TSE Symbol:  SQP                                  For Immediate Release

Strongco First Quarter Operating Results Released

Mississauga, Ontario; April 28, 2000 – Strongco Inc. today released operating results for the first quarter of the year containing increases in consolidated revenue and earnings compared to the same period last year.

 For the three months to March 31, 2000, Strongco generated consolidated revenue of $134.0 million, up from $126.5 million during last year’s first quarter.  This increase was spread across most of the company’s territories, with significant improvements occurring in Strongco’s Western Canadian equipment and supplies businesses in response to revitalized oil and gas activities in Alberta.  Although the company’s overall gross margin was down slightly due to a higher level of equipment sales to other revenue, lower operating costs more than compensated.  As a result, earnings before interest and income taxes increased to $5.1 million this year from less than $4.7 million in last year’s first quarter.  Interest expense for the quarter increased marginally to $4.8 million from $4.6 million last year due primarily to higher average market rates during this year’s first quarter. In spite of this, Strongco’s pre-tax income of $282,000 for the first quarter exceeded last year’s first quarter amount of $53,000.  Strongco earned $0.01 per share during the first quarter of the current year compared to a loss of $0.01 for the same period last year.

“The first quarter is traditionally the weakest period of the year for the company due to seasonality factors which affect the utilization of our equipment”, said Larry Pirnak, Chairman and Chief Executive Officer of Strongco.  “Consequently, care must be taken in drawing conclusions based solely on first quarter results.  Nevertheless, we were pleased to see our revenues increasing during the quarter, reflecting continued strong activity in most of our sales territories.  We were also encouraged to note that the cost cutting measures taken by us last year have resulted in meaningful reductions in operating expenses so far this year.”  Mr. Pirnak went on to say, “We are optimistic regarding further improvements in Strongco’s profitability as the year progresses.”

Strongco's quarterly financial results are summarized below (in $millions, except earnings per share):

STRONGCO INC.
 Consolidated Balance Sheets
As at March 31, 2000

($000's)

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

($000's)

Unaudited

STRONGCO INC.
Consolidated Statements of Cash Flow

For the Three Months Ended March 31

($000's)