Exco Technologies Limited - First Quarter ended December 31, 2008 and Quarterly Dividend Declared


    MARKHAM, ON, Jan. 28 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced results for its first quarter ended December 31, 2008. In addition,
the Company announced a $0.0175 dividend per share which will be paid March
31, 2009 to shareholders of record on March 16, 2009. The dividend is an
"eligible dividend" in accordance with the Income Tax Act of Canada.

	    <<
	    -------------------------------------------------------------------------
	                                                            3 Months ended
	                                                             December 31
	                                                           ($000s, except
	                                                          per share amounts)
	                                                           2008         2007
	                                                           ----         ----
	    Sales                                               $44,444      $47,974
	    Net (loss) income from continuing operations        ($2,425)      $1,364
	    Net loss from discontinued operations                     -         ($49)
	    Net (loss) income                                   ($2,425)*   $1,315
	    Basic and diluted (loss) earnings per share from
	     continuing operations                               ($0.06)       $0.03
	    Basic and diluted earnings per share from
	     discontinued operations                              $0.00        $0.00
	    Basic and diluted (loss) earnings per share          ($0.06)       $0.03
	    Common shares outstanding                        40,674,000   41,216,000
	    -------------------------------------------------------------------------
	    *Includes $2,848 foreign exchange valuation loss
	    >>

	    Consolidated sales from continuing operations for the quarter ended
December 31, 2008 were $44.4 million compared to $48.0 million last year - a
decrease of $3.6 million or 7.5%. The Casting and Extrusion segment reported a
2% increase in sales over last year to $26.8 million. Our Extrusion Die and
Castool sales increased in the quarter and stronger sales in our large mould
business in Canada from accelerating shipments of new moulds for the Phoenix
engine block program were partially offset by weakness at our US large mould
operation. Sales in the Automotive Solutions segment decreased 18.5% to $17.6
million in the quarter as all North American car manufacturers have reduced
production of automobiles in response to a severe lack of consumer confidence
and tighter credit requirements. Sales to our European customers were also
lower in the quarter reflecting weaker releases on our major seat cover
programs for Honda.
	    Net loss from continuing operations for the quarter was $2.4 million or
$0.06 per share compared to net income of $1.4 million or $0.03 per share last
year. Included in the current quarter was a foreign exchange loss of $2.8
million from a fair market valuation of the Mexican Peso collars. Excluding
this fair market valuation loss which did not affect cash, net income from
continuing operations for the quarter was $423 thousand. The Casting and
Extrusion segment reported earnings for the quarter of $1.9 million - more
than triple last year's quarterly earnings. The Automotive Solutions segment
reported significantly weaker earnings of $171 thousand compared to $2.7
million last year. Heavy reductions in North American and European vehicle
production have significantly impacted the performance of this segment,
particularly in the month of December with plant shutdowns for Christmas
taking place earlier than usual. This made it difficult to efficiently absorb
overhead at several facilities.
	    Gross margin for the quarter remained relatively stable at 19.6% compared
to 21.6% in the prior year. The full benefit of raw material price reductions
were not experienced in the quarter as existing raw material inventory was
cleared. Reduced variable costs are anticipated as current commodity price
reductions work their way through the production cycle.
	    Operating cash flow in the current quarter increased to $5.9 million from
$447 thousand in the prior year. Primarily contributing to this improvement
was a $2.9 million positive change from non-cash working capital in the
current quarter compared to a negative change of $3.1 million last year. This
improvement is mostly from the collection of $7.5 million accounts receivable
in the quarter. The Company's bank balances at quarter end totalled $10.3
million compared to $8.1 million at the beginning of the fiscal year. Exco's
net cash position also increased to $4.4 million from $3.5 million over the
same period. This improvement stems in large part from the foreign exchange
impact of a strengthening US dollar on our US cash on hand (approximately
US$15 million).
	    (for further information please refer to the Company's First Quarter
Interim Financial Statements in the Investor Relations section posted at
www.excocorp.com after January 28, 2009. Alternatively, please refer to
www.sedar.com after January 28, 2009.)

	    Exco Technologies Limited is a global supplier of innovative technologies
servicing the die-cast, extrusion and automotive industries. Through our 10
strategic locations, we employ 1,825 people and service a diverse and broad
customer base.

	    The Annual Meeting of Shareholders of Exco Technologies Limited will be
held at 4:30 pm (EST) on January 28, 2009 and will be simultaneously webcast.
To access the live audio webcast, please log on to www.excocorp.com or
www.q1234.com a few minutes before the event. Real Player is required for
access. For those unable to participate on January 28, 2009, an archived
version will be available on the Exco website.
	    Management will then hold a conference call to discuss the first quarter
results on Thursday January 29, 2009 at 10:00 am (EST). The local dial in
number for the call is (416) 644-3417 or toll free 1-800-731-6941. To access
the live audio webcast, please log on to www.excocorp.com or www.q1234.com a
few minutes before the event. Real Player is required for access. For those
unable to participate on January 29, 2009, an archived version will be
available on the Exco website.

	    This news release contains forward-looking information and
forward-looking statements within the meaning of applicable securities laws.
We use words such as "anticipate", "plan", "may", "will", "should", "expect",
"believe", "estimate" and similar expressions to identify forward-looking
information and statements. Such forward-looking information and statements
are based on assumptions and analyses made by us in light of our experience
and our perception of historical trends, current conditions and expected
future developments, as well as other factors we believe to be relevant and
appropriate in the circumstances. Readers are cautioned not to place undue
reliance on forward-looking information and statements, as there can be no
assurance that the assumptions, plans, intentions or expectations upon which
such statements are based will occur. Forward-looking information and
statements are subject to known and unknown risks, uncertainties, assumptions
and other factors which may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed, implied or anticipated by such information and
statements. These risks, uncertainties and assumptions are described in the
Company's Management's Discussion and Analysis included in our 2008 Annual
Report, in our 2008 Annual Information Form and, from time to time, in other
reports and filings made by the Company with securities regulatory
authorities.
	    While the Company believes that the expectations expressed by such
forward-looking information and statements are reasonable, there can be no
assurance that such expectations and assumptions will prove to be correct. In
evaluating forward-looking information and statements, readers should
carefully consider the various factors which could cause actual results or
events to differ materially from those indicated in the forward-looking
information and statements. Readers are cautioned that the foregoing list of
important factors is not exhaustive. Furthermore, the Company disclaims any
obligations to update publicly or otherwise revise any such factors or any of
the forward-looking information or statements contained herein to reflect
subsequent information, events or developments, changes in risk factors or
otherwise.

	    %SEDAR: 00003420E

	

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/For further information: Paul Riganelli, Vice-President, Finance and
Chief Financial Officer, Telephone: (905) 477-3065, Website:
http://www.excocorp.com/



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