Exco Announces Sale of Techmire

    TORONTO, Sept. 28 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced the sale, subject to closing escrow arrangements, of its Techmire
division in Montreal to Dynacast, a global manufacturer of precision
engineered, die cast metal and small components. The cash sale includes all
assets of the Techmire business excluding the production facility which will
be leased to Dynacast on a short term basis and thereafter sold. The sale of
the Techmire business is not expected to be materially different from the
carrying value of the purchased assets. This divestiture will allow Exco
management to better enhance shareholder value by focusing more closely on
improving margins in its core businesses and taking advantage of other growth
opportunities.

    Exco Technologies Limited is a global supplier of innovative technologies
servicing the die-cast, extrusion and automotive industries. Through our 11
strategic locations, we employ 2,100 people and service a diverse and broad
customer base.

    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 include, among other
things: industry cyclicality; global economic conditions, causing decreases in
automobile production volumes and demand for capital goods; changing demand
for specific models or products; price reduction pressures; pressure to absorb
certain fixed costs; dependence on major customers and changes in such
customers' financial capabilities; technological changes; compliance with
various laws; obtaining necessary permits and consents; fluctuations in
currency exchange and interest rates; employee work stoppages; dependence on
key employees; the competitive nature of the automotive and capital goods
industries, including competition with suppliers operating in low cost
countries; product supply and demand; the conduct of business in foreign
countries; and other risks, uncertainties and assumptions as described in the
Company's Management's Discussion and Analysis included in our 2006 Annual
Report, in our 2006 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


      
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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