TSE Symbol:  SQP                                          For Immediate Release

Strongco Reports Improved Third Quarter Results

Mississauga, Ontario:  October 23, 2000 - Strongco Inc. released its third quarter results today which clearly demonstrated that progress is being made in several key areas.  On a per share basis, the company's earnings improved by $0.10 per share, to a profit of $0.03 per share in this year's third quarter from a loss of $0.07 in last year's.

Considering the elimination of lift truck revenue in the current year's numbers, Strongco's third quarter consolidated revenue, at $126.7 million, was comparable to last year's third quarter revenue of $131.2 million.  Slightly lower gross profits, which resulted from the reduced revenue and a small decline in  the overall margin percentage, were more than compensated for by a $3.8 million, or 15%, reduction in quarterly operating expenses, of which approximately $1.5 million related to the elimination of Strongco's lift truck business in the 4Q of 1999.  Consequently, Strongco’s third quarter earnings before interest and taxes (‘EBIT’) rose to $6.4 million, a 55% increase over last year’s third quarter EBIT of $4.1 million.  In spite of a $.5 million increase in interest expenses compared to last year, Strongco generated a $1.7 million year over year improvement in third quarter pre-tax earnings to $.9 million, up from a loss of $.8 million last year

For the nine months to September 30, 2000, Strongco’s consolidated revenue totaled $397.4 million, compared to $417.5 million for the first nine months of 1999.  The majority of the shortfall can be attributed to the lack of lift truck revenue in 2000.  Although the lower year-to-date revenue has led to a $1.7 million reduction in gross profits, the margin percentage for the first nine months of the year has increased to 21.3% from 20.7% last year.  Furthermore, operating expenses are down $4.6 million this year, leading to a $3 million improvement in EBIT.  Although interest expenses are up by $1.2 million, Strongco’s pre-tax income for the year-to-date period has gone to a profit of $1.8 million this year from a small loss last year.  Earnings per share have moved to income of $0.04 this year from a loss of $0.04 last year.

Mr. Larry Pirnak, Chairman, commented, “Over the last several quarters we have undertaken various business improvement and cost cutting initiatives designed to enhance Strongco’s long-term prospects.  We are pleased to see that some of the benefits which we expect to accrue to Strongco as a result of these initiatives are beginning to emerge.”

Strongco's quarterly financial results are summarized below (in $millions, except earnings per share):

STRONGCO INC.
 Condensed Consolidated Balance Sheets
As at September 30, 2000

($000's)

STRONGCO INC.
Consolidated Statements of Income
For the Three & Nine Months Ended September 30, 2000

($000's)

Unaudited

STRONGCO INC.
Consolidated Statements of Cash Flows

For the Three & Nine Months Ended September 30, 2000

($000's)