Divcom Lighting completes private placement and debt reorganization to increase its working capital by $2.25 million



    MONTREAL, Nov. 21 /CNW/ - Divcom Lighting Inc. ("Divcom" or the
"Company") (TSX: DVQ), a leading North American manufacturer of energy
efficient lighting products, today announced the closing of a non-brokered
private placement of common shares at a price of $0.148 per share raising
gross proceeds of approximately $1,000,000. Mr. Aslam Khatri, President and
Chief Executive Officer of Divcom, acquired 2,702,703 common shares as part of
the private placement for an aggregate purchase price of $400,000.
    The Company has also issued to SIPAR Inc. ("SIPAR") a new subordinated
debenture in an amount of $3,000,000 due December 1, 2011, of which $2,500,000
will be used to repay Divcom's existing subordinated debenture held by SIPAR.
In this regard, Divcom has granted SIPAR 480,000 warrants, each entitling
SIPAR to acquire one common share for $0.148 for a period of five years. SIPAR
also acquired 1,689,190 common shares of the Company for an aggregate purchase
price of $250,000.
    In addition, Divcom has reached an agreement to postpone a balance of
purchase price payment of $533,333 due in connection with its acquisition of
Linogene Lighting Inc., which was due November 13, 2007, and which will now be
paid by the end of August 2008. The Company has also obtained a moratorium on
repayment of its loans to the Business Development Bank of Canada. Until June
30, 2008 the Company will only make interest payments.
    "The net effect of these refinancing transactions will be to increase our
working capital immediately by 2.25 million dollars, thus strengthening
Divcom's balance sheet," said Aslam Khatri, CEO of Divcom. "While Divcom has
gone through some difficult quarters in 2007, we believe we are now well
positioned for a significant turn-around. Our recently announced multi-million
dollar contract, the continuing trend towards energy efficient lighting,
normalized product orders at our U.S. divisions, as well as new business
development perspectives in commercial lighting should have a positive impact
on our finances in 2008. "

    About Divcom

    Divcom is a rapidly growing North American manufacturer of
architecturally designed energy-efficient and "eco-friendly" lighting products
for retail and commercial markets across Canada and the United States. The
Company's strategy is to seize new business opportunities in the lighting
industry and constantly improve its energy efficient product lines. Divcom's
products are distributed through its extensive North American marketing
network which includes more than 2,000 distributors and agents. The Company's
products are used for residential houses, public roads and tunnels, as well as
commercial, industrial and custom made lighting projects. 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. Such statements
are usually preceded by words such as "will", "believe" or "expects". 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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