Teknion Corporation

Teknion Corporation

January 29, 2008 17:19 ET

Teknion to Take Goodwill Charge

TORONTO, ONTARIO--(Marketwire - Jan. 29, 2008) - Teknion Corporation (TSX:TKN) today announced that based on the preliminary results of its annual testing for impairment of goodwill in accordance with the Canadian Institute of Chartered Accountants' Handbook Section 3062, "Goodwill and Other Intangible Assets," the Company has determined that the current carrying value of its goodwill is impaired, and the Company will record a non-cash goodwill impairment charge for the fiscal year ended November 30, 2007. The Company believes that the impairment charge may be material. The Company's policy on accounting for goodwill is set forth in note 1 to the Company's annual consolidated financial statements. The Company expects to complete its analysis, and finalize and announce the amount of the impairment by February 13, 2008, the anticipated date of the release of the Company's financial results for the 2007 fourth quarter and fiscal year. The Company does not expect that this impairment charge will have any effect on the previously announced proposed acquisition of the Company by its controlling shareholder.

Forward-Looking Statements

Certain of the above statements are forward-looking statements with respect to the Company's future prospects. These statements involve risks and uncertainties that could cause the Company's financial results to differ materially from stated expectations as a consequence of a number of factors, including but not limited to: fluctuations in the Company's operating results due to product demand arising from competitive and general economic and business conditions in the Company's North American and international markets and operations; significant fluctuations in exchange rates for currencies in which the Company does business; changes in the cost of raw materials; the ability to maintain the proprietary nature of the Company's intellectual property in the design and manufacturing of its products; changes in the size and timing of customers' order patterns; changes in the Company's markets, including technology change, changes in customer requirements, frequent new product introductions by competitors and emerging standards; the Company's dependence on key personnel; the Company's dependence on key commitments from significant dealers and distributors; potential liabilities arising from product defects; environmental matters and other factors set forth in the Company's reports and filings with Canadian securities regulators. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Teknion Corporation (TSX:TKN) is a leading international designer, manufacturer and marketer of office systems and related office furniture products. Teknion's headquarters are located in Toronto, Ontario. The company has offices and facilities in Canada, the United States, the United Kingdom and the Pacific Rim, and serves clients through a network of authorized dealers worldwide. Visit Teknion at www.teknion.com.

Contact Information

  • .