Norwall Group Inc. Business Update



    BRAMPTON, ON, June 24 /CNW/ - Norwall Group Inc. (TSXV: NGI) ("Norwall")
announced today that Wal-Mart US has informed Norwall that it will no longer
be a supplier of borders effective at the beginning of November 2009. It is
expected that Norwall will continue to produce product for Wal-Mart US until
September 2009 and thereafter Wal-Mart US will continue to order from Norwall
in October and early November 2009 after which Wal-Mart US will cease ordering
product from Norwall.
    In fiscal year 2008, Wal-Mart US accounted for 10.1 percent of Norwall's
consolidated sales, or $2,947,325. The full impact of this decision will begin
in the fourth quarter of 2009 and subsequent years. Norwall is working with
Wal-Mart US to mitigate the impact of any inventory which is currently being
held. In addition, Norwall will be adjusting warehouse, administrative and
production employees' costs to partially compensate for this loss.

    About Norwall

    Norwall manufactures quality residential wallpapers and borders and
distributes them to thousands of home centres, specialty stores and mass
merchants in Canada and through its wholly-owned operating subsidiary, Patton
Wallcoverings, in the United States.

    Forward-looking Statements

    Certain statements included in this release contain words such as
"could", "expects", "expectations", "may", "anticipates", "believes",
"intends", "estimates" and "plans" (and similar expressions) and constitute
"forward-looking statements" within the meaning of applicable securities law.
These statements are based on Norwall's current expectations, estimates,
forecasts and projections about the operating environment, economies and
markets in which Norwall and its subsidiaries operate. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which are difficult to predict and may cause the actual results, performance
or achievements of Norwall, or outcomes or results, to be materially different
from any future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among others, such
factors which are described in Norwall's management's discussion and analysis
of operations and other filings with Canadian regulatory authorities. These
statements, although considered reasonable by Norwall at the date of this
press release, may prove to be inaccurate and consequently Norwall's actual
results could differ materially from its expectations as set out or implied in
this release. Unless otherwise required by applicable securities laws, Norwall
disclaims any intention or obligation to update or revise any forward-looking
statements.

    %SEDAR: 00002584E




For further information:

For further information: James J. Patton, President and Chief Executive
Officer at (905) 791-2700, (jpatton@norwallgroup.com) or Edward Diochon, Vice
President of Finance at (905) 791-2700, (ediochon@norwallgroup.com)

Organization Profile

NORWALL GROUP INC.

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