Divcom to discontinue operations of U.S. subsidiaries in order to reduce losses and to focus on better-performing Canadian operations



    MONTREAL, March 18 /CNW Telbec/ - Divcom Lighting Inc. (TSX: DVQ)
("Divcom" or the "Company") announced today that after incurring substantial
losses in its US subsidiaries and given the current economic conditions in the
United States, the Company has decided to discontinue the operations of its US
subsidiaries.
    For the year 2007 Divcom recorded a decline of over 20% in revenues at
its US subsidiaries, a trend that has continued in the first quarter of 2008.
Although the December 2005 acquisition of the Company's US subsidiary Adjusta
Post, a supplier of commodity products, doubled the Company's revenues,
Adjusta Post also operated on a much lower gross margin basis than Divcom is
accustomed to in its Canadian operations.
    "The recent substantial decline in revenues of our US operations has had
a major negative impact on the consolidated results of the Company. Regardless
of how well our Canadian operations perform we are constantly faced with the
losses at our US subsidiaries," said Aslam Khatri, President and Chief
Executive Officer of Divcom. "While Divcom's Canadian subsidiaries will
continue to sell their products in the United States, their products are
primarily sold in Canada. The Company intends to focus for the time being on
its Canadian operations and expects it will increase US operations in the
future when conditions permit."

    Divcom also announced the retirement of Mr. Jean Larouche as the
Company's Chief Operating Officer and the resignation of Mr. Deric Vourantonis
as Vice President, Finance.

    About Divcom

    Divcom is a manufacturer of architecturally designed energy-efficient and
"eco-friendly" lighting products for retail and commercial markets across
Canada and the United States. 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 Inc., (514) 693-2117

Organization Profile

DIVCOM LIGHTING INC.

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