Polyair Inter Pack Inc.

Polyair Inter Pack Inc.

November 04, 2005 08:00 ET

Polyair Inter Pack Inc. Announces Renewal of Bank Facilities, Interim Working Capital Loan

TORONTO, ONTARIO--(CCNMatthews - Nov. 4, 2005) - Polyair Inter Pack Inc (TSX:PPK)(AMEX:PPK) announced today that it has renewed its operating and term bank facilities for an additional three years. The renewal amends the Company's covenants through to the end of fiscal 2006, and waives certain technical defaults. The amended covenants accommodate the Company's recent performance and provide the Company with additional time to explore the potential for a sale of non- packaging assets. In the event the Company determines it does not wish to proceed with a sale of these assets it has undertaken to raise $10 million of new funding, by March 31, 2006 in order to ensure that it is adequately capitalized to execute its 2006-7 business plan. In the interim, the banking syndicate will provide the Company with a US$5 million working capital line.

"I am pleased to announce the renewal of the bank facility. The Company is addressing its business units to focus on product rationalization, manufacturing improvements and new products to accelerate Polyair's return to profitability. The flexibility and support demonstrated by our lenders is appreciated and the interim loan improves the Company's liquidity during this transition period." stated Henry Schnurbach, Polyair Inter Pack President and Chief Executive Officer.

Polyair Inter Pack Inc. (www.Polyair.com) in its Polyair Packaging and Cantar divisions manufactures and distributes a wide range of protective packaging products and swimming pool products. These products are sold to distributors and retailers across North America. The company operates twelve manufacturing facilities, seven of which are in the US where it generates the majority of its sales.

Certain information included in this release contains statements that are forward looking. Such forward-looking information involves risks and uncertainties that could significantly affect anticipated results in the future. We caution that forward-looking statements should not be regarded as a representation by the company that the future plans, estimates, or expectations contemplated by us will in fact be achieved. Please refer to the company's reports filed with the TSE and SEC for a description of the business environment in which it operates and important factors that may materially affect its results. Polyair Inter Pack is not under any obligation, and expressly disclaims any such obligation, to update or alter its forward-looking statements.

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