TSX Symbol: SQP For Immediate Release

Strongco Reports Third Quarter Profit of $1.5 Million ($0.16 per share)

Mississauga, Ont. September 30, 2003: Strongco Inc. today released financial results for the third quarter of the year which reflected the positive impact of the continued strategic and operating initiatives implemented by the Company.

Strongco earned $1.5 million from continuing operations during the third quarter compared to a loss from continuing operations of $0.7 million in last year’s third quarter. Per share earnings for the quarter were $0.16 from continuing operations compared to a per share loss of $0.07 from continuing operations for the same period last year. Net income for the quarter was $1.5 million ($0.16 per share) compared to a net loss of $2.5 million ($0.27 per share) in last year’s third quarter. The turnaround in results this year was a function of higher gross profit margins combined with lower operating and interest expenses. Earnings in the Company’s Equipment Distribution segment, which represents more than 85% of consolidated revenue, rose to $3.6 million during the quarter on the strength of firmer gross profit margins and reduced operating and interest expenses. This segment earned $1.4 million during last year’s third quarter. Strongco’s two other business segments - Equipment Rentals and Engineered Systems – reduced their losses for the quarter to $0.1 million and $0.1 million respectively from $0.6 million and $1.0 million in last year’s third quarter.

For the first nine months of the year, Strongco has earned $3.2 million from continuing operations - $0.34 per share – compared to a loss of $4.3 million from continuing operations - $0.46 per share – last year. Net income for the period was $3.2 million - $0.34 per share – compared to a net loss of $5.6 million - $0.60 per share – for the first nine months last year. As was true of the second quarter, the current year’s improvement has resulted from higher gross margins combined with lower operating and interest expenses.

Mr. Larry Pirnak, President, commented: “We were extremely encouraged by Strongco’s third quarter results, particularly in the core Equipment Distribution segment where we have been focusing on improving working capital efficiencies and increasing the higher margin customer support activities. We were also pleased with the continued reduction in the Company’s levels of debt and the consequent reduction in interest expense. We anticipate continued year-over-year improvements in earnings during the balance of this year.”

Strongco also announced that Robert Beutel has been appointed Chairman and Larry Pirnak as President and CEO.

Strongco will host a conference call at 3:30 PM on Monday, November 3, 2003 to further discuss its third quarter and year-to-date results and prospects. To participate in the conference call, dial 800-291-5032 and enter the Reservation No. 21163757. Replays of the call will be available until November 17, 2003.

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

For further information contact:

Larry Pirnak
President

Ph: 905-565-3804

e-mail: lpirnak@strongco.com

STRONGCO INC.
Consolidated Balance Sheets ($000's)
[Unaudited - in thousands of dollars]	As at September 30	As at September 30	As at December 31
ASSETS	2003	2002	2002
Current
Accounts Receivable	31,463	34,489	36,162
Inventories	102,578	148,117	122,218
Prepaid Expenses and Deposits	3,786	3,150	2,592
Income and Other Taxes Receivable	--	409	381
Current assets of discontinued operations [note 4]	--	394	--
Total current assets	137,827	186,559	161,353
Rental Equipment, net	19,016	29,868	25,790
Capital Assets, net	21,946	23,878	23,438
Goodwill, net	--	12,025	--
	178,789	252,330	210,581
LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Bank Indebtedness	26,399	34,892	28,285
Accounts Payable and Accrued liabilities	31,408	43,793	39,172
Equipment Notes Payable	63,593	88,122	79,633
Income and other taxes payable	363	--	--
Current portion of long-term debt	6,510	12,116	10,952
Total current liabilities	128,273	178,923	158,042
Long-Term Debt	2,613	10,001	7,719
Future Income Taxes	2	1,423	121
Total liabilities	130,888	190,347	165,882
Shareholders' Equity
Share Capital [note 2]	52,107	52,100	52,100
Retained earnings	-4,206	9,883	-7,401
Total shareholders' equity	47,901	61,983	44,699
	178,789	252,330	210,581

STRONGCO INC.
Consolidated Statements of Income (Loss) and Retained Earnings
[unaudited - in thousands of dollars, except per share amounts]	Three Months Ended September 30		Nine months ended September 30
	2003	2002	2003	2002
Revenue	73,078	82,935	238,416	247,825
Cost of sales	58,595	69,331	194,676	209,937
Gross Margin	14,483	13,604	43,740	37,888

Expenses
Administration, distribution and selling	11,791	12,744	36,821	39,044
Income (loss) before the following	2,692	860	6,919	-1,156
Interest	1,196	1,797	3,746	5,098
Income (loss) before income taxes	1,496	-937	3,173	-6,254
Provision for (recovery of) income taxes	33	-248	-22	-1,920
Net income (loss) for the period from continuing operations	1,463	-689	3,195	-4,334
Net Loss from discontinued operations [note 4}	--	-1,830	--	-1,302
Net income (loss)	1,463	-2,519	3,195	-5,636
Retained earnings, beginning of period	-5,669	12,402	-7,401	15,519
Retained earnings, end of period	-4,206	9,883	-4,206	9,883
Basic earnings per share
Weighted average number of shares	9,386,135	9,386,135	9,386,135	9,386,135
Earnings (loss) per share from continuing operations	0.16	(0.07)	0.34	(0.46)
Earnings (loss) per share	0.16	(0.27)	0.34	(0.60)
Fully diluted earnings per share
Weighted average number of shares	9,499,292	9,386,135	9,505,454	9,386,135
Earnings (loss) per share from continuing operations	0.16	(0.07)	0.34	(0.46)
Earnings (loss) per share	0.16	(0.27)	0.34	(0.60)
See accompanying notes

STRONGCO INC.
Consolidated Statements of Cash Flows
[unaudited - in thousands of dollars]	Three Months Ended September 30		Nine Months Ended September 30
	2003	2002	2003	2002
OPERATING ACTIVITIES
Net income (loss) from continuing operations	1,463	-689	3,195	-4,334
Add (deduct items not involving a current outlay (inflow) of cash
Amortization of rental equipment	1,149	1,546	3,518	4,778
Amortization of capital assets	302	374	903	1,108
(Gain) / loss on disposal of capital assets and rental equipment	-340	1	-554	-244
Future income taxes	-70	791	-119	-371
	2,504	2,023	6,943	937
Net change in non-cash working capital balances related to operations	-354	350	252	8,403
Cash provided by (used in) operating activities	2,150	2,373	7,195	9,340
INVESTING ACTIVITIES
Purchase of rental equipment	-26	-75	-133	-322
Purchase of capital assets	-66	-53	-141	-146
Proceeds on disposal of capital assets and rental equipment	1,849	951	4,673	4,113
Cash provided by investing activities	1,757	823	4,399	3,645
FINANCING ACTIVITIES
Decrease in bank indebtedness	-1,761	-14,629	-1,886	-17,254
Repayment of long-term debt	-1,384	-6,512	-4,845	-9,314
Decrease in financing of rental equipment	-769	-3,260	-4,870	-10,053
Issuance of share capital	7	--	7	--
Cash provided by (used in) financing activities	-3,907	-24,401	-11,594	-36,621
Cash from discontinued operations [note 4]	--	21,205	--	23,636
Net increase in cash and cash equivalents during the period	--	--	--	--
Cash and cash equivalents, beginning of period	--	--	--	--
Cash and cash equivalents, end of period	--	--	--	--
Supplemental cash flow information
Interest Paid	1,245	1,888	3,826	5,295
Income taxes recovered	-260	-366	-370	-151

September 30, 2003
Notes to unaudited interim consolidated financial statements

1. Basis of Presentation

The unaudited interim consolidated financial statements have been prepared following the accounting policies as set out in the fiscal 2002 annual consolidated financial statements.

The interim consolidated financial statements have been prepared by the Corporation in accordance with Canadian generally accepted accounting principles (GAAP) applicable to interim consolidated financial statements, and follow the same accounting policies and methods in their application as the most recent annual financial statements. In the opinion of Management, all adjustments necessary for a fair presentation are reflected in the interim consolidated financial statements. Such adjustments are of a normal and recurring nature. The interim consolidated financial statements should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in the Corporation’s annual report for fiscal year 2002.

2. Share Capital

Details of issued share capital are as follows:

3. Segmented Information

Segmented information for the three and nine months ended September 30, 2003 is as follows.

[a] The reconciling items to adjust segment profit (loss) represent common corporate costs not allocated to the segments and corporate head office costs incurred during the year.

[b] The reconciling items to adjust segment total assets includes the assets from discontinued operations [note 4]. The majority of the remaining reconciling items represent prepaid expenses and income taxes receivable carried on the corporate head office ledger, offset by the elimination of the intercompany receivables at the corporate head office.

4. Discontinued Operations

Effective August 30, 2002, the Company sold substantially all of the assets of its supplies business in northern Ontario and Quebec. An after-tax loss of $25 was recorded during the 2002 year.

In a separate transaction effective August 31, 2002, the Company sold the assets of its supplies businesses in Alberta and B.C. An after-tax loss of $1,764 was recorded during the 2002 year.

For financial reporting purposes, the results of operations, cash flows and financial position of these business segments have been presented as discontinued operations.

5. Commitments and Contingencies

The Company has agreed to buy back equipment from certain customers at the option of the customer for a specified price at future dates (“buy back contracts”). These contracts are subject to certain conditions being met by the customer and range in term from three to ten years. At September 30, 2003, the total obligation under these contracts was $ 2,492 The Company’s maximum potential losses pursuant to these buy back contracts are limited, under an agreement with a third party, to 10 % of the buy back amounts. A reserve of $ 140 has been accrued on the Company’s books with respect to these commitments.

The Company has provided a guarantee to leasing companies with respect to potential future losses on disposition of equipment returned by customers at the end of the lease term. At September 30, 2003 the maximum obligation under these arrangements was $ 88.

The Company has provided a guarantee up to a maximum of $ 50 with respect to a customer’s obligations under an equipment finance contract.