Strongco Corporation

Strongco Corporation

April 21, 2011 10:10 ET

Strongco to Build New Edmonton Branch

MISSISSAUGA, ONTARIO--(Marketwire - April 21, 2011) -Strongco Corporation (TSX:SQP) announced today it plans to expand its presence in Alberta with the construction of a new branch in Edmonton.

The Company has acquired 6.5 acres in the Parkland Industrial Park in Acheson on the Northwest side of Edmonton. Construction of a 37,150 square foot facility is to start in June, with completion scheduled for December 2011. The new facility will be designated a Volvo branch, carrying the full line of products from Volvo Construction Equipment as well as other leading brands.

"This new facility will substantially improve our presence in Alberta and enable us to provide a higher level of service to our customers," said Bob Dryburgh, President and Chief Executive Officer of Strongco. The current Edmonton branch, in the Sherwood Park area of Edmonton, is shared between Strongco's Crane and Volvo/Multiline business units. When the new branch is completed, the present facility will continue as a dedicated crane operation.

"We have found that the shared branch in Edmonton constrains our product support capacity and limits our ability to service our customers' equipment, particularly when large crane boom rebuilds are underway in the shop," added Mr. Dryburgh. "This is an opportune time to build the new branch because the Alberta market is showing very positive signs of recovery. The expanded capacity provided by our new facility will eliminate current constraints and allow us to grow product support revenues."

The total capital cost of the new branch is estimated at $9.5 million, most of which will be financed through a new mortgage facility from Strongco's existing bank.

About Strongco

Strongco Corporation is one of Canada's largest multiline mobile equipment dealers and operates in the Northeast United States through Chadwick-BaRoss, Inc. Strongco sells, rents and services equipment used in sectors such as construction, infrastructure, mining, oil and gas, utilities, municipalities, waste management and forestry. Strongco has approximately 600 employees servicing customers from 24 branches in Canada and five in the United States. Strongco represents leading equipment manufacturers with globally recognized brands, including Volvo Construction Equipment, Case Construction, Manitowoc Crane, Terex Cedarapids, Ponsse, Powerscreen, Skyjack, Fassi, Allied, Taylor, ESCO, Dressta, Sennebogen, Takeuchi, Link-Belt and Kawasaki. Strongco is listed on the Toronto Stock Exchange under the symbol SQP.

Forward-Looking Statements

This news release contains "forward-looking" statements within the meaning of applicable securities legislation which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strongco or industry results, to be materially different from any future results, events, expectations, performance or achievements expressed or implied by such forward-looking statements. All such forward-looking statements are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. Forward-looking statements typically contain words or phrases such as "may", "outlook", "objective", "intend", "estimate", "anticipate", "should", "could", "would", "will", "expect", "believe", "plan" and other similar terminology suggesting future outcomes or events. This news release contains forward-looking statements relating to the expected trading of common shares of Strongco on the TSX, and such statements are based upon the expectations of management.

Forward-looking statements involve numerous assumptions and should not be read as guarantees of future performance or results. Such statements will not necessarily be accurate indications of whether or not such future performance or results will be achieved. You should not unduly rely on forward-looking statements as a number of factors, many of which are beyond the control of Strongco, could cause actual performance or results to differ materially from the performance or results discussed in the forward-looking statements, including, inability to obtain requisite approvals; general economic conditions; business cyclicality, relationships with manufacturers; access to products; competition with existing business; reliance on key personnel; litigation and product liability claims; inventory obsolescence; sufficiency of credit availability; credit risks of customers; warranty claims; technology interpretations; and labour relations. Although the forward-looking statements contained in this news release are based upon what management of Strongco believes are reasonable assumptions, Strongco cannot assure investors that actual performance or results will be consistent with these forward-looking statements. These statements reflect current expectations regarding future events and operating performance and are based on information currently available to Strongco's management. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. All forward-looking statements in this news release are qualified by these cautionary statements. These forward-looking statements and outlook are made as of the date of this news release and, except as required by applicable law, Strongco assumes no obligation to update or revise them to reflect new events or circumstances.

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