TSX Symbol: SQP                                       For Immediate Release

Strongco Board Approves Plan to Convert into Income Fund

Mississauga, Ontario – March 16, 2005 : - Strongco Inc. today announced that its Board of Directors has approved a plan of arrangement (the "Plan") pursuant to which Strongco will be converted into a new publicly traded income fund ("Strongco Income Fund") that will carry on the existing Strongco business. Accordingly, the Board of Directors is recommending to all Strongco shareholders that they approve the Plan at Strongco's Annual and Special meeting (the "Meeting") to be held on or about April 28, 2005 . A Management Information Circular (the "Circular") detailing the elements of the Plan will be mailed to Strongco shareholders on or about April 1, 2005 . In addition to shareholder approval, the Plan is subject to a number of conditions, including receipt of regulatory, court and other necessary approvals.

Under the terms of the Plan, each Strongco shareholder will receive one unit of Strongco Income Fund in exchange for each share of Strongco. In addition, option-holders will be entitled to exercise all of their options until the effective date of the Plan when such options are terminated. Existing Strongco management will continue to manage the Strongco business after its conversion into Strongco Income Fund.

The initial distribution policy of Strongco Income Fund will be to distribute monthly to its unitholders an amount equal to $0.15 per unit, representing $1.80 on an annualized basis. The distribution level of the Fund will be reviewed at each Trustee Meeting. If the conversion is approved by the Strongco shareholders at the Meeting, Strongco anticipates its first monthly distribution will be paid to holders of record on May 31st, 2005 and paid on June 20th, 2005 . The first distribution will be $0.15 per unit.

The Board of Directors engaged BMO Nesbitt Burns Inc. as its financial advisor in connection with the proposed transaction. BMO Nesbitt Burns Inc. has provided a fairness opinion in respect of the Plan. The fairness opinion provides that, in BMO Nesbitt Burns Inc.'s opinion, as of March 15th, 2005 , the consideration to be received by Strongco shareholders upon completion of the Plan is fair, from a financial point of view, to such shareholders.

Mr. Larry Pirnak, President, commented, "The Board of Directors of Strongco concluded that shareholder value could be substantially enhanced by converting Strongco into an income fund. In recommending the Plan, the board believes that it has the following advantages: (1) It is anticipated that the combined value of distributions plus the market value of the units will be greater than the combined value of dividends that could otherwise be paid on the Strongco shares plus the market value of the Strongco shares, and that the Fund will have greater access to capital to fund growth; and (2) It is anticipated that the conversion of Strongco into an income fund will attract new investors and provide in the aggregate a more active and liquid market for the units than exists for the Strongco shares."

Strongco will host a conference call at 3:30 p.m. on Wednesday March 16th, 2005 to further discuss the conversion. To participate in the conference call, dial 800.381.9619 or 416.641.6652, reservation number is 21234700. A taped version of the call will be available until March 30th, 2005 . Dial 800.558.5253 and enter the reservation number.

Strongco is a full-line equipment sales and service company. Its shares are listed on the Toronto Stock Exchange and its website can be accessed at www.strongco.com.

For further information contact:

Len Phillips,
Vice President Administration & Corporate Secretary

Telephone No.: 905.565.3840

Fax No.: 905.565.1907

Email: lphillips@strongco.com