McCoy Corporation
TSX : MCB

McCoy Corporation

October 27, 2005 15:32 ET

McCoy Corporation Announces Agreement for Farr Canada to Manufacture Top Drives for Double Rigs

EDMONTON, ALBERTA--(CCNMatthews - Oct. 27, 2005) - McCoy Corporation (TSX:MCB) ("the Corporation" or "McCoy") today announced that it has entered into an exclusive license agreement with Allan R. Nelson Engineering (1997) Inc. ("Nelson") to manufacture and market the Integraline 105iH Top Drive system into the world market. Nelson is a subsidiary of ESTec Systems Corp. (ESE:TSX Venture Exchange). Under the 10-year license agreement Farr Canada will pay royalties to ESTec in exchange for the license to the technology claimed in two patent applications and associated documents and copyrights.

The product will be built and distributed by Farr Canada, a division of McCoy Corporation. Farr Canada specializes in manufacturing and marketing hydraulic power tongs and related oil tools. Jim Rakievich, McCoy President and CEO, said that the top drive could be manufactured and tested at Farr Canada's facility in Edmonton, Alberta with existing equipment and personnel, and that it would be a welcome addition to its product line of hydraulic oil tools.

Top drive technology in general consists of a motor hanging in the mast, or derrick, of a drilling rig. The motor, which may be electric or hydraulic, turns the bit and drill pipe during the process of drilling the well. The Integraline 150iH Top Drive has a dual-hydraulic motor and was developed for use in a variety of land and workover rig applications. Most top drive systems on the market are designed for use on triple rigs. ESTec's product is relatively compact and light-weight and is designed specifically to operate on a standard double rig. Management perceives a growing demand for a top drive for double rig applications, and the Integraline 150iH Top Drive it well-suited for this purpose.

McCoy has three main operating segments are: Truck & Trailer Products & Services, Trailer Manufacturing and Oilfield Products Manufacturing. Approximately 538 individuals are employed by the Company and its subsidiaries in Alberta and British Columbia. The Company's shares are traded on the TSX under the symbol "MCB". More information can be found on the Company's web site at www.mccoycorporation.ca.

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