Komunik Corporation

Komunik Corporation

May 13, 2008 16:01 ET

Operation Rightsizing: Komunik Reduces Production Capacity by 8%

MONTREAL, QUEBEC--(Marketwire - May 13, 2008) - In its commitment to maximize the profitability of its plants across the country, management of Komunik Corporation ("Komunik") (TSX:KOM) announced today that it has reduced its production capacity by 8%. The recent decision to downsize both its Winnipeg and Toronto operations is in line with this commitment.

More specifically, over the last few weeks, the execution of the plan to reduce the company's production capacity required the unfortunate yet necessary reduction of approximately 50 employees throughout its overall workforce.

This decision, along with other expense reduction initiatives, is expected to have a positive short term impact on the company's profitability and will ensure that the Company's sustainability is assured; and moreover, Komunik may take advantage of other market opportunities that may arise.

"This restructuring has a very awkward impact on members of our team, some of whom have been with the company for many years. However, through an acquisition in June 2007, we acquired plants that were losing money, affecting our overall rating. Aligning our plant production capacity with our clients' needs was necessary to meet our goals" mentioned Alain Paquin, President and CEO of Komunik.

"Komunik continues to focus on manufacturing quality products and delivering an outstanding service for its clients. More than ever, our proprietary technologies enable us to offer innovative communication business solutions to our clients: Combining the benefits of printed material and electronic communications," said Sebastien Demers, Chief Financial Officer of Komunik.

About Komunik Corporation

Komunik is a leading provider of end-to-end solutions for Communication Resource Management. We simplify the management of communication resources to help our clients increase efficiency and control over their overall communications.

Komunik develops best of class technology, and provides expertise and support for document management, multi-channel relationship marketing and overall print services. Our clients count on hundreds of experienced employees with experts covering each area of our value proposition. Our nationwide network of 6 production & project development facilities and 5 distribution centres, touch points in every major Canadian city, as well as strategically located offices in the United States, ensures that our clients benefit from local support. For more information about Komunik visit www.komunik.com.

Cautionary note about forward-looking statements

Some of the statements made in this release may constitute forward-looking information or statements within the meaning of securities laws. These statements are based on certain factors and assumptions, which Komunik believes are reasonable as of the current date. While Komunik considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect. Komunik cautions that actual future performance could be affected by a number of factors, including technological change, regulatory change and competitive factors, many of which are beyond Komunik's control. Therefore, future events and results may vary substantially from what Komunik currently foresees. While Komunik may elect to, it is under no obligation (and expressly disclaims any such obligation) and does not undertake to update or alter this information.

Contact Information

  • Massy-Forget Public Relations
    David Barrett, Consultant
    514-842-2455 ext. 15
    Mobile: 514-823-3726