TSE Symbol:  SQP                                          For Immediate Release

Strongco Reports First Quarter Results

Mississauga, Ontario:  April 25, 2001 – Strongco Inc. today released its operating results for the quarter ended March 31, 2001.

Several important developments took place during the quarter.  First, the sale of Strongco’s U.S. operations was completed.  This transaction enabled Strongco to focus exclusively on its Canadian business while significantly reducing its indebtedness.  Second, Volvo appointed Strongco as the exclusive distributor of its full product line in Alberta and Manitoba in addition to the Central and Eastern Canadian territories in which Strongco already represents Volvo.  The effective date of this appointment is May 17, 2001.  Third, as a result of persistent weak market conditions in Atlantic Canada, Strongco restructured its operations there by closing three branches, generating annualized operating cost savings in excess of $1 million.  Finally, as a result of the westward shift in Strongco’s Engineered Systems business, the decision was made to close the Winnipeg plant and transfer production to Calgary and Cannington, Ontario.  These initiatives, which will reduce Strongco’s annual operating costs by approximately $1.7 million and refocus it as a major Canadian company with significant customer and supplier relationships, are expected to have an extremely positive impact on the long-term earnings potential of the company.

Strongco lost $0.14 per share for the quarter.  This included a pre-tax charge of $1.9 million to cover corporate restructuring charges primarily related to the anticipated costs of downsizing the Atlantic operations. Also included was an after-tax gain of approximately $1.8 million arising from the sale of the U.S. operations.  Revenues totaled $86.6 million, down from last year’s first quarter figure of $111.1 million (excluding revenue from the U.S. operations).   More than $5 million of the year over year decrease in revenue was attributable to the elimination of non-core equipment lines.  While revenues in each of Strongco’s markets were down from last year, the largest decline came from eastern Canada, where soft market conditions due to reduced government infrastructure expenditures were exacerbated by a severe winter.  Economic uncertainties also had a dampening effect on our customers’ buying decisions in each Equipment division.  Strongco’s Supplies and Engineered Systems divisions were profitable during the quarter. 

Mr. Larry Pirnak, Chairman, commented, “While we were disappointed with our first quarter numbers which, among other things, were impacted by normal seasonal factors, we are very pleased to have completed the sale of our U.S. business and to have expanded our relationship with Volvo.  We believe that these actions are extremely important to Strongco and have made it a stronger company with enhanced earnings potential.  The benefits of the strategic moves made in recent months are expected to begin to materialize in the second half of this year.”

Strongco will host a conference call at 3:30 P.M. on Wednesday, April 25 to discuss its operating results and corporate developments further.  Details of the call can be obtained by calling the company at 905-565-3811.  The call will also be web-cast live at www.ir-live.com.

Strongco is one of Canada’s largest full line equipment sales, rental and service companies, with 65 branches and 1,100 employees across Canada.  Its shares are listed on the Toronto Stock Exchange and its web site can be accessed at www.Strongco.com.

For further information, contact:

Randy Henderson
President
(ph.) 905-565-3802

e-mail: rhenderson@strongco.com

STRONGCO INC.
 Condensed Consolidated Balance Sheets
As at September 30, 2000

($000's)

STRONGCO INC.
Consolidated Statements of Income
For the Three Months Ended March 31, 2001

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Unaudited

STRONGCO INC.
Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2001

($000's)