TSX Symbol:  SQP                                                      For Immediate Release

Strongco Reports Improved First Quarter Results

Mississauga, Ontario – May 13, 2003:  Strongco Inc. today released its financial results for the first quarter of 2003. 

Strongco lost $0.5 million - $0.06 per share - during the first quarter, traditionally its weakest period of the year due to seasonality factors throughout its markets.  These results represent a significant improvement over last year’s first quarter loss from continuing operations of $2.2 million or $0.23 per share.  The year-over-year improvement largely reflects the positive impact of the strategic initiatives undertaken by the Company over the past two years to streamline the business, reduce costs and enhance operational focus.

Consolidated revenue, at $72.2 million, was essentially unchanged from last year’s first quarter revenue as increases in certain Equipment Distribution divisions were offset by declines in the Engineered Systems business.  However, gross profit margins strengthened in key markets and operating expenses declined, resulting in a $2.5 million year-over-year improvement in the Company’s earnings before interest and taxes.  Furthermore, the balance sheet reduction initiatives undertaken in 2002 have been effective in eliminating $58.6 million of interest-bearing debt from the balance sheet since the end of last year’s first quarter which has translated into a $0.4 million year-over-year reduction in interest expense.  The combination of this year’s stronger margins and reduced operating and interest expenses has enabled Strongco to trim its pre-tax loss for the quarter to $0.4 million, a $2.9 million improvement over last year’s $3.3 million first quarter pre-tax loss from continuing operations. 

Mr. Larry Pirnak, Strongco Chairman, commented, “We were extremely encouraged during the first quarter to see that the steps we have taken to refocus the business over the past two years are having a positive impact on our results.  While earnings in each of our three business segments improved over last year’s first quarter, the upturn was particularly evident in the Equipment Distribution segment, where revenues and margins were both up, particularly in the key Ontario market, and operating costs were down.”  Mr. Pirnak continued, “We believe that Strongco’s first quarter results demonstrate that the strategic and operating initiatives undertaken by us over the past several quarters are having the anticipated positive impact on the company.  Nevertheless, the Canadian equipment industry is still a long way from the levels of business enjoyed in the latter part of the 1990’s.  We will therefore continue to pursue our corporate objectives with the intent of continuing the trend of improving financial results.”

Strongco is one of Canada’s largest companies engaged in the sales and servicing of mobile industrial equipment.  Its shares are listed on the Toronto Stock Exchange and its web site can be accessed at www.strongco.com.  Strongco will host a conference call at 3:00 P.M. on Tuesday, May 13 to further discuss its operating results for the first quarter.  Details of the call can be obtained by phoning the company at 905-565-3875.

For further information, contact:

Randy Henderson

President

Ph: 905-565-3802

e-mail: rhenderson@strongco.com

See unaudited financial statements attached.