Strongco Income Fund
TSX : SQP.UN

Strongco Income Fund

May 14, 2009 20:03 ET

Strongco Sells Engineered Systems Business

MISSISSAUGA, ONTARIO--(Marketwire - May 14, 2009) - Strongco Income Fund (TSX:SQP.UN) announced today that it has entered into an agreement to sell its Strongco Engineered Systems Division. The sale, which will generate cash proceeds of approximately $7.0 million, is expected to close within two weeks, subject to customary closing conditions. The Engineered Systems business had sales in 2008 of $29 million, representing 6.8% of Strongco's total sales, and was not profitable.

"Our strategy for Strongco is to build on our position as a leading distributor of construction equipment," said Bob Dryburgh, President and Chief Executive Officer of Strongco. "This divestiture allows Strongco to concentrate our resources and efforts on the businesses where we see opportunities for growth."

About Strongco

Strongco Income Fund is a trust established to hold one of the largest multi-line industrial equipment distribution providers in Canada. Over 700 employees provide retail service at 24 branches located from Nova Scotia to Alberta. Strongco sells, rents and services mobile equipment to sectors that include infrastructure, construction, road building, mining, forestry, utilities and municipalities. Strongco represents several leading equipment manufacturers including Volvo, Case, Manitowoc and Cedarapids.

Strongco Income Fund is listed on the Toronto Stock Exchange under the symbol SQP.UN.

Forward-Looking Statements

This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws, including the expectation that the sale of the Strongco Engineered System Division will be completed. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. You are cautioned not to place undue reliance on forward-looking statements made herein because a number of factors could cause future results and events to differ materially from the expectations expressed in the forward-looking statements.

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