Exco Technologies Limited - Second Quarter ended March 31, 2007 Quarterly Dividend Declared, Appointment of New Director and Normal Course Issuer Bid Renewal



    TORONTO, April 26 /CNW/ - Exco Technologies Limited (TSX-XTC) today
announced results for its second quarter ended March 31, 2007. In addition,
the Company announced that a quarterly cash dividend of $0.015 per share will
be paid June 29, 2007 to shareholders of record on June 15, 2007.

    
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                                6 Months Ended            3 Months ended
                                    March 31                  March 31
                                            ($000s, except per share amounts)
                                    2007        2006        2007        2006
                                    ----        ----        ----        ----
    Sales                       $104,133    $104,157     $55,382     $53,968
    Net income (loss)
     before taxes                 $4,416     ($3,694)     $2,579     ($6,653)
    Net income (loss)             $2,967     ($5,364)     $1,859     ($7,360)
    Basic and diluted
     earnings (loss)
     per share                     $0.07      ($0.13)      $0.04      ($0.18)
    Common shares
     outstanding              41,406,000  41,606,000  41,406,000  41,606,000

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    Exco Technologies Limited recorded net income of $1.9 million, or 4 cents
per share, on revenues of $55.4 million. In the same quarter last year, the
Company recorded a net loss of $7.4 million, or 18 cents per share, on revenue
of $54.0 million. The improvement in net income is primarily attributable to
the absence of any goodwill impairment charge which in the second quarter of
last year was $8.3 million or $0.20 per share.
    Exco's quarterly sales of $55.4 million represent the highest sales level
for the Company since September 2005. The increase is primarily due to the
impressive growth at the Polydesign division in Morocco. Sales increased
123.2% compared to the comparable quarter last year and 47.3% compared to the
first quarter in 2007. Overall gross margin in the quarter also improved 2%
over last year to 24%.
    "We are pleased with the growth at our Moroccan facility and the
improvement in the Company's gross margin. We will continue to focus our
attention on our lower margin facilities in order to return them to
traditional margin levels," said Brian Robbins, President and CEO of Exco
Technologies Limited. "We feel the Company is well positioned to grow in the
European market while focusing on profit margins through cost cutting and
pricing strategies."
    Exco's Casting and Extrusion segment reported revenues of $34.1 million
in the second quarter compared to $34.3 million in the same period last year.
This segment's operating earnings were $870 thousand compared to a loss of
$8.6 million last year. Last year's goodwill impairment of $8.3 million
accounts for the majority of this change. The Automotive Solutions segment
reported sales of $21.3 million in the second quarter compared to
$19.6 million in the same period last year. This segment's operating earnings
were $1.8 million compared to $2.1 million last year.
    The company is also pleased to announce the appointment of Stephen
Rodgers as a director of the Board effective April 26, 2007. Mr. Rodgers has
held numerous operational and marketing positions at General Motors of Canada
and Magna International including Tesma, Intier and the corporate office over
a 30 year career in the automotive industry. His knowledge of global
automotive OEM and Tier 1 customers make him a valuable addition to Exco's
Board at a time when the company is executing its strategy of European
expansion and further penetration of the foreign domestic OEM market.
    The Company also announced that it will be renewing its normal course
issuer bid for an additional twelve month period until May 7, 2008. Under the
terms of the renewed bid, Exco may acquire up to 2,050,000 common shares,
representing approximately 5% of Exco's currently issued and outstanding
common shares. All purchases will be made through the facilities of, and in
accordance with the rules of the Toronto Stock Exchange. All shares purchased
under the bid will be cancelled. Under Exco's current normal course issuer bid
which expires on May 7, 2007, Exco has to date purchased 212,600 common shares
at an average price per share of $3.77. The Board of Directors of Exco
believes that, given the Exco's strong cash position, the purchase of shares
under the bid to be an appropriate and desirable use of available funds.
    The dividend is an "eligible dividend" in the accordance with Section
89(14) of the Income Tax Act of Canada.

    (for further information please refer to the Company's Second Quarter
Interim Financial Statements in the Investor Relations section posted at
www.excocorp.com. Alternatively, please refer to www.sedar.com after April 26,
2007.)

    Exco Technologies Limited is a global supplier of innovative technologies
servicing the die-cast, extrusion and automotive industries. Through our 13
strategic locations, we employ 2,200 people and service a diverse and broad
customer base.

    Management will hold a conference call to discuss the second quarter
results on Friday April 27, 2007 at 11:00 am (EST). The local dial in number
for the call is (416) 644-3415 or toll free 1-800-732-9307. To access the live
audio webcast, please log on to www.excocorp.com or www.q1234.com a few
minutes before the event. Real Player is required for access. For those unable
to participate on April 27, 2007, an archived version will be available on the
Exco website.

    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 include, among other
things: industry cyclicality; global economic conditions, causing decreases in
automobile production volumes and demand for capital goods; changing demand
for specific models or products; price reduction pressures; pressure to absorb
certain fixed costs; dependence on major customers and changes in such
customers' financial capabilities; technological changes; compliance with
various laws; obtaining necessary permits and consents; fluctuations in
currency exchange and interest rates; employee work stoppages; dependence on
key employees; the competitive nature of the automotive and capital goods
industries, including competition with suppliers operating in low cost
countries; product supply and demand; the conduct of business in foreign
countries; and other risks, uncertainties and assumptions as described in the
Company's Management's Discussion and Analysis included in our 2006 Annual
Report, in our 2006 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: Exco Technologies Limited (TSX-XTC), Contact:
Paul Riganelli, Vice-President, Finance and Chief Financial Officer,
Telephone: (905) 477-3065, Website: http://www.excocorp.com


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