McCoy Corporation

McCoy Corporation

February 27, 2009 08:52 ET

McCoy Corporation Announces Quarterly Dividend

EDMONTON, ALBERTA--(Marketwire - Feb. 27, 2009) - McCoy Corporation ("McCoy" or the "Corporation") (TSX:MCB) today announced that the Board of Directors has declared a quarterly dividend payment of $0.01 per common share payable on March 31, 2009 to shareholders of record on March 13, 2009.

The global financial crisis and its impact on oil and gas demand have created a large degree of uncertainty in the global oil and gas sector. As a result, McCoy anticipates a reduction in demand for its manufactured products and believes a recovery will not materialize before the 2009 year end. The Corporation has implemented significant company-wide cost cutting measures in order to align overheads with lower revenues. The reduction in the dividend to shareholders, from $0.03 to $0.01 per common share is an additional measure that the Corporation is taking to maintain its financial strength. The Corporation's objective is to maintain a strong balance sheet that will provide the flexibility to continue the long term growth strategy, both organically and through opportunistic acquisitions as they arise.

About McCoy Corporation

Established in 1914, McCoy Corporation provides advanced products and services for the global energy industry. McCoy is the leading worldwide manufacturer of tubular make-up power tongs, for both land and offshore rig applications, and also manufactures dies and inserts, which are consumable replacement parts used in rig equipment. In addition, McCoy builds mobile products including vacuum tanks, hydrovac systems, pick up and lay-down machines and custom heavy duty trailers and chassis. The service portion of McCoy's business includes application of wear and corrosion resistant coatings for drilling tools; hydraulic services and specialized hydraulic cylinder refurbishment for rigs and heavy equipment; and maintenance and repairs of heavy duty specialized mobile equipment.

Forward-Looking Information

This news release may contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends", and similar expressions are intended to identify forward-looking information or statements. By its nature, such forward-looking information is subject to various risks and uncertainties, which could cause McCoy's actual results and experience to differ materially from the anticipated results or expectations expressed. Readers are cautioned not to place undue reliance on forward-looking information that may be contained herein, which is given as of the date it is expressed in this news release or otherwise, and to not use future-oriented information or financial outlooks for anything other than their intended purposes. McCoy undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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