TSE Symbol:  SQP                                          For Immediate Release

Strongco Reports Improved Earnings for 2000

Mississauga, Ontario: March 2, 2001 – Strongco Inc. today released its operating results for the fourth quarter and year ended December 31, 2000.  In order to reflect the sale of Strongco’s U.S. equipment distribution business early in the first quarter of 2001, the financial position, results of operations and cash flows of the U.S. business for 2000 were presented as discontinued operations.  On this basis, Strongco earned $0.10 per share from continuing operations in 2000.  The comparable figure for 1999 was a loss of $0.42 per share, or approximately $0.16 per share before the after-tax impact of the provision for lift truck exit costs in that year.

This improvement in earnings was achieved in spite of slightly lower revenues in 2000 which, in part, were the result of the disposition of Strongco’s former lift truck operations in late 1999 and early 2000 and the disposition of non-core product lines during the year.  Higher gross margin percentages and significantly reduced operating expenses more than offset the impact of the year’s lower revenues, such that operating income, pre-tax income and net income all rose in 2000.

Consolidated revenue from continuing operations totalled $441.4 million in 2000, a decline of $32.0 million from 1999’s $473.4 million.  Of the net year over year difference, $24.6 million was due to the disposition of the lift truck business and non-core product lines.  Thus, the comparable decline in revenue from continuing operations was actually $7.4 million, or 1.6%.  Most of this shortfall occurred in Atlantic Canada as a result of a general slowdown in activity in that region and the absence of government-funded infrastructure projects.  Increased revenue in Western Canada partially offset the decline in Atlantic Canada.

Stronger gross margins of 21.5% compared to 20.5% last year and lower operating expenses of $74.9 million versus $81.7 million – also due largely to the dispositions referred to above – combined to more than compensate for the year’s decline in revenue.  Consequently, income from continuing operations before interest, income taxes and 1999’s provision for lift truck exit costs increased by 27.9% in 2000, to $19.7 million from $15.4 million last year.  Although higher interest rates throughout 2000 resulted in a $1.0 million increase in interest expense, pre-tax income from continuing operations was still up significantly, to $3.0 million from a loss of $0.3 million in 1999, before lift truck exit costs.  After providing for income and capital taxes, Strongco earned $.9 million from continuing operations in 2000, or $0.10 per share.

For the fourth quarter, Strongco generated consolidated revenue from continuing operations of $110.6 million, down from last year’s $133.1 million as a result of the lift truck and product line dispositions noted above and shortfalls in the Atlantic Canada operations.  Although revenue was down from last year’s fourth quarter, gross margins, at 21.7% versus last year’s 18.7%, were considerably stronger.  Consequently, Strongco’s overall gross margin from continuing operations was only down from last year’s fourth quarter amount by $.8 million.  A $2.5 million reduction in operating costs more than overcame the lower margins, such that Strongco’s operating earnings from continuing operations for the quarter increased by $1.7 million over last year, to $4.9 million from $3.2 million.  Although interest expense in Q4/00 totalled $4.4 million, a $.7 million increase over last year due largely to higher rates, Strongco still realized a $1.0 million improvement in pre-tax earnings from continuing operations compared to last year’s fourth quarter.

Strongco's annual and quarterly financial results from continuing operations are summarized below (in $millions, except earnings per share amounts):

STRONGCO INC.
 Condensed Consolidated Balance Sheets
As at December 31, 2000

($000's)

      STRONGCO INC.
      Consolidated Statements of Income
         For the Three and Twelve Months Ended December 31, 2000

   ($000's)

               STRONGCO INC.
          Consolidated Statements of Cash Flows

            For the Three and Twelve Months Ended December 31, 2000

            ($000's)