GLV Inc. Discloses Third-Quarter Operating Results in Line With Expectations



    
        The Water Treatment Group further improves its profitability,
            while the Pulp and Paper Group takes measures to face
                       difficult economic conditions.

    - Consolidated revenues of $154.0 M, up 11.8% over consolidated revenues
      for the same quarter of the previous year. Excluding the favourable
      impact of exchange rate fluctuations and the acquisition closed the
      previous year, consolidated revenues posted a slight organic decrease
      of 1.7%;
    - Gross margin of 23.0% versus 20.0% last year, an improvement
      attributable to higher value-added contracts for new infrastructures
      within the Water Treatment Group and the Pulp and Paper Group's
      lucrative aftermarket business;
    - Normalized items totalling $5.7 M associated primarily with the Pulp
      and Paper Group, including restructuring costs of $3.8 M and a special
      doubtful accounts expense of $1.9 M motivated by difficult conditions
      in the pulp and paper industry;
    - Normalized EBITDA of $8.0 M, posting a 9.5% increase mainly
      attributable to the Water Treatment Group;
    - Consolidated normalized net earnings of $4.7 M or $0.18 per share
      (basic and diluted) in the third quarter, compared with $1.7 M or
      $0.07 per share (basic and diluted) the previous year;
    - Free cash flow of $4.7 M or $0.18 per share;
    - Order backlog of $291.0 M as at December 31, 2008, down 21.6% (at
      constant exchange rates) from September 30, 2008, due mainly to the
      Pulp and Paper Group;
    - Good financial position: $9.3 M reduction in total debt since March 31,
      2008, bringing the total net debt to invested capital to 22.0% as at
      December 31, 2008, compared with 28.3% as at March 31, 2008;
    - Consolidated results for the first nine months of fiscal 2009 (compared
      with consolidated and combined carve-out results for the same period of
      the previous year): revenues of $449.0 M (18.5% increase), normalized
      EBITDA of $22.8 M (36.4% increase) and normalized net earnings of
      $9.8 M or $0.37 per share (basic and diluted), up from $2.5 M or
      $0.10 per share (basic and diluted) the previous year.
    - In line with the recent restructuring plan and in the face of the
      continuing global economic crisis, Laurent Verreault, GLV's CEO, has
      elected to reduce his annual base salary to a nominal $1.00 for the
      upcoming fiscal 2010 and to forgo all future pension allowances as per
      his employment contract. This decision is supported by a salary freeze
      for senior management for the same period.
    

    MONTREAL, Feb. 12 /CNW Telbec/ - (All amounts are in Canadian dollars
unless otherwise indicated.) GLV Inc. ("GLV" or the "Company"; ticker symbols
GLV.A, GLV.B/TSX) discloses its financial results for the third quarter ended
December 31, 2008. As global economic and financial conditions continued to
deteriorate in the third quarter, both of GLV's groups experienced a decrease
in their new order bookings, especially the Pulp and Paper Group, and a
slowdown in their organic revenue growth. In line with management's
expectations, the Water Treatment Group's profitability nonetheless continued
to improve, consistent with the objectives of the recent global reorganization
of its operations. Given the difficult conditions currently prevailing in the
pulp and paper industry worldwide, GLV adopted a series of proactive and
defensive measures within its Pulp and Paper Group, including the
implementation of a cost-reduction program and the recognition of a special
doubtful accounts expense. These measures entailed costs of $5.7 M, of which
restructuring costs of $3.8 M and a special doubtful accounts expense of $1.9
M.

    Consolidated Results of GLV
    ---------------------------

    GLV recorded third-quarter consolidated revenues of $154.0 M, up 11.8%
over the same quarter of the previous year. Excluding the favourable impact of
exchange rate fluctuations and the acquisition of AJM Environmental Services
Pty Ltd. ("AJM") closed the previous year, consolidated revenues posted a
slight organic decrease of 1.7%. For the nine-month period ended December 31,
2008, GLV achieved consolidated revenues of $449.0 M, posting an 18.5%
increase (15.8% increase at constant exchange rates) over the same period a
year earlier, including organic growth of 12.7% at constant exchange rates.
The consolidated gross margin as a percentage of revenues improved from 20.0%
in the third quarter of last year to 23.0% this year. Both of GLV's groups, as
well as the Manufacturing unit, contributed to this improvement. For the first
nine months of fiscal 2009, the gross margin as a percentage of revenues rose
from 21.1% to 22.2%. This general improvement is attributable to higher
value-added contracts for new infrastructures within the Water Treatment Group
and the Pulp and Paper Group's lucrative aftermarket business.
    Excluding the normalized items of $5.7 M primarily associated with the
Pulp and Paper Group, third-quarter consolidated earnings before depreciation
and amortization, financial expenses and income taxes, or normalized
EBITDA(1), amounted to $8.0 M, compared with normalized EBITDA of $7.3 M the
previous year, due to the favourable impact of currency fluctuations and the
Water Treatment Group's improved profitability. The normalized EBITDA margin
as a percentage of revenues stood at 5.2%, compared with 5.3% in the same
period of the previous year. For the nine-month period, consolidated
normalized EBITDA totalled $22.8 M, compared with consolidated and combined
carve-out normalized EBITDA of $16.7 M the previous year, whereas the
normalized EBITDA margin as a percentage of revenues stood at 5.1% versus 4.4%
for the same period of the previous year. GLV closed the third quarter with
normalized net earnings(3) of $4.7 M or $0.18 per share (basic and diluted),
compared with normalized net earnings of $1.7 M or $0.07 per share (basic and
diluted) in the same quarter of the previous year. Consolidated normalized net
earnings for the first nine months totalled $9.8 M or $0.37 per share (basic
and diluted), compared with normalized consolidated and combined carve-out net
earnings of $2.5 M or $0.10 per share (basic and diluted) in the corresponding
nine-month period of the previous year.

    Results and Outlook for the Water Treatment Group
    -------------------------------------------------

    The Water Treatment Group's third-quarter revenues grew by 11.4% (2.0%
growth at constant exchange rates) to $75.9 M. Acquired in March 2008, AJM
continues to bring a contribution in line with and even above management's
expectations. Excluding this acquisition, the group's revenues posted a 3.6%
organic decrease (at constant exchange rates) due mainly to the significant
slowdown in the United Kingdom municipal market. For the nine-month period,
the group's revenues increased by 11.1% (10.6% increase at constant exchange
rates) to total $209.6 M. This increase is attributable to AJM's contribution
coupled with a 4.4% organic growth (at constant exchange rates). Excluding
various restructuring costs of $0.2 M, the group's normalized EBITDA amounted
to $5.7 M in the third quarter, compared with $3.9 M the previous year. The
normalized EBITDA margin thus rose from 5.7% to 7.5%. The restructuring of the
Water Treatment Group's North American operations carried out during the
previous year is yielding benefits in line with management's expectations. A
stronger focus on higher value-added contracts and a more efficient execution
of contracts notably contributed to improve the group's gross margin.
Segmented normalized EBITDA for the first nine months totalled $11.9 M for a
normalized EBITDA margin of 5.7%, compared with $10.5 M for a 5.5% margin the
previous year.
    As at December 31, 2008, the Water Treatment Group's order backlog stood
at $192.3 M. At constant exchange rates, it reflected a 14.7% decrease from
September 30, 2008, but a 0.4% increase over December 31, 2007. The decrease
of approximately $10 M in the order backlog from September 30, 2008 can be
explained mainly by GLV's voluntary withdrawal from a project worth some $7 M,
as the financial guarantees offered by the customer were deemed insufficient
by GLV. This decision is consistent with the stricter risk management measures
adopted by GLV since the beginning of the economic slowdown to preserve the
solidity of its order backlog and balance sheet. In addition, the volume of
new order bookings fell short of management's expectations in most of the
Water Treatment Group's business segments during the third quarter.
    Management believes that the particularly severe slowdown that has
affected the United Kingdom municipal market for the past several months could
continue during the next months. However, it believes that conditions in the
North American municipal market should be more favourable. To stimulate the
economy, the new U.S. federal administration and the Canadian government have
proposed to inject substantial funds into infrastructure projects, which
should favour the expansion and rebuilding of municipal water treatment
infrastructures. In addition, the Water Treatment Group has undertaken to
intensify its development efforts in the municipal systems upgrading projects
niche, where demand is more stable and Eimco Water Technologies benefits from
strong technologies and expertise. Finally, GLV is continuing in its efforts
to broaden and enhance its technological portfolio of municipal water
treatment solutions. For instance, it recently announced it has been granted
an exclusive license for U.S. and Canadian municipalities to market an
advanced sludge technology that is one of the most ecological and economical
on the market.
    In the industrial segment, the Water Treatment Group is currently
witnessing a certain slowdown in the demand for its water intake screening
technologies due to the tightening of sources of financing for major projects
in the energy sector. However, the group continues to develop its customer
base in the food and beverage processing industry, where it has notably
undertaken to export the technologies and know-how acquired from AJM toward
Southeast Asia. In addition, GLV recently announced its association with a
world leader to create a North American joint venture, Global Water & Energy,
LLC ("GW&E"), which holds an exclusive and perpetual license to market a
selection of processes for the anaerobic treatment of industrial wastewater
and organic waste and for the conversion and handling of biogas to produce
energy. GW&E, which is 70%-owned by GLV and 30% by its partner, will primarily
target the North American food and beverage processing industry as well as
certain other key sectors. This type of initiative demonstrates GLV's will to
continue developing its Water Treatment Group in order to ensure its long-term
success in an industry that, despite the current global economic slowdown,
holds strong growth potential.
    Although management remains cautious as to the Water Treatment Group's
outlook over the short and medium term, it believes that the group's
performance should be within the expected range for the fiscal year ending
March 31, 2009. In upcoming quarters, GLV will continue to exercise tight
control over the Water Treatment Group's expenses while seeking to preserve
the Water Treatment Group's competitive strength when the global industry
resumes its growth, notably as part of upcoming infrastructure projects.

    Results and Outlook for the Pulp and Paper Group
    ------------------------------------------------

    The Pulp and Paper Group's third-quarter revenues amounted to $73.0 M,
posting a 2.0% organic decrease at constant exchange rates. For the first nine
months of the current fiscal year, the group's revenues increased by 19.5% at
constant exchange rates, to $226.9 M. This growth stemmed primarily from the
chemical pulp preparation segment, but also from the aftermarket.
    In December 2008, considering the major impact of the economic slowdown
on the global pulp and paper industry, GLV implemented streamlining measures
in its Pulp and Paper Group in North America and Europe in order to reduce its
operating costs by some $5.5 M annually. These measures entailed restructuring
costs of $3.6 M that were fully recognized in financial results for the third
quarter of fiscal 2009. Considering the enduring difficult conditions in this
industry, the Pulp and Paper Group could adopt further streamlining measures
in upcoming quarters. Also during the third quarter, in light of the rapid
deterioration of the pulp and paper market and financial position of certain
manufacturers, GLV's management recorded a special doubtful accounts expense
of $1.9 M in the Pulp and Paper Group, in addition to normal provisions based
on historical factors.
    Excluding normalized items related to the restructuring costs and a
special doubtful accounts expense, the Pulp and Paper Group's normalized
EBITDA amounted to $5.4 M in the third quarter, compared with $5.2 M the
previous year, whereas the normalized EBITDA margin decreased from 7.8% to
7.5%. For the first nine months, the Pulp and Paper Group's normalized EBITDA
totalled $18.9 M, compared with $11.2 M the previous year, while its
normalized EBITDA improved to 8.4% from 6.2% last year. Two key factors
enabled this group to increase its gross margin, specifically the
strengthening of its international manufacturing outsourcing network and the
implementation of an aftermarket business model in Europe similar to the one
which has proven successful for several years in North America.
    As at December 31, 2008, the Pulp and Paper Group's order backlog stood
at $88.2 M. At constant exchange rates, it reflected respective decreases of
35.3% from September 30, 2008 and 40.5% from December 31, 2007. These
decreases are due mainly to the economic slowdown severely affecting the
global pulp and paper industry. They are also partly attributable to the
significant revenues recognized during the past three quarters according to
the execution schedule of large-scale contracts in progress, including the $60
M order in Europe that was almost finalized during the third quarter. In the
current economic context, GLV's management remains cautious as to the Pulp and
Paper Group's overall outlook between now and the end of fiscal 2009, which
could probably yield a performance below expectations.
    Given the slowdown in investments in the pulp and paper industry, the
Pulp and Paper Group is focusing most of its efforts on the aftermarket in
both North America and Europe so as to maximize its market share in this
segment. In addition, the recently implemented cost-reduction program will
enable the group to achieve substantial savings as of the next quarters.

    Overall Outlook of GLV
    ----------------------

    As at December 31, 2008, GLV's order backlog totalled $291.0 M. At
constant exchange rates, it reflected decreases of 21.6% from September 30,
2008 and 15.8% from December 31, 2007.
    Since the beginning of the economic slowdown, GLV has reinforced its
overall cost control measures at head office and in both its groups. It has
also adopted stricter measures with respect to the management of its liquidity
and risks, especially project-related credit risks. In line with the recent
restructuring plan and in the face of the continuing global economic crisis,
GLV's CEO, Laurent Verreault, has elected to reduce his annual base salary to
a nominal $1.00 for the upcoming fiscal 2010 and to forgo future pension
allowances as per his employment contract. This decision is further supported
by a general salary freeze for the Company's senior management for the same
period.
    These initiatives reflect GLV's corporate philosophy and values and
attest to its senior management's desire and commitment to build shareholder
value by maximizing on the Company's fundamentals and long-term potential.
    GLV's management will continue to closely monitor global economic
conditions and will promptly react, if deemed appropriate based on its reading
of market trends, by implementing additional cost-reduction measures. It
should be noted that GLV's manufacturing outsourcing strategy provides it with
the flexibility needed to rapidly adjust its cost structure to the market
reality.
    Management believes that GLV has certain advantages to face the current
global financial and economic crisis, including the following:

    
    - Despite its decrease, the Company still has a good order backlog, which
      should sustain a good level of business activity and revenues in
      upcoming months.

    - The recent reorganization of the Water Treatment Group's European and
      North American operations is yielding benefits in line with
      expectations, whereas the cost-reduction program recently implemented
      in the Pulp and Paper Group should produce recurring savings of more
      than $5 M annually.

    - In regard to GLV's customers, management believes that the tightening
      of credit markets is mostly affecting major investment projects for new
      infrastructures, while the demand for smaller-scale projects aimed at
      improving and upgrading existing infrastructures as well as for
      aftermarket business currently remains relatively strong. This market
      segment is the Pulp and Paper Group's primary field of expertise and an
      important niche for the Water Treatment Group, especially in the North
      American municipal market.

    - The new federal administration in the United States and the Canadian
      federal government have proposed infrastructure investment plans to
      stimulate the economy, which should benefit projects to upgrade
      municipal water treatment infrastructures.

    - Finally, GLV benefits from a good financial position. The Company
      notably reduced its total net debt by $9.3 M since the beginning of the
      fiscal year, bringing its total net debt to invested capital ratio to
      22.0% as at December 31, 2008. It should be noted that GLV's loans are
      being used exclusively to finance its working capital. Therefore,
      should the Company experience a decline in its business volume and,
      consequently, in its working capital requirements, it would make lesser
      use of its credit facilities.
    

    For fiscal 2009, based on its reading of GLV's business outlook, current
economic conditions and financial markets, management maintains with caution
the Company's objective, as disclosed in June 2008, of achieving consolidated
revenues of between $570 M and $600 M. However, although it maintains its goal
of achieving consolidated and segmented EBITDA margins of 10%, management
believes that the current economic context could defer the achievement of this
objective, which was initially scheduled for the end of fiscal 2010.

    About GLV Inc.
    --------------

    GLV Inc. is a leading global provider of technological solutions used in
water treatment and pulp and paper production. Its Water Treatment Group (also
known worldwide as "Eimco Water Technologies") specializes in the design and
international marketing of solutions for the treatment and re-use of municipal
and industrial wastewater and water used in various industrial processes. It
also offers water intake screening solutions for power stations and
desalination plants. With its extensive technological portfolio, the group is
positioned to provide comprehensive solutions for the filtration,
clarification, treatment and purification of water that will either be
returned into the environment, or be re-used in various industrial processes
or for domestic purposes. Its Pulp and Paper Group specializes in the design
and global marketing of equipment and systems used in various stages of pulp
and paper production, notably chemical pulping, pulp preparation and sheet
formation and finishing. This group ranks among the foremost players in its
industry and is a recognized leader in rebuilding, upgrading and optimization
services for existing equipment, as well as the sale of spare parts. GLV is
present in some 30 countries and approximately has 1,700 employees.

    
    Consolidated and Segmented Results, Cash Flows and Balance Sheet
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                                                                  Change
    (in thousands of $, except                   Three months       2008
    percentages, per share data                         ended     versus
    and number of shares)                         December 31,      2007
    -------------------------------------------------------------------------
                                              2008       2007          %
    -------------------------------------------------------------------------
    Revenues:
      Water Treatment                       75,897     68,105       11.4%
      Pulp and Paper                        72,994     66,576        9.6%
      Other and eliminations                 5,069      3,009       68.5%
    -------------------------------------------------------------------------
    Total                                  153,960    137,690       11.8%
    -------------------------------------------------------------------------
    Gross margin                            35,382     27,531       28.5%
    Selling and administrative
     expenses                               27,385     20,231       35.4%
    EBITDA                                   2,293      6,302      (63.6%)
    Restructuring costs and special
     doubtful accounts expense
      Water Treatment                          236        428      (44.9%)
      Pulp and Paper                         5,468          -          -
      Other and eliminations                     -         75          -
    -------------------------------------------------------------------------
    Total                                    5,704        503    1,034.0%
    -------------------------------------------------------------------------
    Costs related to the Arrangement
      Water Treatment                            -          -          -
      Pulp and Paper                             -        294          -
      Other and eliminations                     -        201          -
    -------------------------------------------------------------------------
    Total                                        -        495          -
    -------------------------------------------------------------------------
    Normalized EBITDA(1):
      Water Treatment                        5,690      3,902       45.8%
      Pulp and Paper                         5,448      5,207        4.6%
      Other and eliminations                (3,141)    (1,809)      73.6%
    -------------------------------------------------------------------------
    Total                                    7,997      7,300        9.5%
    -------------------------------------------------------------------------
    Depreciation and amortization:
      Water Treatment                        1,434      1,306        9.8%
      Pulp and Paper                           747        709        5.4%
      Other and eliminations                   711        785       (9.4%)
    -------------------------------------------------------------------------
    Total                                    2,892      2,800        3.3%
    -------------------------------------------------------------------------
    Normalized EBIT(2):
      Water Treatment                        4,256      2,596       63.9%
      Pulp and Paper                         4,701      4,498        4.5%
      Other and eliminations                (3,852)    (2,594)      48.5%
    -------------------------------------------------------------------------
    Total                                    5,105      4,500       13.4%
    -------------------------------------------------------------------------
    Financial expenses                      (1,304)     2,207          -
    Income taxes                               241        270      (10.7%)
      Effective tax rate                      34.2%      20.8%      13.3% pts
    -------------------------------------------------------------------------
    Net earnings (loss)                        464      1,025      (54.7%)
      per share (basic and diluted)(*)        0.02       0.04
    -------------------------------------------------------------------------
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    Normalized net earnings(3)               4,744      1,742      172.3%
      per share (basic and diluted)(*)        0.18       0.07
    -------------------------------------------------------------------------
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    Weighted average number
     of participating shares
     outstanding (in thousands):
      basic and diluted                     26,544     25,389        4.5%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Margins as a percentage
     of revenues:
      Gross margin                            23.0%      20.0%
      Normalized EBITDA                        5.2%       5.3%
      Normalized EBIT                          3.3%       3.3%
    -------------------------------------------------------------------------
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    Free cash flow(4)                        4,709      5,010
    -------------------------------------------------------------------------
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    Order backlogs:                        Dec. 31,  Sept. 30,   June 30,
                                              2008       2008       2008
    -------------------------------------------------------------------------
      Water Treatment                      192,293    202,243    200,397
      Pulp and Paper                        88,152    123,791    142,949
      Manufacturing Unit                    10,521      9,616     10,772
    -------------------------------------------------------------------------
    Total                                  290,966    335,650    354,118
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

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                                                                  Change
    (in thousands of $, except                    Nine months       2008
    percentages, per share data                         ended     versus
    and number of shares)                         December 31,      2007
    -------------------------------------------------------------------------
                                              2008       2007          %
    -------------------------------------------------------------------------
    Revenues:
      Water Treatment                      209,587    188,616       11.1%
      Pulp and Paper                       226,915    182,646       24.2%
      Other and eliminations                12,507      7,583       64.9%
    -------------------------------------------------------------------------
    Total                                  449,009    378,845       18.5%
    -------------------------------------------------------------------------
    Gross margin                            99,477     79,916       24.5%
    Selling and administrative
     expenses                               76,678     63,196       21.3%
    EBITDA                                  17,095      9,925       72.2%
    Restructuring costs and special
     doubtful accounts expense
      Water Treatment                          236        428      (44.9%)
      Pulp and Paper                         5,468          -          -
      Other and eliminations                     -         75          -
    -------------------------------------------------------------------------
    Total                                    5,704        503    1,034.0%
    -------------------------------------------------------------------------
    Costs related to the Arrangement
      Water Treatment                            -        173          -
      Pulp and Paper                             -        536          -
      Other and eliminations                     -      5,583          -
    -------------------------------------------------------------------------
    Total                                        -      6,292          -
    -------------------------------------------------------------------------
    Normalized EBITDA(1):
      Water Treatment                       11,850     10,453       13.4%
      Pulp and Paper                        18,958     11,241       68.7%
      Other and eliminations                (8,009)    (4,974)      61.0%
    -------------------------------------------------------------------------
    Total                                   22,799     16,720       36.4%
    -------------------------------------------------------------------------
    Depreciation and amortization:
      Water Treatment                        4,405      4,055        8.6%
      Pulp and Paper                         2,211      2,253       (1.9%)
      Other and eliminations                 2,271      2,127        6.8%
    -------------------------------------------------------------------------
    Total                                    8,887      8,435        5.4%
    -------------------------------------------------------------------------
    Normalized EBIT(2):
      Water Treatment                        7,445      6,398       16.4%
      Pulp and Paper                        16,747      8,988       86.3%
      Other and eliminations               (10,280)    (7,101)      44.8%
    -------------------------------------------------------------------------
    Total                                   13,912      8,285       67.9%
    -------------------------------------------------------------------------
    Financial expenses                       1,400      4,708      (70.3%)
    Income taxes                             1,315     (1,510)         -
      Effective tax rate                      19.3%      46.9%     -27.6% pts
    -------------------------------------------------------------------------
    Net earnings (loss)                      5,493     (1,708)         -
      per share (basic and diluted)(*)        0.21      (0.07)
    -------------------------------------------------------------------------
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    Normalized net earnings(3)               9,773      2,520      287.8%
      per share (basic and diluted)(*)        0.37       0.10
    -------------------------------------------------------------------------
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    Weighted average number
     of participating shares
     outstanding (in thousands):
      basic and diluted                     26,501     25,389        4.4%
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Margins as a percentage
     of revenues:
      Gross margin                            22.2%      21.1%
      Normalized EBITDA                        5.1%       4.4%
      Normalized EBIT                          3.1%       2.2%
    -------------------------------------------------------------------------
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    Free cash flow(4)                       15,539      9,602
    -------------------------------------------------------------------------
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    Order backlogs:                       March 31,   Dec. 31,
                                              2008       2007
    ----------------------------------------------------------
      Water Treatment                      185,639    164,644
      Pulp and Paper                       152,454    129,933
      Manufacturing Unit                     9,903      6,016
    ----------------------------------------------------------
    Total                                  347,996    300,593
    ----------------------------------------------------------
    ----------------------------------------------------------
    (*) Net earnings (loss) per share basic and diluted and normalized net
        earnings per share basic and diluted as of December 31, 2007 were
        calculated using the participating shares outstanding immediately
        after the completion of the Arrangement.

    (1) According to the reporting periods, earnings before depreciation and
        amortization, financial expenses, income taxes, items recorded
        outside the normal course of business including non-recurring costs
        directly related to the Arrangement, restructuring costs and special
        doubtful accounts expense.
    (2) According to the reporting periods, earnings before financial
        expenses, income taxes, items recorded outside the normal course of
        business including non-recurring costs directly related to the
        Arrangement, restructuring costs and special doubtful accounts
        expense.
    (3) According to the reporting periods, earnings before gains or losses
        recorded outside the normal course of business on the disposal of
        property, plant and equipment, other assets and commercial
        activities, non-recurring costs directly related to the Arrangement,
        restructuring costs, special doubtful accounts expense and impairment
        of long-lived assets (less related taxes).
    (4) Cash flows from operating activities excluding net changes in non-
        cash balances related to operations, less property, plant and
        equipment acquisitions (net of disposals).
    (5) EBITDA, EBIT, Normalized net earnings and Free cash flow are not
        performance measures consistent with Canadian generally accepted
        accounting principles ("GAAP"). The information regarding measures
        not consistent with Canadian GAAP is contained in the Management's
        Report filed on SEDAR and on the Company's website (www.glv.com)
        effective today.
    (6) Notice Regarding Forward-Looking Statements:
        --------------------------------------------
        This press release is designed to assist investors in understanding
        the nature and the importance of the changes and trends, as well as
        the risks and uncertainties associated with GLV Inc.'s operations and
        financial position. The statements set forth in this press release
        and other communications to the public that describe management's
        objectives, projections, estimates, expectations or forecasts may
        constitute forward-looking statements within the meaning of
        securities legislation. Forward-looking statements concern analysis
        and other information based on forecast future results and the
        estimate of amounts that cannot yet be determined. These may be
        observations concerning, among others, strategies, expectations,
        planned activities or actions to come. Forward-looking statements are
        recognized by the use of terms such as "forecast", "project" "could",
        "plan", "aim", "estimate" and other similar terms, possibly used in
        the future or conditional, notably in regard to certain assumptions.

        GLV Inc.'s management would like to point out that, by their very
        nature, forward-looking statements involve a number of risks and
        uncertainties such that GLV Inc.'s actual and future results could
        differ materially from those indicated. Factors of uncertainty and
        risk that might result in such differences include trends in the
        demand for GLV Inc.'s products and cost of its raw materials,
        fluctuations in the value of various currencies, pressures exerted on
        prices by the competition, compliance with environmental legislation
        and general changes in economic conditions. There can be no assurance
        as to the materialization of the results, performance or achievements
        as expressed in or underlying the forward-looking statements. Unless
        required to do so pursuant to applicable securities legislation, GLV
        Inc.'s management assumes no obligation as to the updating or
        revision of the forward-looking statements as a result of new
        information, future events or other changes.

        Additional information about the risk factors to which GLV Inc. is
        exposed is provided in the "Liquidity and Risk Management" section of
        the Interim Report for the period ended December 31, 2008, as well as
        the "Risk Management" section of the Management's Report contained in
        its most recent Annual Report for the fiscal year ended March 31,
        2008, which are available on SEDAR (www.sedar.com) and the Company's
        website (www.glv.com).


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    The Interim Management's Report for the three and nine-month periods
    ended December 31, 2008, along with the interim financial statements and
    accompanying notes, are filed effective today on SEDAR's website
    (www.sedar.com) and the Company's website (www.glv.com).
    -------------------------------------------------------------------------

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              CONFERENCE CALL WITH INVESTORS ON RESULTS FOR THE
             THIRD QUARTER AND FIRST NINE MONTHS OF FISCAL 2009

           Thursday, February 12, 2009 at 2:00 p.m. (Montréal Time)

    To participate in the conference call, please dial 1-800-731-5774 a few
    minutes before the start of the call. For those unable to participate, a
    taped re-broadcast will be available starting Thursday, February 12, 2009
    from 4:00 p.m. until midnight, Thursday, February 19, 2009, by dialing
    1-877-289-8525; access code 21296989 #. THE CONFERENCE CALL
    (AUDIO) WILL ALSO BE AVAILABLE AT WWW.GLV.COM. Members of the media are
    invited to listen in.
    -------------------------------------------------------------------------
    




For further information:

For further information: Marc Barbeau, CA, Executive Vice-President and
Chief Financial Officer, (514) 284-2224, marc.barbeau@glv.com; www.glv.com

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GLV Inc.

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