Divcom Lighting Closes Multi-Million Dollar per Year Agreement with Home Depot Canada to Launch Illume Energy Efficient Lighting Program



    MONTREAL, Oct. 12 /CNW/ - Divcom Lighting Inc. ("Divcom" or the
"Company")(TSX: DVQ), a leading manufacturer of energy efficient lighting
products throughout North America, today announced it has concluded a
multi-million dollar per year agreement with Home Depot Canada to launch the
"Illume" energy efficient lighting program in all Home Depot stores across
Canada. Under the terms of the agreement, Divcom will be Home Depot's main
supplier of undercabinet lighting products in Canada. Linogene, a Divcom
subsidiary which specializes in undercabinet lighting, has established itself
as a leader in this niche business and will be the main provider of these
lighting products. Included in this program is a full range of LED fixtures as
well as energy efficient fluorescent products. With this program, Divcom
becomes the first company in Canada to introduce high power LED based retail
products.
    Illume is a brand that was developed by Divcom exclusively for Home Depot
and is expected to be rolled out in spring 2008. This program is in line with
Home Depot's eco-options program which is making a large push towards
environmentally friendly home products. The Illume program represents a
significant milestone in Divcom's plan to be a leader in the manufacturing of
energy efficient lighting fixtures,, especially the ones utilizing LED
technology.
    "This agreement represents one of the most important single-order in
Divcom's history and is testimony of the strong relationship we have built
with Home Depot," said Aslam Khatri, President and Chief Executive Officer of
Divcom Lighting. "While we have achieved this great accomplishment in Canada,
our goals and intentions are always looking forward at the U.S. market which
is ten times the Canadian market. We believe with our new energy efficient
products and a great distribution network available to us through our U.S.
Adjusta post division, we are poised to become a North American leader in
energy efficient lighting products."
    "Our strategic positioning is starting to pay off and as we can see
through this agreement, the energy efficiency trend clearly is the future of
the lighting market," said Joey Khatri, Executive Vice President of Divcom
Lighting. "Having made significant investments in R&D during the past three
years, Divcom is setting new quality standards for energy efficient lighting
products. We believe the Company is in a great position to seize this growing
market's business opportunities."

    About Divcom

    Divcom is a rapidly growing North American manufacturer of
architecturally designed energy-efficient lighting products for retail and
commercial markets across Canada and the United States. The Company's strategy
is to acquire lighting companies in the highly fragmented North American
lighting market, then grow sales organically by integrating the acquired
companies and their products lines into Divcom's extensive North American
marketing and distribution network, which includes more than 2,000
distributors and agents. The Company's products are used in residential, urban
communities, roads and tunnels, and in lighting for public, commercial,
industrial, hospitality and custom installations. For further information,
please visit www.divcomlighting.com.

    Forward-Looking Statements

    Certain statements made in this press release and other statements
regarding our strategy, future operations, financial position, future
revenues, projected costs, prospects, plans and objectives other than
statements of historical facts are forward-looking statements. We cannot
guarantee that we actually will achieve the results, plans, intentions or
expectations disclosed in our forward-looking statements and you should not
place undue reliance on them. There are a number of important factors that
could cause our actual results to differ materially from those indicated or
implied by forward-looking statements including, but not limited to, the
impact of any special items or of any dispositions, monetization, mergers,
acquisitions, business combinations or other transactions that may be
announced or that may occur after the date hereof. Risks that could cause
actual results to differ materially from those projected include, but are not
limited to, the effect of general economic conditions, decreases in demand for
the Company's products, increases in costs of raw materials, changes in the
relative value of the Canadian and U.S. currencies, and fluctuations in
selling prices. For a description of material risk factors, please refer to
the Company's annual information form and to our periodic filings with
securities regulatory authorities, which are available on SEDAR at
www.sedar.com. These factors should be read as being applicable to all related
forward-looking statements wherever they appear in this press release. The
information in this press release, including any forward-looking statements,
is provided as of the date of this release and should not be relied upon as
representing our estimates as of any subsequent date. We do not assume any
obligation to update or revise any forward-looking statements except as
required by law, whether as a result of new information, future events or
otherwise.

    %SEDAR: 00011838E




For further information:

For further information: Aslam Khatri, President and CEO, Divcom
Lighting, (514) 693-2117; Deric Vourantonis, C.A., VP Finance, Divcom
Lighting, (514) 693-2117; Matthieu Cardinal, Investor Relations, The Equicom
Group Inc., (514) 844-6054, mcardinal@equicomgroup.com

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DIVCOM LIGHTING INC.

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