Garneau Inc. announces cessation of manufacturing business

NEX - GAR.H

NISKU, AB, Dec. 21 /CNW/ - Garneau Inc. ("Garneau" or the "Corporation") (GAR.H: NEX) announces that the Corporation will cease active business operations of its manufacturing business located at Nisku, Alberta. The large majority of the employees from the manufacturing business have either been terminated effective immediately or have been provided with working notice that their employment with Garneau will terminate February 28, 2010.

The decision to cease the operations of the manufacturing business and reduce staff was brought forward as a result of the process undertaken by the Special Committee of Directors (the "Special Committee") and the Board of Directors in connection with their continuing efforts to preserve shareholder value in the face of insufficient work orders to maintain a profitable business. The Special Committee will continue in its review of strategic alternatives for Garneau, including the possible sale of the Corporation's manufacturing equipment, real property and buildings, which are situated in a prime industrial location in Nisku, Alberta.

    
    Forward-Looking Information
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Certain information in this press release contains forward-looking statements. These statements relate to future events or our future performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe", "would" and similar expressions. These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Garneau's control, including: the impact of general economic conditions; industry conditions; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; fluctuations in commodity prices and foreign exchange and interest rates; stock market volatility and market valuations; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas service operations; product demand and market acceptance; the impact of competitive products and pricing; technological advancements; competition for, among other things, capital, work orders and skilled personnel; incorrect assessments of the value of acquisitions; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; technical and processing problems and other difficulties in producing products for the petroleum exploration and production industry; and obtaining required approvals of regulatory authorities. Garneau's actual results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Garneau will derive from them. Except as required by law, Garneau undertakes no obligation to publicly update or revise any forward-looking statements. For Risk Factors in respect of Garneau, please refer to our Annual Information Form at www.sedar.com.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

%SEDAR: 00008952E

SOURCE GARNEAU INC.

For further information: For further information: Glen Garneau, President and CEO, gleng@garneau-inc.com, Phone: - (780) 955-2396, Fax: - (780) 955-7715

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GARNEAU INC.

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