Multi-Glass International Corp.

Multi-Glass International Corp.

March 01, 2005 13:06 ET

Multi-Glass Announces Sale of Flooring Division in Atlantic Canada


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MULTI-GLASS INTERNATIONAL CORP.

TSX VENTURE SYMBOL: MSS

MARCH 1, 2005 - 13:06 ET

Multi-Glass Announces Sale of Flooring Division in
Atlantic Canada

TORONTO, ONTARIO--(CCNMatthews - March 1, 2005) - Multi-Glass
International Corp. (TSX VENTURE:MSS) ("Multi-Glass") of Toronto
announces that it has entered into a letter of intent with W.G. McMahon
Canada Ltd. of Winnipeg, Manitoba (operating as Kraus McMahon), a wholly
owned subsidiary of Kraus Carpet Mills Limited of Waterloo, Ontario,
pursuant to which Multi-Glass agreed to sell the Flooring Division of
Guildfords (2000) Inc. (the "Transaction").

The Flooring Division of Guildfords (2000) Inc. was acquired by
Multi-Glass along with the other business assets of Guildfords in 2000.
Today's announcement is consistent with the Multi-Glass corporate growth
strategy of focussing on its core business as a distributor and
customized fabricator of insulation products to the commercial,
industrial and residential markets in Ontario and Atlantic Canada.

In announcing the transaction Bob Fellows, President and Chief Executive
Officer of Multi-Glass said, "As one of Canada's insulation distribution
market leaders, we see this sale as an opportunity to get back to our
core business in Atlantic Canada. This initiative is part of our
company-wide objective of improving the customer focus of our ordering
and distribution processes. We will be making further announcements as
we roll out our plans over the coming months."

The sale of the assets which consist mainly of receivables and inventory
will generate approximately their book value but will be subject to a
contingency holdback of 15% of the receivables. The holdback will be
paid to Guildfords over time as collections are made. The balance due at
closing will be settled for cash which will be used to reduce any
outstanding accounts payable associated with the flooring division with
the balance used to reduce Multi-Glass' operating loan from its
principal lender.

Brad Vollrath, President of Kraus McMahon commented, " The purchase of
Guildfords Flooring Division is a key component in our strategy of
becoming a truly national distributor of flooring products. It also
gives Kraus Carpet, corporate owned distribution from coast to coast
across Canada."

Kraus McMahon will continue to sell their Kraus line of residential and
commercial carpets, Amtico commercial flooring, Dura undercushion,
Florida tile, and will add Kahrs hardwood and Alloc laminate, all of
which are brands that are sold throughout their distribution network
nationally.

The closing of the Transaction is anticipated by April 29, 2005 and is
conditional upon the completion of a due diligence process, which will
be conducted by Kraus McMahon over the next 60 days as well as entering
into a formal purchase and sale agreement.

About Multi-Glass International Corp.

Multi-Glass International, through its subsidiaries, is a leading
distributor and customized value-added fabricator of insulation and
energy conservation products to the commercial, industrial and
residential construction markets in both Ontario and the Atlantic
Provinces.

About Kraus McMahon

W.G. McMahon Canada Ltd. is a full service wholesale supplier of
commercial and residential floorcoverings. The company provides a full
line of products such as: carpet, sheet vinyl, PVC (homogeneous)
flooring, laminate, engineered hardwood, ceramic floor and wall tile,
undercushion, and accessories.

(Not for dissemination in the United States of America)

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Multi-Glass International Corp.
    Robert M. Fellows
    President and Chief Executive Officer
    (416) 798-3900, ext. 212
    (416) 798-3520 (FAX)
    or
    Multi-Glass International Corp.
    Meier Miller
    Chief Financial Officer and Secretary
    (416) 798-3900, ext. 220
    Fax: (416) 798-3974 (FAX)
    The TSX Venture Exchange Inc. does not accept responsibility for the
    adequacy or accuracy of this release.