Norwall Group Inc. reports results for the fourth quarter and year end
December 31, 2009

BRAMPTON, ON, April 30 /CNW/ - Norwall Group Inc. today reported a loss for the year ended December 31, 2009 of $8,158,000, or $1.14 per common share, compared to a consolidated net loss of $4,755,000, or $0.67 per common share.

For the fourth quarter ended December 31, 2009 the Company recorded a loss of $4,135,000 or $0.58 per common share, compared to a loss of $2,866,000 or $0.40 per common share, for the fourth quarter of 2008. These losses reflect the write down of its manufacturing equipment, severance, the negative impact of $962,000 in non-cash foreign exchange fluctuation and a 14.6% decline in revenues.

As a result of continued erosion of global wallcovering markets and the appreciation of the Canadian dollar it is no longer feasible for Norwall to profitably manufacture in Canada and sell its products largely denominated in US dollars. In response, the company's Board of Directors made the decision to reposition the business and outsource its manufacturing operations.

In early 2010 the Company concluded a product supply agreement with a South Korean company and has completed the sale of its manufacturing equipment to the same supplier. Manufacturing is expected to cease in Canada by the third quarter of 2010. Norwall subsequently entered into a conditional sales agreement for the sale of its manufacturing plant located in Brampton Ontario.

As an outcome of these transactions, in its 2009 results, the Company recognized a $2,826,000 non-cash write down of its manufacturing equipment and provided for a further $811,000 for anticipated 2010 severance and termination payments.

These non-cash charges totaling $3,637,000 together with a $1,988,000 year over year non-cash change in the translation of US denominated assets had a significant impact on the 2009 results. It should be noted that the operating loss before undernoted items declined from $4,748,000 to $1,804,000.

This decision has significantly impacted the employees of Norwall in Canada and the Company wishes to acknowledge their value and commitment during this extremely stressful time.

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 Balance Sheets
         (In thousands of Canadian dollars, except per share amounts)


                                                   December 31,  December 31,
                                                          2009          2008
                                                             $             $

    Assets

    Current assets
    Cash and cash equivalents                            3,343         2,294
    Accounts receivable                                  3,765         6,035
    Inventories                                          3,902         5,445
    Merchandising supplies                                 161           657
    Prepaid expenses and other                             135           439
    Assets held for sale                                 1,997             -
                                                  ---------------------------
                                                        13,303        14,870

    Assets held for sale                                 6,647             -

    Property, plant and equipment                        1,168        14,082

    Future income taxes                                  2,024         2,861
                                                  ---------------------------

                                                        23,142        31,813
                                                  ---------------------------
                                                  ---------------------------
    Liabilities

    Current liabilities
    Accounts payable and accrued liabilities             3,274         3,410
    Current portion of long-term debt                    3,942         4,862
                                                  ---------------------------

                                                         7,216         8,272
                                                  ---------------------------
    Shareholders' Equity

    Share capital                                       33,134        33,134

    Accumulated other comprehensive income (loss)           21          (522)

    Deficit                                            (17,229)       (9,071)
                                                  ---------------------------

                                                        15,926        23,541
                                                  ---------------------------

                                                        23,142        31,813
                                                  ---------------------------
                                                  ---------------------------



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


                      FOR THE THREE MONTHS ENDED       FOR THE YEAR ENDED
                      --------------------------- ---------------------------
                       December 31,  December 31,  December 31,  December 31,
                              2009          2008          2009          2008
                      --------------------------- ---------------------------
    Sales                    4,937         5,783        23,558        29,094

    Cost of goods sold       3,352         5,724        17,165        23,946
                      --------------------------- ---------------------------
    Gross profit             1,585            59         6,393         5,148

    Selling, general
     and administrative
     expenses                1,922         2,447         8,197         9,896
                      --------------------------- ---------------------------
    Loss before the
     undernoted               (337)       (2,388)       (1,804)       (4,748)

    Restructuring and
     other costs            (3,659)         (255)       (4,708)         (331)
                      --------------------------- ---------------------------
    Loss from
     operations
     before the
     following items        (3,996)       (2,643)       (6,512)       (5,079)

    Foreign exchange
     gain (loss)                86         1,105          (793)        1,714

    Impairment of
     goodwill                    -        (1,693)            -        (1,693)

    Interest expense           (58)          (54)         (227)         (225)
                      --------------------------- ---------------------------
    Loss before
     income taxes           (3,968)       (3,220)       (7,532)       (5,283)

    Income taxes
     (expense) recovery       (167)          354          (626)         (528)
                      --------------------------- ---------------------------
    Net loss for the
     period                 (4,135)       (2,866)       (8,158)       (4,755)
                      --------------------------- ---------------------------
    Basic and diluted
     loss per common
     share                   (0.58)        (0.40)        (1.14)        (0.67)
                      --------------------------- ---------------------------
                      --------------------------- ---------------------------
    Weighted and
     average number
     of common shares
     outstanding         7,135,032     7,135,032     7,135,032     7,135,032
                      --------------------------- ---------------------------
                      --------------------------- ---------------------------
    

SOURCE NORWALL GROUP INC.

For further information: For further information: (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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