TSE Symbol:  SQP                                 For Immediate Release

             Strongco Announces First Quarter Results

Mississauga, Ontario – May 7, 2002:  Strongco Inc. today released its results for the quarter ended March 31, 2002.

Pressure on gross profit margins during the quarter was offset by lower operating and interest expenses, such that Strongco’s first quarter loss from continuing operations was reduced to $0.20 per share this year from $0.33 per share last year.  Included in last year’s first quarter results was a one-time pre-tax charge of $1.9 million related to anticipated costs associated with the downsizing of the company’s Atlantic operations.

Financial Summary

Revenues in the first quarter, which is typically Strongco’s weakest quarter of the year due to seasonality factors, totaled $88.0 million, up from $86.6 million for the same period last year.  Significant revenue increases were realized in the company’s western Equipment division while the Ontario and eastern markets were flat to down.  The increased revenue in Western Canada was primarily attributable to the inclusion of the Volvo construction equipment line in Alberta and Manitoba, awarded to the company in May, 2001.  Gross margin pressure was experienced in all three segments of Strongco’s business during the quarter, resulting in a decline in the consolidated gross profit margin to 18.5% this year from 22.6% last year.  The lower margins were more than compensated for by reduced operating and interest expenses however, such that the company’s first quarter pre-tax loss was reduced to $2.9 million from $5.2 million last year, or $3.3 million excluding the one-time charge noted above.  In terms of the company’s business segments, the combined first quarter losses for the Equipment divisions was substantially reduced compared to the same period last year.  The Supplies segment was negatively impacted during the quarter by a slowdown in the Alberta marketplace, however, it and the Engineered Services segments of the business were both profitable during the quarter.

Mr. Larry Pirnak, Strongco’s chairman, commented, “We are pleased with the increase in Strongco’s business in western Canada.  We are also pleased that, in spite of continued gross margin issues, the steps we took last year to scale back various of our operations and reduce the company’s cost base are compensating for a significant portion of the margin shortfall.”  Mr. Pirnak went on to say, “Although activity levels are reasonably strong, we are anticipating that the gross margin pressures experienced over the last several quarters will continue during the remainder of this year.  Consequently, we intend to continue doing all we can to run the business as conservatively as possible and reduce costs wherever possible.”

Strongco also announced today that its Board of Directors is considering a variety of strategic alternatives for creating shareholder value, which may include the sale of some or all of Strongco’s business units.  “We believe that the current market price for Strongco’s shares does not properly reflect the Company’s true value” said Mr. Pirnak.  “Accordingly, we are examining a number of options designed to increase value for our shareholders.  The Board of Directors has directed management of the Company to engage in discussions with parties who may have interests which are compatible with the Company’s objective of maximizing shareholder value.”

The Company can give no assurance at this time as to its success in pursuing any of the strategic alternatives or as to the terms of any transaction.

Strongco will host a conference call at 10:00 A.M. on Wednesday, May 8, 2002 to further discuss its operating results for the quarter and strategic issues.  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 61 branches and more than 1,000 employees across the country.  Its shares are listed on the Toronto Stock Exchange and its web site can be accessed at www.strongco.com.

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