TSE Symbol:  SQP                                         For Immediate Release

Strongco Announces Sale of U.S. Business

Mississauga, Ontario:  January 12, 2001 - Strongco Inc. announced today that it has signed an agreement with L.B. Smith, Inc. of Camp Hill, Pennsylvania for the sale of its equipment distribution business in the United States.  Under the terms of the agreement, Strongco will sell to L.B. Smith its entire business operations in the mid-Atlantic states of Virginia, Pennsylvania and New Jersey.  The closing of this transaction is subject to the fulfillment of certain conditions and is expected to occur by the end of January, 2001.  The purchase price will be approximately $76 million (Cdn) and a gain will be recorded upon completion of the sale.

Mr. Larry Pirnak, Chairman of Strongco, commented as follows: "We decided to sell our U.S. equipment distribution business because the opportunities for growth which we had expected when we first entered the market in 1996 were not available to us.  We therefore decided to re-deploy the capital that had been invested south of the border back into the Canadian market."

Strongco is one of North America's largest full line equipment sales, rental and service companies, with more than 70 branches and 1,100 employees across Canada.  Its shares are listed on the Toronto Stock Exchange under the symbol 'SQP' and its corporate web site can be accessed at www.strongco.com.

For further information, contact:

Randy Henderson
President
Phone: (905) 565-3802
e-mail: rhenderson@strongco.com