Norwall Group Inc. reports results for the fourth quarter and year end December 31, 2008



    BRAMPTON, ON, April 30 /CNW/ - Norwall Group Inc. today reported a loss
for the year ended December 31, 2008 of $4,755,000, or $0.67 per common share,
compared to a consolidated net loss of $3,008,000, or $0.45 per common share.
Non-cash charges of $3,026,000 in respect of the impairment of goodwill and
property, plant and equipment, an increase in the allowance for doubtful
accounts and an increase in the reserve for inventory obsolescence were offset
by a year over year foreign exchange movement of $3,117,000. Net earnings also
reflect the loss of business from a major customer reflecting a negative
impact of $1,820,000.
    For the fourth quarter ended December 31, 2008 the Company recorded a
loss of $2,866,000 or $0.45 per common share, compared to a loss of $380,000
or $0.05 per common share, for the fourth quarter of 2007. These losses
reflect the goodwill impairment, the increased allowance for doubtful accounts
and the reduction in business of a significant account of $1,412,000.

    Norwall Group (TSX:NGI) 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.

    This Press Release contains forward-looking statements reflecting
management's current expectations regarding future results of operations,
economic performance, financial conditions, and achievements of the Company.
Actual results may differ materially from those in such statements. The
Company wishes to caution the reader that those important factors described
elsewhere in the management's discussion and analysis of operations could
affect the Company's actual results and could cause such results to materially
differ from those expressed in any forward-looking statement made by, or on
behalf of, the Company.

    
                             NORWALL GROUP INC.
                    Consolidated Statements of Operations
         (In thousands of Canadian dollars, except per share amounts)

                                  FOR THE THREE MONTHS   FOR THE YEAR ENDED
                                         ENDED
                                  --------------------- ---------------------
                                   December   December   December   December
                                   31, 2008   28, 2007   31, 2008   28, 2007

                                  --------------------- ---------------------
    Sales                             5,783      7,503     29,094     37,410
    Cost of goods sold                5,724      5,525     23,946     28,049
                                  --------------------- ---------------------
    Gross profit                         59      1,978      5,148      9,361
    Selling, general and
     administrative expenses          2,447      2,400      9,896     11,420
                                  --------------------- ---------------------
    Loss before the undernoted       (2,388)      (422)    (4,748)    (2,059)
    Severance and termination
     costs                              255          3        331         44
                                  --------------------- ---------------------
    Loss from operations before
     the following items             (2,643)      (425)    (5,079)    (2,103)
    Foreign exchange (gain) loss     (1,105)       (59)    (1,714)     1,403

    Impairment of goodwill            1,693          -      1,693          -

    Interest expense                     54         61        225        327
                                  --------------------- ---------------------
    Loss before income taxes         (3,285)      (427)    (5,283)    (3,833)
    Recovery of income taxes           (419)       (47)      (528)      (825)
                                  --------------------- ---------------------
    Net loss for the period          (2,866)      (380)    (4,755)    (3,008)
                                  --------------------- ---------------------
    Basic and diluted loss per
     common share                     (0.40)     (0.05)     (0.67)     (0.45)

                                  -------------------------------------------
                                  -------------------------------------------
    Weighted and average number
     of common shares
     outstanding                  7,135,032  7,135,032  7,135,032  6,661,027
                                  -------------------------------------------
                                  -------------------------------------------
    

    %SEDAR: 00002584E




For further information:

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

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NORWALL GROUP INC.

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