Exco Technologies Limited - Press Release



    TORONTO, June 1 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced that it has executed agreements with Chrysler LLC for the recovery
of all of its pre-petition accounts receivable and all existing contracts with
Chrysler LLC will be assumed by the newly formed Chrysler/Fiat entity. The
Company has already received in excess of US$2.5 million from Chrysler LLC in
this regard. Receipt of the balance of approximately US$700,000 is scheduled
to be paid during the month of June.
    The Company's account receivable exposure to Visteon Corporation
(Visteon) and General Motors Corporation (GM) as a result of recent filings
for Chapter 11 bankruptcy protection is approximately US$600,000 and
US$200,000 respectively. Partial recovery of these amounts is expected as the
Company asserts its rights for shipments made within the 20 day administrative
claim period and certain tooling lien rights.
    The Company also announced that it concluded the sale of its Techmire
facility in Anjou, Quebec for net cash proceeds of $3.6 million.
    "We are of course disappointed to see such insolvencies taking place,
however, we feel that restructuring vital to the future of the North American
automotive industry is now taking place and this will benefit the OEM's,
Tier's and suppliers such as Exco", said Exco CEO Brian Robbins.
    The Company continues to have a strong balance sheet with no long term
debt and net cash of approximately $9 million.

    Exco Technologies Limited is a global supplier of innovative technologies
servicing the die-cast, extrusion and automotive industries. Through our 10
strategic locations, we employ 1,500 people and service a diverse and broad
customer base.

    This news release contains forward-looking information and forward-
looking statements within the meaning of applicable securities laws. We use
words such as "anticipate", "plan", "may", "will", "should", "expect",
"believe", "estimate" and similar expressions to identify forward-looking
information and statements. Such forward-looking information and statements
are based on assumptions and analyses made by us in light of our experience
and our perception of historical trends, current conditions and expected
future developments, as well as other factors we believe to be relevant and
appropriate in the circumstances. Readers are cautioned not to place undue
reliance on forward-looking information and statements, as there can be no
assurance that the assumptions, plans, intentions or expectations upon which
such statements are based will occur. Forward-looking information and
statements are subject to known and unknown risks, uncertainties, assumptions
and other factors which may cause actual results, performance or achievements
to be materially different from any future results, performance or
achievements expressed, implied or anticipated by such information and
statements. These risks, uncertainties and assumptions are described in the
Company's Management's Discussion and Analysis included in our 2008 Annual
Report, in our 2008 Annual Information Form and, from time to time, in other
reports and filings made by the Company with securities regulatory
authorities.
    While the Company believes that the expectations expressed by such
forward-looking information and statements are reasonable, there can be no
assurance that such expectations and assumptions will prove to be correct. In
evaluating forward-looking information and statements, readers should
carefully consider the various factors which could cause actual results or
events to differ materially from those indicated in the forward-looking
information and statements. Readers are cautioned that the foregoing list of
important factors is not exhaustive. Furthermore, the Company disclaims any
obligations to update publicly or otherwise revise any such factors or any of
the forward-looking information or statements contained herein to reflect
subsequent information, events or developments, changes in risk factors or
otherwise.

    %SEDAR: 00003420E




For further information:

For further information: Paul Riganelli, Vice-President, Finance and
Chief Financial Officer, Telephone: (905) 477-3065 Ext. 7228, Website:
http://www.excocorp.com


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