McCoy Corporation

McCoy Corporation

December 17, 2008 11:13 ET

McCoy Corporation Buys Back Large Block of Common Shares

EDMONTON, ALBERTA--(Marketwire - Dec. 17, 2008) - McCoy Corporation ("McCoy" or the "Corporation") (TSX:MCB) today announced the purchase of a block of 900,000 McCoy common shares at $1.20 per share on December 15, 2008, pursuant to the Company's Normal Course Issuer Bid (the "Bid"). The purchased shares will be returned to McCoy's treasury for cancellation and will reduce McCoy's shares outstanding to 26.5 million shares, increasing the proportionate interest of each remaining McCoy shareholder by 3.3%. Since renewing the Bid on September 30, 2008, McCoy has purchased 1,114,400 of its common shares, including the December 15 block. Under the Bid, McCoy is allowed to purchase up to another 267,615 of its issued and outstanding common shares prior to September 30, 2009. McCoy's priorities for use of cash are to fund its capital program and profitable growth opportunities, and to return cash to shareholders through dividends and share purchases pursuant to the Bid.

"We were able to purchase a large block of our shares at a price/earnings multiple of less than 4.4 times(1), providing an excellent opportunity to grow shareholder value," said Jim Rakievich, President and CEO of McCoy. "Share buyback transactions benefit our shareholders by increasing the value of their equity interest in McCoy. Our share repurchases since September 30, 2008, will grow our 2009 earnings per share by $0.01 for every $7 million of net earnings."

(1) The price earnings multiple is calculated as the purchase price of the McCoy common shares multiplied by McCoy's common shares outstanding prior to the purchase, divided by McCoy's 2008 third quarter earnings multiplied by four (($1.20 x 27.6 million) / ($1.9 million x 4)).

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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