agreement valued at CAD $4.2 million to provide specialized heavy duty trailers for a customer with a project in the Middle East. Under the contract, McCoy's wholly owned subsidiary Peerless Limited ("Peerless") will design and manufacture a specialized oilfield trailer with a hauling capacity of approximately 500,000 pounds and that can be disassembled, kitted and reassembled.

"We believe that this specialized trailer, with its large payload, extreme environment and remote assembly capabilities, is ideal for various global applications," said Jim Rakievich, President and CEO of McCoy. "This new product and agreement is great news for our Trailer Manufacturing segment, which has been experiencing a downturn since mid-2007 due to the low level of drilling activity in Western Canada. Peerless' reputation for quality products, engineering depth, manufacturing capacity and long history of designing and manufacturing custom heavy haul trailers helped position it as the front runner in the customer's supplier evaluation process."

The order includes thirteen specialized oilfield trailers plus additional mechanical suspension systems and support trailers. The specialized trailers will be disassembled, shipped overseas via Texas, and then reassembled after reaching their Middle East destination. The first trailers are scheduled for delivery in July 2008, with the contract to be completed by September 2008.

About McCoy Corporation

McCoy Corporation is a well-established services and equipment provided focused primarily on the global oil and gas sector. McCoy has three operating segments: Energy Products & Services ("EP&S"), Trailer Manufacturing ("TLM"), and Truck & Trailer Products & Services ("TT&S"). McCoy's EP&S segment is the leading worldwide manufacturer of tubular make-up power tongs used on drill rigs to thread sections of drill and casing pipe together. EP&S also manufactures vacuum tanks, hydrovac systems, dies and inserts for oilfield tools, and produces wear-reducing coatings for drilling tools and oil sands equipment. TLM is the leading Western Canadian manufacturer of custom heavy duty trailers serving the oil and gas, forestry and construction markets. TT&S is engaged in heavy duty truck and trailer repairs, maintenance, parts distribution and sales. McCoy employs approximately 750 individuals in Alberta, British Columbia and Louisiana. For further information, please visit www.mccoycorporation.ca.

About Peerless Limited

Peerless is the Western Canadian market leader in the development of custom solutions for heavy duty hauling. The Peerless manufacturing facility is located in Penticton, British Columbia. For further information, please visit www.peerless.ca.

Forward-Looking Statements

This release may contain forward-looking statements within the meaning of the "safe harbour" provisions of U.S. and other applicable laws. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward looking statements. The Corporation does not assume any obligation to update any forward looking information contained in this news release.

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